Major shopping mall in South Africa sold for R480 million
Dipula Properties has announced five acquisitions totalling roughly R700 million, with the largest being the R480 million acquisition of Protea Gardens Mall in Soweto.
Dipula is a JSE-listed South Africa-focused REIT with a defensive portfolio and more than two-thirds of its income from retail centres in townships, rural areas, and urban convenience nodes.
Izak Petersen, CEO of Dipula Properties, said the acquisitions are “an agile response to improving market conditions and a more favourable cost of capital environment”.
The largest mall is the 24,000 sqm Protea Gardens Mall in Soweto, which is anchored by national retailers including Shoprite, Boxer and Cashbuild, as well as several fashion retailers.
The mall boasts over 70% national tenant occupancy, presenting income durability.
“Protea Gardens Mall is an excellent strategic fit for Dipula with embedded growth and value unlock potential, underpinned by quality tenants and a growing consumer market,” said Petersen.
The group said that the acquisition supports Dipula’s strategic objective of growing its exposure to its targeted retail markets.
On top of this, the group also announced that it had concluded terms for two other retail additions that will deepen its presence in key and proven markets.
Woolworths Gezina is adjacent to the Dipula’s Gezina Galleries, and the 4,600sqm addition will be incorporated into the existing centre.
The expansion will enhance the overall tenant mix and bring the centre’s gross lettable area to roughly 20,000 sqm.
The company has also agreed to acquire the land adjacent to the 15,000 sqm Tower Mall in Jouberton. The move unlocks further expansion potential for the strongly performing shopping centre.
In addition to its retail acquisitions, Dipula also concluded terms for two other properties, further cementing its core focus on logistics and industrial assets.
This includes Airborne Industrial Park, located near OR Tambo International Airport, which is a fully let multi-tenanted park of 6,964sqm
Abland DC is a modern logistics development spanning more than 16,000sqm, which it said has a a strong tenant covenant on a long lease.
“Both these assets have excellent tenant profiles and are well aligned with our approach to capital allocation in the industrial sector, which is a core part of our strategy,” said Petersen
The group said that all properties are income- and quality-enhancing for Dipula’s portfolio.
The deals are subject to standard conditions precedent, with transfers expected between September and November 2025.
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