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S.A Retail - Announcement
S A RETAIL PROPERTIES LIMITED
(Registration number: 1999/025764/06)
(Incorporated in the Republic of South Africa)
("S A Retail" or "Company")
(Share Code: SRL ISIN Code: ZAE000034328)
ANNOUNCEMENT BY S A RETAIL REGARDING THE ACQUISITION OF AN UNDIVIDED HALF SHARE
IN A RETAIL PROPERTY PORTFOLIO AND AN INTERIM DISTRIBUTION
INTRODUCTION
Further to the announcement dated 2 September 2002, in which unitholders were
advised that the Company had reached agreement with Old Mutual Life Assurance
Company (South Africa) Limited ("Old Mutual"), subject to certain conditions
precedent, to acquire a portfolio of retail properties ("the portfolio") for a
consideration of R143,3 million, the following announcement is made confirming
amendments to this agreement.
In order to conclude the transaction within the timeframe required by the
seller, S A Retail has secured a joint purchaser which, together with S A
Retail, will purchase the portfolio.
Unitholders are now advised that agreement has been reached with Old Mutual for
the Company and Martprop Property Fund jointly to acquire undivided half shares
in the portfolio. The consideration payable by S A Retail of R73,2 million,
inclusive of all transaction costs, will be settled by the issue of units in the
Company at 455 cents per unit. The units to be issued as consideration for the
above acquisition have been placed on behalf of Old Mutual.
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.
RATIONALE FOR THE ACQUISITION
S A Retail`s investment policy is to ensure, through proactive asset management,
long term income and capital growth by maintaining a premier quality portfolio.
This, along with the other investment objective of pursuing critical mass with a
retail sector emphasis, is met by this acquisition.
FINANCIAL EFFECTS OF THE ACQUISITION
The effects of the acquisition on the net asset value per unit and earnings per
unit are not material.
INTERIM DISTRIBUTION
To accommodate the issue of the new units an interim distribution will be paid
by S A Retail to unitholders registered immediately prior to the effective date
of the acquisition. Details regarding this interim distribution will be
published in due course.
Durban
22 November 2002
MERCHANT BANK SPONSOR
MARRIOTT MERCHANT BANK LIMITED EXCHANGE SPONSORS (PTY) LTD
Date: 22/11/2002 05:15:00 PM Produced by the JSE SENS Department
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