| Wed 19 Dec 2007, 14:18 | | EMI - Emira Property Fund - Acquisition of letting enterprises from RMB |
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EMI
EMI
EMI - Emira Property Fund - Acquisition of letting enterprises from RMB
properties (PTY) LTD
EMIRA PROPERTY FUND
A property fund created under the Emira Property Scheme, registered in terms of
the Collective Investment Schemes Control Act
ISIN: ZAE000050712
Share Code: EMI ("Emira" or "the Fund")
ACQUISITION OF LETTING ENTERPRISES FROM RMB PROPERTIES (PTY) LTD
1 INTRODUCTION
Participatory interest ("PI") holders are advised that Emira has entered into
agreements with RMB Properties (Pty) Ltd in respect of the acquisition of two
letting enterprises set out in paragraphs 2.2 and 2.3 below ("the
Acquisitions").
The vendor of the letting enterprises is a related party in terms of the JSE
Limited ("JSE") Listings Requirements, as it is a subsidiary of FirstRand
Limited, which as at 30 June 2007 held 36.64% of Emira through Momentum Group
Limited. Accordingly, in terms of the JSE Listing Requirements the Acquisitions
are considered to be small related party transactions.
2 THE ACQUISITIONS
2.1 Rationale
It is Emira`s strategy to increase the size and quality of its portfolio through
the acquisition of properties at market-related prices that will enhance net
income growth of the Fund over the medium to long term. The Fund`s directors
believe that the Acquisitions will improve the quality of the portfolio and
enhance the sustainable income attributable to PI holders.
2.2 Details of the letting enterprises
In terms of the agreements signed on 8 October 2007 and 19 November 2007
respectively, Emira will acquire the following enterprises from RMB Properties
(Pty) Ltd:
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Property Legal Description Purchase Rentable
Price (Rands) Area
(m2)
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Menlyn Woods Remainder Erf 3 Faerie 29,897,094 2,045
Phase 4 Glen Township
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TIS Corporate Park Erven 291 and 292, 90,100,000 15,183
Randjespark Ext 103 and
Erf 298, Randjespark Ext
104
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Property Weighted Effective Vacancy Independent
Average Date (% Rentable Valuation
Rental per Area) (Rands)
m2
(Rands)
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Menlyn Woods 119.41 1 December 0% 31,288,000
Phase 4 2007
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TIS Corporate Park 39.57* Later of 57.25%* 90,817,000
transfer or
practical
completion.
Practical
completion
estimated to
be 31 August
2008
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* 6,490m2 of the building has been let to TIS, with the balance covered under a
gross rental warranty detailed further in paragraph 2.3 below. The weighted
average rental per m2 above includes payment for the vacant space from the
vendor under the rental warranty.
2.3 Description of the letting enterprises
Menlyn Woods Phase 4
Address: 291 Sprite Avenue, Faerie Glen
Description: Emira currently owns phases 1, 2 and 3 of the A-grade office
park known as Menlyn Woods, which is occupied by blue-chip
tenants. The enterprise to be acquired is a new A-grade
office development and will become the fourth phase of this
office park.
Tenants: Softline VIP (2,045m2)
TIS Corporate Park
Address: Corporate Park North, Midrand
Description: 15,183m2 prime industrial park to be developed comprising
two separate, but sub-divisible buildings.
Tenants: Technology Integrated Systems (Pty) Ltd (TIS), a division of
Aberdare Cables (Pty) Ltd (6,490m2)
In terms of the purchase agreement, RMBP will provide an eighteen month gross
rental warranty over the vacant space from the effective date.
2.4 The purchase consideration
The total purchase consideration will be settled through cash payments on the
effective dates above, totaling R119,997,094.00, to be funded through cash
raised from disposals and bank debt.
2.5 Pro forma financial effects of the Acquisitions
The pro forma financial effects of the Acquisitions on distributions per PI for
the year ended 30 June 2008 are not significant (i.e. are less than 3%), and
have therefore not been disclosed.
3. CONDITIONS PRECEDENT
- The implementation of the Menlyn Woods Phase 4 acquisition is subject to
RMB Properties (Pty) Ltd becoming the registered owner of the property.
- The implementation of the TIS Corporate Park acquisition is not subject to
any conditions precedent.
4. SMALL RELATED PARTY TRANSACTION
As 36.64% of Emira`s PIs are held by Momentum Group Limited, which is an
associated company of the vendor, the Listings Requirements of the JSE require
that an independent expert carry out a valuation report of the letting
enterprises.
The reports of Steven Levinsohn of Benchmark Valuation Group will be available
for inspection at Emira`s registered office for a period of 28 days from the
date of this announcement. The independent valuations of both enterprises are
shown in the table above.
Sandton
19 December 2007
Merchant bank and sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 19/12/2007 14:18:01 Produced by the JSE SENS Department.
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