| Tue 8 Feb 2011, 15:39 | | ING - Ingenuity Property Investments Limited - Announcement regarding the |
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ING
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ING - Ingenuity Property Investments Limited - Announcement regarding the
acquisition of a sectional title scheme
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 SECTIONAL TITLE SCHEME
1. Introduction
Ingenuity shareholders are advised that the Company has entered into sale
agreements ("the Agreements") with Quickvest 361 (Proprietary) Limited, PDV
Kantore (Proprietary) Limited, Spanish Ice Properties 45 (Proprietary)
Limited and Antrimsuid (Proprietary) Limited (collectively "the Sellers"),
in terms of which Ingenuity will purchase, subject to fulfilment of the
suspensive condition set out in paragraph 4 below, the rental enterprise
conducted in respect of the Property known as Units 1 to 6 inclusive of
Sectional Title Scheme SS Edward 142, Scheme Number 704, located at Erf
38063, Bellville, situated at 142 Edward Street, Tyger Valley and its
improvements and leases ("the Property") ("the Acquisition").
The effective date of the Acquisition is on transfer of the Property into
Ingenuity`s name, which is to be on or as close as possible to 1 April 2011
("the transfer date").
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 R 31.9 million ("the
purchase consideration"), to be settled in cash out of current cash
resources and borrowing facilities on the transfer date.
4. Suspensive condition
The Acquisition is subject to fulfilment of the following suspensive
condition: mortgage finance approval by 28 February 2011.
5. Specific information relating to the Property
Details regarding the Property are set out below:
Property Location Sector Gross Single Weighte Annuali Total Value
lettab or d sed purchas of
le multi- average propert e price Propert
area tenante rental y yield of y Rm
m2 d per m2R Propert (1)
y Rm
Units Erf 38063 Office 2 592 Multi 111.57 10.5% 31.9 31.25
1 to 6 Bellville
(inclu ,
sive), 142
Sectio Edward
nal Street,
Title Tyger
Scheme Valley
SS
Edward
142,
Scheme
Number
704
1. The value of the Property of R 31.25 million was arrived at by an
independent registered valuer, Mills Fitchet Magnus Penny (Pty) Ltd,
as at 1 April 2011.
6. Unaudited pro forma financial effects ("Financial Effects") of the
Acquisition
Based on Ingenuity`s abridged audited consolidated results for the year
ended 31 August 2010 ("Annual Results"), the Financial Effects of the
Acquisition on Ingenuity`s earnings per share ("EPS"), headline earnings
per share ("HEPS"), net asset value per share ("NAV") and net tangible
asset value ("NTAV") are set out below.
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) (4) (5) 3.9 4.2 6
(cents)
HEPS(2) (5) (cents) 1.0 1.3 24
NAV(3) (cents) 61 61 0
NTAV(3) (cents) 61 61 0
Share in issue net 606 385 618 606 385 618
of treasury shares
Weighted average 615 705 614 615 705 614
number of shares in
issue net of
treasury shares
Notes:
1. Based on Ingenuity`s Annual 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 the Financial Effects on NAV and NTAV, it was assumed
that the Acquisition was implemented on 31 August 2010 for statement
of financial position purposes.
4. In calculating EPS, the projected property income of R 3.9 million for
the year ended 31 March 2012 was taken into account.
5. An average borrowing cost on the purchase consideration at a rate of
7.85% was utilised.
7. Categorisation
The Acquisition is a Category 2 transaction in terms of the JSE Limited
Listings Requirements.
8 February 2011
Cape Town
Investment bank and sponsor
Nedbank Capital
Date: 08/02/2011 15:39:01 Produced by the JSE SENS Department.
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