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Redefine - Acquisition By Redefine Of 90 Rivonia Road, Sandown
Redefine Income Fund Limited
(Registration No. 1999/018591/06)
Share Code: RDF
ISIN Code: ZAE000023503
(`Redefine`)
ACQUISITION BY REDEFINE OF 90 RIVONIA ROAD, SANDOWN
1 Introduction
Java Capital is authorised to announce that Redefine, through its wholly-
owned subsidiary, Outward Investments (Pty) Limited (`Outward`), which owns
a portfolio of commercial properties covering the retail, office and
industrial sectors and a portfolio of listed securities focused exclusively
on the real estate sector of the JSE Securities Exchange South Africa
(`JSE`), has concluded an agreement (`the agreement`) with FHP Managers
(Pty) Limited, a wholly-owned subsidiary of The Standard Bank of South
Africa Limited (`SBSA`) for the acquisition of the property letting
business conducted in respect of 90 Rivonia Road, located in Sandown,
Sandton (the `building`).
2 Rationale
The building is well located in the heart of Sandton, the major commercial
centre of Southern Africa. The entire building (measuring 14 270 square
metres in total) is tenanted by the Alexander Forbes group (`the tenant`)
on a seven year `triple net` lease. In order for SBSA to secure the tenant,
a major refurbishment of the building was required. The building has
subsequently been modernised to current A-grade standards. The current
rental payable by the tenant is below the average market rental for this
location, and escalates by 11.5% per annum.
3 The acquisition
In terms of the agreement, Outward will acquire the building with effect
from the transfer date for a purchase price of R113 million, subject to the
fulfilment of the conditions precedent set out below. The purchase price is
payable in cash on the transfer date.
The cash settlement of the purchase price is in line with Redefine`s stated
strategy of reducing its holdings in listed securities, which are trading
at a premium to fixed assets, and investing the proceeds directly into
fixed assets.
4 Conditions precedent and related party transaction
Given that SBSA currently owns 14,8% of the Redefine linked units currently
in issue, the transaction is regarded by the JSE as a related party
transaction. Accordingly, the acquisition is subject to the approval of
linked unitholders in general meeting (excluding the votes of SBSA).
An independent expert will be appointed to determine whether the terms of
the transaction are fair and reasonable to Redefine unitholders. A copy of
their report will be incorporated into the circular to be sent to
unitholders.
The acquisition is also subject to Competition Commission approval.
5. Financial effects of the acquisition
As the effects of the acquisition on the historical earnings, headline
earnings, net asset value and net tangible asset value per Redefine linked
unit are immaterial they have not been disclosed.
6. Circular
A circular will be posted to unitholders in due course.
Rosebank
25 May 2004
Corporate and legal advisor
Java Capital (Pty) Limited
Sponsor
Java Capital (Pty) Limited
Date: 25/05/2004 05:00:04 PM Produced by the JSE SENS Department
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