South Africa's wealthy Moolman family just sold nine shopping malls for $124 million
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The Moolman Group agreed to sell nine shopping centres across South Africa for 2 billion rand ($124 million) to Dipula Properties, marking the largest acquisition in the listed REIT's history.
A family business started in Polokwane in 1967 has just sold nine shopping centres for 2 billion rand, about $124 million at 16.17 rand to the dollar, to listed real estate investment trust Dipula Properties. The transaction, agreed on 24 August, is the largest Dipula has ever completed.
The Moolmans are retaining the assets they are best known for. They still own about 1.2 million square metres of commercial property and administer roughly 2,700 commercial tenants, including Mall of the North in Polokwane, a regional centre of more than 77,000 square metres held jointly with Resilient. The deal covers Checkers Centre Polokwane, City Centre Polokwane, Great North Plaza in Musina, Bloemfontein Makro, half of Sasolburg Mall, Kaalfontein Corner in Tembisa, Rand Steam Shopping Centre in Richmond, and Game Centre Vryburg, together carrying about 90,000 square metres of income-producing retail space.
Pieter Lombaard, the group's chief executive, said the sale reflects a deliberate decision to realise value and recycle capital for future developments. The Moolman pipeline includes Kings Walk Mall, Green Gate Shopping Centre, Canal Plaza and Faerie Glen Shopping Centre redevelopment, with planned work on De Poort Lifestyle Centre and Diemersfontein Markt in the Western Cape.
Dipula funded the purchase with a 1.1 billion rand private placement, about $68 million, alongside existing debt. The new shares list on the Johannesburg exchange on 1 September. Dipula chief executive Izak Petersen said the acquisition is accretive from day one and buys at a blended yield of 9.3%, below the company's weighted average cost of capital.