| Thu 8 Sep 2016, 18:15 | | *VUKILE PROPERTY FUND LIMITED - Disposal Of Govern |
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VKE: VUKILE PROPERTY FUND LIMITED - Disposal Of Government Tenanted Portfolio
VKE: VUKILE PROPERTY FUND LIMITED - Disposal Of Government Tenanted Portfolio
Disposal Of Government Tenanted Portfolio
VUKILE PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2002/027194/06)
JSE share code: VKE NSX share code: VKN
ISIN: ZAE000180865
(Granted REIT status with the JSE)
("Vukile" or "the company")
DISPOSAL OF GOVERNMENT TENANTED PORTFOLIO
Introduction and rationale and salient terms of the disposal
Shareholders are advised that Vukile has concluded a transaction pursuant to which it has disposed of the property
letting enterprises in respect of the 5 properties known as Pretoria De Bruyn Park, Pretoria Navarre, Pretoria Arcadia
Suncardia, Bloemfontein Fedsure House and Pretoria Koedoe Arcade (the "properties") to Mendo Properties
Proprietary Limited ("Mendo") for an aggregate consideration of R1 181 300 000 (inclusive of VAT at zero percent)
(the "disposal"). The sale consideration for the property letting enterprises has been paid to Vukile in cash.
The disposal, together with the recently announced asset swap transaction with Synergy Income Fund Limited and
Arrowhead Properties Limited, will position Vukile as a retail focused fund in respect of its South African asset base.
Pursuant to the disposal, the asset management agreement concluded in May 2013 between Vukile and Encha
Property Management Company Proprietary Limited in respect of the properties has terminated in accordance with its
terms.
The disposal includes warranties, undertakings and indemnities which are normal for a disposal of this nature.
Property specific information
The property specific information required in terms of the JSE Listings Requirements in relation to the properties is
set out below.
Property name and address Pretoria De Bruyn Park, Cnr Thabu Sehume and Madiba Streets,
Pretoria
Sector Office
Geographical location Gauteng
Rentable Area (m2) 41 418
Weighted Average rental per m2 90.89
Value attributed to the property R305 100 000
Net operating income (1 September 2016 R28 225 617
to 31 August 2017)
Property name and address Pretoria Navarre, 231 Pretorius Street, Pretoria
Sector Office
Geographical location Gauteng
Rentable Area (m2) 47 519
Weighted Average rental per m2 123.92
Value attributed to the property R391 200 000
Net operating income (1 September 2016 R63 100 816
to 31 August 2017)
Property name and address Pretoria Arcadia Suncardia, 524 Helen Joseph Street, Arcadia, Pretoria
Sector Office
Geographical location Gauteng
Rentable Area (m2) 28 937
Weighted Average rental per m2 99.22
Value attributed to the property R265 600 000
Net operating income (1 September 2016 R26 684 293
to 31 August 2017)
Property name and address Bloemfontein Fedsure House, ,49 St. Andrews Street, Bloemfontein
Sector Office
Geographical location Free-state
Rentable Area (m2) 10 866
Weighted Average rental per m2 88.28
Value attributed to the property R89 700 000
Net operating income (1 September 2016 R7 681 854
to 31 August 2017)
Property name and address Pretoria Koedoe Arcade, 236 Pretorius Street, Pretoria
Sector Office
Geographical location Gauteng
Rentable Area (m2) 13 402
Weighted Average rental per m2 110.03
Value attributed to the property R129 700 000
Net operating income (1 September 2016 R15 870 978
to 31 August 2017)
No independent valuation has been carried out and the board of directors of Vukile is of the view that the value
attributed to the relevant properties above represents the fair market value of the properties.
The proceeds of the disposal will be used to repay debt, as well as fund potential acquisitions both locally and
internationally. Management intends to deploy the proceeds in such a manner as to replace the earnings attributable to
the sale assets and as such aim to avert any dilutionary aspects of the sale. Post the sale of the properties and the
successful conclusion of the Arrowhead-Synergy transaction, Vukile will be positioned as a specialist retail fund in
South Africa with a significantly reduced risk profile and strong balance sheet from which to pursue further growth
initiatives.
The value of the net assets being disposed of attributed to the properties is R1 181 300 000.
Categorisation of the disposal
The disposal is classified as a Category 2 transaction in terms of the JSE Listings Requirements. It is not subject to
approval by Vukile shareholders.
8 September 2016
JSE sponsor NSX sponsor
Java Capital IJG Securities (Pty) Ltd
Date: 08/09/2016 05:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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2016-09-08 17:30:00 Source: JSE News Service (SENS)
