Dipula makes R2bn retail play backed by R1.1bn raise

• Dipula is acquiring nine shopping centres for R2 billion, taking acquisitions over the past 12 months to R3 billion.
• The REIT secured R1.1 billion in new equity, with strong investor support helping fund its biggest transaction to date.
• Retail exposure will rise to nearly 80% of income, while loan-to-value is expected to remain within its 35%-40% target range.

JSE-listed Dipula Properties is making its biggest acquisition yet, striking a R2 billion deal for nine shopping centres across four provinces as it accelerates a strategy of targeted, earnings-accretive growth.

The transaction with Moolman Group and its co-investors significantly expands Dipula's national retail footprint, adding almost 90,000sqm of income-producing retail space anchored by major national tenants including Checkers, Shoprite, Game, Cashbuild and Makro.

Crucially for investors, Dipula says the transaction will be accretive from day one. The deal is being supported by a successful R1.1 billion private placement, with the new shares expected to list and begin trading on the JSE on 1 September 2026.

Dipula will use the fresh equity together with existing debt facilities to fund the acquisition, while maintaining its loan-to-value ratio within its targeted 35% - 40% range.

It marks an important expansion phase for the South African-focused REIT. Including its latest deal, Dipula has now acquired 14 assets worth approximately R3 billion over the past 12 months.

Investor snapshot

• Transaction value: R2 billion
• New equity raised: R1.1 billion
• Assets acquired: Nine shopping centres
• Retail space: Nearly 90,000sqm
• Geographic reach: Four provinces
• Blended acquisition yield: 9.3%
• 12-month acquisitions: 14 assets worth R3 billion
• Post-transaction retail exposure: Close to 80% of income
• Target LTV: 35% - 40%

Investor-backed, strategy-led growth

‍Dipula CEO Izak Petersen says the transaction supports the REIT's strategy of selectively adding quality convenience, township and rural retail assets in locations where consumers conduct their everyday shopping.

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"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." Izak Petersen, CEO of Dipula Properties

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Dipula is acquiring the portfolio at a blended yield of 9.3%, which the company says is below its weighted average cost of capital based on an assumed funding mix of approximately 40% debt and equity. That funding discipline is important.

REIT acquisitions can increase portfolio scale without necessarily improving shareholder returns. Dipula is positioning the transaction differently: as growth intended to enhance earnings while simultaneously reshaping the underlying portfolio.

Investor appetite for that strategy was demonstrated through the R1.1 billion equity raise.

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"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 says.

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The transaction announcement also brings to an end the cautionary under which Dipula shares had traded since 22 May 2026.

Expanding its national retail footprint

‍The nine-property portfolio gives Dipula greater exposure across Limpopo, Gauteng, the Free State and North West. The largest asset is Lephalale Mall in Limpopo, where Dipula is acquiring a 50% interest.

The centre measures almost 38,000sqm and has a total value of approximately R1.032 billion. Dipula's 50% share represents approximately 19,000sqm and R516 million in value, roughly a quarter of the overall transaction.

Moolman Group and another partner will retain the remaining 50%. Dipula is also adding three further Limpopo centres:

• Checkers Centre Polokwane
• City Centre Polokwane
• Great North Plaza in Musina

In the Free State, the acquisition includes Bloemfontein Makro and a 50% stake in Sasolburg Mall, formerly Sasolburg Junxion.

Gauteng contributes Kaalfontein Corner in Tembisa and Rand Steam Shopping Centre in Richmond, while Game Centre Vryburg in North West completes the portfolio.

The properties are supported by national tenants including Checkers, Shoprite, Game, Cashbuild and Makro, strengthening Dipula's exposure to convenience and necessity-driven retail.

Strengthening portfolio quality, focus and diversification

‍The transaction is bigger than the addition of nine shopping centres.It accelerates a deliberate repositioning of Dipula's overall portfolio towards retail and away from office property.

Following the acquisitions, retail is expected to contribute close to 80% of Dipula's income in the short term, while office exposure declines to approximately 10%.

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"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%." Izak Petersen

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The deal follows several other acquisitions completed or announced during the past 12 months, including Protea Gardens Mall, Gezina Walk, Bayer Klerksdorp and Airborne Business Park.

Dipula also acquired the 6,200sqm Birch Acres Square in Tembisa for R145.4 million.

The REIT believes additional value can be extracted from the latest portfolio through active asset management and operational efficiencies generated by its internal property-management platform.

For investors, this becomes an important part of the investment case: the return is not necessarily limited to the initial acquisition yield if management can improve occupancy, tenant mix, rentals and operating efficiencies over time.

What is Dipula?

‍Dipula Properties is a JSE-listed South African real estate investment trust, having listed in August 2011 and operated in the property sector for more than two decades.

Its portfolio is concentrated in well-positioned assets across South Africa, with a particular emphasis on retail centres situated close to where people live and shop in township, rural and urban convenience locations.

Alongside retail, Dipula owns a core portfolio of mid-sized logistics and industrial properties, multi-purpose office assets and a smaller non-core affordable residential portfolio.

The latest acquisition significantly strengthens retail's dominance within that portfolio.

Growth without sacrificing the balance sheet

‍One of the most important numbers for investors in the transaction is therefore not R2 billion. It is 35% - 40%.

Despite executing its largest acquisition to date, Dipula expects its loan-to-value ratio to remain within that range once the transaction has been implemented.

The combination of R1.1 billion in fresh equity and existing debt facilities allows the REIT to fund expansion without placing disproportionate pressure on its balance sheet. This leaves Dipula with greater financial flexibility should further opportunities emerge.

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"Dipula is growing in a disciplined manner, with a clear focus on target assets, earnings accretion, sustainable returns and maintaining a robust balance sheet." Izak Petersen

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The investor takeaway

‍Dipula's R2 billion acquisition represents a meaningful strategic bet on South African convenience, township and rural retail. Nine additional shopping centres, nearly 90,000sqm of retail space and a 9.3% blended acquisition yield give the REIT considerably greater scale in its preferred retail segment. But the transaction's significance lies equally in how it is being funded.

The successful R1.1 billion equity raise provides evidence of institutional support for the strategy, while the targeted 35% - 40% LTV range demonstrates an intention to grow without materially weakening the balance sheet.

With R3 billion of acquisitions across 14 assets in just 12 months, Dipula has clearly shifted into growth mode. The test now will be whether management can convert that additional scale into sustained earnings growth, stronger distributions and long-term shareholder returns.

If it can, the R2 billion transaction will represent more than Dipula's biggest acquisition to date, it could mark a defining step in the REIT's transformation into a predominantly retail-focused property business.

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