| Tue 15 Jun 2004, 15:08 | | PANGBOURNE TO ACQUIRE NEW PORTFOLIO OF PROPERTIES |
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PANGBOURNE PROPERTIES LIMITED - PANGBOURNE TO ACQUIRE NEW PORTFOLIO OF
PROPERTIES
Pangbourne Properties Limited
(Incorporated in the Republic of South Africa)
(Registration number 1987/002352/06)
JSE Share code: PAP
ISIN: ZAE000005252
(`Pangbourne`)
PANGBOURNE TO ACQUIRE NEW PORTFOLIO OF PROPERTIES
Pangbourne Properties Ltd has entered into an agreement to acquire a portfolio
of properties from Strupot Property Investments for a total purchase
consideration, of R 439 million.
`We anticipate the transaction will add at least R6.5 million, or 3.69 cents per
combined unit to our distributions on an annualised basis`, said Pangbourne CEO
Athol Campbell.
As the transfer of the properties is only expected to take place after 1 July
2004, the full effect of this transaction will not be reflected in the
distribution for the financial year ended 30 June 2005.
The portfolio consists of 26 properties situated mainly in KwaZulu Natal, one of
the country`s fastest growing areas, and Gauteng, the hub of the national
commercial activity. The acquisition of this portfolio significantly enhances
the quality of the Pangbourne portfolio in regard to long-term sustainability
with 55% of the leases expiring after June 2007.
`The portfolio is well let and offers Pangbourne, under its own management, an
opportunity to improve on occupancies in certain of the buildings,` commented
Campbell.
The portfolio includes, amongst others, Oxford Manor in Gauteng, several well
located industrial buildings having long term leases with strong tenants, the
Edgars West Street centre in KwaZulu Natal and several Shoprite Checkers retail
outlets situated in Gauteng, Western Cape and KwaZulu Natal.
Campbell said Oxford Manor in Illovo is a good example of vacant office space
that provides Pangbourne with the opportunity to improve occupancies by offering
potential tenants competitive rentals in a prime location.
Campbell said the retail component of the portfolio, including the Edgars West
street and the Shoprite centres, was exceptionally well situated and the tenants
enjoyed healthy turnovers. The high trading volumes experienced in these centres
ensure that the tenants will remain in these locations. In addition, Pangbourne
will receive turnover based rentals from many of these properties.
`We are confident that this transaction has significantly enhanced Pangbourne`s
long-term strategy to continue delivering sustainable increases in distribution
at a rate which exceeds inflation,` Campbell concluded.
Ends
14 June 2004
Issued on behalf of Pangbourne Properties Limited
Contact:
Athol Campbell
Chief Executive Officer
Tel (011) 889 8500 or 083 225 0327
Or
Johan Groenewald,
Company Secretary
Tel: (011) 889 8504 or 082 600 3691
For further information, please contact Corporate Communications Consultants
Contact:
Debbie Brewitt
Tel: (011) 783 8926 or 084 616 7000
About Pangbourne
Pangbourne was the first property investment company to use the loan stock
structure of variable debenture equity financing. The first loan stock company
to be listed on the JSE in 1987 with income earning assets of R146 million, it
continued to set the pace by taking its property management in-house and also
became the first to take over another listed loan stock.
Pangbourne`s vision is to create a property company that can produce sustainable
growth in total returns to investors over the long term. This will be achieved
in part by capitalising on the management expertise and experience gained over
the years by expanding its property management activities.
Pangbourne`s market capitalisation has increased from R250 million in 1998 to
the current level of R1, 3 billion. Total return to unitholders of 34% per
annum over the past 5 years is well ahead of the JSE ALSI. Core to these
achievements was the decision to change to own management of the properties,
which effectively aligns management`s objectives with those of unitholders.
Date: 15/06/2004 02:54:03 PM Supplied
Produced by the JSE SENS Department
