| Fri 7 Sep 2007, 17:20 | | FVT - Fairvest - Disposal of the Kempton City Shop |
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FVT
FVT
FVT - Fairvest - Disposal of the Kempton City Shopping Centre, and extension of
Cautionary Announcement
FAIRVEST PROPERTY HOLDINGS LIMITED
Incorporated in the Republic of South Africa
(Registration number 1998/005011/06)
("Fairvest" or "the company")
Linked unit code: FVT
ISIN: ZAE000034658
DISPOSAL OF THE KEMPTON CITY SHOPPING CENTRE, AND EXTENSION OF CAUTIONARY
ANNOUNCEMENT
Disposal of the Kempton City Shopping Centre
Fairvest linked unitholders are advised that Kempton City Props One Share Block
(Proprietary) Limited (registration number 1993/000963/07), a wholly-owned
subsidiary of Fairvest Properties (Proprietary) Limited (registration number
2000/021399/07), which in turn is a wholly-owned subsidiary of the company,
entered into an agreement for the sale of its sole property asset known as
Kempton City Shopping Centre ("the property") for a consideration of R50 million
to Circlevest Property Acquisitions (Proprietary) Limited (registration number
2005/043245/07) or its nominee.
The property is described as Portion 327 of the Farm Zuurfontein No. 33,
Registration Division I.R., Gauteng Province, situated along Pretoria Road,
Kempton Park, measuring 3,977 hectares in extent, and comprising 40 855 square
metres of retail and office space, 6 000 square metres of parking and a total of
177 residential flats.
The rationale of the disposal is to exploit the current attractive investment
realisation potential which presented itself. The proceeds of the disposal will
be applied to renovate and refurbish other group properties and to invest in new
properties.
The disposal is on a voetstoots basis as a going concern, and is furthermore
subject to the terms and conditions which are normal for a sale of this nature.
The disposal of the property is subject to the following remaining conditions
precedent:
- the purchaser procuring bond finance by 8 October 2007;
- the approval of JSE Limited; and
- the approval of Fairvest linked unitholders in general meeting by 31
October 2007.
The purchaser paid a deposit of R1 million, but still has to comply with the
terms relating to securing payment and the furnishing of guarantees.
Irrevocable undertakings to vote in favour of the disposal have been obtained
from linked unitholders holding more than 50% of the linked units in the
company.
The purchase consideration is payable in cash and payment of the purchase
consideration will be received against registration of transfer of ownership.
The effective date of the disposal will be the date of registration of transfer
of ownership of the property into the name of the purchaser.
Salient financial and operational information in regard to the property and
detailed financial effects will be published once the disposal is implemented.
Until such time the company will remain under cautionary.
Extension of cautionary announcement
Further to the cautionary announcement dated 18 October 2006, Fairvest linked
unitholders are hereby advised that Fairvest is in the process of implementation
of the disposal, which if successfully executed, may have a material effect on
the price of Fairvest securities. Accordingly, Fairvest linked unitholders are
advised to continue exercising caution when dealing in Fairvest linked units
until a full announcement is made.
7 September 2007
Sponsor
Merchant Sponsors (Proprietary) Limited
Date: 07/09/2007 17:20:01 Produced by the JSE SENS Department.
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