Growthpoint - Disposal Of A Significant Portion Of
Growthpoint - Disposal Of A Significant Portion Of Growthpoint`s Listed Property
Investment Portfolio
Growthpoint Properties Limited
(Incorporated in the Republic of South Africa)
Registration number 1987 / 004988 / 06
ISIN: ZAE000037669
Share code: GRT
(`Growthpoint`)
DISPOSAL OF A SIGNIFICANT PORTION OF GROWTHPOINT`S LISTED PROPERTY INVESTMENT
PORTFOLIO
1. INTRODUCTION
Investec Bank Limited is authorised to announce that Growthpoint has disposed of
a significant portion (`the disposals`) of its listed property investment
portfolio (`the portfolio`) since December 2004.
The disposals comprised Growthpoint`s entire holding of:
- Acucap Properties Limited
- ApexHi Properties Limited `A` units
- ApexHi Properties Limited `B` units
- Freestone Property Holdings Limited
- iFour Properties Limited
- Martprop Property Fund
- SA Retail Properties Limited
- Sycom Property Fund
- Hyprop Investments Limited
2. TERMS OF THE DISPOSALS
2.1 Rationale
Prevailing market conditions favour a conversion of listed property units into
physical property, with yields on physical property generally exceeding those of
listed units. The disposals give Growthpoint additional capacity to continue
expanding its physical property portfolio with geographically and sectorally
diversified physical property assets, underscoring Growthpoint`s objective of
ensuring long term, sustainable, escalating income streams.
2.2 Details of the disposal
The disposals were effected piecemeal on the JSE Limited for an aggregate
consideration (`the disposal proceeds`) of R671 million. The disposal proceeds
will be utilised by Growthpoint to re-invest into physical properties and to
settle existing debt.
The original cost of the units sold was R409 million. The amount received in
excess of the cost of the portfolio represents a capital profit of R262 million
and will not significantly affect Growthpoint`s distributions. The disposals
will give rise to capital gains taxation of approximately R38 million.
For and on behalf of the board
Growthpoint Properties Limited
Sandton
August 2005
Merchant bank Sponsor
Investec Corporate Finance Investec Bank
17 August 2005
Date: 17/08/2005 04:45:06 P
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