| Tue 20 Dec 2011, 12:38 | | DIA/DIB - Dipula Income Fund Limited - Acquisitions of Bochum and Blouberg Plaza |
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DIA DIB
DIF
DIA/DIB - Dipula Income Fund Limited - Acquisitions of Bochum and Blouberg Plaza
and Nquthu Plaza and cautionary announcement
DIPULA INCOME FUND LIMITED
(formerly Dipula Property Fund (Pty) Ltd)
Registration number 2005/013963/06
JSE code for A-linked units: DIA
ISIN for A-linked units: ZAE000158317
JSE code for B-linked units: DIB
ISIN for B-linked units: ZAE000158325
("Dipula" or the "company")
ACQUISITIONS OF BOCHUM AND BLOUBERG PLAZA AND NQUTHU PLAZA AND CAUTIONARY
ANNOUNCEMENT
INTRODUCTION
Linked unitholders are advised that Dipula has concluded agreements for the
acquisition of Bochum and Blouberg Plaza (the "Bochum and Blouberg Plaza
acquisition") and Nquthu Plaza (the "Nquthu Plaza acquisition" and together "the
acquisitions").
The acquisitions provide Dipula with an opportunity to increase Dipula`s retail
portfolio exposure to low-income households, which are expected to outperform
higher income households in terms of growth in the short to medium term. These
strategic acquisitions improve the quality and average size of the portfolio and
will also improve the geographic spread of the company`s properties.
TERMS OF THE ACQUISITIONS AND CONDITIONS PRECEDENT
The total purchase consideration payable by Dipula in respect of the
acquisitions is R247 782 900 with R114 070 900 attributable to the Bochum and
Blouberg Plaza acquisition and R133 712 000 attributable to the Nquthu Plaza
acquisition. Payment of the purchase consideration for each of the acquisitions
will be secured by way of debt and/or equity funding.
The purchase consideration shall be paid against registration of transfer of the
properties into the name of Dipula. If the transfer date is after 1 February
2012, then the purchase consideration shall bear interest at the prime rate from
1 February to date of payment.
The properties have been acquired from the following vendors:
- Bochum Plaza (Proprietary) Limited, Blouberg Plaza (Proprietary) Limited and
McCormick Property Development CC in respect of the Bochum and Blouberg Plaza
acquisition; and
- Nquthu Plaza Share Block (Proprietary) Limited in respect of the Nquthu Plaza
acquisition.
The acquisitions are, inter alia, subject to the following suspensive
conditions:
- completion of a due diligence ("the due diligence;
- Dipula securing written approval from Dipula`s investment committee for the
implementation of each of the acquisitions within 5 (five) business days after
concluding the due diligence;
- Dipula securing finance by way of debt and/or equity funding;
- approval by the Competition Authorities; and
- the entering into a written management agreement between the company and
McCormick Property Development CC whereby McCormick Property Development CC is
appointed as the property and rental manager for the property portfolio.
THE PROPERTY PORTFOLIO
The property specific information required in terms of the JSE listings
Requirements in relation to Bochum and Blouberg Plaza and Nquthu Plaza including
property name and address, geographical location, rentable area, sector,
weighted average rental per square metre, effective date of acquisition,
purchase price and the valuations attributed to the properties as at the
conclusion of the agreements by the board is set out below.
Property name and address Geographical Rentable Area Weighted
location (m2) Average
rental per m2
Bochum and Blouberg Bochum, 12 528.50 79.76
Plaza, 366-369 Dendron Limpopo
Road, Bochum
Nquthu Plaza, Nquthu, 14 972 77.73
Manzolwandle Drive, KwaZulu-Natal
Nquthu
Property name and Sector Effective date of Purchase price
address acquisition and valuation as
at effective date
Bochum and Blouberg Retail First day of the R114 070 900
Plaza, 366-369 Dendron month in which
Road, Bochum transfer occurs
Nquthu Plaza Retail First day of the R133 712 000
Manzolwandle Drive, month in which
Nquthu transfer occurs
CATEGORISATION OF THE ACQUISITIONS
The acquisitions are classified as a Category 2 transaction in terms of the JSE
Listings Requirements. None of the acquisitions are subject to approval by
Dipula`s linked unitholders.
FINANCIAL EFFECTS AND CAUTIONARY
The financial effects of the acquisitions are still in the process of being
finalised and will be published in due course. Unitholders of Dipula are advised
to exercise caution when dealing in their linked units until the financial
effects of the transaction are announced.
20 December 2011
Sponsor
Java Capital
Date: 20/12/2011 12:38:25 Produced by the JSE SENS Department.
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