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A-Prop - Acquisition of portfolio of properties and further cautionary
Arnold Property Fund Limited
(Incorporated in the Republic of South Africa)
(Registration number 2001/011887/06)
Share Code: ARP ISIN Code: ZAE000031720
("A-Prop" or "the company")
Acquisition of portfolio of properties and further cautionary announcement
Introduction
Further to the cautionary announcement that appeared in the press on 16 October
2002, BoE Securities (Proprietary) Limited is authorised to announce that A-Prop
has acquired the shares in and claims on loan account against five share block
companies from K-H Properties (Proprietary) Limited for an aggregate
consideration of R27 679 600 ("the acquisition"). The gross value of the
properties acquired is approximately R69.2 million.
Nature of business
The properties acquired are income-producing properties, which are substantially
let and comprise a mixture of office and retail properties.
Rationale for the acquisition
The acquisition is in line with A-Prop`s long term objective to assemble a
property portfolio with sufficient critical mass to ensure the diversification
of risk and the spread of fixed cost over a wider base. Whilst the acquisition
will not have a material impact on the earnings and net asset value of A-Prop,
it will nevertheless have a positive impact on the quality of its portfolio and
in the reduction of A-Prop`s gearing.
The acquisition
Terms
In terms of an agreement dated 14 November 2002, A-Prop has acquired the shares
in and claims on loan account against five property owning share block companies
from K-H Properties (Proprietary) Limited, for an aggregate consideration of R27
679 600.
The purchase consideration will be settled as follows:
the allotment and issue of 11 533 167 A-Prop linked units at an issue price of
180 cents on the effective date;
the allotment and issue of 3 844 388 A-Prop linked units at a price of 180
cents, 13 months after the effective date.
In terms of the acquisition agreement, the first tranche of linked units to be
issued to K-H Properties (Proprietary) Limited will rank for participation on a
pro rata basis in respect of the distribution for the six months ended 31
December 2002.
Conditions precedent
The acquisition is conditional upon the final approval of the funding bank.
All other conditions to the acquisition have been fulfilled.
Effective date
The effective date of the acquisition will be 1 December 2002.
Details of the properties acquired
Company Enterprise Property
description
Surgate Share Block CBC House Er 1075
Proprietary) Limited Ferndale
Kenview Share Block Linkview Erf 1076
(Proprietary) Limited Ferndale
The Colony Centre Share Block Colony Erven 102, 103
(Proprietary) Limited Centre & 104 and
Portion 1 of
Erf 726
Craighall Park
Windrifter Share Block Granada Erf 468
(Proprietary) Limited Centre Umhlanga Rocks
No 9 Sturdee Holdings Share Sturdee Remaining
Block House Extent of Erf
(Proprietary) Limited 131 Rosebank
Financial effects
The acquisition would have had no material effect on the headline earnings,
distribution, net asset value or net tangible asset value per A-Prop linked unit
for the year to 30 June 2002 had the acquisition taken place during this period.
Further cautionary announcement
Further to the acquisition detailed above, shareholders are advised that the
company is still involved in further negotiations, which may have a material
effect on the price at which A-Prop linked units trade on the JSE Securities
Exchange South Africa.
Accordingly, shareholders are advised to continue to exercise caution when
dealing in A-Prop linked units until a further announcement is made.
Johannesburg
3 December 2002
Transaction advisor
Fusion Corporate Finance (Proprietary) Limited
Sponsor
BoE Securities (Proprietary) Limited
Date: 03/12/2002 05:15:00 PM Produced by the JSE SENS Department
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