| Mon 20 Dec 2010, 15:20 | | VIF - Vividend Income Fund Limited - Update to linked unitholders regarding |
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VIF
VIF
VIF - Vividend Income Fund Limited - Update to linked unitholders regarding
property acquisition agreements disclosed in prospectus
Vividend Income Fund Limited
Previously known as Business Venture Investments No 1381 (Proprietary) Limited
Incorporated in the Republic of South Africa
(Registration Number 2010/003232/06)
JSE Alpha Code: VIF
ISIN: ZAE000150918
("Vividend" or "the Company")
UPDATE TO LINKED UNITHOLDERS REGARDING PROPERTY ACQUISITION AGREEMENTS DISCLOSED
IN PROSPECTUS
FULFILMENT OF CONDITIONS PRECEDENT: GRADNER STREET (ROGGEBAAI) PROPERTY
1. THE GRADNER STREET (ROGGEBAAI) PROPERTY ACQUISITION
Linked unitholders of the Company are referred to the prospectus issued by the
Company on 1 November 2010 ("the prospectus") wherein linked unitholders were
advised that Vividend had entered into an agreement with Rich Rewards Trading
254 (Proprietary) Limited, dated 25 August 2010 ("Gradner Street (Roggebaai)
Agreement"), to acquire Erf 25, Roggebaai, Cape Town, known as the Gradner
Street (Roggebaai) Property ("Gradner Street (Roggebaai) Property Acquisition").
Linked unitholders are hereby advised that the outstanding conditions precedent
of the Gradner Street (Roggebaai) Agreement have been duly fulfilled. Vividend
will acquire ownership and possession of the Gradner Street (Roggebaai) property
with effect from the date of transfer thereof into the name of Vividend.
2. RATIONALE OF THE GRADNER STREET (ROGGEBAAI) PROPERTY ACQUISITION
The Gradner Street (Roggebaai) Property Acquisition is consistent with
Vividend`s strategy of identifying and acquiring properties that have free cash
flow yields that provide adequate value enhancement to linked unitholders from
the effective date of their acquisition. The Gradner Street (Roggebaai) Property
Acquisition is consistent with the timelines, objectives and projections of
Vividend for the 2011 financial period.
3. PURCHASE CONSIDERATION
The purchase consideration for the Gradner Street (Roggebaai) Property is
R55.190 million, payable in cash against transfer of the Gradner Street
(Roggebaai) Property into the name of Vividend
4. PRO FORMA FINANCIAL EFFECTS OF THE GRADNER STREET (ROGGEBAAI) PROPERTY
ACQUISITION
The pro forma financial effects of the Gradner Street (Roggebaai) Property
Acquisition on net asset value and net tangible asset value per linked unit are
not significant and therefore have not been disclosed.
5. FORECAST INFORMATION ON THE GRADNER STREET (ROGGEBAAI) PROPERTY
The forecast financial information relating to the Gradner Street (Roggebaai)
Property Acquisition for the periods ending 31 August 2011 and 31 August 2012 is
set out below. The forecast financial information has not been reviewed or
reported on by a reporting accountant in terms of section 8 of the Listings
Requirements of the JSE Limited and is the responsibility of the Company`s
directors.
Forecast 8 months Forecast 12 months
ending 31 August ending 31 August
2011 2012
Gross income R4,844,873 R8,722,669
Property R1,235,494 R2,202,300
expenditure
Net property income R3,609,379 R6,520,369
Property income 0.00 0.00
after interest and
taxation
Annualised yield on 11.20% 11.81%
property
Notes:
1. The forecast information for the 8 months ending 31 August
2011 has been calculated from the anticipated effective date
of the Gradner Street (Roggebaai) Property Acquisition, being
1 February 2011.
2. Contractual income constitutes 100% of gross income for
both the 8 month period ending 31 August 2011 and for the 12
month period ending 31 August 2012.
3. 100% of net property income is distributed to linked
unitholders as interest
6. PROPERTY SPECIFIC INFORMATION
Details regarding the Gradner Street (Roggebaai) Property are set out below:
Property name Gradner Street (Roggebaai)
Property
Location 4 Louis Gradner Street (10 Oswald
Pirow Street, Roggebaai)
GLA m2 4,972
Single or multi-tenanted Single
Weighted average gross R119.38
rental per m2
Vacancy by GLA 0%
Annualised property yield 11.2%
Purchase price R55,190,000
Value R55,460,000
Notes:
1. The value of the Gradner Street (Roggebaai) Property of R55.460
million was arrived at by an independent external property valuer,
being Active Blue Valuation Solutions CC, as at 22 September 2010.
2. A brokerage rebate of R351,425 accrues to Vividend from the purchase
of the Gradner Street (Roggebaai) Property.
3. Save for costs associated with transfer, which amount to R50 000, no
expenditure has been incurred by the Company in connection with the
acquisition.
7. CATEGORISATION
Full details of the Gradner Street (Roggebaai) Acquisition were disclosed in the
prospectus and therefore Vividend is not required to categorise the Gradner
Street (Roggebaai) Acquisition in terms of the Listings Requirements of the JSE
Limited.
FULFILMENT OF CONDITIONS PRECEDENT: TYRWHITT AVENUE (ROSEBANK) PROPERTY
1. THE TYRWHITT AVENUE (ROSEBANK) PROPERTY ACQUISITION
Linked unitholders of the Company are referred to the prospectus wherein linked
unitholders were advised that Vividend had entered into an agreement with Pybus
Sixty-One (Proprietary) Limited, dated 19 October 2010 ("the Tyrwhitt Avenue
(Rosebank) Property Agreement"), to acquire the property situated at Erf 44
Rosebank, 27 Tyrwhitt Avenue, Rosebank and known as the Tyrwhitt Avenue
(Rosebank) Property ("the Tyrwhitt Avenue (Rosebank) Property Acquisition").
Linked unitholders are hereby advised that the outstanding conditions precedent
of the Tyrwhitt Avenue (Rosebank) Property Agreement have been duly fulfilled.
Vividend will acquire ownership and possession of the Tyrwhitt Avenue (Rosebank)
Property with effect from the date of transfer thereof into the name of
Vividend.
2. RATIONALE OF THE TYRWHITT AVENUE (ROSEBANK) PROPERTY ACQUISITION
The Tyrwhitt Avenue (Rosebank) Property Acquisition is consistent with
Vividend`s strategy of identifying and acquiring properties that have free cash
flow yields that provide adequate value enhancement to linked unitholders from
the effective date of their acquisition. The Tyrwhitt Avenue (Rosebank)
Acquisition is consistent with the timelines, objectives and projections of
Vividend for the 2011 financial period.
3. PURCHASE CONSIDERATION
The purchase consideration for the Tyrwhitt Avenue (Rosebank) Property is
R33.144 million, payable in cash against transfer of the Tyrwhitt Avenue
(Rosebank) Property into the name of Vividend.
4. PRO FORMA FINANCIAL EFFECTS OF THE TYRWHITT AVENUE (ROSEBANK) PROPERTY
ACQUISITION
The pro forma financial effects of the Tyrwhitt Avenue (Rosebank) Property
Acquisition on net asset value and net tangible asset value per linked unit are
not significant and therefore have not been disclosed.
5. FORECAST INFORMATION ON THE TYRWHITT AVENUE (ROSEBANK) PROPERTY
The forecast financial information relating to the Tyrwhitt Avenue (Rosebank)
Property Acquisition for the periods ending 31 August 2011 and 31 August 2012 is
set out below. The forecast financial information has not been reviewed or
reported on by a reporting accountant in terms of section 8 of the Listings
Requirements of the JSE Limited and is the responsibility of the Company`s
directors.
Forecast 8 months Forecast 12 months
ending 31 August ending 31 August
2011 2012
Gross income R2,003,400 R3,594,672
Property 0.00 0.00
expenditure
Net property income R2,003,400 R3,594,672
Property income 0.00 0.00
after interest and
taxation
Annualised yield 10.5% 10.85%
from property
Notes:
1. The forecast information for the 8 months ending 31 August
2011 has been calculated from the anticipated effective date
of the Tyrwhitt Avenue (Rosebank) Property Acquisition, being
1 February 2011.
2. Contractual income constitutes 100% of the gross income for
both the 8 month period ending 31 August 2011 and for the 12
month period ending 31 August 2012.
3. 100% of net property income is distributed to linked
unitholders as interest.
6. PROPERTY SPECIFIC INFORMATION
Details regarding the Tyrwhitt Avenue (Rosebank) Property are set out below:
Property name Tyrwhitt Avenue (Rosebank) Property
Location 27 Tyrwhitt Avenue Rosebank
GLA m2 1,672
Single or multi-tenanted Single
Weighted average gross rental per m2 R173.45
Vacancy % by GLA 0%
Annualised property yield 10.5%
Purchase price R33,144,688
Value R33,100,000
Notes:
1. The value of the Tyrwhitt Avenue (Rosebank) Property of R33.1 million was
arrived at by an independent external property valuer, being Active Blue
Valuation Solutions CC, as at 16 November 2010.
2. A brokerage rebate of R136 214 accrues to Vividend from the purchase of the
Tyrwhitt Avenue (Rosebank) Property.
3. Save for costs associated with transfer, which amount to R45 000, no
expenditure has been incurred by the Company in connection with the
acquisition.
7. CATEGORISATION
The Tyrwhitt Avenue (Rosebank) Property Acquisition is a Category 2 acquisition
in terms of the Listings Requirements of the JSE Limited.
FULFILMENT OF CONDITIONS PRECEDENT: BEYERS NAUDE (BLACKHEATH) PROPERTY
1. THE BEYERS NAUDE (BLACKHEATH) PROPERTY ACQUISITION
Linked unitholders of the Company are referred to the prospectus wherein linked
unitholders were advised that Vividend had entered into an agreement with Pybus
Fifty-Eight (Proprietary) Limited, dated 12 October 2010 ("the Beyers Naude
(Blackheath) Property Agreement"), to acquire the property situated at Erf 320
Blackheath, 257 Beyers Naude Drive, Blackheath and known as the Beyers Naude
(Blackheath) Property ("the Beyers Naude (Blackheath) Property Acquisition").
Linked unitholders are hereby advised that the outstanding conditions precedent
of the Beyers Naude (Blackheath) Property Agreement have been duly fulfilled.
Vividend will acquire ownership and possession of the Beyers Naude (Blackheath)
Property with effect from the date of transfer thereof into the name of
Vividend.
2. RATIONALE OF THE BEYERS NAUDE (BLACKHEATH) PROPERTY ACQUISITION
The Beyers Naude (Blackheath) Property Acquisition is consistent with Vividend`s
strategy of identifying and acquiring properties that have free cash flow yields
that provide adequate value enhancement to linked unitholders from the effective
date of their acquisition. The Beyers Naude (Blackheath) acquisition is
consistent with the timelines, objectives and projections of Vividend for the
2011 financial period.
3. PURCHASE CONSIDERATION
The purchase consideration for the Beyers Naude (Blackheath) Property is R39.898
million, payable in cash against transfer of the Beyers Naude (Blackheath)
Property into the name of Vividend.
4. PRO FORMA FINANCIAL EFFECTS OF THE BEYERS NAUDE (BLACKHEATH) PROPERTY
ACQUISITION
The pro forma financial effects of the Beyers Naude (Blackheath) Property
Acquisition on net asset value and net tangible asset value per linked unit are
not significant and therefore have not been disclosed.
5. FORECAST INFORMATION ON THE BEYERS NAUDE (BLACKHEATH) PROPERTY
The forecast financial information relating to the Beyers Naude (Blackheath)
Property Acquisition for the periods ending 31 August 2011 and 31 August 2012 is
set out below. The forecast financial information has not been reviewed or
reported on by a reporting accountant in terms of section 8 of the Listings
Requirements of the JSE Limited and is the responsibility of the Company`s
directors.
Forecast 8 months Forecast 12 months
ending 31 August ending 31 August
2011 2012
Gross income R2,411,640 R4,327,171
Property 0.00 0.00
expenditure
Net property income R2,411,640 R4,327,171
Property income 0.00 0.00
after interest and
taxation
Annualised yield 10.5% 10.85%
from property
Notes:
1. The forecast information for the 8 months ending 31 August
2011 has been calculated from the anticipated effective date
of the Beyers Naude (Blackheath) Property Acquisition, being 1
February 2011.
2. Contractual income constitutes 100% of the gross income for
both the 8 month period ending 31 August 2011 and for the 12
month period ending 31 August 2012.
3. 100% of net property income is distributed to linked unit
holders as interest.
6. PROPERTY SPECIFIC INFORMATION
Details regarding the Beyers Naude (Blackheath) Property are set out below:
Property name Beyers Naude (Blackheath) Property
Location 257 Beyers Naude Drive, Blackheath
GLA m2 3, 081
Single or multi-tenanted Single
Weighted average gross rental per R113.31
m2
Vacancy % by GLA 0%
Annualised property yield 10.5%
Purchase price R39,898,697
Value R40,600,000
Notes:
1. The value of the Beyers Naude (Blackheath) Property of R40.600 million
was arrived at by an independent external property valuer, being
Active Blue Valuation Solutions CC, as at 16 November 2010.
2. A brokerage rebate of R163 786 accrues to Vividend from the purchase
of the Beyers Naude (Blackheath) Property.
3. Save for costs associated with transfer, which amount to R45 000, no
expenditure has been incurred by the Company in connection with the
acquisition.
6. CATEGORISATION
The Beyers Naude (Blackheath) Property Acquisition is a Category 2 acquisition
in terms of the Listings Requirements of the JSE Limited.
FULFILMENT OF CONDITIONS PRECEDENT: OWL STREET (MILPARK) PROPERTY
1. THE OWL STREET (MILPARK) PROPERTY ACQUISITION
Linked unitholders of the Company are referred to the prospectus wherein linked
unitholders were advised that Vividend had entered into an agreement with
Auscult Investments (Proprietary) Limited, dated 8 October 2010 ("the Owl Street
(Milpark) Property Agreement"), to acquire the property situated at Portion 2 of
Erf 51 Braamfontein West, 25 Owl Street, Milpark, and known as the Owl Street
(Milpark) Property ("the Owl Street (Milpark) Property Acquisition").
Linked unitholders are hereby advised that the outstanding conditions precedent
of the Owl Street (Milpark) Property Agreement have been duly fulfilled.
Vividend will acquire ownership and possession of the Owl Street (Milpark)
Property with effect from 1 January 2011.
2. RATIONALE OF THE OWL STREET (MILPARK) PROPERTY ACQUISITION
The Owl Street (Milpark) Property Acquisition is consistent with Vividend`s
strategy of identifying and acquiring properties that have free cash flow yields
that provide adequate value enhancement to linked unitholders from the effective
date of their acquisition. The Owl Street (Milpark) acquisition is consistent
with the timelines, objectives and projections of Vividend for the 2011
financial period.
3. PURCHASE CONSIDERATION
The purchase consideration for the Owl Street (Milpark) Property is
R105.562million, payable in cash and linked units. R100.562million is payable in
cash against transfer of the Owl Street (Milpark) Property into the name of
Vividend and R5million is payable, via the issue of 1million linked units
credited as fully paid, in the event of Auscult securing the renewal of a
material lease within the Owl Street (Milpark) Property lease profile beyond its
current expiry date of 31 December 2012.
4. PRO FORMA FINANCIAL EFFECTS OF THE OWL STREET (MILPARK) PROPERTY
ACQUISITION
The pro forma financial effects of the Owl Street (Milpark) Property Acquisition
on net asset value and net tangible asset value per linked unit are not
significant and therefore have not been disclosed.
5. FORECAST INFORMATION ON THE OWL STREET (MILPARK) PROPERTY
The forecast financial information relating to the Owl Street (Milpark) Property
Acquisition for the periods ending 31 August 2011 and 31 August 2012 is set out
below. The forecast financial information has not been reviewed or reported on
by a reporting accountant in terms of section 8 of the Listings Requirements of
the JSE Limited and is the responsibility of the Company`s directors.
Forecast 8 months Forecast 12 months
ending 31 August ending 31 August
2011 2012
Gross income R11,197,472 R17,878,018
Property R2,246,310 R4,183,354
expenditure
Net property income R8,951,162 R13,694,664
Property income 0.00 0.00
after interest and
taxation
Annualised yield on 12.54% 12.97%
property
Notes:
1. The forecast information for the 8 months ending 31 August
2011 has been calculated from the effective date of the Owl
Street (Milpark) Property Acquisition, being 1 January 2011.
2. Contractual income constitutes 100% of the gross income for
the 8 month period ending 31 August 2011 and 91% for the 12
month period ending 31 August 2012.
3. Uncontracted income is therefore 0% for the 8 month period
ending 31 August 2011 and 9% for the 12 month period ending 31
August 2012.
4. Vacancies are assumed to remain consistent during the
forecast periods.
5. Leases that expire during the forecast periods are assumed
to be renewed at the lower of 1) rentals escalated per
existing lease contract escalation rates 2) current market
related rentals.
6. 100% of net property income is distributed to linked unit
holders as interest
6. PROPERTY SPECIFIC INFORMATION
Details regarding the Owl Street (Milpark) Property are set out below:
Property name Owl Street (Milpark) Property
Location 25 Owl Street, Milpark
GLA m2 14,893
Single or multi-tenanted Multi
Weighted average gross rental per R71.54
m2
Vacancy % by GLA 0.6%
Annualised property yield 12.54%
Purchase price R105,562,539
Value R106,000,000
Notes:
1. The value of the Owl Street (Milpark)Property of R106 million was
arrived at by an independent external property valuer, being Active
Blue Valuation Solutions CC, as at 20 September 2010.
2. Save for costs associated with transfer, which amount to R65 000, no
expenditure has been incurred by the Company in connection with the
acquisition.
7. CATEGORISATION
Full details of the Owl Street (Milpark) Acquisition were disclosed in the
prospectus and therefore Vividend is not required to categorise the Owl Street
(Milpark) Acquisition in terms of the Listings Requirements of the JSE Limited.
NON-FULFILMENT OF CONDITIONS PRECEDENT: PALM COURT PROPERTY
Linked unitholders of the Company are referred to the prospectus wherein linked
unitholders were advised that Vividend had entered into an agreement with
Redefine Properties Limited, dated 12 October 2010 ("Palm Court Property
Agreement"), to acquire the remaining extent of Erf 887, Weltevreden Park,
Extension 1, known as the Palm Court Property.
Linked unitholders are hereby advised that the outstanding conditions precedent
of the Palm Court Property Agreement have not been fulfilled as the Palm Court
Property was unable to meet the sustainable income requirements of the Company.
Accordingly, the Palm Court Property will not be acquired by Vividend.
20 December 2010
Sponsor
PSG Capital (Pty) Limited
Date: 20/12/2010 15:20:01 Produced by the JSE SENS Department.
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