| Wed 8 Dec 2010, 10:22 | | FPT - Fountainhead Property Trust - Proposed Acquisition by Foutainhead Property |
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FPT
FPT
FPT - Fountainhead Property Trust - Proposed Acquisition by Foutainhead Property
Trust ("Fountainhead") of Cedarwood House
Fountainhead Property Trust
A Collective Investment Scheme in property registered in terms of the Collective
Investment Schemes Control Act, No.45 of 2002 and managed by Fountainhead
Property Trust Management Limited
(Registration number 1983/003324/06)
Share code: FPT
ISIN code: ZAE000097416
("Fountainhead")
PROPOSED ACQUISITION BY FOUTAINHEAD PROPERTY TRUST ("Fountainhead") OF CEDARWOOD
HOUSE
1. INTRODUCTION
Unitholders are advised that Fountainhead has concluded an agreement ("the
agreement") for the acquisition of Cedarwood House, a property within the
Ballywoods Office Park located at 33 Ballyclare Drive, Bryanston ("the
property") from Ballywoods Trust and Cornerstone Capital Fund (Pty) Ltd ("the
acquisition").
2. THE ACQUISITION
2.1 Rationale
The acquisition is a high quality office building situated in a prime node and
is also strategically located adjacent to the Bryanston Shopping Centre which is
also owned by Fountainhead.
2.2 Consideration and terms of the agreement
The purchase price of the property is R72 377 644 and will be purchased by ABSA
Bank Limited in its capacity as Trustee for Fountainhead. The effective date of
the acquisition is the transfer date which is anticipated to be 1 March 2011.
2.3 Small related party transaction
In terms of the JSE Limited ("JSE") Listing Requirements Section 10.7, the
acquisition is regarded as a small related party transaction and in terms of the
JSE Listings Requirements the valuation report, which was performed by Rode and
Associates (Proprietary) Limited external valuers as defined by Section 13 of
the JSE Listings Requirements, will lie open for inspection at Fountainhead`s
registered offices for a period of 28 days from the date of this announcement.
2.4 Details of the property
The property, based on the valuation conducted, as at 01 March 2011, is valued
at R66 089 617. The total rentable area of the property is 4,718sqm`s (100% of
rentable area) at a weighted average gross rental of R121/sqm (as at 1 March
2011).
The weighted average rental escalation by rentable area for the property is
9.00% and the annualised property yield is 9.00%.
The strategic location of the asset, as mentioned in paragraph 2.1 above, is the
reason for the difference between the valuation amount and the purchase price.
3. FINANCIAL INFORMATION RELATING TO THE ACQUISITION
The pro forma financial effects of the acquisition on Fountainhead`s basic
earnings per unit, headline earnings per unit, distribution per unit, net asset
value and tangible net asset value per unit for the year ended 30 September 2010
are not material and have not been disclosed.
8 December 2010
Cape Town
Sponsor
Standard Bank
Date: 08/12/2010 10:22:01 Produced by the JSE SENS Department.
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