Listed property loan stock firm Redefine Income Fund on Wednesday announced it had formed a joint venture empowerment property company with property figure Saul Gumede.

The unlisted company, which is to be called Dipula Property Fund, is a joint venture between Redefine and Gumede's Dijalo Property Services and initially will have property assets worth R300m.

Redefine CEO Brian Azizollahoff said Dijalo Property Services would own 51% of the firm with Redefine owning 49%.

The asset management of the new company would be provided by Dipula Asset Managers, an equal joint venture between Dijalo and Madison Property Fund Managers, he said.

Madison is the asset manager of Redefine.

Azizollahoff said they intended to list Dipula in the future.

"It will depend on the yield. The ultimate goal is to achieve a critical mass where we will be able to debate whether it's opportune to list."

Azizollahoff said they also planned to grow the size of the company.

"We expect by the end of the year we could be up to R700m worth of assets under ownership."

Azizollahoff said the property sector empowerment charter had been adopted and that Redefine had been committed to the process from the "outset".

"We have forged a tie with arguably one of the most pre-eminent black property personalities in the country. The idea was not just to create another empowerment partner at equity level where the empowerment grouping doesn't benefit for some years. We believe it is more effective to introduce an empowerment partner at enterprise development level," Azizollahoff said.

Points on the property charter scorecard were heavily weighted in terms of enterprise development, Azizollahoff said.

"The big advantage is we work together with experienced brokers and managers in Dijalo."

Gumede said Dijalo was started in November 1998 by himself and Hosia Malekane. During the past seven years Dijalo has managed property portfolios on behalf of the Public Investment Corporation, Transnet Pension Fund, Old Mutual Properties and Absa.

Dijalo specialises in the provision of property services.

"It has always been Dijalo's intention to be involved in the listing side of the property business and property acquisition," said Gumede.

He said Dijalo was "privileged" to be working with "solid companies" such as Redefine and Madison.