| Thu 29 Apr 2004, 18:42 | | THE ACQUISITION BY METBOARD OF A PORTFOLIO OF |
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METBOARD PROPERTIES LIMITED - THE ACQUISITION BY METBOARD OF A PORTFOLIO OF
PROPERTIES FROM AFRICAN TUBES & PIPES (PROPRIETARY) LIMITED ("AFRICAN TUBES")
AND FURTHER CAUTIONARY ANNOUNCEMENT
METBOARD PROPERTIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1998/005425/06)
Share code: MPL ISIN: ZAE000014874
("Metboard")
THE ACQUISITION BY METBOARD OF A PORTFOLIO OF PROPERTIES FROM AFRICAN TUBES &
PIPES (PROPRIETARY) LIMITED ("AFRICAN TUBES") AND FURTHER CAUTIONARY
ANNOUNCEMENT
1. INTRODUCTION
Investec Bank Limited is authorised to announce that Metboard has entered
into a sale and purchase agreement with African Tubes in terms of which
Metboard has acquired seven properties ("the properties") for an aggregate
purchase consideration of R87 million subject to the terms and conditions
as set out in paragraph 3 below ("the acquisition").
2. RATIONALE FOR THE ACQUISITION
The properties, which are all quality industrial warehousing and
manufacturing type properties are complementary to Metboard"s existing
property portfolio and will further enhance the overall quality thereof.
Leases over approximately 40% of the gross lettable area of the properties
have expiry dates beyond 2011, thereby further improving the overall lease
expiry profile of Metboard.
The attractive forward yield of 14,6% should also benefit Metboard linked
unitholders in terms of future distributions.
3. THE ACQUISITION
3.1 The properties forming part of the acquisition are set out in the table
below:
Property Location Gross Purchase
description lettable price
area (R million)
m2
1. Allen Wilbart Ext 5,165 4,8
3
2. Greenhills Wilbart Ext 1,841 4,4
Centre 3
3. Gundle Meadowbrook 14,720 18,0
4. Henville Henville Ext 63,131 34,6
10
5. Highway Wilbart Ext 3,332 8,3
2
6. Mountjoy Wilbart Ext 10,067 14,5
2
7. Northreef Wilbart Ext 5,254 2,4
3
Total 87,0
In order for the land on which the properties are situated to be used for
industrial purposes, Metboard will have to proclaim industrial townships on
the land. The estimated costs of proclamation, bulk and other services
will amount to approximately R8 million.
Taking the costs referred to above into account, the average forward yield
of the properties amounts to 14,6%.
3.2 Effective date
The effective date of the acquisition will be on the date on which the
properties are transferred and registered into the name of Metboard.
4. CONDITIONS PRECEDENT
The acquisition is subject to the following conditions precedent:
4.1 the approval of the acquisition by the Competition Authorities; and
4.2 the acquisition being advertised in terms of Section 34 of the
Insolvency Act.
5. SETTLEMENT OF THE PURCHASE CONSIDERATION
The purchase consideration for the properties will be settled by Metboard
in cash on the date on which the properties are transferred and registered
into the name of Metboard.
6. DOCUMENTATION
Given the monetary value of the acquisition, Metboard linked unitholder
approval is not required for the successful implementation of the
acquisition and a circular to Metboard linked unitholders is not required
to be posted in terms of the Listings Requirements of the JSE. Accordingly,
this announcement is for information purposes only.
7. FURTHER CAUTIONARY ANNOUNCEMENT
A further announcement including the financial effects of the acquisition
will be published in due course. Metboard linked unitholders are advised
to continue to exercise caution when dealing in their Metboard linked units
until a further announcement regarding the acquisition is made.
By order to the Board
Sandton
29 April 2004
MERCHANT BANK SPONSOR ATTORNEYS
Corporate Finance Investec Bank Fluxmans
Investec Bank Limited
Limited(Registration (Registration number
number 1969/004763/06)
1969/004763/06)
Date: 29/04/2004 05:24:07 PM Produced by the JSE SENS Department
