| Fri 9 May 2008, 7:00 | | MIP - Merchant & Industrial Properties Limited - A |
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MIP
MIP
MIP - Merchant & Industrial Properties Limited - Acquisition By Merchant Of
Modern Tower Garage
Merchant & Industrial Properties Limited
(Formerly Marshalls Limited)
Code: "MIP" & ISIN: "ZAE000102265
("Merchant")
ACQUISITION BY MERCHANT OF MODERN TOWER GARAGE
1. INTRODUCTION
Shareholders are advised that Merchant ("the purchaser") has entered into an
acquisition agreement ("the agreement") in terms of which it has acquired Modern
Tower Garage ("the property"), being the Remainder of Erf 1416 Wentworth (in
extent 1 719 square meters) and Portion 4 of Erf 1416 Wentworth (in extent 881
square meters) situated at 7-19 Brighton Road, Jacobs, Durban from The Trustees
of The CH Stylli Family Trust (Registration number IT 11274/94) ("the vendor").
The effective date of the acquisition will be the date of transfer and
registration of the property into the name of Merchant which is expected to be
during June 2008.
2. PURCHASE CONSIDERATION
The property has been acquired for a total purchase consideration of R6,400,000
(Six Million Four Hundred Thousand Rand). Of this total purchase consideration
R3,520,000 (Three Million Five Hundred and Twenty Thousand Rand) has been lodged
with the purchaser`s attorneys and guaranteed to be paid on transfer and
registration of the property. The balance of the purchase consideration, being
R2,880,000 (Two Million Eight Hundred and Eighty Thousand Rand) will be
similarly lodged no more than 14 (fourteen) days prior to transfer.
3. SUSPENSIVE CONDITIONS
3.1 The purchaser notifies the vendor in writing that it is satisfied with the
outcome of a due diligence investigation conducted by it in respect of the
property; and
3.2 The purchaser notifies the vendor in writing that it has been able to
conclude a lease agreement with an anchor tenant of its choice.
4. RATIONALE AND DESCRIPTION OF BUSINESS
Merchant`s core business is that of owning and managing commercial and light
industrial properties. The property known as Modern Tower Garage is a branded
service station that is well positioned in a busy node and has the potential to
be improved significantly.
5. VALUATION
BA Hose (FRICS, FIV(SA)) ("valuer"), registration number 1377 with the South
African Council for Valuers performed a valuation on the property, effective
February 2008.
6. PROPERTY SPECIFIC INFORMATION
Location Rentable area Value as per
valuer
7-19 Brighton Road, 2,600 square meters R6,400,000
Jacobs, Durban
7. FINANCIAL EFFECTS
The pro forma effect on the net assets and net tangible assets per share due to
the acquisition as well as the profits attributable to the net assets acquired
and subsequent effect on the historical and headline earnings per share is not
significant as per the JSE Listings Requirements.
8. CATEGORISATION
This is a category two transaction per the categorisation rules contained in the
JSE Listings Requirements.
9 May 2008
Durban
Sponsor
Sasfin Capital (A division of Sasfin Bank Limited)
Date: 09/05/2008 07:00:02 Produced by the JSE SENS Department.
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