| Wed 30 Mar 2005, 17:58 | | Announcement Regarding The Acquisition And Dispos |
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Martprop Property Fund - Announcement Regarding The Acquisition And Disposal Of
Retail Properties By Martprop And Withdrawal Of Cautionary Announcement
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 AND DISPOSAL OF RETAIL PROPERTIES BY
MARTPROP AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
1. INTRODUCTION
Martprop unitholders are advised that Martprop has reached agreement with SA
Retail Properties Limited (`SA Retail`), subject to the conditions referred to
in 7 below, to acquire an undivided quarter share in fourteen retail properties
for a total consideration of R174,1 million, and also to sell to SA Retail an
undivided half share in eight retail properties for a total consideration of
R121,4 million. The net purchase consideration will be raised either through the
issue of units or by way of debt in Martprop.
2. PROPERTIES ACQUIRED
The properties acquired consist of an undivided quarter share in:
Property Location GLA Vacancy National Tenants
Eikestad Stellenbosch, 27 458 4% Shoprite Checkers,
Mall Western Cape Woolworths,
Truworths, Clicks
Springfield Durban, KwaZulu 19 887 0% Mr Price, Hi-Fi
Value Natal Corporation
Centre
Hayfields Pietermaritzburg, 12 218 5% Pick `n Pay
Mall KwaZulu Natal
Town Square Constantia Kloof, 5 262 0% Woolworths, Clicks
Gauteng
Coachman`s Sandton, Gauteng 6 366 0% Pick `n Pay
Crossing
Queensburgh Durban, KwaZulu 8 133 0% Pick `n Pay
Mall Natal
Bluff Durban, KwaZulu 12 022 0% Shoprite Checkers,
Shopping Natal Truworths
Centre
Cambridge Sandton, Gauteng 3 580 0% Woolworths
Crossing
Middelburg Middelburg, 8 649 0% Pick `n Pay
RPP Pick `n Mpumulanga
Pay
Quarry Hilton, 7 761 12% Spar
Shopping KwaZulu Natal
Centre
Checkers Somerset 6 259 0% Shoprite Checkers
Somerset West West, Western
Cape
Shoprite Kempton Park, 17 807 6% Shoprite Checkers
Kempton Park Gauteng
Westwood Boksburg, 4 758 6% Spar
Village Gauteng
Canterburg Randburg, 4 800 18% Pick `n Pay
Crossing Gauteng
3. PROPERTIES DISPOSED
The properties disposed of consist of an undivided half share in:
Property Location GLA Vacancy National Tenants
Stellenbosch Stellenbosch, 10 291 4% Pick n Pay, Woolworths,
Square Western Cape Truworths
Richdens Hillcrest, 10 064 0% Spar, Truworths, Mr
Village Centre KwaZulu Natal Price, Ackermans
425 West Durban, 9 559 0% Mr Price
Street KwaZulu Natal
The Colony Hillcrest, 4 090 0% Woolworths, Clicks,
KwaZulu Natal Milady`s
Fountains Randburg, 2 353 0% Spar
Shopping Gauteng
Centre
24/28 Amanzimtoti, 2 335 0% Mr Price
Commercial KwaZulu Natal
Road
Amanzimtoti
Corner Old Brackenfell, 2 147 0% Cash Build Limited
Paarl Road and Western Cape
Orion Street,
Brekenfell
4. PUT AND CALL OPTIONS
Martprop has also reached agreement with SA Retail to secure call options over a
further undivided quarter share in the above acquired properties and an
undivided half share in East Rand Galleria, a 52 855mSquared sub-regional centre
located in Boksburg, Gauteng anchored by Pick `n Pay. SA Retail has reciprocal
put options over the same properties. The call and put options are exercisable
before 31 March 2007 at the prevailing open market value.
5. RATIONALE FOR THE ACQUISITIONS AND DISPOSALS
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 and currently has joint investments
with SA Retail in six centres with a value of R574 million. The acquisition of
the undivided shares in the above properties is in line with the Fund`s
investment criteria and gives unitholders exposure to additional retail assets
that will be managed in the common interest of both Martprop and SA Retail. The
common management and investment policies following the implementation of the
transaction will ensure focused performance and facilitate effective portfolio
strategy.
6. FINANCIAL EFFECTS OF THE ACQUISITIONS, DISPOSALS AND PUT AND CALL OPTIONS
Neither the acquisitions, disposals, nor the exercise of the put and call
options have a material effect on the net asset value, earnings and distribution
per linked unit of Martprop.
On the basis that the net consideration is settled in cash, following the above
acquisitions and disposals, Martprop`s debt to total fixed property will be
approximately 15%.
7. CONDITIONS PRECEDENT
The above transactions are subject to due diligence including independent
property valuations, the approvals of Martprop`s Trustees, the Competition
Commission and the JSE Securities Exchange South Africa.
8. DOCUMENTATION
The acquisitions, together with the put and call options, result in these
transactions being classified as a category 2 transaction, and accordingly the
fund is in the process of preparing a circular to unitholders, which will be
posted to unitholders in due course.
9. WITHDRAWL OF CAUTIONARY ANNOUNCEMENT
Unitholders are advised that the cautionary announcement dated 29 March 2005 is
withdrawn.
Durban
30 March 2005
CORPORATE ADVISER SPONSOR
MARRIOTT CORPORATE EXCHANGE SPONSORS
PROPERTY BANK
Date: 30/03/2005 05:15:58 PM
Produced by the JSE SENS Department
