| Fri 9 Jul 2004, 8:26 | | Octodec / Premium - Issue of Linked Units |
|
Octodec / Premium - Issue of Linked Units
OCTODEC INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1956/002868/06
Share Code: OCT
ISIN:ZAE000005104
(`Octodec`)
PREMIUM PROPERTIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1994/003601/06)
Share Code: PMM
ISIN:ZAE000009254
(`Premium`)
Issue of new linked units by Octodec and Premium to fund certain
refurbishments and greenfield projects (`the new developments`)
1. Introduction
Octodec and Premium (`the Funds`) linked unitholders are advised that
the Funds, in conjunction with Nedbank Capital, have concluded a
private placement of new linked units in the Funds, with selected
institutions to fund the new developments.
Although this capital raising will be used by the Funds to individually finance
the new developments (as set out further in this announcement), both Funds will
also benefit from the increased institutional interest and liquidity brought
about as a result of the private placement.
2. The placing
The placing process entailed:
* the issue by Octodec of 10,448,346 new linked units (`Octodec units`) at
an issue price of R4.50 per unit, which includes a notional distribution
prepayment of R0.20 per unit; and * the issue by Premium of 13,982,047 new
linked units (`Premium units`) at an issue price of R3.35 per unit, which
includes a notional distribution prepayment of R0.13 cents per unit.
The notional distribution prepayment of R0.20 per Octodec unit and R0.13
per Premium unit, effectively compensates existing linked unitholders
in the Funds for any dilution in the distribution, (payable to them
for the 6 month period ending 31 August 2004) as a consequence of the
issue of Octodec and Premium units, which will rank pari passu with
the existing linked units in the Funds from the date of their issue.
The private placement resulted in:
* Octodec raising approximately R44,9 million in capital and approximately
R2,1 million in notional distribution prepayments; and * Premium raising
approximately R45,0 million in capital and approximately R1,8 million in
notional distribution prepayments.
On Friday, 9 July 2004, the JSE Securities Exchange SA (`JSE`) listed
10,448,346 Octodec units and 11,682,047 Premium units, taking Octodec`s total
issued units to 78,344,569 and Premium`s total issued units to 111,307,039.
The balance of 2,300,000 Premium units that have been issued as part of the
private placementwill only be listed on the JSE on Monday, 19 July 2004,
which will increase Premium`s total issued number of units to 113,607,039.
3. The Octodec new developments
The equity capital raised by Octodec is to be used to partly fund the following
new developments:
* Additions and alterations at Killarney Mall R83m
* Refurbishment of an existing building in the Pretoria CBD R7m
* A residential conversion in the Pretoria CBD R2m
* Funding required by an associate company of Octodec R18m
Through the refurbishments and additions to Killarney Mall, Octodec
has been able to attract a leading fashion retailer to Killarney Mall
who will occupy a 4,300m2 store.
Octodec has sufficient borrowing capacity to fund the projects and it
is Octodec`s intention to raise the balance of funding required, by
way of loan finance.
5. The Premium new developments
The equity capital raised by Premium is to be used to partly fund the
following new developments:
* Hatfield, development of a mixed use retail and
residential building R100m
* Churchbart, development of 247 residential units R36m
* Burocadia, development of 111 residential units R14m
* Apollo, upgrade of the Apollo Centre in the Pretoria CBD R2m
* Funding required by an associate company of Premium R18m
Premium has sufficient borrowing capacity to fund the projects and it
is Premium`s intention to raise the balance of the funding required,
by way of loan finance.
6. Financial effects
The new developments are in line with the Funds` strategy of focusing
on their existing portfolio and extracting value there from. While
these investments will not have a material effect on the Funds`
distributions per unit or NAV`s in the short term, they will be earnings
and NAV enhancing going forward.
Pretoria
9 July 2004
Investment bank and sponsor Management Company
Nedbank Capital City Property
Date: 09/07/2004 07:01:06 AM Produced by the JSE SENS Department
