Diversified - Acquisition Of Pick `N Pay New Redru
DIV
DIV
Diversified - Acquisition Of Pick `N Pay New Redruth
Diversified Property Fund Limited
(Incorporated in the Republic of South Africa)
Registration number 2005/029685/06
Share code: DIV ISIN: ZAE000072369
("Diversified" or "the company")
ACQUISITION OF PICK `N PAY NEW REDRUTH
1. Introduction
Linked unitholders are advised that Diversified has entered into an
agreement to acquire Pick `n Pay New Redruth, a retail centre to be
constructed in Alberton, for approximately R104m. The centre is due for
completion in October 2006 ("the acquisition").
2. Details of the acquisition
Upon successful completion of the centre, Diversified will own 100% of
this 11 400 m2 retail centre which will be anchored by Pick `n Pay,
Woolworths and Clicks corporate stores. The development agreement provides
Diversified with a guaranteed yield of 9.5% and Diversified is therefore
not exposed to any development risk. The land purchase agreement is for
100% of Erf 952, New Redruth Alberton and was entered into with Rapid Dawn
40 (Pty) Ltd on 19 December 2005. The development agreement is with
Majestic Silver Trading 140 (Pty) Ltd and was entered into on 19 December
2005. Diversified"s directors are of the opinion that the purchase price
represents the fair value of the development. No independent valuation was
performed by a professional valuer.
3. Consideration and financial effects
The net cash consideration will be funded from existing cash resources and
additional borrowing facilities and is payable based on progress
certificates.
The acquisition has no significant effect on Diversified"s net asset value per
linked unit and tangible net asset value per linked unit as at 1 October 2005
and financial effects have therefore not been included. The forecast revenue
for the 9 months ending 30 June 2006 amounts to R7.4m. The forecast net profit
for the 9 months ending 30 June 2006 amounts to R0.4m. The forecast figures
have not been reviewed by Diversified"s auditors and are based on a 9.5% first
year net yield and funding cost of 9%.
4. Categorisation
The acquisition has been categorised as a category 3 transaction in terms
of section 9.5 (a) of the JSE Listings Requirements.
Johannesburg
17 January 2006
Sponsor
Java Capital (Proprietary) Limited
Date: 17/01/2006 05:41:36 PM Produced by the JSE SENS Department
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
