| Wed 4 May 2011, 12:12 | | OCT - Octodec Investments Limited - Announcement regarding the acquisition of a |
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OCT
OCT
OCT - Octodec Investments Limited - Announcement regarding the acquisition of a
property
OCTODEC INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1956/002868/06)
ISIN: ZAE000005104
Share code: OCT
("Octodec" or "the Company")
ANNOUNCEMENT REGARDING THE ACQUISITION OF A PROPERTY
1. Introduction
Octodec linked unitholders are advised that Octodec, through its wholly-owned
subsidiary Presmooi (Proprietary) Limited, has entered into an offer to purchase
("the Agreement") with The Tannery Industrial Park (Proprietary) Limited ("the
Seller") to acquire Erf 1385, Silverton Extension 1 and Portion 224 of the Farm
Hartebeestpoort no 328, registration division JR, Gauteng, together with the
property leasing enterprise ("the Property"), from the Seller ("the
Acquisition").
The Property is commonly known as The Tannery Industrial Park and is situated at
309 Derdepoortweg, Silverton, Pretoria.
The Acquisition will be effective upon fulfilment of the condition precedent set
out in paragraph 4 below, which is expected to be during July 2011.
2. Rationale for the Acquisition
In alignment with Octodec`s strategy of actively pursuing redevelopment and
investment opportunities that will enhance the overall quality and value of its
portfolio, the Acquisition represents an attractive investment in a prime
location, situated in a busy industrial area in Silverton, Pretoria. The
Property caters for a variety of enterprises and proudly hosts more than 124
light industrial factories. The Acquisition is likely to continue to contribute
to the long term growth of Octodec`s distributions.
3. Consideration for the Acquisition
The total purchase consideration for the Acquisition is R153.75 million ("the
Purchase Price"), which includes agent`s commission and other costs in the
amount of R3.75 million.
The Purchase Price will be settled in cash.
4. Condition precedent
The Acquisition is subject to Competition Authorities approval, if required.
5. Unaudited pro forma financial effects of the Acquisition
The unaudited pro forma financial effects of the Acquisition on net asset value
and net tangible asset value per unit have not been disclosed as they are not
significant.
6. Forecast information on the Property
The summarised forecast financial information relating to the Property for the
one month ending 31 August 2011 and for the twelve months ending 31 August 2012,
which is the responsibility of the Company`s directors, is set out below. The
forecast financial information has not been reviewed and reported on by
Octodec`s auditors.
Forecast Forecast
1 month ending 12 months ending
31 August 2011 31 August 2012
R`000 R`000
Gross rentals 1 658 20 279
Net rental income before 1 307 15 985
interest
Net profit after interest 66 1 379
and taxation
Earnings available for 66 1 379
distribution
Notes and assumptions:
1. The forecast information for the 1 month ending 31 August 2011 has
been calculated from the anticipated effective date of the
Acquisition, being 1 August 2011.
2. The interest rate used to finance the Purchase Price is 9.5% per
annum.
7. Specific information relating to the Property
Details regarding the Property are set out below:
Property Erf 1385, Silverton Extension 1 and
Portion 224 of the Farm
Hartebeestpoort no 328, registration
division JR, Gauteng
Location 309 Derdepoortweg, Silverton, Pretoria
Sector Industrial
GLA m2 35 990
Single or multi tenanted Multi
Weighted average rental (1) 47.00
per m2
R
Annualised property yield (1) 10.40
%
Total purchase price 153.75
Rm
Value Rm (2) 153.75
Notes:
1. Based on the forecast net rental income for the 12 months ending 31
August 2012.
2. The value of the Property of R153.75 million was arrived at by a
directors` valuation, as at 18 April 2011.
8. Categorisation
The Acquisition is a Category 2 transaction in terms of the JSE Limited Listings
Requirements.
4 May 2011
Pretoria
Investment bank and sponsor
Nedbank Capital
Date: 04/05/2011 12:12:01 Produced by the JSE SENS Department.
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