| Wed 11 Jul 2012, 9:10 | | Sycom Property Fund - Announcement regarding the acquisition of a 60% undivided share in Woodlands Office Park |
|
SYC
Announcement regarding the acquisition of a 60% undivided share in Woodlands Office Park
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)
ANNOUNCEMENT REGARDING THE ACQUISITION OF A 60% UNDIVIDED SHARE IN
WOODLANDS OFFICE PARK
1. Introduction
Sycom unitholders are advised that ABSA Bank Limited, acting as trustee for the Fund, has
entered into an agreement with AECI Pension Fund to acquire the remaining 60% undivided
share in the properties on which the office park known as the Woodlands Office Park (the
Property) is located (the Acquisition).
The Acquisition will be effective upon the date of transfer, which is expected to be on 1
November 2012 (the Transfer date).
2. Rationale for the Acquisition
Sycom already owns 40% of the Property and the Acquisition will increase its shareholding in
the Property to 100%. In terms of its strategy, Sycom continues to seek opportunities that will
enhance Sycom unitholder value, including the acquisition of additional shares in co-owned
assets as and when opportunities arise.
3. Consideration for the Acquisition
The purchase consideration for the Acquisition is R1 365 million (the Purchase Price), payable
by the issue of vendor units and cash on the Transfer date.
4. Conditions precedent
The Acquisition is subject to:
4.1 Competition Authorities approval; and
4.2 obtaining of any other regulatory approvals, to the extent required.
5. Unaudited pro forma financial effects of the Acquisition
The unaudited pro forma financial effects of the Acquisition on net asset value per unit and net
tangible asset value per unit have not been disclosed as these are not significant.
6. Forecast information on the Property
The summarised forecast financial information relating to the Property for the 5 months ending
31 March 2013 and for the 12 months ending 31 March 2014, which is the responsibility of
Sycom Property Fund Managers directors, is set out below. The forecast financial information
has not been reviewed and reported on by the Funds auditors.
2
Forecast Forecast
5 months ending 12 months ending
31 March 2013 31 March 2014
R000 R000
Gross rentals 49 622 123 579
Contracted revenue 43 556 98 606
Uncontracted revenue 6 066 24 973
Net rental income before interest 45 268 110 203
Net rental income after interest and taxation 26 175 64 381
Notes:
1. The forecast information for the 5 months ending 31 March 2013 has been calculated from the Transfer date.
2. The assumptions for uncontracted revenue are that rentals on new leases and / or renewals will be at market related
rates.
7. Specific information relating to the Property
Details regarding the Property are set out below:
Property Location Sector GLA Single or Weighted Vacancy Annualised Purchase Value
m2 multi average by property price Rm(1)
tenanted rental per rentable yield Rm
m2 area %
R m2
Woodlands Woodmead Office 114 396(2) Multi 143.85 5 494(2) 7.9% 1 365 1 360.8
Office Park, Drive,
Erven 1 and Sandton
2, The
Woodlands
Township,
Registration
Division IR
Notes:
1. The value of 60% of the Property of R1 360.8m was arrived at by the independent external property valuer, HHMP
Property Developers (Proprietary) Limited (trading as Quadrant), as at 1 November 2012.
2. Represents 100% of the Property area.
11 July 2012
Cape Town
Investment bank and sponsor
Nedbank Capital
Competition Law Advisor
Vani Chetty
Date: 11/07/2012 09:10:00 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.
