DIV - Diversified - Disposal Of Properties To Capi
DIV
DIV
DIV - Diversified - Disposal Of Properties To Capital Property Fund
Diversified Property Fund Limited
(Incorporated in the Republic of South Africa)
Registration number 2005/029685/06
Share code: DIV & ISIN: ZAE000072369
("Diversified" or "the company")
DISPOSAL OF PROPERTIES TO CAPITAL PROPERTY FUND
INTRODUCTION
Linked unitholders are advised that Diversified has entered into an
agreement to dispose of six industrial properties for a total
consideration of R138,9 million.
DETAILS AND RATIONALE FOR THE DISPOSAL
The disposal of this tranche of industrial properties is in line with
Diversified`s strategy to focus on rural retail properties.
The sale agreements for the properties known as Burry Koen Street, Jet
Park (10 028m2); Citrus Street, Laser Park (6 834m2); Cranberry Street,
Laser Park (5 649m2); Director Road, Aeroport (5 216m2); Jet Park Mini
Factories (9 197m2) and McCarthy, Isando (5 071m2) were entered into with
Capital Property Fund and provide for a 1 June 2007 effective date. The
average monthly rental income attributable to this tranche of industrial
properties amounts to R30,95 per m2. The disposals remain subject to
Competition Commission approval.
Diversified`s directors are of the opinion that the sale consideration
represents the fair value of the properties as an independent valuation
was performed by Quadrant Properties (Pty) Ltd, a professional valuer.
CONSIDERATION AND FINANCIAL EFFECTS
Diversified will receive 26 711 539 units in Capital Property Fund
("consideration units") as consideration on transfer of the properties.
Diversified presently intends to retain its investment in Capital
Property Fund.
The net asset value per linked unit and tangible net asset value per
linked unit as at 31 December 2006, will increase by 3,5% from 661 cents
per linked unit to 684 cents per linked unit as a result of this
disposal. Basic earnings per linked unit for the six months ended 31
December 2006 increases by 43,1% from 51,80 cents per linked unit to
74,13 cents per linked unit as a result of the profit realised on the
disposal of the industrial properties to Capital. The impact on headline
earnings per linked unit for the six months ended 31 December 2006 is
insignificant and has therefore not been disclosed.
CATEGORISATION OF THE TRANSACTION
The acquisition has been categorized as a category 3 transaction in terms
of section 9.5(a) of the JSE Listings Requirements.
Johannesburg
19 April 2007
Sponsor
Java Capital (Proprietary) Limited
Date: 19/04/2007 14:41:56 Produced by the JSE SENS Department.
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