| Mon 11 Apr 2011, 15:45 | | VKE - Vukile Property Fund Limited - Announcement regarding the acquisition |
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VKE
VKE
VKE - Vukile Property Fund Limited - Announcement regarding the acquisition
of a property
Vukile Property Fund Limited
(Incorporated in the Republic of South Africa)
(Registration number 2002/027194/06)
JSE Share code: VKE ISIN: ZAE000056370
NSX Share code: VKN
("Vukile" or "the company")
ANNOUNCEMENT REGARDING THE ACQUISITION OF A PROPERTY
1. Introduction
Vukile linked unitholders are advised that the company has entered
into an agreement with Sanlam Life Insurance Limited ("Sanlam Life")
dated 8 April 2011 (the "Agreement"). In terms of the Agreement,
Vukile will acquire the rental enterprise relating to Erven 60 and 64
Giyani-Ba township (the "Enterprise"), situated in Danie Theron
Street, Giyani, Limpopo (the "Property") known as Giyani Plaza (the
"Acquisition").
The Acquisition will become effective upon the fulfilment or waiver of
the suspensive conditions set out in paragraph 5 below.
2. Rationale for the Acquisition
This Acquisition forms part of Vukile`s strategy to invest in
properties with strong contractual cash flows in selected rural areas.
3. The purchase price for the Enterprise
The Enterprise will be acquired for a total purchase price of R68.25
million, to be settled in cash (the "Purchase Price"). The Purchase
Price has been determined on the basis that the Property will be
transferred on or before 31 July 2011. Should the Property be
transferred after this date, the Purchase Price will increase by an
amount equal to 0.67% compounded for every month by which transfer
takes place after 31 July 2011.
4. Small related party transaction
As Sanlam Life currently has direct control over the exercise of votes
attaching to Vukile linked units representing approximately 42% of
Vukile`s issued capital, the Acquisition is a "small related party"
transaction in terms of the JSE Limited Listings Requirements. The
company has therefore appointed an independent registered valuer,
Quadrant Properties (Proprietary) Limited ("the Valuer"), to value the
Property. Linked unitholders will be advised in due course of the
value ascribed to the Property by the Valuer. Based on this value, the
Vukile directors will state whether they believe that the terms and
conditions of the Acquistion are fair to Vukile linked unitholders.
5. Suspensive conditions
The Acquisition is subject to the following suspensive conditions:
- Vukile is satisfied in its sole and absolute discretion with the
results of a due diligence investigation to be conducted with
regard to the Enterprise;
- the obtaining of any regulatory approvals, to the extent
required; and
- the raising of financing facilities within 90 days of the date of
the Agreement.
6. Specific information relating to the Property
Property Erven 60 and 64 Giyani-Ba
Location Danie Theron Street, Giyani, Limpopo
Sector Retail
Rentable area 9 442.72
m2
Single or multi tenanted Multi-tenanted
Weighted average rental per m2 73.27
R
Vacancy by rentable area 221.11
m2
Annualised property yield 10.64
7. Pro forma financial effects of the Acquisition
The pro forma financial effects relating to the Acquisition on
Vukile`s earnings per share, headline earnings per linked unit, net
asset value per linked unit ("NAV") and net tangible asset value per
linked unit ("NTAV") for the six month period ended 30 September 2010,
being the period relating to Vukile`s most recent published results,
have not been disclosed as they are not significant.
Johannesburg
11 April 2011
JSE sponsor: One Capital
NSX sponsor: IJG Securities (Proprietary) Limited
Date: 11/04/2011 15:45:01 Produced by the JSE SENS Department.
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