JSE-listed property investor buys six shopping malls as part of R2 billion deal

The Competition Commission has approved the transaction in which JSE-listed Dipula Properties will take over six shopping malls from the Moolman Group.

These properties are spread across four provinces, and form part of a R2 billion acquisition.

This marks Dipula’s largest acquisition to date and is funded in part by a R1.1 billion equity raise.

On Thursday, 22 October, the Competition Commission said it will recommend that the Competition Tribunal approve this deal.

Several interconnected parties form part of this deal. Luxanio is the acquiring party and is controlled by Mergence, which is owned by Dipula.

Luxanio will acquire two rental enterprises from Eptacor and six immovable rental enterprises from the Moolman Group. 

The Eptacor Target Properties are Kaalfontein Corner and Makro Bloemfontein, both of which are controlled by Eptacor.

The other target properties are Lephalale Mall, Sasolburg Mall, City Centre Polokwane, Game Centre Vryburg, Great North Plaza, and Rand Steam Shopping Centre.

These six shopping centres are owned by the Moolman Group, a family-founded property investment and development company established in 1967.

“The commission is of the view that the proposed transaction is unlikely to substantially lessen or prevent competition in any market,” the commission said. 

It added that the proposed transaction does not raise significant public interest concerns.

These sales form part of a R2 billion deal that will see Dipula add 90,000 m² of retail space to its portfolio.

One of the largest assets being acquired is Lephalale Mall in Limpopo. Dipula will acquire a 50% stake, with the Moolman Group and one other partner retaining the remaining half.

The remaining properties being acquired span four South African provinces: Limpopo, the Free State, Gauteng, and the North West.

“The transactions are transformational for Dipula’s portfolio,” CEO Izak Petersen said. 

He explained that the acquisition will increase his firm’s retail exposure to close to 80% of income in the short term, while reducing office exposure to around 10%.

“Dipula also expects to enhance income across the acquired assets through active asset management and the positive operational leverage created with our internal property management platform,” he said.