| Tue 25 Oct 2011, 11:20 | | IPF - Investec Property Fund Limited - Property acquisition |
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IPF
IPF
IPF - Investec Property Fund Limited - Property acquisition
INVESTEC PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number 2008/011366/06)
Share code: IPF ISIN: ZAE000155099
("Investec Property Fund" or "the Fund")
PROPERTY ACQUISITION
1. Introduction
Linked unit holders are hereby advised that the Fund, a company
primarily involved in property investment, will acquire Great North
Road Plaza, a major retail shopping complex in Musina ("Shopping
Complex"), from Swanvest 362 Proprietary Limited ("the Vendor"), for
R145 million ("Purchase Consideration") ("Proposed Transaction").
The Purchase Consideration will be paid in cash to the Vendor upon
registration of transfer of the Shopping Complex into the name of the
Fund ("Effective Date") and will be funded by debt.
2. Rationale for the Proposed Transaction
A stated objective of the Fund is to enhance the retail component with
quality assets and this acquisition meets that objective. The Proposed
Transaction provides an attractive income yield of 9,2%, which will
enhance the earnings and growth prospects of the Fund.
3. Description of the property being acquired
3.1 Great North Road Plaza
The Great North Road Plaza comprises two retail centres located on
either side of the N1 highway in Musina, Limpopo Province, 15
kilometers south of the Beitbridge border post between South Africa
and Zimbabwe.
The property consists of 13 561 mSquared of gross lettable area
("GLA") erected on Erf 1603, Portion 1 of Erf 1562 and Portion 1 of
Erf 1561, Messina Extension 5 as well as the remaining extent of Erf
2277, Messina, Extension 9.
Musina is a vibrant commercial and trading centre in the far northern
part of the Limpopo Province, servicing both the surrounding
agricultural sector as well as cross border trade from Zimbabwe.
National tenants and national brand franchises occupy 88% of the space
and contribute 83% of the contractual income.
The weighted average gross rental for the property is R82.23/m2.
4. Conditions precedent
The Proposed Transaction is subject to a final confirmatory due
diligence investigation.
5. Financial Effects
Due to the funding mechanism the Proposed Transaction will not have a
material effect in the first year as it does not contribute more than
3% to the pro forma distribution per linked unit, pro forma earnings
per linked unit, pro forma headline earnings per linked unit, pro
forma net asset value per linked unit or pro forma tangible net asset
value per linked unit of the Fund.
6. Categorisation of the Proposed Transaction
In terms of the Listings Requirements of the JSE Limited, the Proposed
Transaction is a Category 2 transaction for the Fund and, accordingly
linked unit holder approval is not required for the Fund to implement
the Proposed Transaction.
Johannesburg
25 October 2011
Investment Bank and Attorneys
Sponsor
Fluxmans
Investec Corporate
Finance
Date: 25/10/2011 11:20:01 Produced by the JSE SENS Department.
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