By THABANG MOKOPANELE

Soon-to-be listed empowerment property fund Dipula Income Fund is in the process of acquiring two property portfolios worth R800m as part of its strategy of growing its net asset value.

Incoming CEO Izak Petersen said on Friday that the acquisition would result in Dipula’s asset value growing from R1,4bn to R2,2bn.

Dipula Income Fund is a result of a planned merger between Dipula Property Fund and Mergence Africa Property Fund.

The merger is expected to be completed at the end of May. The merged entity is also expected to list at the end of May.

The property portfolios Dipula is acquiring are spread across retail, offices and industrial.

"The two portfolios we are buying are predominantly in Gauteng. In the next two to three years we would have doubled in size," said Mr Petersen, co- founder of Mergence Africa Property Fund.

The country’s first full-service, black-owned property services company, Dijalo Property Services, holds the majority stake of Dipula Property Fund.

Mergence Africa Holdings, an independent black-owned financial services company, owns the controlling interest in Mergence Africa Property Fund.

Redefine Properties owns a stake in both funds.

Mr Petersen said the merger would prove to the listed property market that there were black people capable of running property funds.

"There is no limit to how we can grow the fund. We one day hope to reach the levels of Growthpoint Properties and Redefine Properties. It is all possible because we have been mastering the skills required to run a property fund," he said.

Source: Business Day