The Disposal By Accelerate Of The Pri-Movie Park Building And The 1 Charles Crescent Building

ACCELERATE PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2005/015057/06) Share code:
LEI: 378900D514788C447E45
APF ISIN: ZAE000185815
Bond company code: APFE
("Accelerate", "APF" or the "Company")
(Approved as a REIT by the JSE)


THE DISPOSAL BY ACCELERATE OF THE PRI-MOVIE PARK BUILDING AND THE 1 CHARLES CRESCENT
BUILDING


1.    INTRODUCTION
      Shareholders and noteholders are advised that Accelerate ("Seller") has entered into a sale of letting
      enterprise agreement (the "Transaction") with Micawber 832 (Pty) Limited ("Purchaser"),
      represented by Justin Blend to dispose of Erf 224/2-IR,678/42-IR, 715/42-IR, 72,73,74 Eastgate
      Extension 4 ("Pri-movie Park") and Erf 265 Eastgate Extension 4 ("1 Charles Crescent") (the
      "Properties") respectively.


      The ultimate beneficial shareholders of the Purchaser are:
      •      The Efogen Trust - Justin Blend Family;
      •      The Lawson Trust - Nicholas Katsapas Family;
      •      The LAJOAL Investment Trust - Grant Friedman Family; and
      •      The NFD Trust - Gregory Blend Family.
      None of these beneficial shareholders are related parties in terms of the JSE Limited ("JSE") Listings
      Requirements.


2.    THE PROPERTIES
      Pri-movie Park and 1 Charles Crescent form part of Accelerate's office portfolio and were acquired by
      Accelerate on or about 11 December 2013.


      Pri-movie Park is an office building with a warehouse component located at 185 Katherine Street,
      Eastgate. As of 31 March 2023, the Property was valued at R101,699,461 (One hundred and one
      million, six hundred and ninety-nine thousand, four hundred and sixty-one Rand).


      1 Charles Crescent is an office building located at 1 Charles Crescent, Eastgate. As of 31 March 2023,
      the Property was valued at R63,525,456 (Sixty-three million, five hundred and twenty-five thousand, four
      hundred and fifty-six Rand).


      The combined purchase price to be paid for both Properties is R117,000,000 (One hundred and
      seventeen million Rand).

3.   APPLICATION OF THE SALE PROCEEDS
     It is the intention of Accelerate to apply the full proceeds to the reduction of debt and/or capital
     reinvestment into its core property portfolio.


4.   RATIONALE FOR THE TRANSACTION
     The Properties have experienced high vacancies, as at the Transaction date, the buildings are 40.9%
     and 100.0% vacant respectively and require significant capital outlay. The office component of Pri-movie
     Park is 65.0% vacant.

     Due to the ongoing drive to reduce debt and improve key treasury metrics, as well as the positive income
     accretion of the disposal due to high vacancy levels, the decision was taken to dispose of the properties.
     This decision was made as part of our ongoing efforts to review our assets and while this decision was
     not taken lightly, we believe it is in the Company's and its shareholders' best interest.


5.   KEY TRANSACTION TERMS
     The effective date for the Transaction will be the date on which the ownership of the Properties transfers
     into the name of the purchaser.


     A non-refundable deposit pertaining to Pri-movie Park in the sum of R15,000,000 (Fifteen million Rand)
     shall be paid into the conveyancer's account.


6.   CONDITIONS PRECEDENT
     The Purchaser shall, within 120 days from the date of signature of the sale agreement (on condition that
     the Seller has signed the required resolutions required for the re-zoning of the premises), secure
     payment of at least 80% of the purchase price. The balance of the purchase price shall be paid upon
     transfer of the Properties.


7.   INFORMATION RELATING TO THE PROPERTY:
     The details of the Properties including location, gross lettable area ("GLA"), net rent,remaining lease
     term and valuation are as follows:


     Property/ Tenant                     Pri-movie Park                         1 Charles Crescent
     Location                             Erf 224/2-IR,678/42-IR, 715/42-IR,     Erf 265 Eastgate Extension 4,
                                          72,73,74 Eastgate Extension 4          Gauteng
             2
     GLA (m )                             17,177m²                               15,547m²
     Net rent per m² *                    R12.85/m²                              Vacant
     Vacancy                              40.9%                                  100%
                                    **
     Net operating income/(loss)          R 540 254.50                           (R1,773,416.50)
     Remaining lease term                 0,46 years                             0 years (vacant)
     (WALE)(years)
     Last valuation (ZAR) ***             R101,699,461                           R63,525,456
     Effective date of valuation          31 March 2023                          31 March 2023
      * The weighted average net rent per m2 (also the profit attributable to the net assets of the building),
      billed to the tenant as of the date of signature of the sale agreement.


      ** The net operating income in respect of the Properties has been extracted from the Company's annual
      financial statements as of 31 March 2023 which were prepared in terms of International Financial
      Reporting Standards.


      *** Directors valuation as of 31 March 2023 (which the Company is satisfied with) based on cash flows
      and forward net income achieved/achievable by the Properties at valuation date.


8.    WARRANTIES
      The Seller has provided warranties and indemnities to the Purchaser that are standard for a transaction
      of this nature.


9.    CATEGORISATION OF THE TRANSACTION
      In terms of the Listings Requirements of the JSE, the Transaction is classified as a Category 2
      transaction for Accelerate and does not require shareholder approval.




Johannesburg
18 October 2023


Equity Sponsor
The Standard Bank of South Africa Limited


Debt Sponsor
Rand Merchant Bank (a division of FirstRand Bank Limited)


CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Certain statements in this announcement may be considered forward-looking. Although APF believes that the
expectations reflected in any such forward-looking statement relating to the Transaction are reasonable. The
information has not been reviewed or reported on by the reporting accountants and auditors and no assurance
can be given by APF that suchexpectations will prove to be correct. APF does not undertake any obligation to
publicly updateor revise any of the information given in this announcement that may be deemed to be forward-
looking.

Date: 18-10-2023 02:36:00
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