| Wed 21 Jun 2023, 11:47 | | SPEAR REIT LIMITED - Update On Implementation Of Disposal Of Liberty Life Building – Competition Authorities Unconditional Approval |
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Update On Implementation Of Disposal Of Liberty Life Building – Competition Authorities Unconditional Approval
SPEAR REIT LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2015/407237/06)
Share Code: SEA
ISIN: ZAE000228995
LEI: 378900F76170CCB33C50
Approved as a REIT by the JSE
(“Spear”)
UPDATE ON IMPLEMENTATION OF DISPOSAL OF LIBERTY LIFE BUILDING –
COMPETITION AUTHORITIES UNCONDITIONAL APPROVAL
Shareholders are referred to the announcement released by Spear on SENS on
13 February 2023 (“Announcement”), in which Spear advised shareholders of the conclusion
of a sale of rental enterprise agreement (“Agreement”) with Capitec Bank Limited
(“Purchaser”) for the disposal of the property known as Erf 6281 Montague Gardens, held by
Spear under Deed of Transfer T14523/2020, with all improvements thereon (“Property”), and
the rental enterprise conducted by Spear on the Property, as a going concern (“Disposal”),
for a disposal consideration of R400,000,000 (“Disposal Consideration”).
As detailed in the Announcement, the Agreement was subject to the the approval of the
Disposal by the applicable competition authorities in terms of the Competition Act, No. 89 of
1998 (“Competition Authorities”) (“Condition Precedent”).
Shareholders are advised that on 20 June 2023, the Competition Authorities unconditionally
approved the Disposal and that the Condition Precedent has now been fulfilled. Accordingly,
the Agreement has become unconditional and the Disposal will be effective on the date of
registration of transfer of the Property into the name of the Purchaser, which is anticipated to
be during the month of October 2023.
As advised in the Announcement, the Disposal Consideration will be utilised to settle the debt
attributable to the Property, to the value of R375 million and Spear will retain approximately
R24 million in cash, to be utilised for selected capital allocation initiatives. The aforementioned
application of the Disposal Consideration will reduce Spear’s loan to value ratio (“LTV”) by
approximately 5% and following the implementation of the Disposal, the Spear group LTV is
anticipated to be between 35% and 36%. Shareholders are referred to the Spear results
presentation for the year ended 28 February 2023 (available on Spear’s website at
www.spearprop.co.za), which provided guidance on the anticipated movements in Spear’s
LTV ratio during the current financial year.
Cape Town
21 June 2023
Sponsor Legal Adviser
PSG Capital CDH
Date: 21-06-2023 11:47:00
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