Paramount Property Fund Limited - Acquisition Of P
PARAMOUNT PROPERTY FUND LIMITED
(formerly Ovbel Holdings Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1945/019928/06)
Share code: PRA ISIN: ZAE000028577
("Paraprop" or the "company")
ACQUISITION OF PROPERTIES
1. Introduction
Further to the cautionary announcement dated 10 January 2002, Paraprop
linked unitholders are advised that agreements have been entered into to
acquire two properties, the Intersite properties, for a total consideration
of R18 500 000 ("the acquisitions").
Details relating to the acquisitions are set out below:
Purchase Settlement by
Property price B
Rand Cash Linked debentures
Rand units Rand value
Rand
value
10/12 Intersite
Avenue, Umgeni 7 300 4 875 965 000 1 460 000
Business Park 000 000
Vendor: Next
Edition Properties
CC
112/144 Intersite
Avenue, Umgeni 11 200 7 842 1 198 2 160 000
Business Park 000 000 000
Vendor: Sacramento
Investments CC
18 500 12 717 2 163 3 620 000
000 000 000
The cash portion of the purchase consideration for the acquisitions will be
raised by way of long-term loans from a financial institution.
The issue price of the linked units and B Debentures in respect of the
acquisitions will be 500 cents each.
2. Effective date
The effective date of the acquisitions is 1 November 2001.
3. Rationale
The acquisitions are in line with the strategy of the company to provide
linked unitholders with a sustainable growing annuity income stream and
capital growth.
4. Financial effects
The Intersite properties were completed during the latter part of 2001 and
were occupied for a limited period of time prior to signing the purchase
agreements. As such, no historical information is available on the
properties and the pro forma financial effects of the acquisitions would not
be meaningful to linked unitholders.
5. Forecast distribution
With the financial effects not providing any reflection of historic
financial performance, it has been decided by the directors to include a
profit forecast to provide unitholders with an estimation of future
earnings.
The forecast distribution for the year ending 31 October 2002 is unchanged
at 86,4 cents per linked unit, an increase of 8% over the annualised
distribution of 80,0 cents per linked unit for the financial year ended 31
October 2001.
The company's auditors have reviewed the profit forecast for the year ending
31 October 2002 and are satisfied that it has been prepared in accordance
with paragraph 8.46(c) of the Listings Requirements of the JSE Securities
Exchange South Africa.
Cape Town
4 March 2002
Corporate adviser and Attorneys
sponsor Cliffe Dekker Inc.
Barnard Jacobs Mellet
Corporate Finance
Independent reporting Independent property valuers
accountants and auditors Mills Fitchet
Deloitte & Touche
Fund and property managers
Spire Property Services
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
