| Thu 31 May 2012, 17:33 | | AWA/AWB - Arrowhead Properties Limited - Acquisition of Sterkspruit Boxer |
|
AWA AWB
ARROW
AWA/AWB - Arrowhead Properties Limited - Acquisition of Sterkspruit Boxer
Shopping Centre and Tsolo Shopping Centre and renewal of cautionary announcement
ARROWHEAD PROPERTIES LIMITED
(formerly Nervada Trading 13 (Proprietary) Limited)
(Incorporated in the Republic of South Africa)
(Registration number 2011/000308/06)
JSE code for A-linked units: AWA
ISIN for A-linked units:ZAE000158101
JSE code for B-linked units: AWB
ISIN for B-linked units:ZAE000158119
("Arrowhead" or "the company")
ACQUISITION OF STERKSPRUIT BOXER SHOPPING CENTRE AND TSOLO SHOPPING CENTRE AND
RENEWAL OF CAUTIONARY ANNOUNCEMENT
INTRODUCTION
Linked unitholders are advised that Arrowhead has concluded agreements for the
acquisition of the Sterkspruit Boxer Shopping Centre and the Tsolo Shopping
Centre ("the acquisitions") from Corovest Investments (Proprietary) Limited (the
"vendor").
The acquisitions provide Arrowhead with an opportunity to increase its retail
portfolio exposure. These strategic acquisitions will 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 STERKSPRUIT SHOPPING CENTRE
The purchase price payable by Arrowhead in respect of the acquisition of the
Sterkspruit Shopping Centre, together with its related immovable property is R46
500 000, which amount includes VAT levied at a rate of 0% (the "Sterkspruit
purchase price").
The Sterkspruit purchase price shall be discharged approximately by R 25 million
in cash and the balance through the issue of Arrowhead A- and B-linked units on
the date of registration of transfer of ownership of the relevant immovable
property into the name of Arrowhead (the "transfer date").
The effective date of the acquisition will be the transfer date.
The acquisition is conditional on, within 14 days after the signature date,
being 29 May 2012:
- Arrowhead securing written approval from its investment committee to
implement the acquisition;
- Arrowhead securing the necessary funding to secure payment of the
Sterkspruit purchase price; and
- the shareholders of the vendor passing a special resolution approving the
acquisition.
THE TSOLO SHOPPING CENTRE
The purchase price payable by Arrowhead in respect of the acquisition of the
Tsolo Shopping Centre is R24 500 000, which amount includes VAT levied at a rate
of 0% (the "Tsolo purchase price").
The Tsolo purchase price shall be discharged approximately by R 12 million in
cash and the balance through the issue of Arrowhead A- and B-linked units on the
date on which the cession to Arrowhead (the "cession") of the vendor`s right,
title and interest in and to and the delegation of the vendor`s obligations
arising out of the head lease agreement for the relevant immovable property is
registered (the "registration date").
The effective date of the acquisition will be the registration date.
The acquisition is conditional on:
- within 60 days after the signature date, the owner of the relevant immovable
property consenting in writing to the cession;
- within 14 days:
* Arrowhead securing written approval from its investment committee to implement
the acquisition;
* Arrowhead securing the necessary funding to secure payment of the Tsolo
purchase price; and
* the shareholders of the vendor passing a special resolution approving the
acquisition.
THE PROPERTY PORTFOLIO
The property specific information required in terms of the JSE Listings
Requirements in relation to the acquisitions is set out below.
Property name Sector Geographical Rentable Weighted
and address location Area (m2) Average
rental per m2
Sterkspruit Retail Eastern Cape 7 418 R66.30
Boxer Shopping
Centre, 60 Main
Street,
Sterkspruit,
Eastern Cape
Tsolo Shopping Retail Eastern Cape 4 099 R64.79
Centre, Main
Road, Tsolo,
Eastern Cape
No independent valuations have been carried out in respect of the relevant
immovable properties but the board of Arrowhead is of the view that the
respective purchase prices set out above represent the value of the relevant
immovable properties as at the relevant effective dates.
CATEGORISATION OF THE ACQUISITIONS
The acquisitions have been aggregated in accordance with the JSE Listings
Requirements and are accordingly classified as a category 2 transaction in terms
of the JSE Listings Requirements. The acquisitions are not subject to approval
by Arrowhead`s linked unitholders.
FINANCIAL EFFECTS AND CAUTIONARY
The financial effects of the acquisitions and that of the Midtown Mall
acquisition, announced on SENS on 18 May 2012, are still in the process of being
finalised and will be published in due course. Unitholders of Arrowhead are
advised to continue to exercise caution when dealing in their linked units until
the financial effects of these acquisitions have been announced and the
cautionary issued on SENS on 3 May 2012 withdrawn.
31 May 2012
Sponsor
Java Capital
Date: 31/05/2012 17:33:03 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.
