| Thu 29 Oct 2009, 14:02 | | VKE - Vukile To Acquire R775 Million Property Portfolio |
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VKE
VKE
VKE - Vukile To Acquire R775 Million Property Portfolio
Vukile Property Fund Limited
(Incorporated in the Republic of South Africa)
(Registration number 2002/027194/06)
JSE code: VKE NSX code: VKN
ISIN: ZAE000056370
("Vukile")
VUKILE TO ACQUIRE R775 MILLION PROPERTY PORTFOLIO
Johannesburg, 29 October 2009 - Property loan stock company Vukile announced
today that it had concluded agreements with the Sanlam group to acquire a
portfolio of 13 commercial properties for R775 million in cash ("the Property
Acquisition"). The Property Acquisition is subject to a number of conditions
precedent, including approval by Vukile`s unitholders and the raising of the
required funding.
This acquisition is a direct consequence of the previously announced transaction
in terms of which Vukile will acquire the asset management business of Sanlam
Properties as it relates to the property asset management of the Sanlam Life
property portfolio, obtaining a call option to acquire R500 million of
properties from Sanlam Life and obtaining a right of first refusal on most of
the remainder of Sanlam Life`s property portfolio (the "Asset Management
Acquisition"). In this regard, the company also announced today that the formal
agreements to give effect to the Asset Management Acquisition had now been
concluded as well, subject to certain remaining conditions precedent. Once the
Asset Management Acquisition has been finalised, Vukile will, in addition to
doing the property asset management for its own property portfolio, also provide
property asset management services to Sanlam Life in respect of Sanlam Life`s
property portfolio and thereby obtain the benefits of economies of scale.
The 13 properties being acquired are spread over six of South Africa`s provinces
from the Western Cape to Limpopo and cover more than 140 000 m2 of rentable
retail, office, industrial and storage space. Vukile chief executive Gerhard
van Zyl said the acquisition is in line with the company`s objective of building
a quality portfolio of properties with strong contractual cash flows. Vukile
already has a portfolio valued at some R4.5 billion.
For further information contact
Gerhard van Zyl, CEO Vukile Property Fund Limited, on 011 288 1002
Issued by du Plessis Associates on behalf of Vukile Property Fund Limited.
dPA contact Helen McKane Tel : +27 11 728 4701,
Fax: +27 11 728 2547, Mobile: 082 330 2034 or e-mail: vukile@dpapr.com
www.vukileprops.co.za
Date: 29/10/2009 14:02:00 Produced by the JSE SENS Department.
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