| Wed 29 Oct 2008, 17:02 | | SAC - SA Corporate Real Estate Fund - Announcement |
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SAC
SAC
SAC - SA Corporate Real Estate Fund - Announcement
SA Corporate Real Estate Fund
(Incorporated in the Republic of South Africa)
Share Code: SAC & ISIN Code: ZAE000083614
A Collective Investment Scheme in property registered in terms of the Collective
Investment Schemes Control Act, No. 45 of 2002 and managed by SA Corporate Real
Estate Fund Managers Limited ("SA Corporate Fund Managers")
(Registration number 1994/009895/06)
("SA Corporate" or "the Fund")
1. Background
In an announcement dated 10 October 2008 ("the announcement"), unitholders were
advised of various specific actions being considered by management to improve
the quality of the Fund`s earnings and to generate sustainable long term
distribution growth. These included portfolio investment objectives, specific
building strategies and a programme to buy back SA Corporate units.
Save for the retail acquisition opportunity, more fully dealt with below, there
was a good level of support from unitholders and sector analysts engaged by
management.
This announcement is to update unitholders on progress with regard to the
specific actions, in particular, the termination of negotiations in respect of
the retail acquisition opportunity and the status of the Fund`s property
disposal and unit buy back strategies.
2. Property disposals
The announcement referred to the intention to dispose of certain properties and
unitholders are advised that management is proceeding as planned with this
disposal strategy. Negotiations with various potential purchasers are taking
place and there are encouraging signs of early progress. Based on current
investment parameters, the proceeds from these property disposals will be
channelled towards funding the buy back of the Fund`s units.
3. The retail acquisition opportunity
Unitholders were also advised in the announcement that one of the portfolio
investment objectives was to increase the Fund`s investment in larger, dominant
retail centres. An opportunity had arisen to consider the acquisition of a
minority interest in six properties in the Old Mutual Group`s portfolio of high
end, dominant regional and super-regional shopping centres ("the retail
acquisition opportunity"), salient details of which were included in the
announcement.
Given the changes in economic conditions and investment markets, together with
the pricing of these assets, unitholders are advised that negotiations in
respect of the retail acquisition opportunity have been terminated.
4. Unit repurchase programme
In light of SA Corporate`s previous intention to investigate the retail
acquisition opportunity, a programme, in terms of the JSE Limited Listings
Requirements was entered into in relation to the repurchase of SA Corporate`s
units by the Fund during such anticipated prohibited period ("the repurchase
programme"). The repurchase programme commenced on Monday, 13 October 2008 and
further to SA Corporate`s decision not to pursue the retail acquisition
opportunity, terminates with immediate effect. A total of 6,3 million units have
been purchased by the Fund in terms of this repurchase programme at a weighted
average cost of 221 cents per unit.
Notwithstanding the termination of the repurchase programme, unitholders are
reminded that SA Corporate has a general authority to repurchase units, granted
at the annual general meeting held on 24 April 2008, and will act accordingly
subject to the availability of funding and investment merits thereof.
Durban
29 October 2008
Sponsor
Nedbank Capital
Date: 29/10/2008 17:02:27 Produced by the JSE SENS Department.
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