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Martprop Property Fund - Company Announcement
Release Date: 22/11/2002 17:16:07 Code(s): MTP
Martprop Property Fund - Company Announcement
MARTPROP PROPERTY FUND
(Incorporated in the Republic of South Africa)
("Martprop" or "the Fund")
(Share Code: MTP ISIN Code: ZAE000037271)
ANNOUNCEMENT REGARDING THE ACQUISITION OF AN UNDIVIDED HALF SHARE IN A RETAIL
PROPERTY PORTFOLIO BY MARTPROP AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
1. INTRODUCTION
Further to the cautionary announcement dated 12 November 2002, unitholders of
Martprop are advised that the Fund has reached agreement with Old Mutual Life
Assurance Company (South Africa) Limited ("Old Mutual to acquire an undivided
half share in certain retail properties ("the portfolio") for a consideration of
R71,9 million, inclusive of all transaction costs, to be settled in cash, which
will be raised by way of debt.
The remaining undivided half share in the portfolio has been acquired by
S A Retail Properties Limited ("S A Retail"), which had initially negotiated the
acquisition of the entire portfolio. In order to consummate the transaction
within the time frame required by Old Mutual, S A Retail offered Martprop the
opportunity to acquire an undivided half share. Given the terms of the
acquisition and the benefits to the Fund contained therein, as detailed in 3
below, Martprop has taken up the said offer. The properties will be managed on
behalf of both parties by Marriott Property Services (Pty) Limited.
2. DETAILS OF PORTFOLIO
The portfolio consists of six community and convenience shopping centres
situated in Florida, Witbank, Cape Town and Durban. Gross lettable area ("GLA")
amounts to 57 063m} with an average vacancy factor of approximately 5,4%.
Tenants include major national retailers who occupy approximately 59% of the
GLA, with the balance of space leased to line shops.
The forward yield on the portfolio is 14,2% per annum.
3. RATIONALE FOR THE ACQUISITION
Martprop`s investment policy is to secure sustainable long term income growth
through the acquisition of prime well-let properties. In pursuit of this
objective, the Fund has stated its intention to increase its exposure to the
retail sector and this acquisition fulfils both these criteria. The portfolio
presents several opportunities for extensions and redevelopments and it is
anticipated that these will further secure the quality and growth in the income
from the portfolio.
4. FINANCIAL EFFECTS OF THE ACQUISITION
The effects of the acquisition on the net asset value per unit and earnings
per unit are not material.
5. WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
The cautionary announcement published on 12 November 2002 is withdrawn with this
announcement.
Durban
22 November 2002
MANAGERS SPONSOR
MARRIOTT PROPERTY FUND MANAGERS LTD
EXCHANGE SPONSORS LTD (PTY)
Date: 22/11/2002 05:16:04 PM Produced by the JSE SENS Department
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