S A Retail - Announcement Regarding The Acquisitio
S A Retail - Announcement Regarding The Acquisition Of A Retail Property By S A
Release Date: 25/02/2004 17:15:05 Code(s): SRL
S A Retail - Announcement Regarding The Acquisition Of A Retail Property By S A
Retail And Withdrawal Of 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
WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
1. INTRODUCTION
Further to the cautionary announcement dated 20 November 2003, unitholders
of S A Retail are advised that the Company has reached agreement with Sanlam
Life Insurance Limited ("Sanlam"), subject to the conditions referred to in 5
below, to acquire an undivided half share in a retail property for a total
consideration of R95,4 million by way of the issue of 18 002 359 units in S A
Retail, at an issue price of 530 cents per linked unit.
The effective date of the acquisition is 1 March 2004 and the transfer
date is expected to be in April 2004.
2. NATURE OF BUSINESS
The property acquired consists of Sanlam Centre Pinetown situated at 17
Kings Road, Pinetown. Gross lettable area ("GLA") amounts to 38 174mSquared
with a current vacancy level of less than 1%. Tenants include major national
retailers who occupy approximately 84% 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 Sanlam Centre Pinetown 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 linked unit and
earnings per linked unit are not material.
5. SUSPENSIVE CONDITIONS PRECEDENT
The acquisition is subject to the following conditions precedent:
Competition Commission approval; and
Approval of the JSE Securities Exchange South Africa.
WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
Unitholders are advised that the cautionary announcement dated 20 November 2003
is withdrawn.
Durban
25 February 2004
MERCHANT BANK SPONSOR
MARRIOTT MERCHANT BANK LTD EXCHANGE SPONSORS (PTY) LTD
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