| Fri 26 Feb 2010, 15:03 | | SYC - Sycom Property Fund - Announcement regarding the acquisition of Tyger |
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SYC
SYC
SYC - Sycom Property Fund - Announcement regarding the acquisition of Tyger
Hills Office Park and cautionary announcement
Sycom Property Fund
A Collective Investment Scheme in property registered in terms of the Collective
Investment Schemes Control Act, No. 45 of 2002 and managed by Sycom Property
Fund Managers Limited ("Sycom Property Fund Managers")
(Registration number 1986/002756/06)
JSE Share code: SYC & ISIN: ZAE000019303
("Sycom" or "the Fund")
ANNOUNCEMENT REGARDING THE ACQUISITION OF TYGER HILLS OFFICE PARK AND CAUTIONARY
ANNOUNCEMENT
1. Introduction
Sycom unitholders are advised that ABSA Bank Limited, acting as trustee for the
Fund, has entered into a sale of shares agreement with Attfund Limited
("Attfund" or "the Seller") and Tyger Hills Office Park (Proprietary) Limited
("the Company") dated 26 February 2010 ("the Acquisition") to acquire the entire
issued share capital and all the Seller`s claims against the Company from the
Seller.
The Company owns the properties known as Phases 1, 2 and 4 Tyger Hills Office
Park ("the Properties" or "Tyger Hills Office Park") which comprise
approximately 10 920m2 of gross lettable area,.
The Acquisition will be effective upon fulfilment of the conditions precedent
set out in paragraph 4 below, which is expected to be mid March 2010.
2. Rationale for the Acquisition
Sycom`s strategy has always been to maintain a relatively even exposure to the
retail and office segments, and within its office portfolio, Sycom has found
significant advantages in owning large, high quality office parks with a strong
nodal reference. The office park format brings with it a high degree of
flexibility in accommodating the changing needs of tenants, and the larger
number of tenants in an office park substantially mitigates the risk of single
tenant exposure that is often inherent in the office market. With their
generally lower bulk, good security and well-controlled amenities, high quality
office parks are capable of attracting premium rentals and they typically
operate with lower long-term vacancy rates than stand-alone offices. The size,
location and tenant profile of the Properties is consistent with the high
standard of Sycom`s existing office park interests.
3. Consideration for the Acquisition
The purchase consideration for the Acquisition is R164.6 million ("the Purchase
Price"). If the effective date of the Acquisition is after 1 March 2010, the
Purchase Price will escalate by 9% per annum ("the Purchase Price escalation").
The Purchase Price will be settled by the issue of 8 897 297 Sycom units at an
issue price of R18.50 per unit while the Purchase Price escalation will be
settled in cash.
4. Conditions precedent
The Acquisition is subject to:
4.1 Competition Authorities approval; and
4.2 the obtaining of any other regulatory approvals, to the extent
required.
5. Small related party transaction
The Issuer Services Division of the JSE Limited ("JSE`) has ruled that the
Acquisition is a "small related party" transaction in terms of the JSE Listings
Requirements. Sycom will therefore appoint an independent professional expert
acceptable to the JSE with regard to the fairness of the Acquisition and will
inform unitholders of the outcome of this process in a further announcement
("the further announcement").
6. Cautionary announcement
The valuation information, financial information and property specific
information regarding the Acquisition will also be provided in the further
announcement. Accordingly, unitholders are advised to exercise caution when
dealing in Sycom`s securities until the further announcement has been made.
26 February 2010
Cape Town
Investment bank and sponsor
Nedbank Capital
Competition law advisor
Vani Chetty Competition Law
Date: 26/02/2010 15:03:03 Produced by the JSE SENS Department.
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