| Wed 26 Mar 2008, 14:15 | | SAT - SA Reit - Announcement regarding the disposal of an undivided half share |
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SAT - SA Reit - Announcement regarding the disposal of an undivided half share
in two properties
SA REIT LIMITED
(formerly Shops for Africa Limited)
(Incorporated in the Republic of South Africa)
(Company registration number 2000/018084/06)
Share code: SAT ISIN: ZAE000104196
("SA REIT" or "the Company")
ANNOUNCEMENT REGARDING THE DISPOSAL OF AN UNDIVIDED HALF SHARE IN TWO PROPERTIES
1 Introduction
Shareholders are advised that SA REIT has entered into an agreement dated 18
March 2008 with Outward Investments (Proprietary) Limited ("Outward
Investments"), a wholly owned subsidiary of Redefine Income Fund Limited, a
company listed on the JSE, to dispose of an undivided half share in the
properties known as the Curry Building situated at the corner of Bree, Long and
Mechau Streets, Cape Town ("the Curry Building") and the CMH Building situated
at the corner of Bree, Long and Hans Strijdom Avenue, Cape Town ("the CMH
Building") (collectively "the properties") ("the disposal").
Furthermore, SA REIT has entered into a joint venture, development and
enterprise agreement with Outward Investments for the development of the
properties and subsequent holding and management as a commercial rental
enterprise. The disposal will become effective no later than 30 April 2008 or
when the condition precedent referred to in paragraph 5 below has been
fulfilled.
2 Rationale for the disposal
The disposal was made to diversify the risk profile of SA REIT and to share
expertise, development skills and networks of the parties. In addition, the
agreement enhances the working relationship and close ties between the parties
for the mutual benefit of future opportunities.
3 Consideration for the disposal
The consideration for the disposal is R51.7 million, payable in cash and the
proceeds will be used to reduce SA REIT`s long term borrowings.
4 Financial information relating to the disposal
The unaudited pro forma financial effects of the disposal on SA REIT`s forecast
earnings and headline earnings per share, and pro forma net asset value and net
tangible asset value, as disclosed in the circular to shareholders dated 5
September 2007, are not material and have therefore not been disclosed.
5 Conditions precedent of the disposal
The disposal is subject to approval from the competition authorities.
6 Details of the properties
Details regarding the properties are set out below:
Property Location Sector Site area Original Effective
m 2 purchase date of
price original
acquisition
Curry Cape Town Commercial 1 162 27 750 000 5 October
Building CBD 2007
CMH Cape Town Commercial 1 813 65 000 000 5 October
Building CBD 2007
Note:
1 As the properties are development properties, details of the weighted
average rental per square metre have not been provided.
The properties were not valued for purposes of the disposal but were valued as
at 1 September 2007 at R27 750 000 (Curry Building) and R57 100 000 (CMH
Building) respectively by Mills Fitchet Magnus Penny (Proprietary) Limited, an
external independent valuer registered as a professional valuer in terms of the
Property Valuers Profession Act, No 47 of 2000.
7 Categorisation of the disposal
The disposal is a Category 2 transaction in terms of the JSE Limited Listings
Requirements.
Cape Town
26 March 2008
Investment bank and sponsor
Nedbank Capital
Date: 26/03/2008 14:15:01 Produced by the JSE SENS Department.
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