| Thu 21 Jun 2012, 14:30 | | IPF - Investec Property Fund Limited - Voluntary announcement regarding the |
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IPF
IPF
IPF - Investec Property Fund Limited - Voluntary announcement regarding the
acquisition of Nonquebela Mall Link
INVESTEC PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number 2008/011366/06)
Share code: IPF ISIN: ZAE000155099
("Investec Property Fund" or "the Fund")
VOLUNTARY ANNOUNCEMENT REGARDING THE ACQUISITION OF NONQUEBELA MALL LINK
1 Introduction
Linked unit holders are hereby advised that Investec Property Fund has
entered into an agreement to acquire the Nonquebela Mall Link property in
Khayelitsha, Western Cape, ("the Property") from Bakoro Capital Partners
Proprietary Limited for R100,5 million ("the Purchase Consideration") ("the
Proposed Transaction").
2 Payment of the purchase consideration
The Purchase Consideration will be funded by debt.
3 Rationale for the Proposed Transaction
The Proposed Transaction is consistent with the Fund`s objective to build a
quality portfolio of properties with strong contractual cash flows to
enhance its retail component in order to achieve value enhancement and
sustainable distributions to unitholders. Given that the tenant profile
comprises 94% national retailers on a GLA basis, which amounts to 88% of
contractual rental, the Property is being acquired at a yield of 9.02%,
which the directors believe offers good value.
4 Description of the Property
The Property is located between the suburbs of Victoria Merge and Village
3, North Khayelitsha and is located just off Bonga Drive (M45). The mall is
+/-28km by road from Cape Town CBD and +/- 15km from Cape Town
International Airport. It is also located immediately adjacent to
Nonquebela train station as well as the Nonquebela taxi rank and bus
terminal.
The Property is a retail mall providing a Gross Lettable Area ("GLA") of
7,778 mSquared. the retail centre is 100% let whilst the upper level is
under negotiation with Medicross for a 5 year lease to operate a clinic.
Payment for the upper level will trigger only on commencement of Mediross`s
trading.
5 Conditions precedent
The Proposed Transaction remains subject to the fulfillment of the
condition that within 120 days from 7 June 2012 the Proposed Transaction is
approved by the Competition Commission.
6 Financial effects
As the Purchase Consideration will be funded by debt, the Proposed
Transaction will not have a material effect in the first year as it does
not contribute more than 3% to the pro forma distribution per linked unit,
pro forma earnings per linked unit, pro forma headline earnings per linked
unit, pro forma net asset value per linked unit or pro forma tangible net
asset value per linked unit of the Fund.
Johannesburg
21 June 2012
Investment Bank and Attorneys
Sponsor
(Fluxmans logo)
(Investec Corporate
Finance logo)
Date: 21/06/2012 14:30:00 Produced by the JSE SENS Department.
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