| Fri 20 Jun 2008, 17:05 | | DIV - Diversified Property Fund Limited - Disposal of investment |
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DIV
DIV
DIV - Diversified Property Fund Limited - Disposal of investment
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 INVESTMENT
INTRODUCTION
Linked unitholders are advised that Diversified has (via its wholly-owned
subsidiary Diversified Properties 2 (Proprietary) Limited) disposed of
its entire holding in Resilient Property Income Fund Limited
("Resilient") ("the disposal"), being 9 335 448 linked units ("the
Resilient linked units"), with effect from 18 June 2008.
DETAILS OF AND RATIONALE FOR THE DISPOSAL
The disposal was made to Amber Peek Investments (Pty) Limited, and will
enhance Diversified`s empowerment credentials by ultimately increasing
black ownership.
The proceeds from the disposal will be used to reduce existing debt which
will be yield-enhancing.
CONSIDERATION AND PRO FORMA FINANCIAL EFFECTS
The Resilient linked units were sold at an average market price of R19.44
per unit for an aggregate cash price of R181,4m.
The pro-forma financial effects of the disposal set out in the table
below are the responsibility of Diversified`s directors and have been
prepared for illustrative purpose only, to show how the disposal may have
affected the company`s reviewed interim results for the six months ended
31 December 2007. Due to their nature, the pro-forma financial effects
may not fairly present the company`s financial position, changes in
equity, results of operations or cash flows following the disposal.
Before the Pro forma Percentage
disposal after the change
disposal
Distribution per linked unit 35.49 38.50 8.48%
(cents)
Earnings per linked unit (cents) 51.22 19.61 (61.71)%
Headline earnings per linked unit 32.45 35.46 9.28%
(cents)
Net asset value and tangible net 8.57 8.23 (3.97)%
asset value per linked unit
(cents)
Weighted average linked units in 173 804 113 173 804 113 -
issue for the six months ended 31
December 2007
Linked units in issue at 31 173 804 113 173 804 113 -
December 2007
Notes:
1 The amounts set out in the "Before the disposal" column have been
extracted from the reviewed interim results of Diversified for the six
months ended 31 December 2007;
2 Distribution per linked unit, earnings per linked unit and headline
earnings per linked unit, as set out in the "Pro forma after the
disposal" column, reflect what the distribution per linked unit, earnings
per linked unit and headline earnings per linked unit for the six months
ended 31 December 2007 would have been had the effective date of the
disposal been 1 July 2007 and the proceeds from the disposal used to
reduce debt at an interest rate of 11% per annum from the effective date;
3 Net asset value and tangible net asset value per linked unit, as set
out in the "Pro forma after the disposal" column, reflects what the net
asset value and tangible net asset value per linked unit at 31 December
2007 would have been had the effective date of the disposal been 31
December 2007.
CATEGORISATION OF THE TRANSACTION
The transaction has been categorized as a category 2 transaction in terms
of section 9.5(a) of the JSE Listings Requirements.
20 June 2008
Sponsor
Java Capital (Proprietary) Limited
Date: 20/06/2008 17:05:29 Produced by the JSE SENS Department.
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