| Thu 26 Mar 2009, 13:21 | | PPR - Putprop Limited - Acquisitions of Eagle Canyon and Grand Central |
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PPR
PPR
PPR - Putprop Limited - Acquisitions of Eagle Canyon and Grand Central
Properties
PUTPROP LIMITED
Incorporated in the Republic of South Africa
(Registration number 1988/001085/06)
Share code: PPR ISIN: ZAE000072310
("Putprop" or "the company")
ACQUISITIONS OF EAGLE CANYON AND GRAND CENTRAL PROPERTIES
1. INTRODUCTION AND RATIONALE
Shareholders are advised that Putprop has reached an agreement with:
- Super Group Trading (Proprietary) Limited ("Supergroup") to acquire from
Supergroup a property named Eagle Canyon ("Eagle Canyon acquisition"); and
- Lussin Piccolo 2 (Proprietary) Limited ("Lussin") to acquire from Lussin
a property named Grand Central ("Grand Central acquisition"), upon which the
Auto Bavaria panel shop, parking and other facilities have been erected,
collectively, referred to hereafter as "the acquisitions".
The acquisitions will enhance the commercial gross lettable area ("GLA") in
Putprop`s portfolio, and will provide an increase in the income stream of
the company.
2. THE ACQUISITIONS
2.1 Details of the properties
Eagle Canyon
Eagle Canyon is situated on Portion 425 (of Portion 109) of the Farm
Boschkop 199, Registration Division I.Q. Province of Gauteng and,
together with all buildings and improvements thereon, measures 7 834
square metres. The GLA of the property is 3 872 square metres and the
weighted average rental per square metre is R27.66. The current tenant on
the property is a national car dealership.
Grand Central
Grand Central is situated on Portion 1 of Erf 71, Grand Central Extension
21, Township Registration JR, Province of Gauteng and, together with all
buildings and improvements thereon, measures 8 003 square metres. The GLA
of the property is 8 003 square metres and the weighted average rental
per square metre is R16.75.
2.2 Purchase considerations and effective dates
Eagle Canyon
The total purchase consideration, being R12 700 000, was paid out of the
cash reserves of the company on the date of transfer. An agent`s
commission of R152 399 and legal costs of R46 570, payable in respect of
the Eagle Canyon acquisition, were paid out of the cash reserves of the
company.
Grand Central
The total purchase consideration, being R15 500 000 was paid out of cash
reserves of the company on the date of transfer. Legal costs of R48 615,
payable in respect of the Grand Central acquisition, were paid out of the
cash reserves of the company.
The effective dates of the Eagle Canyon acquisition and the Grand Central
acquisition were 21 August 2008 and 27 August 2008, respectively, being the
dates of registration and transfer. Valuations of the properties were
performed prior to the acquisitions by Putprop`s directors, who are not
registered as professional valuers in terms of the Property Valuers
Profession Act, 2000, (No 47 of 2000).
2.3 Conditions precedent
All conditions precedent in respect of the acquisitions have now been
fulfilled.
3. PRO FORMA FINANCIAL EFFECTS OF THE ACQUISITIONS
The table below sets out the unaudited pro forma financial effects of the
acquisitions, on Putprop`s earnings per share, headline earnings per share,
net asset value per share and tangible net asset value per share.
The unaudited pro forma financial effects have been prepared to illustrate
the impact of the acquisitions on the reported financial information of
Putprop for the six months ended 31 December 2008, had the acquisitions
occurred on 1 July 2008 for income statement purposes and on 31 December
2008 for balance sheet purposes.
The unaudited pro forma financial effects have been prepared using
accounting policies that comply with International Financial Reporting
Standards and that are consistent with those applied in the audited results
of Putprop for the year ended 30 June 2008.
The unaudited pro forma financial effects, which are the responsibility of
the directors, are provided for illustrative purposes only and, because of
their pro forma nature may not fairly present Putprop`s financial position,
changes in equity, results of operations or cash flow.
Before the After the Percentag
acquisitions acquisition e change
s (%)
Basic earnings per share 54.2 56.0 3%
(cents)
Headline earnings per share 33.3 35.1 5%
(cents)
Net asset value per share 651.8 651.8 -
(cents)
Tangible net asset value per 651.8 651.8 -
share (cents)
Weighted average number of 28 793 000 28 793 000 -
shares in issue (000`s)
Notes:
1. The amounts in the "Before the acquisitions" column have been
extracted from the unaudited interim results of Putprop for the
period ended 31 December 2008.
2. The amounts in the "After the acquisitions" column reflect the financial
effects of the acquisitions on Putprop.
3. The effects on earnings per share and headline earnings per share are
calculated based on the assumption that the acquisitions were effected on 1
July 2008.
4. The effects on net asset value per share and tangible net asset value per
share are calculated based on the assumption that the acquisitions were
effected on 31 December 2008.
4. CLASSIFICATION OF THE ACQUISITIONS
The acquisitions are classified as a Category 2 transaction in terms of the
Listings Requirements of the JSE Limited.
26 March 2009
Sponsor
Merchantec (Proprietary) Limited
Date: 26/03/2009 13:21:18 Produced by the JSE SENS Department.
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