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Dipula to dispose of 13 non-core assets issued 5 August 2014

5th August 2014
Contributor: Dipula

In line with its strategy to trade out of non-core assets and improve the overall quality of its portfolio, Dipula has concluded agreements to sell 13 properties for a total purchase consideration of R51.8 million, which will be used to reduce debt.

The sale will reduce the number of properties in the Dipula portfolio from 180 to 167, thus reducing vacancies across Dipula's portfolio and increasing the average value of the properties within the portfolio by approximately 9% to R24.3m.

Izak Petersen, CEO of Dipula , comments: "Given the reduction to Dipula's interest expense from the reduction in debt and the saving on unrecoverable rates and operating costs, it is anticipated that the sale will be slightly yield enhancing."

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