| Fri 15 Aug 2008, 12:51 | | SAT - SA Reit Limited - Announcement regarding the acquisition of the SANTAM |
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SAT - SA Reit Limited - Announcement regarding the acquisition of the SANTAM
corporate office complex and cautionary announcement
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 ACQUISITION OF THE SANTAM CORPORATE OFFICE COMPLEX
AND CAUTIONARY ANNOUNCEMENT
1 Introduction
SA REIT shareholders are advised that the Company submitted an offer to
purchase (`the Offer") ERF 32140 Tyger Valley, known as Santam Corporate
Office Complex situated between Sportica Crescent and Carl Cronje Drive,
Tyger Valley, Bellville ("the Property"), to Multiplex Investment Holding
Company (Proprietary) Limited ("the Vendor"), which offer was accepted on
11 August 2008 ("the Acquisition").
The Acquisition will become effective upon transfer of the Property which
is expected to take place by 31 October 2008.
2 Rationale for the Acquisition
The Acquisition has been made in line with SA REIT`s strategy to create a
leading South African property investment and development company.
3 Consideration for the Acquisition
The purchase consideration for the Acquisition is R177 500 000, to be
settled in cash. ("the Purchase Price").
SA REIT may elect to settle a portion of the Purchase Price by the
placement of SA REIT shares on behalf of the Vendor or the Purchase Price
will be funded through borrowings and internal resources.
4 Conditions precedent
The Acquisition is subject to, inter alia, the following conditions
precedent:
- the obtaining of the relevant regulatory approvals, including those
from the JSE Limited ("JSE") ,to the extent required; and
- Competition Commission approval.
Further to the Offer, an Agreement of Sale will be executed between
the Vendor and SA REIT.
5. Pro forma financial effects, forecast information, property
specific information relating to the Acquisition, information
contained in the Agreement of Sale and cautionary announcement
The pro forma financial effects providing further details of how
the Purchase Price will be settled, forecast information, and property
specific information relating to the Acquisition will be provided in a
further announcement ("the Further Announcement"). Any material
information further to the Offer contained in the Agreement of Sale
will also be included in the Further Announcement. SA REIT shareholders
are therefore advised to exercise caution when dealing in SA REIT
securities until the Further Announcement is made.
6 Categorisation of the Acquisition and circular to SA REIT shareholders
The Acquisition is categorised as a Category 1 transaction in terms of
the JSE Listings Requirements. Pursuant to this, a circular providing
information on the Acquisition and incorporating a notice convening a
general meeting at which SA REIT shareholder approval for the Acquisition
will be sought, will be posted to SA REIT shareholders in due course.
15 August 2008
Cape Town
Investment bank and sponsor
Nedbank Capital
Date: 15/08/2008 12:51:04 Produced by the JSE SENS Department.
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