| Tue 18 May 2010, 11:00 | | PMM - Premium - Announcement regarding the acquisition of ERF 2723 Pretoria |
|
PMM
PMM
PMM - Premium - Announcement regarding the acquisition of ERF 2723 Pretoria
Township, portion 1 of ERF 2577 Pretoria Township and portion 1 of ERF 2581
Pretoria Township
PREMIUM PROPERTIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1994/003601/06)
Share code: PMM ISIN: ZAE000009254 ZAE000009254
("Premium" or "the Company")
ANNOUNCEMENT REGARDING THE ACQUISITION OF ERF 2723 PRETORIA TOWNSHIP, PORTION 1
OF ERF 2577 PRETORIA TOWNSHIP AND PORTION 1 OF ERF 2581 PRETORIA TOWNSHIP
1 Introduction
Premium linked unit holders are advised that Centpret Property (Pty)
Limited ("the Purchaser"), a wholly owned subsidiary of Premium, has
entered into an agreement of sale ("the Agreement") with Impilo Flat 735
(Pty) Limited ("Impilo" or "the Seller") dated 7 May 2010 ("the
Acquisition") to acquire the following Properties ("the Properties") and
the businesses conducted thereon from the Seller:
1.1 ERF 2723, Pretoria Township, 4 068m2 in extent;
1.2 Portion 1 of ERF 2577, Pretoria Township, 1 780m2 in extent; and
1.3 Portion 1 of ERF 2581, Pretoria Township, 1 510m2 in extent.
The Acquisition will be effective upon fulfilment of the conditions
precedent set out in paragraph 4 below, which is expected to be during
September 2010.
2 Rationale for the Acquisition
In alignment with Premium`s strategy of actively pursuing redevelopment and
investment opportunities that will enhance the overall quality and value of
its portfolio, the Acquisition represents an attractive investment in a
prime location, situated in the heart of Pretoria`s busiest retail
district. The Properties are leased by blue-chip national retail operators.
The acquisition is likely to continue to contribute to the long term growth
of Premium`s distributions.
3 Consideration for the Acquisition
The purchase consideration for the Acquisition is R130 million (one hundred
and thirty million rand) ("the Purchase Price"). The Purchaser shall be
liable for the agent`s commission and other costs in the amount of R2 520
000 (two million five hundred and twenty thousand rand) in respect of the
Acquisition.
The Purchase Price will be settled in cash.
4 Conditions precedent
The Acquisition is subject to:
4.1 the Purchaser securing a loan from a bank or financial institution in
the amount of R97.5 million (ninety seven million five hundred
thousand rand) within a period of 30 (thirty) days from the date of
the signing of the Agreement; and
4.2 Competition Authorities approval.
5 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.
6 Forecast information on the Properties
The summarised forecast financial information relating to the Properties
for the six months ending 28 February 2011 and for the twelve months ending
28 February 2012, which is the responsibility of the Company`s directors,
is set out below. The forecast financial information has not been reviewed
and reported on by Premium`s auditors.
Forecast Forecast
6 months ending 12 months ending
28 February 2011 28 February 2012
R`000 R`000
Gross rentals 4 690 222 9 862 809
Contracted revenue 4 690 222 9 862 809
Uncontracted revenue - -
Net rental income before 4 619 869 9 714 867
interest
Net loss after interest (1 873 611) (3 272 093)
Notes:
1. The forecast information for the 6 months ending 28 February 2011 has
been calculated from the anticipated effective date of the
Acquisition, 1 September 2010.
7 Specific information relating to the Properties
Details regarding the Properties are set out below:
Property ERF 2723, Portion 1 of ERF 2577,
Portion 1 of ERF 2581
Location Pretoria CBD
Sector Retail
GLA m2 17 142
Single or multi tenanted Multi
Weighted average rental per m2 R 46
Annualised property yield(1) % 7.1
Total purchase price Rm 132.5
Value Rm (2) 132.5
Notes:
1 The value of the Properties of R132.5 million was arrived at by a
director`s valuation, as at 11 May 2010.
2 Based on net rental income for the period 1 September 2010 to 31
August 2011.
8 Categorisation
The Acquisition is a Category 2 transaction in terms of the JSE Limited
Listings Requirements.
17 May 2010
Johannesburg
Investment bank and sponsor
Nedbank Capital
Date: 18/05/2010 11:00:00 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
