PARAPROP - ACQUISITION OF THE GOLDEN ACRE CENTRE
PARAMOUNT PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1945/019928/06)
Share code: PRA
ISIN: ZAE000028577
(`Paraprop`)
ACQUISITION OF THE GOLDEN ACRE CENTRE
1. Introduction
Linked unit holders are advised that Paraprop has entered into an agreement with
Devland Holdings (Proprietary) Limited (`the seller`) to acquire the retail
component of the rental enterprise known as the Golden Acre Centre (situated in
Adderley Street, Cape Town) with effect from the date of transfer which is
expected to be on or about 1 November 2004 (`the acquisition`).
Paraprop will acquire the rental enterprise of the Golden Acre Centre that
comprises the shopping centre and a determined portion of the parking garage
(`the property`) while the seller will retain ownership of the office tower and
the remaining determined portion of the parking garage of the Golden Acre
Centre.
2. Rationale for the acquisition
The acquisition has been effected in line with Paraprop`s strategy of continuing
to grow its property portfolio in order to increase market capitalisation,
improve its capital structure and benefit from increased diversification.
3. Consideration for the acquisition
The total consideration for the property is R130 million. Of the total
consideration, R60 million will be funded through a vendor placing of Paraprop
linked units while the balance of the total consideration of R70 million will be
funded through borrowings.
4. Financial effects of the acquisition
The financial effects of the acquisition will be provided in a further
announcement to Paraprop shareholders that will be issued in due course.
5. Suspensive condition relating to the acquisition
The acquisition is subject to the obtaining of the requisite Competition
Authority approval.
6. Further information
A circular containing full details of the acquisition will be posted to Paraprop
linked unit holders in due course.
Cape Town
4 October 2004
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