| Tue 30 Mar 2010, 17:50 | | SYC - Sycom Property Fund - Further announcement regarding the acquisition of |
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SYC
SYC
SYC - Sycom Property Fund - Further announcement regarding the acquisition of
Tyger Hills Office Park and withdrawal of 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")
FURTHER ANNOUNCEMENT REGARDING THE ACQUISITION OF TYGER HILLS OFFICE PARK AND
WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
1 Introduction
Sycom unitholders are referred to the announcement dated 26 February 2010
which advised that Sycom had acquired the entire issued share capital and
all the seller`s claims in Tyger Hills Office Park (Proprietary) Limited
("the Company") from Attfund Limited ("the Acquisition").
The Company owns the properties known as Phases 1, 2 and 4 Tyger Hills
Office Park ("the Properties" or "Tyger Hills Office Park"). Valuation
information, financial information, property specific information relating
to the Properties and further information regarding this small related
party transaction is set out below.
2 Conditions precedent and consideration for the Acquisition
All conditions precedent relating to the Acquisition which included inter
alia obtaining Competition Authority approval and any other regulatory
approvals have been fulfilled and the Acquisition will be effective from 31
March 2010.
The purchase consideration for the Acquisition is R164.6 million ("the
Purchase Price"), and is to be settled by the issue of 8 897 297 Sycom
units. The Purchase Price escalation of R1 258 175 has been calculated at
9% per annum from 1 March 2010 to 31 March 2010 (being the effective date)
and will be settled in cash.
3 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 unit have not been disclosed as they
are not significant.
4 Forecast information on the Properties
The summarised forecast financial information relating to the Properties
for the 12 months ending 31 March 2010 and for the twelve months ending 31
March 2011, which is the responsibility of Sycom Property Fund Managers`
directors, is set out below. The forecast financial information has not
been reviewed and reported on by the Fund`s auditors.
Forecast 12 Forecast 12
months ending months ending
31 March 2010 31 March 2011
R R
Gross rentals 46 017 17 698 263
Contracted revenue 39 682 9 554 852
Uncontracted revenue 6 335 8 143 411
Net rental income before 39 597 15 250 464
interest
Net rental income after 39 597 15 250 464
interest and taxation
Notes:
1 The forecast information for the 12 months ending 31 March 2010 has been
calculated from the effective date of the Acquisition, being 31 March 2010.
2 The assumptions for uncontracted revenue are that leases that expire will
be renewed at the lower of rentals escalated at previous contracted
escalations or market rentals.
3 Uncontracted revenue comprises 13.8% and 46.1% of forecast gross rentals
for the 12 month period ending 31 March 2010 and the 12 month period ending
31 March 2011, respectively.
5 Specific information relating to the Properties
Details regarding the Properties are set out below:
Property Tyger Hills Office Park (Phases 1,2 and 4)
Location Hendrik Verwoerd Drive, Plattekloof, Parow (2)
Sector Office
GLA m2 11 100
Single or multi tenanted Multi
Weighted average rental 127.84
per m2 R
Vacancy by rentable area 936
m2
Annualised property yield 9.2
%
Purchase price Rm 164.6
Value Rm{1) 165.0
Notes:
1 The value of the Properties of R165 000 000 was arrived at by the
independent external property valuer, Quadrant Properties Group, as at 1
March 2010
2 Leasehold rights in respect of erven 23433 (ptn 22330), 23467 (ptn 22330),
23512 (ptn 22330), 23517 (ptn 22330), and remainder erf 22330, Parow,
Tygerberg
6 Small related party transaction
The Acquisition is a "small related party" transaction in terms of the JSE
Limited Listings Requirements. Sycom have therefore appointed an
independent professional expert, KPMG Services (Proprietary) Limited
("KPMG"), to review the terms of the Acquisition. KPMG have reviewed the
terms and conditions of the Acquisition following an independent valuation
performed. KPMG are of the opinion that the terms and conditions of the
Acquisition are fair to Sycom unitholders. KPMG has expressed this opinion
in writing and such opinion leter, currently being finalised, will be
available for inspection at the Fund`s registered office for a period of 28
days after the date of this announcement.
7 Withdrawal of cautionary announcement
Further to the information provided in this announcement, unitholders need
no longer exercise caution when dealing in Sycom securities.
30 March 2010
Cape Town
Investment bank and sponsor
Nedbank Capital
Independent expert
KPMG Services (Proprietary) Limited
Competition law advisor
Vani Chetty Competition Law
Date: 30/03/2010 17:50:01 Produced by the JSE SENS Department.
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