The Acquisition Of A Retail Property By S A Retail
Announcement Regarding
Further Cautionary Announcement
S A RETAIL PROPERTIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1999/025764/06)
("S A Retail" or "the Company")
(Share Code: SRL ISIN Code: ZAE000034328)
ANNOUNCEMENT REGARDING THE ACQUISITION OF A RETAIL PROPERTY BY S A RETAIL AND
FURTHER CAUTIONARY ANNOUNCEMENT
1. INTRODUCTION
Further to the cautionary announcement dated 7 October 2003, unitholders of
S A Retail are advised that the Company has reached agreement with Equity
Estates (Proprietary) Limited ("Equity Estates"), subject to the conditions
referred to in 5 below, to acquire a retail property for a total consideration
of R49,0 million, to be settled in cash.
The effective date of the acquisition is the transfer date and is expected
to be in January 2004.
2. NATURE OF BUSINESS
The property acquired by S A Retail consists of the Town Square Shopping
Centre situated in Hendrik Potgieter Drive, Constantia Kloof. Gross lettable
area ("GLA") amounts to 5 216 mSquared with no vacancy. Tenants include major
national retailers who occupy approximately 50% of the GLA, with the balance of
space taken up by line shops.
3. RATIONALE FOR THE ACQUISITION
S A Retail"s investment policy is to ensure sustainable long-term income
and capital growth by maintaining a premier quality portfolio. The acquisition
of the Town Square Shopping Centre is in terms of the Company"s investment
criteria.
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. CONDITIONS PRECEDENT
The acquisition is subject to the following conditions precedent:
Competition Commission approval; and
Raising of the necessary finance.
6. ACTION
On fulfilment of the conditions precedent unitholders will be informed
accordingly.
7. FURTHER CAUTIONARY ANNOUNCEMENT
Unitholders are advised that S A Retail is still in negotiations, which if
successful, may affect the unit price of S A Retail units. Unitholders are
therefore advised to continue exercising caution when dealing in their units.
Durban
22 October 2003
MERCHANT BANK SPONSOR
MARRIOTT MERCHANT BANK LTD EXCHANGE SPONSORS (PTY) LTD
Date: 21/10/2003 05:15:02 PM Supplied by www.sharenet.co.za
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