| Thu 16 Feb 2012, 14:16 | | SYC - Sycom Property Fund - General issue of shares for cash |
|
SYC
SYC
SYC - Sycom Property Fund - General issue of shares for cash
Sycom Property Fund
A Collective Investment Scheme in property registered in terms of the
Collective
Investment Schemes Control Act, No. 45 of 2002 and managed by Sycom Property
Fund Managers Limited ("Sycom Property Fund Managers")
(Registration number 1986/002756/06)
JSE Share code: SYC & ISIN: ZAE000019303
("Sycom" or "the Fund")
GENERAL ISSUE OF SHARES FOR CASH
1. Introduction
Sycom unitholders are advised that Sycom has issued a total of 32 422
638 units for cash, representing 14.998% of the issued unitholder
capital of Sycom, in terms of a general authority to issue units as
contained in the Deed of Trust governing Sycom, which is a Collective
Investment Scheme in Property registered in terms of the Collective
Investment Schemes Control Act, No 45 of 2002 ("the cash issue").
2. Consideration and number of new Sycom units issued in terms of the cash
issue
In total, 32 422 638 units were issued at a price of R23.00 per unit.
The units were issued at a discount of 54 cents (2.29%) to the 30 day
volume weighted average price prior to 8 February 2012, being the date
the board of directors of Sycom approved the cash issue.
A total cash amount of R745.7 million has been raised in terms of the
cash issue and the new Sycom units issued in terms of the cash issue
rank pari passu with the existing units in issue.
The new Sycom units were placed with public shareholders as defined in
paragraphs 4.25 and 4.26 of the JSE Limited Listings Requirements.
3. Application of proceeds of the cash issue
On 10 November 2011, Sycom announced the acquisition of the remaining
30% interest in Paarl Mall not already owned by the Fund, as well as the
Kraft Foods building in the Harrowdene Office Park, for a combined
consideration of R271 million, representing a purchase yield of 8%.
These acquisitions are in line with Sycom`s strategy of growing its
portfolio by increasing its share in co-owned assets. Growth is also
achieved through the extension of properties which have additional
development rights and where there is strong demand for space from both
existing and new tenants. Such an opportunity has presented itself at
Vaal Mall, where planning for a substantial extension is well advanced.
Part of the capital raised in terms of the cash issue has been earmarked
for this purpose. In addition, there are a number of co-owned assets in
Sycom`s portfolio where the Fund is in discussions to increase its
interest, with the intention of enhancing long-term distribution growth
while maintaining its strategy of holding a small number of high quality
South African office and retail property assets. It is the intention of
Sycom to utilise the proceeds from the cash issue for this purpose.
4. Financial effects of the cash issue
The unaudited pro forma financial effects of the cash issue on earnings
per unit, headline earnings per unit, net asset value per unit and net
tangible asset value per unit have not been disclosed as these are not
significant. The financial effects are the responsibility of Sycom`s
board of directors.
Cape Town
16 February 2012
Investment bank and Sponsor
Nedbank Capital
Date: 16/02/2012 14:16:01 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.
