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S A Retail Properties Limited - Announcement Regarding The Acquisition Of A
Retail Property, A General Issue Of Units For Cash 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, A GENERAL ISSUE OF
UNITS FOR CASH AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
1. INTRODUCTION
Further to the cautionary announcement dated 1 July 2004, unitholders of S A
Retail are advised that the Company has acquired an undivided half share of
Musgrave Centre, Durban for a total consideration of R187,5 million
(`acquisition`) and raised R79,4 million by way of a general issue of linked
units for cash (`general issue).
2. ACQUISITION OF RETAIL PROPERTY
2.1 Terms of the acquisition
The Company reached agreement with Rycklof Beleggings (Proprietary) Limited,
subject to the conditions referred to in 2.5 below, to acquire an undivided half
share in Musgrave Centre for a total consideration of R187,5 million payable in
cash. The purchase consideration will be funded by way of debt and the proceeds
of the general issue of linked units for cash. The effective date of the
acquisition is the transfer date, which is expected to be 1 September 2004.
2.2 Nature of business
The property acquired consists of Musgrave Centre, situation at 115
Musgrave Road, Berea, Durban. Gross lettable area (`GLA`) amounts to 39
652 m¯ with a current vacancy level of less than 2,9%. Tenants include major
national retailers who occupy approximately 66% of the GLA, with the balance of
space taken up by line shops. The forward property yield is projected at
11,37%.
2.3 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 Musgrave Centre is consistent with the Company`s investment criteria.
2.4 Financial effects of the acquisition
The acquisition does not have a material effect on the net asset value,
earnings and distribution per linked unit of S A Retail.
2.5 Suspensive conditions
The acquisition is subject to the approval of the Competition Commission
and the transfer of the property.
3. GENERAL ISSUE OF UNITS FOR CASH
3.1 Terms of general issue
S A Retail has placed 14 330 000 linked units with institutional investors at an
issue price of 554 cents per linked unit. The issue price represents a premium
of 0.7% to the 30 day weighted average traded price of S A Retail prior to the
date the issue price was determined. The issue price includes a notional amount
of 24 cents per linked unit in respect of distributions from S A Retail for the
period 1 April 2004 to the issue date of the linked units.
The new linked units will be issued on 16 August 2004 and will participate in
the distribution by S A Retail from 1 April 2004.
3.2 Financial effects of the general issue
The general issue does not have a material effect on the net asset value,
earnings and distribution per linked unit of S A Retail.
4. WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
Unitholders are advised that the cautionary announcement dated 1 July 2004 is
withdrawn.
Durban
20 July 2004
MERCHANT BANK SPONSOR
MARRIOTT MERCHANT BANK LTD EXCHANGE SPONSORS (PTY) LTD
Date: 19/07/2004 04:05:03 PM Produced by the JSE SENS Department
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