| Wed 18 Jul 2012, 13:23 | | ARROWHEAD PROPERTIES LIMITED - Financial effects relating the acquisitions of properties and withdrawal of cautionary |
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AWA AWB
Financial effects relating the acquisitions of properties and withdrawal of cautionary
Arrowhead Properties Limited
(formerly Nervada Trading 13 (Proprietary) Limited)
(Registration number 2011/000308/06)
JSE code: AWA ISIN: ZAE000158101
JSE code: AWB ISIN: ZAE000158119
(?Arrowhead?)
FINANCIAL EFFECTS RELATING TO THE ACQUISITIONS OF PROPERTIES AND WITHDRAWAL OF
CAUTIONARY
INTRODUCTION
Linked unitholders are referred to the following announcements released on SENS in which it was announced that
Arrowhead had concluded agreements for the acquisition of the following properties:
- 18 May 2012, acquisition of Midtown Mall, Rustenburg (?Midtown Mall?);
- 31 May 2012, acquisition of Sterkspruit Boxer Shopping Centre, Sterkspruit and Tsolo Shopping Centre, Tsolo
(?Corovest?);
- 18 June 2012, acquisition of 67 Middle Road, Bartlett, Boksburg (?Frutek?); and
- 3 July 2012, acquisition of 106 Booysens Road, Johannesburg (?Dunrose?),
(collectively, the ?acquisitions?).
The purpose of this announcement is to present the financial effects of the acquisitions.
UNAUDITED PRO FORMA FINANCIAL EFFECTS OF THE ACQUISITIONS
The table below sets out the unaudited pro forma financial effects of the acquisitions based on Arrowhead?s published
interim results for the six months ended 31 March 2012. These financial effects are the responsibility of the directors of
Arrowhead and they have been prepared for illustrative purposes only, in order to provide information about the financial
position of Arrowhead assuming that the acquisitions had been implemented on 1 October 2011 for purposes of statement
of comprehensive income and on 31 March 2012 for purposes of statement of financial position.
Due to its nature, the unaudited pro forma financial effects may not fairly present Arrowhead?s financial position, changes
in equity, results of operations and cash flows subsequent to the acquisitions.
The unaudited pro forma financial effects have been prepared in accordance with the accounting policies of Arrowhead
that were used in the preparation of the published interim results for the 6 months ended 31 March 2012.
The effect of the acquisitions on Arrowhead?s distribution per A linked unit and B linked unit is not significant and
therefore has not been disclosed.
The effect of the acquisition of Corovest, Frutek and Dunrose on Arrowhead?s net asset value and net tangible asset value
per A linked unit and B linked unit is not significant and therefore has not been disclosed.
The financial information relating to the acquisitions has been extracted from the respective vendors management
accounts 6 month period to 31 March 2012 for Midtown Mall, Corovest and Frutek and 6 month period to 29 February
2012 for Dunrose. The management of Arrowhead is satisfied with the quality of the information contained in these
management accounts.
The table below reflects the unaudited pro forma financial effect of the acquisitions on earnings and headline earnings per
A and B share on an Arrowhead unitholder:
Before the
acquisitions After the acquisitions % change
Midtown Mall (13.55) (11.34) 16.3%
Frutek (13.55) (12.55) 7.4%
Corovest (13.55) (12.72) 6.2%
Dunrose (13.55) (11.99) 11.5%
The table below reflects the effect of the acquisitions on actual and weighted average linked units in issue:
Before the After the acquisitions
acquisitions
Actual A and B linked units in issue:
- Midtown Mall 87 561 123 104 353 576
- Frutek 87 561 123 94 399 681
- Corovest 87 561 123 93 221 500
- Dunrose 87 561 123 98 790 965
Weighted average A and B linked units in issue:
- Midtown Mall 86 200 399 102 992 852
- Frutek 86 200 399 93 038 957
- Corovest 86 200 399 91 860 776
- Dunrose 86 200 399 97 430 241
The table below reflects the unaudited pro forma financial effect of the acquisition of Midtown Mall on the net asset value
and net tangible asset value per A and B linked unit:
Before the After the acquisitions % change
acquisitions
NAV and NTAV per A linked unit 438 452 3.4%
NAV and NTAV per B linked unit 438 452 3.4%
WITHDRAWAL OF CAUTIONARY
Arrowhead linked unitholders are advised that following the release of the financial effects of the acquisitions, caution is
no longer required to be exercised by linked unitholders when dealing in their securities in the company.
Johannesburg
18 July 2012
Corporate advisor and sponsor
Java Capital
Date: 18/07/2012 01:23:00 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
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