| Wed 29 Oct 2008, 16:19 | | OAS - Oasis Crescent Property Fund - Termination of the Disposal of the |
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OAS
OAS
OAS - Oasis Crescent Property Fund - Termination of the Disposal of the
Remainder of the Ridge@Shallcross
Oasis Crescent Property Fund
A property fund created under the Oasis Crescent Trust Scheme registered in
terms of the Collective Schemes Control Act (Act 45 of 2002)
JSE code: OAS
ISIN: ZAE000074332
("OCPF" or "the Fund")
TERMINATION OF THE DISPOSAL OF THE REMAINDER OF THE RIDGE@SHALLCROSS
INTRODUCTION
Unitholders are referred to the SENS announcement of 25 May 2006, whereby
shareholders were advised that Oasis Crescent Property Fund Managers Limited,
the manager of OCPF ("the Manager"), had entered into an agreement to acquire
the Ridge@Shallcross shopping centre. At the time of the announcement
unitholders were advised that a component of the property was to be sold by
sectional title in order to facilitate the transaction.
Pursuant to which the Manager entered into an agreement of sale with Eden Court
Property Fund (Pty) Limited ("Eden Court") whereby, inter alia, Eden Court paid
R15 million of the original purchase consideration to the original vendor in
exchange for which Eden Court was to acquire the relevant components ("Agreement
of Sale").
Due to certain administrative reasons the transfer of the relevant components to
Eden Court was delayed/is still in the process of being finalised.
Now that the Fund has matured the board of the Manager have determined that it
is no longer necessary to transfer the relevant components to Eden Court and
same will now be retained by the Fund.
Therefore the Manager has entered into a deed of cancellation with Eden Court in
terms of which the Fund has terminated the aforementioned Agreement of Sale and
shall refund the purchase consideration paid by Eden Court, at the current
market related value ("Transaction"). Based on an independent external valuer`s
report prepared by Mills Fitchet Magnus Penny (Pty) Limited and dated 1 October
2008, the current market related value of the relevant component is R21.4
million. The independent external valuer is a registered valuer in terms of
Property Valuers Act No. 47 of 2000.
RATIONALE FOR THE TRANSACTION
At the time of the original acquisition, the intention was to split the shopping
centre into two components as a transitional measure in order to facilitate the
transaction. Now that the Fund has matured and has a track record of three
successful years, the board of directors of the Manager have decided to
consolidate the property and terminate the Agreement of Sale.
PARTICULARS OF THE TRANSACTION
The subject of the Transaction is shop 4 (measuring 102 m2), shop 30 (measuring
500m2), shop 34 (measuring 550 m2) and shop 57 (measuring 451 m2) of portion 219
(of 6) and the remainder of erf 391 Buffelsbosch No.965, known as the
Ridge@Shallcross and situated at 90 Shallcross Road Durban, Kwa Zulu Natal,
South Africa, with a total rentable area of 1,746m2 ("Units") The effective date
of the Transaction is today 29 October 2008. The deed of cancellation is not
subject to any conditions precedent.
PARTICULARS OF THE RIDGE@SHALLCROSS
The centre opened for trading on 24 November 2005 and is anchored by Checkers
Hyper and House & Home. The total rentable area of the shopping centre is 15
074m2. The current vacancy level is 7.2% of rentable area.
REFUND OF PURCHASE CONSIDERATION
The purchase consideration that shall be refunded is R21.4 million, which will
be settled today 29 October 2008.
FINANCIAL EFFECTS OF THE TRANSACTION
The unaudited pro forma financial effects are the responsibility of the
directors of the Manager and have been prepared for illustrative purposes only.
Due to their nature the pro forma financial effects may not give a true
reflection of OCPF`s financial position as at 30 September 2008. The unaudited
pro forma financial effects presented in this announcement have been based on
the reviewed interim financial statements of OCPF for the six months ended 30
September 2008, announced on SENS on 28 October 2008, and is presented in a
manner consistent with the format and accounting policies adopted by OCPF.
Before the Pro forma Increase/
Transaction after the (decrease)
(Unaudited)(1) Transaction
(2,3)
(%)
Basic earnings 142.3 142.1 0.1%
per unit
Headline 57.3 57.3 0.01%
earnings per
unit
NAV and NTAV 1 282 1 282 0.00%
per unit
(cents)
Weighted 29,233 29,233
average number
of units in
issue for the
period (`000)
Units in issue 32,828 32,828
at end of
period (`000)
Notes:
1. The figures in the before column have been extracted from the reviewed
interim financial statements of OCPF for the six months period ended 30
September 2008.
2. Earnings and headline earnings per unit, as set out in the "pro forma after
the transaction" column of the table, were based on the following
assumptions:
2.1 The transaction was effective from 1 March 2008;
2.2 The purchase consideration was refunded on 1 March 2008 through
existing cash resources.
3. Net asset value and net tangible asset value per unit of OCPF, as set out
in the "pro forma after the transaction", were based on the following
assumptions:
3.1 The transaction was effective on 30 September 2008;
3.2 The purchase consideration was refunded on 30 September 2008 through
existing cash resources.
UNIT SPECIFIC INFORMATION
Details regarding the units are set out below:
Units Location Sector Area m2 Single or
multi
tenanted
shop 4, shop 30, KwaZulu Natal Retail 1, 746 Multi
shop 34, shop 57 Community
and the remainder Shopping
of erf 391 Centre
Buffelsbosch
No.965 known as
the Ridge,
Shallcross
Weighted average Vacancy by Annualised Purchase Value of
rental per m2 rental area m2 units yield price of units(2)
units(1)
R 148 0 m2 9.7% R21.4 R21.4
million million
CATEGORISATION OF THE TRANSACTION
The transaction is categorised as a category 2 transaction in terms of the
Listings Requirements of the JSE Limited ("JSE"). The announcement is for
information purposes only and no further action is required by Unitholders.
RELATED PARTY
The vendor of the units is a related party. However due to the insignificant
size of the Transaction it is not considered to be a related party transaction
in terms of the Listings Requirements of the JSE.
By order of the board of the Manager
Cape Town
29 October 2008
Date: 29/10/2008 16:19:44 Produced by the JSE SENS Department.
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implicitly, represent, warrant or in any way guarantee the truth, accuracy or
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employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
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