| Thu 29 Oct 2009, 7:59 | | PPR - Putprop Limited - Acquisition of Montana Park Property |
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PPR
PPR
PPR - Putprop Limited - Acquisition of Montana Park Property
PUTPROP LIMITED
Incorporated in the Republic of South Africa
(Registration number 1988/001085/06)
Share code: PPR & ISIN: ZAE000072310
("Putprop" or "the company")
ACQUISITION OF MONTANA PARK PROPERTY
1. INTRODUCTION AND RATIONALE
Shareholders are advised that Putprop has reached agreement to acquire a
property named Montana Park from Ama Manufacturing (Proprietary) Limited ("Ama")
("the acquisition").
The acquisition will enhance the commercial gross lettable area ("GLA") in
Putprop`s portfolio, and will provide an increase in the income stream of the
company.
THE ACQUISITION
2.1 Details of the property
Montana Park
The Montana Park property is situated on Portion 14 of Erf 2570, Montana
Park Ext 57, Registration Division JR, Province of Gauteng and together
with all buildings and improvements thereon, measures 8 544 square metres.
The GLA of the property is 3 640 square metres and the weighted average
rental per square metre is R42.59. The current tenant on the property is a
subsidiary of a national listed group.
2.2 Purchase consideration and effective date
The total purchase consideration, being R12 700 000, will be paid out of
the cash reserves of the company on the date of transfer. An agent`s
commission of R1 000 000 and estimated legal costs of R50 000 have been
incurred to effect the acquisition.
The effective date of the acquisition will be the date of registration and
transfer of the property to Putprop. A valuation of the property was
performed prior to the acquisition by Putprop`s directors, who are not
registered as professional valuers in terms of the Property Valuers
Profession Act, 2000 (No 47 of 2000). The property was valued at an amount
of R15 670 000.
2.3 Conditions precedent
All conditions precedent in respect of the acquisition have now been
fulfilled and the acquisition has now become unconditional.
3. PRO FORMA FINANCIAL EFFECTS OF THE ACQUISITION
The table below sets out the unaudited pro forma financial effects of the
acquisition, 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 acquisition on the reported financial information of
Putprop for the 12 months ended 30 June 2009, had the acquisition occurred
on 1 July 2008 for income statement purposes and on 30 June 2009 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 2009.
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 Percent
acquisition acquisitio age
n change
(%)
Basic earnings per share 122.7 123.6 0.8%
(cents)
Headline earnings per share 70.0 71.0 1.4%
(cents)
Net asset value per share 710.2 706.8 (0.5%)
(cents)
Tangible net asset value per 710.2 706.8 (0.5%)
share (cents)
Weighted average number of 28 792 961 28 792 961 -
shares in issue
Notes:
1. The amounts in the "Before the acquisition" column have been extracted
from the audited financial results of Putprop for the 12 months ended
30 June 2009.
2. The amounts in the "After the acquisition" column reflect the
financial effects of the acquisition on Putprop.
3. The effects on earnings per share and headline earnings per share are
calculated based on the assumption that the acquisition was 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 acquisition
was effected on 30 June 2009.
4. CLASSIFICATION OF THE ACQUISITION
The acquisition is classified as a Category 2 transaction in terms of the
Listings Requirements of the JSE Limited.
29 October 2009
Sponsor
Merchantec (Proprietary) Limited
Date: 29/10/2009 07:59:59 Produced by the JSE SENS Department.
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