The redevelopment will enhance this distinctively popular centre with greater retail variety, better shopper flows and a more vibrant overall experience.

“The project allows us to refine Village View’s retail and dining offering to best meet the needs of our patrons and to keep the centre fresh and relevant to its market,” says Elsabe Griesel, portfolio manager for The Cavaleros Group. “It also provides the opportunity to move existing tenants, strengthen our tenant mix and create feature zones within the centre. This will boost the entire experience at Village View”.

Building on its exceptional dining, which already includes the like of Tashas, Pigalle and Rodizio, Village View is adding three new restaurants to the menu. Vovo Telo will bring its beautiful bread and artisanal food to Village View visitors from the end of June this year. Two more exciting food concepts, which will soon be announced, will open in November when the whole project will be complete.

The new design will also create a vibrant zone for food-on-the-go. Steers and Nandos will both open in brand new locations in June. The exciting changes also include relocating CNA to a more suitable position near Clicks.

Over 1,500sqm of the centre is being refurbished, including new space of 300sqm to help accommodate the ongoing demand for retail space at the centre.

Griesel notes that Village View’s stylish and trendsetting customers expect nothing less than the best from their favourite hot spot.

The stylish Village View has a track record of strong trading from its 40 hand-picked tenants. Enjoying superb visibility, it provides convenient access directly from the main arterial of Van Buuren Road, with generous free parking. SA property investment company The Cavaleros Group own Village View.

As much as possible, the refurbishment project will not disrupt the overall shopping experience. “We have temporarily moved a few tenants to allow the construction. However, we are doing everything possible to minimise its impact on the daily running of the centre,” says Griesel.

From Sunday, May 27, all shops will be open until 5pm on Sundays.

Middelburg Mall Centre Manager Mike Tammadge explains: “Some of our shops are already open to this time on Sundays, like Pick n Pay and Checkers. Our shoppers responded so positively to the longer times, that all shops will now be open until 5pm on Sunday.”

Middelburg Mall will also be open until 5pm on public holidays.

“Shoppers can look forward to bonus longer shopping days at Middelburg Mall on public holidays from now on,” says Tammadge. “We know that our hard working shoppers appreciate the extra time and it will help to make their shopping, and their lives, a little easier.”

Middelburg Mall’s new shopping hours are from 9am every day to 6pm on weekdays, 7pm on Fridays and 5pm on weekends and public holidays.

Tammadge explains that, as Middelburg Mall gets to know its shoppers better, it will introduce services and events especially for them. “We’ll also be sharing our latest news at middelburgmall.co.za and facebook where shoppers can connect with us.”

He adds: “We promised to make shopping in Middelburg easy and convenient. By introducing the longer Sunday shopping hours, we has listened to our shoppers and responded to their needs.”

Dipula announced distributions per A-linked unit of 39,685 cents and per B-linked unit of 27,741 cents in its interim results for the six months ended 29 February 2012.

Izak Petersen, CEO of Dipula Income Fund, attributes the positive performance to meeting its rental income target, increased operating expense efficiencies and effective interest rate management.

“The global economic environment remains challenging as does the South African economy with a forecast growth rate of around 2.5% for the year ahead. Tenants, and consequently rentals, will remain under pressure, notes Petersen

Petersen points to fuel price increases, electricity costs and municipal rates increases above inflation and secondary costs pressures throughout the economy that may pose challenges going forward. “Despite these factors we expect Dipula to perform in line with its forecast for 31 August 2012, as reported in the prospectus dated 28 July 2011. We expect the portfolio to deliver growth in 2013 and beyond,” says Petersen.

Dipula was formed through the merger of Mergence Africa Property Fund and Dipula Property Fund, two majority black-owned property funds. It listed on the JSE on 17 August 2011 following a successful capital raising. At listing, each fund introduced approximately R700 million of properties to the company. In addition, Dipula acquired two property portfolios totalling R700 million.

At 29 February 2012, Dipula’s asset value was R2.1 billion and its market capitalisation was approximately R1.5 billion.

Dipula is externally managed by Dipula Asset Management Trust, a company with exceptional BEE credentials. It recently announced a transaction where management and a broad-based consortium will acquire additional Dipula linked units. Following this transaction, black unitholders will own up to 25% of Dipula. The transaction is still subject to certain conditions.

As the JSE listed property company with the highest black ownership and black management control, Dipula hopes to unlock value through partnerships with other companies which may look for partners with its BEE credentials. Dipula may also be in a position to transact in the government space given its 100% black owned management company. “A sizeable stake by management also ensures complete interest alignment between management and other unitholders,” says Petersen.

Although  it is one of the ‘new kids’ on the listed property block, both Dipula’s founding companies have been around since 2005 and the Dipula management team  has a solid seven-year track record.

Dipula owns a sectorally and geographically diversified portfolio of 175 properties, comprising 50% retail, 23% offices and 27% industrial properties, by gross lettable area (GLA). Approximately 75% of the portfolio, by GLA, is situated in Gauteng with properties in all other provinces. 

Since listing, Dipula has acquired Bochum and Blouberg Plaza and Nquthu Plaza for R250 million. These retail properties, which are in the process of being transferred, advance Dipula’s strategy of improving the quality of its portfolio and investing in emerging market retail. These acquisitions also meet Dipula’s objective of increasing the value of its individual properties to between R20 million and R200 million. The transaction came into effect on 1 May 2012 and transfer of the properties is imminent.

Petersen reports that acquisitions of around R800 million are under negotiation.

“Portfolio growth is a priority,” says Petersen. “We aim to acquire existing properties as well as new developments on a turnkey basis when income enhancing opportunities arise”.

Dipula maintained a 95% retention rate on leases renewed during the period. Vacancies increased from 7.9% at listing to 8.9% at 29 February 2012. Much of this is due to the refurbishment of a property known as Arbeid Street in Strydom Park which was substantially let at listing

With rental income of R137,4 million, Dipula achieved a cost-to-income ratio of 24.6%. Petersen notes that management will continue to manage costs in a disciplined manner whilst not compromising on quality management. “Besides acquisitive growth and the disposal of non-performing assets, there is room to optimise rental levels at several properties. We are also looking at increasing the energy efficiency at our buildings to achieve costs savings, as well as environmental benefits,” says Petersen.

Interest rate management is another focus area which Dipula will continue to manage efficiently. To further diversify its sources of funding, Dipula has been exploring opportunities of raising cheaper funding in the debt capital markets During the period Dipula accessed a new line of credit from Nedbank to part fund the Bochum and Blouberg Plaza and Nquthu Plaza acquisition. This facility of R125 million is for a five-year period.

Petersen says he is pleased with Dipula’s first six months’ performance as a listed company. “Our strategy is to continue to prudently grow the portfolio to more than R10 billion in the next four to six years, with specific focus on sustainable income growth”.

Lephalale Mall will open its first phase with 14800sqm of quality, convenient retail shops on 22 November 2012. It will include anchor tenants Game, in a large 4,200sqm store, and Checkers, in an equally impressive 4,100sqm store.

Representing a vast investment which will boost the local economy, Lephalale Mall is a joint venture between Moolman Group and Uniqon (Pty) Ltd. Construction commenced in January 2012.

Steph Beyers, Development Director of Moolman Group reports that Lephalale Mall has the potential to grow to a regional mall of 42,000sqm.

“The mall and surrounding node will ultimately consist of 70,000sqm of retail and other commercial space once fully developed,” says Beyers. “Lephalale Mall will be a dominant retail shopping centre serving the needs of this fast expanding town. Local residents will enjoy a new shopping experience with all the shops and products they want at a single modern location”.

Growing coal mining and power generating activities are the driving forces behind Lephalale’s growing economy.

The Waterberg Coal Field in Lephalale is one of the largest coal fields in South Africa. It is little wonder then that Lephalale’s growth is driven by mining expansion. Exxaro Grootegeluk Mine – already the biggest of its kind in the world – is now increasing in size.

Power generation is also fuelling the local economy with the construction of the new Medupi Power Station well on the way. It joins Matimba Power Station, the largest direct dry-cooled power station in the world. Further, widespread agriculture, game farming and tourism are elevating Lephalale’s status on South Africa’s economic map.

Lephalale Mall itself will play a significant part in the area’s economic development, as it grows with its market, creates opportunities, jobs, and attracts local spending.

Lephalale Mall is situated in the new town of Onverwacht, it will also serve the residents of the established Ellisras town, as well as Maropong and the surrounding areas. Lephalale Mall is on the corners of main arterial Nelson Mandela Road, Apiesdoorn Avenue and Onverwacht Road, on the western edge of the Onverwacht new CBD in a major residential growth node.

“Retail is important in any community. Lephalale Mall will serve local shopping needs in a quality, modern setting which is central for the town and its neighbours,” says Henry Bendeman of Uniqon.

Anchored by Checkers and Game the retail offering will also include Jet, Edgars Active, Mr Price Home, Mr Price Sport, Spitz, Studio 88, Rage Shoes, King Pie, MTN, Torga Optical  and many more.

Founded in Polokwane, Moolman Group has successfully operated in the property industry for more than four decades. Its core business is the development and acquisition of property investment. It is no stranger to the opportunities that Limpopo offers. Moolman Group successfully co-developed Mall of the North and Makro in Polokwane, among other projects in the province.

Synonymous with innovative property developments, Uniqon has a successful track record of almost 30 years. Its vast specialist expertise spans investment, development and management across retail, commercial and residential property

For information about leasing a shop at Lephalale Mall contact Sonke Moolman on 012 361 7970

The South African College of Applied Psychology (SACAP), which is at the forefront of higher education in applied psychology in SA, says that often today’s mothers feel that they need to be the perfect mother or ‘supermom’. But this shouldn’t be the case.

“Mothers don’t need to be perfect, they just need to be good enough,” says SACAP educator, Lisa Marcow, a Social Worker with a B.Soc.Sci. (Social Work) from UCT.

Marcow points to the theory of Dr Donald Winnicott, a paediatrician who introduced the ‘good enough mother’ in 1953, a model which is still relevant today. Winnicott says a good enough mother is better than a perfect mother.

Winnicott theorised that children need to realise that a mother is neither good nor bad nor the product of illusion, but is a separate and independent entity.

According to Winnicott: “The good-enough mother… starts off with an almost complete adaptation to her infant’s needs, and as time proceeds she adapts less and less completely, gradually, according to the infant’s growing ability to deal with her failure. Her failure to adapt to every need of the child helps them adapt to external realities.”

One of the main challenges in mothering today is to meet the objective of ‘good enough’.

“Many mothers feel that they need to be all things to all people,” explains Marcow. Then, when unable to meet these unrealistic demands, they feel insecure in their abilities as a mother. This can result in feelings of guilt, stress, incompetence, hopelessness and other debilitating emotions.

“Being our best, or being good enough, is enough!” says Marcow. “Supermom is an unrealistic notion and creates unrealistic demands and expectations on mothers.”

However, there are real reasons that drive mothers to achieve this impossible ideal.

Carl Jung, psychiatrist and founder of analytical psychology, refers to the archetype, or model, of ‘Mother’ in our collective unconscious. ‘Mother’ is our first experience in the world at our most impressionable. In early life, it’s the mother who takes care of our every need and guides our growth. This represents an idealistic ‘Mother’ who is all-nurturing, always available, offers unconditional acceptance and is selfless. It is unattainable. Yet it’s the very image that many mothers measure themselves against.

There is also the perceived traditional role that women have played in families: mother and wife. Looking back to the 1950s and 1960s, the nuclear family was the most popular type of family. It comprised a mother, father, and their children. This is viewed as the ‘old’ traditional family. Dad worked. Mom kept the home and raised the children.

The concept of family has changed considerably. Now families occur in many different and changing forms over a lifetime. From parenting out of wedlock to marriage, divorce, remarriage, reconstituted families with step- and half-children, and so on.

“In fact, you could even argue that in today’s society, the nuclear family is the exception rather than the rule,” says Marcow. “Importantly, the days where most mothers stayed at home and exclusively cared for the family and the home are long gone.”

This change has brought a shift in focus on a mother as an individual with needs of her own. As times and families transform, so mothers adjust to meet new roles.

“This evolving role should not be seen as a bad change, but one that promotes healthy happier lifestyles for all family members,” says Marcow.

“Today a mother shouldn’t be afraid to communicate what’s on her mind. If mom is not okay, she may be of no benefit to her family,” says Marcow. “Mothers need to take care of themselves as a priority and to put themselves first sometimes.” Marcow believes it is important for moms to nurture their own souls before they nurture everyone else’s.

Communication is key in any relationship, but it is essential in families. A mother cannot make sure her family is functioning okay if there is a breakdown in communication.

Marcow presents Interpersonal Communication Skills at SACAP, which teaches the art of effective communication in daily life. This includes the importance of non-verbal communication and being able to match what you say with how you say it, speaking the language of “I” rather than “You”, active listening and empathy, and managing conflict.

“These are the very skills every mother should learn to express her needs within the family and strengthen relationships among family members,” notes Marcow. She believes it is an essential tool for mothers in today’s world.

“Being a mom is both a thankless and rewarding ‘job’. It’s certainly the most rewarding job I have ever had,” says Marcow. “In an ideal world, we should be thanking mom every day and reinforcing the importance of this all encompassing role.”

Set aside to thank mothers for everything they do, Mother’s Day (Sunday, 13 May 2012) is ever more commercial, but Marcow believes the meaning of the day is still significant.

“It’s easy to show mom you appreciate her, without it costing a fortune,” says Marcow.

Whether you send gifts of love or handmade tokens, pick up the phone or give mom a hug or kiss, or a well-deserved day off, the message is the same. Marcow says: “It should make mom feel special and validated and let her know that you know she is doing her best, and she is good enough.”

The award winners will be announced at the year’s most influential property event: the 44^th annual SAPOA (South African Property Owners Association) International Convention and Property Exhibition in Durban in May.

This year, entries climbed to an impressive 28. The competition also recognises online property news journalism in a stand-alone category for the first time.

Besides ‘Best Online Property News’, awards will be given in a further three categories: Best Property News Journalist, Best Property Feature Journalist and Best Property Publication.

Sponsored by Hermans & Roman Property Solutions for the third consecutive year, the awards identify SA property journalists who have made a significant contribution to commercial property news coverage.

“Property journalism is a highly specialised field. As well as journalistic skill, it needs an understanding encompassing all dynamics of the built environment: financial, economic, legal, spatial, environmental, consumer and beyond,” says SAPOA CEO Neil Gopal.

The judging panel for 2012 includes: Athalea Minnaar of Hermans & Roman Property Solutions, Mpumi Madisa of Prestige Cleaning and Chairperson for SAPOA marketing committee, Brian Azizollahoff of Capstone Property Group  and Chairman of the SAPOA Property Journalism Awards, Mike Rodel of Rebosis Property Fund and Izak Petersen of Dipula Income Fund.

Kevin Roman, of sponsor Hermans & Roman, explains the awards are driven by the desire to encourage quality coverage of the property industry in the media.

“By recognising journalistic and media achievements on the subject of real estate, we are recognising quality journalism were knowledgeable, thought-provoking content is imperative in maintaining a progressive property sector of international standards,” says Roman.

The two winning journalists will each walk away with a R10,000 prize and trophy, while the winning print and online news sources will each receive trophies for their achievements.

For more information visit – www.sapoaconvention.co.za

The chic 23,000sqm Nicolway Bryanston, in Sandton, features some 90 shops with a distinctive tenant mix, combined to create a top-notch, trendsetting shopping experience for the consumers in the area.

The Rodrigues Group developed Nicolway Bryanston. Flanagan & Gerard Property Development and Investment are the appointed development and leasing managers. The R500 million shopping centre was funded by Investec Private Banking. Construction took 14 months, and was completed on schedule by main contractor WBHO.

“Nicolway Bryanston ushers in a new generation of premium grade retail centre. It’s designed to provide convenient, quality shopping with a vibrant new tenant mix. It creates an exceptional setting, which is both exciting and relevant to its location and market,” says Nicolway Bryanston owner Martin Rodrigues of The Rodrigues Group.

With excellent visibility and access from William Nicol Drive, the niche community shopping centre gains maximum benefit from its superb location. It’s perfectly placed to serve local residents, nearby office users and is a smart shopping stop for the many commuters who use this busy arterial. Spread over two levels, the centre offers generous parking on both.

“This is all in step with its unique retail,” explains Patrick Flanagan from Flanagan & Gerard. “Nicolway Bryanston opted for handpicked retailers and restaurateurs that epitomise excellent quality and superb personal service”.

A genuine adventure for foodies, Nicolway Bryanston offers one of South Africa’s most compelling food convenience offerings with an exceptional leading national food retailer line-up. It stars a 3,200sqm new Woolworths concept store with the largest food market in Woolworths’ history, a 3,600sqm Checkers tailor-made for the local market, and a theatre of shopping and food in a 2,500sqm Food Lovers Market.

Taking cafe society to a vibrant new level, the exterior of centre is designed to be a tree-lined street creating a lively dining avenue. At Nicolway Bryanston you can choose from the menus of Tashas, Col’Cacchio, Red Rabbit, Fego, Fishmonger, Food Lovers Café, Woolworths Café and Turn and Tender.

A highlight of the new centre is its stand-out home-decor zone. Nicolway Bryanston features more than a dozen desirable home, decor and furniture shops, inspired by styles from around the world.

Handpicked shopping gems range from Superdry, Samsonite and Sowearto to le Creuset, Body Shop and Pimlico. They can be found among big-name retail favourites like Cape Union Mart, Dion Wired, Dis-Chem, Exclusive Books and Incredible Connection. Full banking is available from Nedbank, FNB and Standard Bank, and Absa ATMs.

“Nicolway Bryanston delivers smart, stylish shopping. The powerful mix of anchor tenants and hand-picked retailers offer all the ingredients for good living to the discerning shopper,” says Flanagan. “It is first-rate shopping”.

Creating an unparallel setting to match the first-rate experience offered by Nicolway Bryanston’s retailers, MDS Architecture designed a modern innovative building, which combines style and function at the most effective and elegant level.

It also uses environmentally responsible practices. Harnessing South Africa’s natural resources, natural light is used to maximum effect at Nicolway Bryanston – creating a bright, fresh atmosphere that is also environmentally progressive and cost-effective to run. Natural ventilation and the clever use of glass for heating and cooling increase the centre’s energy efficiency.

“It is incredibly rewarding to bring this project to a successful completion and to create an exceptional property which is an asset to the communities it serves. It will provide a fresh and positive shopping experience that makes life a little more convenient, and stylish, for everyone who shops, eats and meets at Nicolway Bryanston,” says Rodrigues.

So explains Natalie Berg of Retail Planet, the world’s leading retail analyst firm which covers 9,000 retailers in 211 markets and counts 15 of the world’s top 20 retailers as clients. Berg is co-author of Wal-Mart – Key Insights and Practical Lessons from the World’s Largest Retailer, due for release in April 2012. Berg addressed members of the South African Council of Shopping Centres (SACSC) in Joburg, Durban and Cape Town, to provide insight into what Wal-Mart’s entry to SA will mean for local retail markets.

“Wal-Mart will make retailing more efficient in South Africa which is great news for consumers,” says Berg.

Berg warns that for retailers, Wal-Mart’s entry leaves no room for complacency. However, they should not make the mistake of trying to beat Wal-Mart at its own game.

Wal-Mart is the world’s largest company. It became the biggest international retailer by ruthless cost savings and back-end efficiency which allows it to offer the lowest possible prices and a wide assortment of brands. “It has also been brave, pioneering unchartered territories and formats. Its goal is to serve the underserved,” points out Berg.

SA is unchartered territory for the multinational retailers. With its purchase of a 51% stake in local discount retailer Massmart, Wal-Mart has gained first-mover status.

Berg says the SA market is an appealing prospect for multinational retailers.

“Buying power is increasing. Consumer spending per capita is set to grow by 7.3% compound annual growth rate (CAGR) in the next five years and by 2.3% in real terms. Overall consumer spending will grow by 9.1% CAGR and by 3.7% in real terms,” explains Berg. “Sub-Saharan Africa is the third-fastest growing region in the world and an increase in foreign direct investment will lead to further economic development.”

Importantly, Wal-Mart can have a positive impact on retail in SA for consumers. “This is an opportunity for Wal-Mart to drive efficiencies in SA’s high-cost retail environment, helping emerging consumers ‘save money and live better’,” says Berg.

The change Wal-Mart will bring to the SA retail market is potentially colossal but, as Berg advised SACSC members, it won’t take place overnight.

“Wal-Mart is spending the first year understanding the local consumer, the market and competition before making any major changes. In the long-term, it will embark on supply chain efficiencies to invest in price,” says Berg. “Wal-Mart’s famous everyday low prices won’t happen overnight, although support from Massmart is likely to speed up the process.”

This ‘learning period’ gives local suppliers and retailers a chance to adjust, adapt and prepare for Wal-Mart’s formidable retail model to kick-in.

“Wal-Mart’s first step into Sub-Saharan Africa, while exciting, has been greeted with some uncertainly from the retail community,” says Amanda Stops, GM of SACSC. “Wal-Mart is one of world’s most well-studied companies. This gave SACSC the chance to create a platform to learn as much as possible about the impact it could have on SA retail from an independent source, to drive creative and competitive retail strategies locally.”

Berg explains that fundamental to the Wal-Mart model is its ‘everyday low prices’ (EDLP), achieved through ‘everyday low costs’ (EDLC) and ‘global sourcing’.

EDLP means that, when Wal-Mart’s model is fully in place, it will offer shoppers a lowest price guarantee – beating out other retailers’ normal, and even, promotional prices. Driving down prices for the consumer, Wal-Mart is in a unique position to leverage its global scale in both general merchandise and food sourcing. This global sourcing is key to EDLP.

On the other hand, SA shoppers are most familiar with the ‘promotional high-low price’ model, where consumers can sometimes get products at lower prices during promotions. Berg notes they are not alone. In the UK, promotions make up to 40% of retail sales. “EDLP will take a big adjustment in SA consumer thinking,” says Berg.

EDLP at Wal-Mart is achieved through EDLC – cutting costs, without compromising quality. “Right along the distribution chain from warehouse to store, Wal-Mart will find more efficient ways of retailing in a bid to offer lower prices in store.”

Of course, financial sustainability and environmental sustainability go hand-in-hand. Wal-Mart has three goals: to be supplied 100% by renewable energy, to create zero waste and to sell products that sustain people and the environment.

Berg explains that suppliers will be expected to help Wal-Mart achieve these goals and drive efficiencies through initiatives such as shelf-ready packaging. “SA suppliers should also be prepared for a sustainability assessment, for energy cost reduction, material efficiency, responsible and transparent sourcing and ethical production,” says Berg.

EDLC needs to be in place to achieve EDLP, and Berg notes that this may take some time for Wal-Mart to achieve, with thousands of suppliers and contracts to tie-up first.

Berg told SACSC members to expect investment in Game Foodco format. “This is Wal-Mart‘s bread-and-butter and will likely be a major growth opportunity for suppliers that meet Wal-Mart’s cost and sustainability requirements”.

For local suppliers, there’s the opportunity for low-risk international export by getting their goods on Wal-Mart shelves around the world. Berg suggests suppliers seeking a spot on Wal-Mart’s shelves should focus on their power brands and review the sustainability of their business to identify ways of going greener and reducing costs.

Berg believes that Wal-Mart’s entry to the local retail landscape strengthens the market position of retailers attracting different customers, such as Woolworths. But others will find themselves making fundamental changes to face the new competition.

She says there are many ways retailers can complete with Wal-Mart – but price isn’t one.

Berg stresses completing with Wal-Mart by taking advantage of its weaknesses, rather than trying to fight on its strength – price. As a warning sign, she notes that in the last 20 years 30 food retailing supermarket groups in the US closed bankrupt.

Retailers with a high non-food share are most at risk. “Wal-Mart is likely drive frequent trips through a supercentre FoodCo format and offer cut-throat prices in non-food thanks to global sourcing.”

She proposes delivering a retail experience that is about more than just price. 

“Invest in loyalty schemes to reward and retain your most profitable shoppers. Store remodels, ancillary services and private label quality investment will help you to differentiate, while making higher margins for reinvestment in price.” She also proposes working with suppliers to create exclusive ranges, pack sizes and variants.

Pick n Pay’s Smart Shopper initiative and its ‘Finest’ premium private label are two excellent examples of this, according to Berg.

“Build strengths in areas where Wal-Mart has traditionally struggled, such as perishables and counter service. Establish credibility in food ranges now. There’s also opportunity to beat Wal-Mart in the digital chase, where it has lagged,” says Berg.

All this means we are likely to see a shake-up in the SA retail market, and more good news for the consumer.

“Yes, Wal-Mart will be a major competitive force but it will also ignite positive change, leading to a more efficient industry,” concludes Berg.

The transaction increases the black shareholding in Dipula Income Fund to some 30%, the highest percentage black ownership for a company in the SA listed property sector.

Dipula Income Fund listed on the JSE in August 2011 when Mergence and Dipula merged to create the second black managed property fund on the bourse, with assets of over R2,1 billion and market capitalisation surpassing R1,4 billion. Both founding companies were originally established as enterprise development initiatives and formed part of Redefine Properties’ broader commitment to BEE.

Redefine Properties retained approximately 66 million Dipula B-units at the listing. Since Dipula then, it has successfully sold 16million Dipula B-units through the market.  Redefine Properties will sell its remaining 50 million Dipula B-units to the BEE management consortium.

Marc Wainer, CEO of Redefine Properties says: “The transaction allows Redefine Properties to dispose of all of its remaining units in a single transaction.  The disposal is in line with Redefine’s strategy to focus on fewer, larger properties and has the added benefit of furthering the BEE objectives underlying the initial establishment of the Mergence and Dipula funds.”

Izak Petersen, a co-founder of Mergence and CEO of Dipula Income Fund says: “The investment by Mergence and Dijalo reflects the inherent value in the Dipula B-unit and their confidence in Dipula Income Fund’s sustainable income growth. The transaction increases the black shareholding in Dipula Income Fund to in excess of 30%, further entrenching its status as the leading black owned and black managed listed property fund. The substantial ownership by management supports continued strong goal alignment. It also removes the perceived overhang of the Redefine Properties stake.”

The transaction will take effect after payment of the distribution on Dipula B-units for the income distribution period ended 29 February 2012 and is still subject to the securing of the necessary funding for the acquisition.