| Tue 26 Oct 2004, 16:27 | | ACQUISITION OF PROPERTIES |
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METBOARD PROPERTIES LIMITED - ACQUISITION OF PROPERTIES
METBOARD PROPERTIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1998/005425/06)
Share code: MPL ISIN: ZAE000014874
(`Metboard`)
ACQUISITION OF PROPERTIES
1. Introduction
Investec Bank Limited is authorised to announce that Metboard has concluded
an agreement (`the acquisition agreement`) with Kuper Legh Property Sales
(Proprietary) Limited (`Kuper Legh`) for the acquisition by Metboard of
portions 1 and 2 of Erf 1448 Alrode Township, measuring 9,0118 hectares, in
aggregate, together with all buildings and improvements thereon (`the
properties`) for a total purchase consideration of R8,8 million (`the
acquisitions`).
The properties were transferred into the name of Metboard on Monday, 18
October 2004 and accordingly, the acquisitions have become unconditional.
In terms of the acquisition agreement, the effective date of the
acquisitions was 1 September 2004.
2. Terms of the acquisitions
2.1 Acquisition consideration
Metboard has acquired the properties for an aggregate acquisition
consideration of R8,8 million, which was settled in cash from
Metboard`s existing debt facilities.
2.2 The properties
The properties comprise two industrial properties in Alrode, Gauteng
with seven buildings occupying the two erven, with a gross lettable
area of 32 010m2.
2.3 Rationale for the acquisitions
The properties are adjacent to three of Metboard`s existing properties
in Alrode. Given the increasing demand for space in this area, it is
Metboard`s intention to create a new modern industrial park, to be
named `Newmarket Industrial Park`, which will offer tenants quality
space in a secure park environment. Accordingly, Metboard has
committed a further R9 million for investment into the properties.
The initial yield on the acquisitions is 14,9% and is expected to
reduce to 14,5% after the R9 million investment referred to above,
taking into account projected rentals on completion of the
redevelopment.
3. Financial effects
The acquisitions will not have a material effect on the earnings per
Metboard linked unit, distribution per Metboard linked unit or net asset
value per Metboard linked unit.
4. Related party transaction
In terms of Section 10.7 of the Listings Requirements of the JSE Securities
Exchange South Africa (`JSE`) the acquisitions are regarded as a small
related party transaction as David Kuper is the non-executive chairman of
Metboard and a major shareholder of Kuper Legh. Accordingly, Metboard has
provided the JSE with written confirmation (`the fair and reasonable
opinion`) from an independent professional expert that the terms of the
acquisitions are fair and reasonable to Metboard linked unitholders. The
fair and reasonable opinion will lie open for inspection at the registered
office of Metboard, Ground Floor, Investec Building, 100 Grayston Drive,
Sandton for a period of 28 days from the date of publication of this
announcement.
5. Documentation
Given the monetary value of the acquisitions, Metboard linked unitholder
approval is not required and, in terms of the Listings Requirements of the
JSE, a circular is not required to be posted to Metboard linked
unitholders.
For and on behalf of the board
Metboard Properties Limited
Sandton
26 October 2004
Merchant bank
Investec Corporate Finance
Investec Bank Limited
(Registration number 1969/004763/06)
Sponsor
Investec Bank Limited
(Registration number 1969/004763/06)
