| Mon 14 Nov 2011, 7:31 | | VKE - Vukile Property Fund Limited - Vukile to acquire R1.5 billion property |
|
VKE
VKE
VKE - Vukile Property Fund Limited - Vukile to acquire R1.5 billion property
portfolio from Sanlam
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")
VUKILE TO ACQUIRE R1.5 BILLION PROPERTY PORTFOLIO FROM SANLAM
Johannesburg, 14 November 2011 - Property loan stock company Vukile is to
acquire a portfolio of 20 properties, worth nearly R1.5 billion, from Sanlam
Life Insurance.
The acquisition is expected to be effective in June next year, once a number of
conditions precedent have been fulfilled, and will be funded through a
combination of debt and the issue of new linked units.
Vukile chief executive Laurence Rapp says the acquisition is in line with
Vukile`s new strategy of growing a quality portfolio of properties with strong
contractual cash flows in order to achieve meaningful capital appreciation and
sustainable growth in distributions. "It will enhance the quality of our
current property portfolio and will strengthen our presence in the Western
Cape."
Rapp says Vukile has been managing this portfolio on behalf of Sanlam for some
time and, therefore, has an in-depth understanding of the properties being
acquired, making this a low risk acquisition opportunity for the company. "The
buildings being acquired are well located with good quality specifications," he
says.
At the same time, the Public Investment Corporation (PIC) has reached an
agreement with Sanlam, in terms of which it will acquire 70.2 million Vukile
linked units from Sanlam. Following the transaction between Sanlam and the PIC,
Sanlam`s holding in Vukile will decrease to 13.6%, of which 7.6% will be held by
Sanlam policy holder funds and, as such, constitutes an institutional holding.
The PIC`s stake in Vukile will be around 20%.
The introduction of the PIC as an investor is a positive development for Vukile
as it will broaden its shareholder base and should lead to an increased JSE free
float. "The PIC is one of the largest property investors in South Africa and
the introduction of such an esteemed property investor is an affirmation of
Vukile`s new strategy," says Rapp.
The properties being acquired are: Bassonia Office Park, Bellville Barons,
Bellville Santyger, Bellville Tijger Park 1, Bellville Tijger Park 2, Bellville
Tijger Park 3, Bellville Tijger Park 4, Bellville Tijger Park 5, Bloemfontein
Trador Cash & Carry, Durban Westville Surrey Park, Durban Workshop, Johannesburg
Empire Road Offices, Johannesburg Houghton, Pretoria Sanlynn, Midrand IBG,
Pretoria Rosslyn Joshua Doore Warehouse, Pretoria Sancardia, Sandton Ascot
Offices, Sandton Rivonia Tuscany and Sandton Sunninghill Park.
For further information contact Laurence Rapp, CEO Vukile Property Fund Limited,
on 083 266 3011
Issued by du Plessis Associates on behalf of Vukile Property Fund Limited.
dPA contact Helen McKane Tel : +27 11 728 4701,Fax: +27 11 728 2547, Mobile: 082
330 2034 or e-mail: vukile@dpapr.com
website: www.vukileprops.co.za
Merchant bank and transaction sponsor:
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 14/11/2011 07:31:16 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
