| Fri 22 Aug 2008, 17:53 | | EMI - Emira Property Fund - Acquisition of letting enterprise from Hawley road |
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EMI
EMI
EMI - Emira Property Fund - Acquisition of letting enterprise from Hawley road
developments (PTY) Limited
EMIRA PROPERTY FUND
(A property fund created under the Emira Property Scheme, registered in terms of
the Collective Investment Schemes Control Act)
Share code: EMI ISIN: ZAE000050712
("Emira" or "the Fund")
ACQUISITION OF LETTING ENTERPRISE FROM HAWLEY ROAD DEVELOPMENTS (PTY) LIMITED
1. INTRODUCTION
In terms of a purchase agreement ("the Purchase Agreement") between Emira and
Hawley Road Developments (Pty) Limited ("Hawley") (collectively "the Parties")
on 24 April 2006, which was approved by Emira Participatory Interest ("PI")
holders at a general meeting on 22 August 2006, Emira agreed to purchase the
letting enterprise which Hawley operated from Erf 900, Karenpark Ext 9 ("the
Property").
In terms of the Purchase Agreement the Parties agreed to exclude the Value
Centre Land (defined in clause 1.2.47 of the Purchase Agreement) from the
Purchase Agreement and that the Value Centre Land would be subdivided from the
Property and transferred back to Hawley.
PI holders are advised that Emira has entered into a further agreement ("the
agreement") with Hawley not to implement the provisions relating to the Value
Centre Land as contemplated in the Purchase Agreement and instead for Hawley to
procure the development of a Builders Express Home and Garden Centre on the
Value Centre Land ("the letting enterprise") and conclude a lease with Servistar
(Pty) Limited ("the Lease"). As consideration for the aforesaid obligations of
Hawley which will result in the acquisition by Emira of the letting enterprise
("the acquisition"), Emira shall pay Hawley an amount of R26 259 000 in cash.
The details in respect of the acquisition are set out in paragraph 2.3 below.
2. THE ACQUISITION
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 acquisition will improve the quality of the portfolio and
enhance the sustainable income attributable to PI holders.
2.2 Details of the letting enterprise
In terms of the agreement, Emira will acquire the following enterprise from
Hawley Road:
Purchase Rentable
Legal price area
Property description (Rands) (m2)
Wonderpark Builders
Express Erf 900, 26 259 000 3 948
Karenpark
Ext 9
Continued
Weighted
average Effective Vacancy Inde-
rental date (% pendent
per m2 of the rentable valuation
Property (Rands) acquisition area) (Rands)
Wonderpark Builders 47,17 1 May 2008 - 26 259 000
Express
2.3 Description of the letting enterprise
Wonderpark Builders Express
Address: Corner R513 Brits Road and Heinrich Avenue, Karenpark, Pretoria
Description: Retail area and garden centre constructed out of reinforced
concrete frames and brick infill, on-grade open parking bays and undeveloped
bulk rights of 1 662 m2
Tenant: Servistar (Pty) Limited t/a Builders Express
2.4 Pro forma financial effects of the acquisition
The pro forma financial effects of the acquisition on distributions, net asset
value and net tangible asset value per PI for the year ended 30 June 2008 are
not significant (ie are less than 3%), and have therefore not been disclosed.
3. CONDITIONS PRECEDENT
The implementation of the acquisition is not subject to any conditions
precedent.
4. SMALL RELATED PARTY TRANSACTION
As 34,4% of Emira`s PIs are held by Momentum Group, which is an associated
company of the vendor, the acquisition is deemed a small related party
transaction in terms of the JSE Limited ("JSE") Listings Requirements.
Accordingly, a valuation report prepared by an independent valuer is required.
The report of the independent valuer, Steven Levinsohn (who is registered as a
professional associated valuer in terms of the Property Valuers Profession Act
No. 47 of 2000) of Benchmark Valuation Group, effective 1 May 2008, is available
for inspection at Emira`s registered office for a period of 28 days from the
date of this announcement. The independent valuation of the letting enterprise
is shown in the table above.
Sandton
21 August 2008
Sponsor: Rand Merchant Bank (A division of FirstRand Bank Limited)
Date: 22/08/2008 17:53:54 Produced by the JSE SENS Department.
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