MARTPROP PROPERTY FUND - ANNOUNCEMENT REGARDING THE ACQUISITION OF A RETAIL
PROPERTY BY MARTPROP
MARTPROP PROPERTY FUND
(`Martprop` or `Fund`)
a collective investment scheme in property established in terms of the
Collective Investment Schemes Control Act, No.45 of 2002, and managed by
Marriott Property Fund Managers Limited (Registration number 1994/009895/06)
(Share code: MTP ISIN: ZAE000037271)
ANNOUNCEMENT REGARDING THE ACQUISITION OF A RETAIL PROPERTY BY MARTPROP
1. INTRODUCTION
Martprop unitholders are advised that Martprop has reached agreement with
Rycklof Beleggings (Proprietary) Limited, subject to the conditions referred to
in 5 below, to acquire an undivided half share in a retail property for a total
consideration of R187,5 million to be settled in cash. The purchase
consideration will be raised by way of debt.
The effective date of the acquisition is the date of transfer of the
property, which is expected to be on or about 1 September 2004.
2. NATURE OF BUSINESS
The property acquired consists of Musgrave Centre, situated at 115 Musgrave
Road, Durban. Gross lettable area (`GLA`) amounts to 39 652mSquared with a
current vacancy level of 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%.
3. RATIONALE FOR THE ACQUISITION
Martprop`s investment policy is to ensure sustainable long-term income and
capital growth for unitholders by maintaining a premier quality portfolio. To
that end, the Fund has determined to increase its retail portfolio by investing
in strategic, top quality shopping centres. The acquisition of the undivided
share in Musgrave Centre is in line with the Fund`s investment criteria.
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 Martprop.
Following the acquisition, Martprop`s debt to total fixed property will be
approximately 12%.
5. CONDITIONS PRECEDENT
The acquisition is subject to the approval of the Competition Commission
and transfer of the property.
Durban
20 July 2004
MERCHANT BANK SPONSOR
MARRIOTT MERCHANT BANK LTD EXCHANGE SPONSORS (PTY) LTD
Date: 19/07/2004 04:17:03 PM Produced by the JSE SENS Department
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