Paraprop - Disposal of properties to Pangbourne Pr
Paraprop - Disposal of properties to Pangbourne Properties Limited
Paramount Property Fund Limited
(Incorporated in the Republic of South Africa)
(Registration number 1945/019928/06)
Share code: PRA
ISIN: ZAE000028577
(`Paraprop` or `the Fund`)
DISPOSAL OF PROPERTIES TO PANGBOURNE PROPERTIES LIMITED
1. Introduction
Linked unit holders are advised that Paraprop has entered into an agreement with
Pangbourne Properties Limited (`Pangbourne`), dated 30 May 2005, to dispose of
various rental enterprises (`the disposals`) conducted from a portfolio of 15
properties (`the properties`).
The disposals are subject to the conditions precedent set out in paragraph 5
below and will be effective from 1 September 2005, being the occupation date of
the properties.
2. Rationale for the disposals
The properties are predominantly smaller properties spread over a wide
geographic area. The Fund is seeking to consolidate its property exposure and
the properties no longer conform to its investment criteria.
3. Consideration for the disposals
The consideration for the disposals is R125 million to be received in cash and
will be used to reduce current debt.
4. Financial effects of the disposals
The financial effects of the disposals will be published in due course.
5. Conditions precedent relating to the disposals
The disposals are subject to a due diligence investigation by Pangbourne, to be
completed by 15 June 2005 and the fulfilment of the following conditions
precedent:
- Approval by the Pangbourne and Paraprop boards by 28 June 2005; and
- Competition Authority approval by 1 September 2005.
Cape Town
31 May 2005
Investment bank and Property managers Fund managers Attorneys
sponsor
Nedbank Capital Spire Property Paraprop Asset Cliffe Dekker
Services Managers
(Proprietary) (Proprietary)
Limited Limited
Date: 31/05/2005 08:00:03 AM
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