| Mon 14 Jun 2010, 9:38 | | ING - Ingenuity Property Investments Limited - Announcement regarding the |
|
ING
ING
ING - Ingenuity Property Investments Limited - Announcement regarding the
acquisition of a property
INGENUITY PROPERTY INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2000/018084/06)
ISIN: ZAE 000127411 JSE share code: ING
("Ingenuity" or "the Company")
ANNOUNCEMENT REGARDING THE ACQUISITION OF A PROPERTY
1 Introduction
Ingenuity shareholders are advised that the Company has entered into an
offer to purchase ("the Offer") with The Lot 491 Trust and The Hipo Trust
("the Sellers"), in terms of which Ingenuity will purchase, subject to
fulfilment of the conditions precedent set out in paragraph 4 below, the
rental enterprise conducted in respect of the property known as Loerie
Centre and its improvements and leases, situated at the corner of
Hirbenia Street and Meade Street, George ("the Property") ("the
Acquisition").
The effective date of the Acquistion is on transfer of the Property into
Ingenuity`s name, which is to be on or as close as possible to 1 August
2010.
2 Rationale for the Acquisition
In line with Ingenuity`s investment strategy of growing the Company with
quality assets, the Acquisition is earnings enhancing and represents an
attractive investment.
3 Consideration for the Acquisition
The total consideration for the Acquisition is R40.5 million ("the
Purchase Consideration"), to be settled in cash out of current borrowing
facilities.
4 Conditions precedent
The Acquisition is subject to fulfilment of the following conditions
precedent which will be dealt with in more detail in a formal agreement
of sale to be entered into between the Company and the Sellers:
4.1 the approval of the board of directors of Ingenuity by 30 June 2010;
4.2 mortgage finance approval by 30 June 2010; and
4.3 Ingenuity being satisfied with the results of a comprehensive due
diligence of the Property by 30 June 2010.
5. Specific information relating to the Property
Details regarding the Property are set out below:
Pro- Loca- Sector Gross Single Weighted Annuali Total Value of
perty tion letta or multi- average sed purchas Property
ble tenanted rental propert e price Rm (1)
area per m2 y yield of
m2 R Propert
y Rm
Loerie Erf Retail 4 662 Multi- 86.81 10.75% 40.5 42.0
Centre 4769, tenanted
George
1. The value of the Property of R42 million was arrived at by an
independent registered valuer, Magnus Penny Associates CC, as at 10
June 2010.
6 Unaudited pro forma financial effects ("Financial Effects") of the
Acquisition
Based on Ingenuity`s unaudited consolidated interim results for the six
months ended 28 February 2010 ("Interim Results"), the Financial Effects
of the Acquisition on Ingenuity`s earnings per share ("EPS") and headline
earnings per share ("HEPS") are set out below. The Financial Effects of
the Acquisition on net asset value and net tangible asset value per unit
have not been disclosed as these are not significant.
The Financial Effects are prepared for illustrative purposes only, and
because of its nature, may not give a fair presentation of Ingenuity`s
financial position or the effect and impact of the Acquisition. The
Financial Effects are the responsibility of Ingenuity`s board.
Before the After the Change
Acquisition(1) Acquisition %
EPS(2) (3) (4) (cents) 0.51 0.58 14
HEPS(2) (4) (cents) 0.60 0.67 12
Share in issue net of 606 385 618 606 385 618
treasury shares
Weighted average number
of shares in issue net 627 279 533 627 279 533
of treasury shares
Notes:
1 Based on Ingenuity`s Interim Results.
2 In calculating the Financial Effects on EPS and HEPS, it was assumed
that the Acquisition was implemented on 1 September 2009 for income
statement purposes.
3 In calculating EPS, the projected property income of R2.429 million
for the six months ended 28 February 2010 was taken into account.
4 An average borrowing cost on the Purchase Consideration at a rate of
8.75% was utilised.
7. Categorisation
The Acquisition is a Category 2 transaction in terms of the JSE Limited
Listings Requirements.
14 June 2010
Cape Town
Investment bank and sponsor
Nedbank Capital
Date: 14/06/2010 09:38:02 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.
