News: South Africa-based Dipula Income Fund has bought the Gillwell Taxi Retail Park in East London's central business district for ZAR316mn (US$29.04mn) from developers Isibonelo Property Services and Eris Property Group. The proposed development of the 21,521-square-metre three-level shopping centre is expected to be completed in H115. Leases for the retail site are being finalised with anchor retailers Game and Shoprite. The acquisition is in line with Dipula's strategy to acquire larger, quality retail assets in targeted areas and boost the overall quality of the company's portfolio, according to Dipula CEO Izak Petersen.
BMI View : In spite of the uncertainty surrounding the South African economy, the 'hangover' from the 2010 FIFA World Cup and weakening consumer confidence, the majority of real estate market activity is occurring in the retail sector. We believe this is why the retail market rental dynamics were comparatively stable, as the supply pipeline is maintaining market dynamism unlike the office sector, where an anticipated shortfall in new supply over the short term is inflating rents, particularly for prime space.