| Tue 6 Mar 2012, 7:28 | | BNT - Bonatla Property Holdings Limited - Acquisition of Eagle Creek Investments |
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BNT
BNT
BNT - Bonatla Property Holdings Limited - Acquisition of Eagle Creek Investments
289 (Proprietary) Limited, and renewal of cautionary announcement
BONATLA PROPERTY HOLDINGS LIMITED
Incorporated in the Republic of South Africa
Registration Number 1996/014533/06
Share Code: BNT
ISIN Number: ZAE000013694
("Bonatla" or "the company")
ACQUISITION OF EAGLE CREEK INVESTMENTS 289 (PROPRIETARY) LIMITED, UPDATE ON
PREVIOUSLY ANNOUNCED TRANSACTIONS, CHANGES TO THE BOARD OF DIRECTORS AND RENEWAL
OF CAUTIONARY ANNOUNCEMENT
1. ACQUISITION OF EAGLE CREEK INVESTMENTS 289 (PROPRIETARY) LIMITED ("EAGLE
CREEK") ("THE ACQUISITION")
1.1 Terms of the acquisition
Shareholders are advised that an agreement has been signed between Bonatla and
Stagestep Investments cc ("Stagestep") whereby Bonatla will acquire the entire
issued share capital together with all shareholder claims and loan accounts in
Eagle Creek from Stagestep with effect from 1 April 2012, for a total purchase
consideration of R22 500 000. Eagle Creek has as its only asset, erf 12524
portion 74 EThekwini, measuring 7 846 m2 and with up to 100 000 m2 of mixed
usage gross lettable area.
1.2 Rationale for the acquisition
Bonatla committed to an involvement in the Durban Point Waterfront as far back
as 2007. The acquisition of Eagle Creek will allow for the development of the
first predominantly commercial development in the Durban Point Waterfront. The
property is situated on the current parking site at the entrance of Ushaka
Marine World and is currently utilised as parking for Ushaka Marine World.
The property zoning will allow the development of approximately 3 000 parking
bays ("the Parkade") on a complex totalling 84 000 m2 gross lettable area of
parking space, and 16 000m2 of gross lettable area of residential / hotel space
. The estimated net rental on the Parkade at R550 per bay per month will be R1
650 000 per month.
The development of the parkade will trigger the development of the "super block"
mixed use retail / hotel site totalling 115 000m2 of lettable area which will
require at least 4 000 bays. It is Bonatla`s intention to link the Parkade to
the "super block". Bonatla has confirmed the acquisition with the management of
the Durban Point Development Corporation and its intention to develop the
Parkade according to the needs and the strategic goals of the Durban Point
Waterfront.
The acquisition is also central to Bonatla`s investment in strategic non-
speculative property investments and will consolidate its BEE strategy.
1.3 Conditions precedent
The transaction is subject to the following conditions precedent:
The approval of the board of Bonatla;
The approval of the JSE Limited, Takeover Regulation Panel and any other
regulatory body insofar as is necessary;
A satisfactory due diligence being completed; and
The approval of shareholders of Bonatla in general meeting.
1.4 Consideration
The consideration for the acquisition is R22 500 000, which consideration shall
be satisfied by the issue of 22 500 000 non-participating, non-cumulative, non-
redeemable compulsory convertible preference shares of R0.01 each and a premium
of R0.99 per share.
1.5 Other information and update on previously announced Durban Point
Development Company ("DPDC") acquisition.
Shareholders are advised that this acquisition does not replace or amend the
previously approved acquisition of 200 000 m2 of mixed use bulk at the Durban
Point Waterfront, but is in fact in addition to that particular transaction.
Shareholders are reminded that the DPDC acquisition has been substantially
delayed due to Environmental Impact Assessment ("EIA") objections.
With regard to the EIA on the above mentioned 200 000 m2 of mixed used bulk:
The finalisation of the offshore small craft harbour on the sea bed now requires
an Act of Parliament.
The issue of the high water mark needs still to be resolved
The balance of the EIA issues have been resolved.
Further updates shall be provided to shareholders as soon as the information is
available.
2. GOLDEN POND
Shareholders are advised that the previously announced acquisition of 50% of
Golden Pond, which had one of its assets, a property located at Shelly Beach and
known as Ptn 11 of the farm Rotenburg no 14996 in extent 43 094 sq m, which is
zoned and serviced commercial land and whereon a car dealership has been built,
had lapsed. However, the parties have agreed in writing that they intend to
continue with the transaction and a revival agreement is in the process of being
prepared extending the finalisation date to 30 April 2012.
3. CHANGES TO THE BOARD OF DIRECTORS
Shareholders are advised that Mr David King (non-executive director) has
resigned from the board of the company, effective 1 March 2012. Thus, his
alternate director, Mr Francois de Lange, has effectively resigned. The board
thanks Mr King and Mr de Lange for their contribution over the years.
4. RENEWAL OF CAUTIONARY ANNOUNCEMENT
Shareholders are advised that they should continue to exercise caution until the
pro forma financial effects and details of the valuation of the acquisition is
published.
Houghton
6 March 2012
Sponsor
Arcay Moela Sponsors (Proprietary) Limited
Date: 06/03/2012 07:28:01 Produced by the JSE SENS Department.
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