Resilient Property Income Fund Limited - Acquisiti
RES
RES
Resilient Property Income Fund Limited - Acquisition of Jabulani Mall, Soweto
Resilient Property Income Fund Limited
(Incorporated in the Republic of South Africa)
Registration number 2002/016851/06
Share code: RES & ISIN: ZAE000043642
("Resilient" or "the Company")
ACQUISITION OF JABULANI MALL, SOWETO
Introduction
Linked unitholders are advised that Resilient has entered into an agreement to
acquire Jabulani Mall, a retail centre in Soweto, for R207m. The centre is
currently under construction and is due for completion in November 2006.
Details and rationale for the acquisition
Upon successful completion of the centre, Resilient will own 55% of this 43 500
m2 retail centre. Resilient has purchased the land at a cost of R14m. The
development agreement provides Resilient with a guaranteed yield of 10%.
Resilient is therefore not exposed to any development risk. The centre will be
anchored by Game, Shoprite, Edgars and Woolworths.
The land purchase agreement is for a 55% undivided share of Erven 2196 & 2197,
Jabulani Township, Soweto, Province of Gauteng and was entered into with
Jabulani Mall (Pty) Ltd on 15 December 2005. The development agreement is with
Jabulani Mall (Pty) Ltd and was entered into on 15 December 2005. Resilient"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.
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 Resilient"s net asset value per
linked unit and tangible net asset value per linked unit as at 30 June 2005, and
financial effects have therefore not been included. The forecast revenue for the
1 month ending 31 December 2006 amounts to R1.7m. The forecast net profit before
tax and forecast net profit for the 1 month ending 31 December 2006 amounts to
R0.2m. These forecast figures have not been reviewed by Resilient"s auditors and
are based on a 10% first year net yield and funding cost of 9%.
Categorisation of the transaction
The acquisition has been categorised as a category 3 transaction in terms of
section 9.5(a) of the JSE Listings Requirements.
Johannesburg
7 February 2006
Investment Bank and Sponsor
Nedbank Capital
Date: 07/02/2006 04:04:34 PM Produced by the JSE SENS Department
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