Property

Nine South African shopping malls sold for R2 billion

Kirsten Minnaar • 28 August 2026

Dipula Properties is buying nine shopping centres across four provinces for R2 billion, funded in part by a R1.1 billion equity raise, in its biggest acquisition to date.

On 24 August, Dipula announced that it agreed to acquire a portfolio of shopping centres from Moolman Group and its co-investors in a R2 billion transaction.

This is Dipula’s most valuable transaction to date and will strengthen its national retail presence and enhance portfolio diversification, adding nine assets across four provinces.

At the same time, Dipula reported the successful completion of a private placement, securing subscription commitments of R1.1 billion in new equity.

The new Dipula shares are expected to be listed and commence trading on the JSE on 1 September 2026. Dipula will deploy the equity raised, together with existing debt facilities, to fund the acquisition.

Once the transaction is implemented, Dipula’s loan-to-value ratio will remain between 35% and 40%, well within its target range.

The property deal also ends the cautionary period on Dipula’s shares, which has been in place since 22 May 2026.

Dipula Properties CEO Izak Petersen said the transaction advances Dipula’s strategy of expanding its portfolio by adding well-located, high-quality convenience, township, and rural retail assets.

“The acquisition is strategically aligned with our portfolio strategy and reinforces Dipula’s commitment to uplift communities by providing accessible, everyday shopping experiences,” he said.

“This is not growth for the sake of scale. It is disciplined, selective growth that strengthens the quality and diversification of our portfolio and is accretive from day one.”

Dipula is acquiring the portfolio at a blended yield of 9.3%, which is below its weighted-average cost of capital, assuming a 40% debt and 60% equity funding mix.

“The strong support for our equity raise also demonstrates investor confidence in our strategy, our disciplined approach to capital allocation and the growth path ahead,” Petersen said.

Dipula adds 90,000 m² of retail space to its portfolio

Dipula’s portfolio spans 90,000 m² of income-producing retail space, let to a base of national tenants, including Checkers, Shoprite, Game, Cashbuild, and Makro.

Dipula is acquiring a 50% stake in Lephalale Mall in Limpopo, the largest asset in the portfolio by both size and value.

The mall spans 38,000 m² and is valued at R1.03 billion, with Dipula’s 50% stake valued at R516 million, accounting for a quarter of the transaction value.

Other Limpopo assets are Checkers Centre Polokwane, City Centre Polokwane, and Great North Plaza in Musina. The Moolman Group and one other partner will retain the remaining 50% in Lephalale Mall.

The portfolio also includes two assets in the Free State – Bloemfontein Makro and a 50% stake in Sasolburg Mall, formerly known as Sasolburg Junxion.

In Gauteng, Dipula is acquiring Kaalfontein Corner in Tembisa and Rand Steam Shopping Centre in Richmond. Game Centre Vryburg in the North West completes the portfolio’s geographic spread.

The transaction builds on Dipula’s acquisition spree over the past 12 months, which includes Protea Gardens Mall, Gezina Walk, Bayer Klerksdorp, and Airborne Business Park.

In addition, Dipula acquired Birch Acres Square – a 6,200 m² shopping mall with stores such as Spar, Clicks, Mr Price, and KFC in Tembisa – for R145.4 million.

“The transactions are transformational for Dipula’s portfolio, increasing retail exposure to close to 80% of income in the short-term, while reducing office exposure to around 10%,” Petersen said.

“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.”

The transaction is subject to the usual warranties. The sale of each asset will take effect separately, based on the applicable transfer, closing, or registration of the cession with the Deeds Office.

Dipula and Moolman Group look to future growth

Petersen explained that Dipula is pleased to undertake this portfolio transaction with the Moolman Group, with whom it has a long-standing business relationship.

“Dipula is growing in a disciplined manner, with a clear focus on target assets, earnings accretion, sustainable returns, and maintaining a robust balance sheet,” he said.

“The support received through the equity raise reinforces our confidence that we have the right strategy and the financial capacity to continue pursuing targeted growth.”

The sale of nine retail properties to Dipula will also strengthen Moolman Group’s balance sheet and support its substantial development pipeline.

“Growth is not only about retaining assets indefinitely. It also requires knowing when to realise value, recycle capital and create capacity for future developments,” said Moolman Group CEO Pieter Lombaard.

Current Moolman Group projects under construction include Kings Walk Mall, Green Gate Shopping Centre, Canal Plaza, and the Faerie Glen Shopping Centre redevelopment.

Future developments include De Poort Lifestyle Centre and Diemersfontein Markt in the Western Cape, as well as a promising list of redevelopments and extensions.