Redefine and Dijalo form enterprise development initiative

Posted On Wednesday, 24 May 2006 02:00 Published by
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Redefine Income Fund Limited today announced that it has formed a joint venture with black-owned and managed Dijalo Property Services to be called Dipula Property Fund (Pty) Ltd.

Saul Gumede

Redefine Income Fund Limited announced that it has formed a joint venture with black-owned and managed Dijalo Property Services to be called Dipula Property Fund (Pty) Ltd that will make a major contribution to elevating enterprise and skills development in the property industry.

Dipula will have an initial property portfolio of approximately R300 million and will be owned by Dijalo (51%) and Redefine (49%), with the asset management of the company provided by Dipula Asset Managers, an equal joint venture between Dijalo and Madison Property Fund Managers.

This enterprise development initiative, which is expected to grow rapidly and ultimately lead to the listing of Dipula, will result in meaningful empowerment, underscoring Redefine’s commitment to the Property Sector Transformation Charter and the DTI Codes of Good Practice, while facilitating a real transfer of skills.

“Dijalo is a strong business that was built from scratch and is now arguably the most successful black owned property company in the country,” notes Brian Azizollahoff, CEO of Redefine, who describes Redefine’s involvement in Dipula as true BEE with a black-owned business that can add real value from the inception of this sound commercial venture.

This enterprise development initiative ensures compliance with the Property Sector Charter which is important to Redefine’s unitholders since these initiatives will ensure the continued success of Redefine as a company functioning within South Africa. Furthermore enterprise development ventures, through the creation of new businesses and the unlocking of opportunities, contribute more significantly to BEE than simply making equity available without any value being added by the new shareholders.

Dijalo was started in November 1998 by Saul Gumede and Hosia Malekane after each gained more than ten years experience in reputable South African blue chip property companies.

During the past seven years Dijalo has managed property portfolios on behalf of Public Investment Corporation, Transnet Pension Fund, Old Mutual Properties and ABSA, amongst others. It was also involved in the development of MTN head office with RMB Properties. Dijalo specialises in the provision of property services.

Dijalo appointed Dr Lasie Mogudi as a non-executive director and Paul Maseko as non-executive chairman.

“It has always been our long term strategic vision to go beyond the provision of property services and to be involved in ownership and asset management. Redefine has facilitated this dream” expresses Dijalo managing director Saul Gumede.

“Dipula will play a major role in addressing the void left by the legacy of our past regarding the ownership of both commercial and residential property by black people. We believe the time is long overdue for us to build a commercial asset with the intention of eventually listing it,” notes Gumede.

There will be significant skills transfer, specifically in terms of asset management, strategy and ultimately the responsibility of a listed entity. Together Dijalo and Redefine will create a platform to ensure that new talent is introduced into the property arena and that the industry creates a new generation of Black property practitioners. It is Redefine’s objective to ensure that Dipula grows and reaches a point where Redefine may withdraw to be replaced with a BBBEE owner.

The CEO of Dipula is Arthur Lelosa who gained substantial experience with a background as a valuer at Standard Bank Property Finance and Advisory Services and has gained credibility in the industry with both financiers and vendors.

Dipula’s property portfolio, to which both parties will contribute a pro rata share, is focused in Gauteng and comprises prime properties across all sectors in good locations with longer leases and predominantly A-grade tenants.

The strength of Redefine’s size and leading position in the listed property sector and Dijalo’s empowerment credentials positions Dipula ideally for future acquisitions and growth. While Dipula has the potential to be the first truly BEE property fund to list on the JSE Limited, Azizollahoff stresses that racing to achieve this is not one of Dipula’s goals.

“Our objective is to have the right partners, the right properties, the right yields and strong management and Redefine and Dijalo will work together to achieve this,” says Azizollahoff who stresses that Dipula is positioned to be a sustainable, growing investment.

Last modified on Saturday, 03 October 2015 11:32
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