| Fri 22 May 2009, 11:42 | | ACP - Acucap Properties - Announcement Regarding The Acquisition Of A Further |
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ACP
ACP
ACP - Acucap Properties - Announcement Regarding The Acquisition Of A Further
Undivided Half Share In Bayside Mall
ACUCAP PROPERTIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2001/021725/06)
Share code: ACP ISIN: ZAE000037651
("Acucap" or "the Company")
ANNOUNCEMENT REGARDING THE ACQUISITION OF A FURTHER UNDIVIDED HALF SHARE IN
BAYSIDE MALL
Introduction
Acucap linked unitholders are advised that the Company had entered into an
agreement of purchase and sale of a letting enterprise dated 15 May 2009 ("the
Agreement") to purchase a further undivided half share in ERF 21460 Milnerton,
known as the Bayside Mall ("the Property"), from Old Mutual Life Assurance
Company (South Africa) Limited ("the Acquisition").
Rationale for the Acquisition
The Bayside Mall is situated in one of Cape Town`s highest growth nodes, and its
rapidly expanding residential catchment area includes Table View, Parklands,
Flamingo Vlei, Sunningdale and West Beach. There is strong demand for space from
national retailers who are under-represented in the area, and with an additional
10 000m2 of approved bulk available, the Property will benefit from its ability
to attract such tenants. With a capacity to grow to just under 50 000m2, Bayside
Mall has the potential to offer a comprehensive retail platform that will cement
its position as the primary regional shopping centre in the Atlantic residential
corridor. Traffic circulation and access to the mall will benefit substantially
from the new Bus Rapid Transport ("BRT") System, and this will be complemented
by additional structured parking that is planned for the mall. Since Acucap
currently manages the Property, there will be no incremental administration
costs, and its familiarity with the Property gives Acucap a high degree of
confidence in the quality and sustainability of earnings. The Acquisition is
expected to enhance long-term distribution growth for Acucap linked unitholders.
Consideration for the Acquisition
The purchase consideration for the Acquisition is R280 000 000 ("the Purchase
Price").
Acucap intends to place linked units with third parties to finance the Purchase
Price. In the event that insufficient linked units are placed to fund the
Acquisition, the remainder of the Purchase Price will be funded through a new
facility that has been granted by Standard Bank. If the Acquisition is fully
funded by the issue of units, Acucap`s gearing will decline to 37%, and if it is
fully funded through borrowings, gearing will increase to 41%. Should the
Purchase Price be fully debt funded, Acucap will remain comfortably within all
of its gearing covenants.
Conditions precedent
The Acquisition is subject to:
- Competition Commission approval; and
- the obtaining of any other regulatory approvals, to the extent required.
Unaudited pro forma financial effects of the Acquisition
The unaudited pro forma financial effects of the Acquisition on net asset value
and net tangible asset value per linked unit have not been disclosed as they are
not significant.
Forecast information on the Property
The summarised forecast financial information relating to the Property for the
twelve months ending 31 March 2010 and 31 March 2011, which is the
responsibility of Acucap directors, is set out below. The forecast financial
information has not been reviewed and reported on by the Company`s auditors.
Forecast Forecast
12 months 12 months
ending ending
31 March 2010 31 March 2011
R`000 R`000
Gross rentals 28 770 28 800
Contracted revenue 24 152 17 776
Uncontracted revenue 4 618 11 024
Net rental income before 28 100 28 400
interest
Net rental income after 28 100 28 400
taxation
Notes:
The assumptions for uncontracted revenue are that:
current tenants in uncontracted occupation will contract at current monthly
rentals with market related escalations; and
expiring lease contracts will be renewed at market rentals.
Property specific information relating to the Property
Details regarding the Property are set out below:
Property Location Sector Area Single or Weighted
ha multi average
tenanted rental per
m2
R
Erf 21460, Western Retail 10.58 Multi 109.84
Milnerton Cape
Property Vacancy Annualised Purchase Value of
by property price of Property
rentable yield Property Rm Rm (1)
area %
m2
Erf 21460, 777 10 280.0 282.5
Milnerton
Notes:
The value of the Property of R282 500 000 was arrived at by the independent
external property valuer, Mills Fitchet Magnus Penny (Proprietary) Limited, as
at 1 April 2009.
Categorisation of the Acquisition
The Acquisition is categorised as a Category 2 transaction in terms of the JSE
Limited Listings Requirements.
22 May 2009
Cape Town
Investment bank and sponsor
Nedbank Capital
Date: 22/05/2009 11:42:02 Produced by the JSE SENS Department.
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