| Mon 21 Nov 2011, 12:38 | | SAC - SA Corporate Real Estate Fund - Announcement regarding the |
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SAC
SAC
SAC - SA Corporate Real Estate Fund - Announcement regarding the
acquisition of a property
SA Corporate Real Estate Fund
(Incorporated in the Republic of South Africa)
A Collective Investment Scheme in property registered in terms of the
Collective
Investment Schemes Control Act, No. 45 of 2002 and managed by SA Corporate
Real Estate Fund Managers Limited (Registration number 1994/009895/06) ("SA
Corporate Fund Managers")
Share Code: SAC ISIN Code: ZAE000083614
("SA Corporate" or "the Fund")
ANNOUNCEMENT REGARDING THE ACQUISITION OF A PROPERTY
1. Introduction
SA Corporate unitholders are advised that the Fund has entered into an
agreement with Basfour 3588 (Proprietary) Limited ("the Seller") dated 14
November 2011 ("the Agreement"), in terms of which SA Corporate will
acquire Portion 42 of Stand 59, Gosforth Park Extension 4 situated at
Silverstone Road, Raceway Industrial Park, Gosforth Park, Gauteng ("the
Property") together with all improvements thereon measuring approximately
50 266mSquared ("the Acquisition`) for a total purchase price of R415 467
000.
The effective date of the Acquisition ("the Effective Date") will be the
first business day after the fulfilment of the last of the conditions
precedent as set out in paragraph 4 below and is anticipated to be 1 March
2012.
2. Rationale for the Acquisition
The Acquisition is in line with the strategy of the Fund to acquire well
let, strategically positioned, high quality investment properties. The
Property is a well situated, premium distribution facility with first rate
covenants on long leases. The node and industrial park environment offers
growth potential in a market characterised by a shortage of supply of zoned
land and the accessibility of power which impacts on the availability of
industrial land for development. These factors serve to improve the long-
term sustainability of SA Corporate`s income while lowering its
distribution risk profile.
The property is situated within Raceway Industrial Park which was
previously known as Gosforth Park and is located next to the Rand Airport
and borders major highways such as the N17, N12 and N3.
3. Consideration for the Acquisition
The purchase consideration for the Acquisition is R415 467 000 ("the
Purchase Consideration"), payable in cash on the transfer date, which is
expected to be 1 March 2012.
The Acquisition will be financed through debt funding and/or disposal
proceeds.
4. Conditions precedent
The Acquisition is subject to:
4.1 the due diligence investigation being satisfactorily completed by
SA Corporate by 15 December 2011;
4.2 confirmation of the necessary funding and/or finance approval by
SA Corporate by 31 January 2012;
4.3 the Investment Committee of SA Corporate or its delegated
authority giving its written approval to the Acquisition by 31
January 2012;
4.4 Trustee approval to the Acquisition by 10 February 2012;
4.5 the Seller delivering to SA Corporate, by 20 December 2011 a copy
of the signed special resolution and, if applicable, the Seller
giving written confirmation to SA Corporate that a person who
voted against the special resolution has not :
(i) required the Seller to seek court approval of the
special resolution;
or
(ii) applied for the leave of a court to review the special
resolution and the Acquisition;
4.6 Raceway Industrial Park Property Owner`s Association giving its
written consent to the Acquisition and consenting to the deletion
of obsolete conditions of title in the title deeds created in
favor of Raceway Industrial Park Property Owner`s Association
and, should it be necessary, Raceway Industrial Park Property
Owner`s Association obtaining the written consent of Raceway
Industrial Park (Proprietary) Limited and Raceway Industrial Park
Phase IV (Proprietary) Limited, to the deletion of such
conditions by 29 December 2011;
4.7 if required by SA Corporate, that the sale of the Property is
advertised; and
4.8 the Competition Authorities approve the Acquisition
unconditionally or subject to such conditions acceptable to SA
Corporate and the Seller ("the Parties"), in terms of the
Competitions Act.
Should any of the conditions precedent set out in clause 4.1 to 4.8
not be fulfilled within the stipulated time periods or within such
extended time periods as the Parties may agree, the Agreement shall
lapse and will be of no further force or effect.
5. Unaudited pro forma financial effects of the Acquisition
The unaudited pro forma financial effects of the Acquisition on SA
Corporate`s net asset value per unit and net tangible asset value per
unit have not been disclosed as these are not significant.
6. Forecast information on the Property
The summarised forecast financial information relating to the Property
for the 10 months ending 31 December 2012 and for the 12 months ending
31 December 2013, which is the responsibility of SA Corporate`s
directors, is set out below. The forecast financial information has
not been reviewed and reported on by the Fund`s auditors.
Forecast Forecast
10 months ending 12 months ending
31 December 2012 31 December 2013
R`000 R`000
Gross rentals 30 082 38 789
Contracted revenue 30 082 38 789
Uncontracted revenue
Net rental income before 29 707 38 306
interest
Net rental income after 29 707 38 306
interest and taxation
Notes:
1. The forecast information for the 10 months ending 31 December
2012 has been calculated from the Effective Date.
2. The leases are triple net leases. Other than external
maintenance in respect of Building 1 of the Property, all revenue
is contracted.
7. Specific information relating to the Property
Details regarding the Property are set out below:
Property Locati Sector GLA Single Weight Vacanc Annuali Purcha Valu
on m2 or ed y by sed se e
multi averag rentab propert price Rm{1
tenant e le y yield Rm )
ed rental area %
per m2 m2{2)
R
Portion Gosfor Industr 43 Single 57.40 0
42 of th ial 710
Stand Park, (Buildi
59, Gauten ng 1)
Gosforth g
Park
Extensio Single 62.54 0
n 4 6
Industr 556
ial
(Buildi
ng 2)
Total 50 58.07 8.65 415.5 407.
266 1
1. The value of the Property of R407.1 million, was arrived at by
the independent external valuers, African Corporate Real Estate
Solutions (Proprietary) Limited as at 7 September 2011.
2. The weighted average net rental per mSquared is based on rentable
area and includes the rental income from a vacant area
which is to be developed into a reinforced hardtop container
storage area. Construction has commenced and is
expected to be completed by 1 December 2011.
8. Categorisation
The Acquisition constitutes a Category 2 transaction in terms of the
JSE Limited Listings Requirements
21 November 2011
Cape Town
Investment Bank and Sponsor
Nedbank Capital
Date: 21/11/2011 12:38:01 Produced by the JSE SENS Department.
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