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IFR
IFR
iFour - Acquisition
iFour Properties Limited
(Incorporated in the Republic of South Africa)
(Registration number 2001/016118/06)
JSE code: IFR ISIN: ZAE000039236
("iFour")
ANNOUNCEMENT REGARDING THE TERMS OF THE ACQUISITION BY SIPAN 1 (PROPRIETARY)
LIMITED ("SIPAN"), OF THE PELICAN PARK PROPERTY ("PELICAN PARK")
1. INTRODUCTION
iFour linked unit holders are advised that agreement has been reached between
Sipan, a wholly-owned subsidiary of iFour, and Pangbourne Properties Limited
("Pangbourne") whereby Sipan will acquire, as a going concern, Pelican Park
with effect from 29 December 2005.
Pelican Park is a brand new industrial midi-factory unit complex consisting of
nine units with a gross lettable area of 11 191m2. It is well-situated in the
industrial area of Jet Park having good freeway access and is in close
proximity to Johannesburg International Airport. The complex is fully tenanted
with two to ten-year lease agreements escalating between 8% and 10%.
2. RATIONALE FOR THE ACQUISITION OF PELICAN PARK ("THE ACQUISITION")
The Acquisition is in line with iFour"s stated objective of growing the size
of its property portfolio whilst maintaining the quality thereof ensuring the
delivery of sustainable distributions to linked unit holders.
The property meets iFour"s acquisition requirements on the basis that it is in
a growth node in an area where there is continuous demand for space and good
freeway access.
3. SETTLEMENT OF THE PURCHASE CONSIDERATION
The purchase consideration for the Acquisition is R32,9 million (including VAT
at 0 percent).
It is the intention of the directors of iFour and Sipan to settle the purchase
consideration through the transfer of linked units to which Sipan is entitled
to by virtue of the sale to Paramount Property Fund Limited ("Paramount") of
the MTN Building Mount Edgecombe ("MTN Building") and should it be necessary,
the purchase consideration will be payable in cash from Sipan"s cash
resources.
- The MTN Building was previously sold for a purchase consideration of R72
million, of which 50% was payable in cash and 50% is payable in Paramount
linked units ("the linked units"). The transfer of this property took place on
22 December 2005.
- The number of linked units to settle the purchase consideration of Pelican
Park will be calculated by applying a 2,5% discount to the 30-day average
closing price of the linked units traded on the JSE and calculated on the date
of transfer of the MTN Building. Sipan will be allotted the linked units at a
5% discount to the weighted average closing price on the JSE Limited ("JSE").
The linked units will be passed on to Pangbourne on transfer of Pelican Park.
4. FINANCIAL EFFECTS
The pro forma financial effects of the Acquisition on the earnings, headline
earnings, net asset value and tangible net asset value per iFour linked unit
are not significant.
5. SMALL RELATED PARTY TRANSACTION
As 49,12% of the iFour linked units in issue are held by Pangbourne, the
Listings Requirements of the JSE require written confirmation from an
independent professional expert, confirming that the Acquisition is fair and
reasonable to iFour linked unit holders. BDO QuestCo (Pty) Limited has
confirmed that the Acquisition was fair and reasonable and its report is
available for inspection at iFour"s registered office.
9 January 2006
Johannesburg
Sponsor
PricewaterhouseCoopers
Corporate Finance (Pty) Ltd
(Registration number 1970/003711/07)
Attorneys
Coetsee van Rensburg Attorneys
Independent professional expert
BDO QuestCo (Pty) Ltd
(Registration number 2004/018276/07)
Date: 09/01/2006 02:47:51 PM Produced by the JSE SENS Department
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