| Wed 8 Feb 2006, 17:54 | | Pangbourne Properties Limited - Supplementary Term |
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PAP
PAP
Pangbourne Properties Limited - Supplementary Terms Announcement
PANGBOURNE PROPERTIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1987/002352/06)
Share code:PAP ISIN:ZAE000005252
("Pangbourne" or "the Company")
SUPPLEMENTARY TERMS ANNOUNCEMENT REGARDING THE ACQUISITION OF A
PORTFOLIO OF PROPERTIES
1. INTRODUCTION
Pangbourne combined unitholders are referred to the announcement
released on SENS on 14 December 2005 and published in the press on 15
December 2005 ("the previous announcement"). As described in detail
in the previous announcement, Pangbourne has concluded an agreement
to acquire a portfolio of 48 properties from Transnet Retirement
Funds Property Trust ("TRFPT"), comprising a mixture of industrial,
commercial and retail properties ("the TRFPT portfolio"), as well as
TRFPT"s rights and obligations under the agreements that TRFPT has
with a developer, subject to certain conditions precedent, in respect
of the future construction of a shopping centre development ("the
acquisition"). Pangbourne will acquire the TRFPT portfolio for an
aggregate purchase consideration of R1 404 million, to be discharged
through a cash payment of R702 million and the delivery to TRFPT of
37 360 057 new Pangbourne combined units, 18 920 393 iFour Properties
Limited ("iFour") linked units and 23 000 000 Siyathenga Property
Fund Limited ("Siyathenga") linked units ("the purchase
consideration"). The transfer of the TRFPT portfolio is expected to
take place by 31 March 2006, after the fulfilment of all the
conditions precedent to the acquisition.
The TRFPT portfolio includes six properties more suited to Siyathenga
("the Siyathenga portfolio"). Pangbourne, Siyathenga and Siyathenga
Properties Three (Proprietary) Limited, a wholly owned subsidiary of
Siyathenga ("Siyathenga Three"), concluded an agreement on 13 December
2005 disposing of the Siyathenga portfolio to Siyathenga Three ("the
Siyathenga disposal"). The Siyathenga disposal will be implemented
simultaneously with the acquisition, subject to the suspensive
conditions of the Siyathenga disposal being fulfilled, as set out in
more detail in the previous announcement.
2. VALUATION OF THE PROPERTY PORTFOLIO
The property portfolio has been valued by Norman Griffiths &
Associates CC, an independent external valuer, who is registered as a
professional valuer in terms of the Property Valuers Profession Act,
47 of 2000, as defined in Section 13 of the Listings Requirements of
the JSE Limited. The date of the valuation is 1 December 2005, which
is also the effective date of the acquisition. Details of the property
portfolio are set out in paragraph 3 below.
3. THE TRFPT PORTFOLIO
Weighted
average
Rentable rental Vacancy
per m2 profile
for
Prop- Purchase area by the by Valuation
erty price sector rentable rentable
area area
no. Property name R m2 R % R
1 Jan Smuts 49 849 325 Industrial 26.00 5.80 52 000 000
Industrial 24363
2 N1 Value 92 676 143 Retail 16074 62.00 1.40 94 000 000
Centre
3 Menlyn Home 25 404 535 Retail 4572 51.00 - 22 000 000
City
4 Vhumbanani 9 682 578 Offices 2069 53.51 - 10 000 000
5 Credit 10 427 393 Offices 2292 51.55 - 9 000 000
Underwriting
Assurance
6 Smith/Klein/B 19 923 780 Offices 4253 Vacant 96.00 18 000 000
eecham
7 Wedgewood 61 021 535 Offices 9635 67.50 17.70 63 000 000
Office Park
8 Plascon 8 033 353 Industrial 36.46 - 7 400 000
Decorative 1786
9 Hardware 14 843 073 Industrial 28.82 - 13 000 000
Distributors 3645
10 Muga Design 7 714 148 Industrial 31.00 - 7 100 000
2000
11 Fixtrade 7 820 554 Industrial 31.00 - 6 850 000
1944
12 PG Bison 23 674 449 Industrial 25.14 - 25 000 000
11622
13 PG Site 26 972 910 Industrial 12.11 22 000 000
13433
-
14 Chelsea 6 365 642 Office2793 39.00 - 9 085 000
Office Park
15 Boland Bank 18 939 238 Retail 898 49.90 - 19 000 000
Offices 6984
16 Renaissance 15 849 585 Office 4405 62.81 - 17 500 000
Place
17 Prospecton 20 577 074 Industrial 13.58 13.64 18 000 000
Industrial 19617
Park
18 Conlog House 18 964 325 Industrial 17.91 - 20 000 000
15100
19 AAD/KIC 23 495 950 Industrial Tenant 100.00 25 000 000
24686 vacating 2006
20 Sandton 11 282 191 Industrial 20.50 10.00 12 000 000
Commercial 7992
Village
21 Cullinan 38 866 666 Industrial 9.00 - 37 000 000
34105
22 Coventry 9 108 562 Industrial 24.80 17.00 9 400 000
6293
23 Corporate 6 831 430 Industrial 22.00 - 6 500 000
Park 2714
Sithabele
24 Corporate 7 245 440 Industrial 22.00 - 6 500 000
Park - N. 2876
I.A.
25 KNJ Selby 2 327 271 Industrial 9.90 8.00 3 200 000
11995
26 Richmond 7 172 999 Offices 4250 30.00 - 7 000 000
Forum
27 Menlyn Motor 33 950 097 Motor 5201 60.00 - 31 000 000
City
28 Summit Auto 19 666 227 Motor 3483 49.00 - 19 000 000
29 SMLB House 35 968 489 Offices 5375 57.00 - 30 000 000
30 Sandown 49 838 338 Offices 5279 85.00 - 48 000 000
Office Park
31 Amalgamated 23 702 961 Industrial 15.80 - 20 800 000
Appliances 13168
32 Eastside 5 692 855 Retail 3249 43.00 19.00 5 500 000
Plaza
33 Linbro Park 3 829 744 Vacant land - - 4 300 000
34 Sunninghill 4 140 263 Vacant land - - 4 000 000
Erf 1124
35 Corporate 14 283 890 Industrial 26.00 - 13 000 000
Park 5447
36 Acer Vitamin 16 561 031 Industrial 25.00 - 20 000 000
Labs 5268
37 Robertson 23 702 960 Industrial 10.00 - 24 000 000
Dekex 20433
38 Corporate 15 505 265 Industrial 28.00 - 17 000 000
Park Glomail 4862
39 International 70 798 391 Industrial 44.00 - 70 000 000
Health Dist. 13499
40 Cambridge 28 516 009 Industrial 27.00 - 29 000 000
Maxi Units 10877
41 Outdoor 3 001 687 Offices and 33.00 - 2 750 000
Network
Warehouse
1164
42 NamITech 4 657 790 Offices and 55.00 - 7 000 000
Warehouse
1410
43 Strijdom 42 119 766 Retail & 30.00 - 41 000 000
Commercial
Park#
Warehousing
15494
44 Thrupps 81 854 029 Retail 13187 78.09 9.00 82 000 000
Centre#
45 The 199 864 122 Retail 25869 80.38 3.00 215 000 000
Boardwalk#
46 Dions Value 64 683 926 Retail 12914 61.00 1.00 60 000 000
Centre#
47 Menlyn 60 043 557 Motor 9248 45.00 - 62 000 000
Dealership#
48 Rutherford 56 658 454 Offices 9179 79.00 22.00 58 000 000
Estate#
TOTAL 1 404 110 000 1 402 885 000
Notes:
1. The weighted average rental per square metre for the rentable
area is based on forecast information.
2. # denotes properties forming part of the Siyathenga portfolio
4. FORECAST FINANCIAL INFORMATION
There are no material changes to the forecast financial information
published in the previous announcement.
4.1 Forecast income statement of the TRFPT portfolio
The forecast revenue, operational net income, net profit after tax
and distributable earnings of the TRFPT portfolio are set out in
the table below and the directors of Pangbourne are responsible to
ensure that the information is in accordance with the requirements
of the JSE regulations pertaining to forecast financial
information.
Acquisition Acquisition and
Siyathenga
disposal
Three Twelve Three Twelve
months months months months
ending ending ending ending
30 June 30 June 30 June 30 June
2006 2007 2006 2007
Revenue (R"000) 37 021 153 668 25 712 107 455
Percentage uncontracted 19.5 35.0
rental income (%) 16.8 35.9
Operational net income 16 197 54 526
(R"000) 13 820 52 610
Net profit after 6 405 30 559
distribution and tax
(R"000) 5 040 22 983
Distributable earnings 9 154 39 541
(R"000) 9 705 41 875
In addition to the forecast financial effects of the Siyathenga
disposal as set out in the table above, Pangbourne will receive
from Siyathenga an introductory, facilitation and placement fee of
R15.07 million. This fee is excluded from the above forecast
financial information.
The forecast income statement for the TRFPT portfolio is contained
in the circular referred to in paragraph 6 below ("the circular")
and has been reviewed and reported upon by the reporting
accountants. Such report will be contained in the circular and will
also be available for inspection.
4.2 Pro forma effect on net asset value and tangible net asset value
per Pangbourne combined unit
The pro forma impact of the acquisition without the Siyathenga
disposal and with the Siyathenga disposal on net asset value ("NAV")
and tangible NAV ("TNAV") per Pangbourne combined unit is set out in
the table below and the directors of Pangbourne are responsible to
ensure that the information is in accordance with the requirements of
the JSE regulations pertaining to pro forma financial information.
Before the After the After the
acquisition acquisition Change Siyathenga Change
(cents) (cents) (%) disposal (%)
(cents)
NAV per
combined
unit 776 855 10 861 11
TNAV per
combined
unit 769 849 10 856 11
Notes:
1. The NAV and TNAV value per Pangbourne combined unit, as set out
in the "Before the acquisition" column of the table, are based upon
the audited balance sheet of Pangbourne at 30 June 2005 and 179 080
833 combined units in issue.
2. The NAV and TNAV per Pangbourne combined unit, as set out in the
"After the acquisition" column of the table, are based upon 216 440
890 combined units in issue and the assumptions that:
- the acquisition was implemented on 30 June 2005; and
- the Pangbourne combined units forming part of the purchase
consideration were issued in full on 30 June 2005.
3. The NAV and TNAV per Pangbourne combined unit, as set out in the
"After the Siyathenga disposal" column of the table, are based upon
216 440 890 combined units in issue and the assumptions that:
- the Siyathenga disposal was implemented on 30 June 2005; and
- the Pangbourne combined units forming part of the purchase
consideration were issued in full on 30 June 2005.
The pro forma effect on NAV and TNAV per Pangbourne combined unit have
been prepared for illustrative purposes only and, due to its nature,
may not necessarily reflect the financial position of Pangbourne
subsequent to the implementation of the acquisition and the Siyathenga
disposal.
The pro forma effect on NAV and TNAV per Pangbourne combined unit has
been reviewed and reported upon by the reporting accountants. Such
report is contained in the circular and will also be available for
inspection.
5. GENERAL MEETINGS
Separate general meetings of Pangbourne shareholders and Pangbourne
debenture holders will take place in the Conference Room, 3rd Floor,
Pangbourne House, 382 Jan Smuts Avenue, Craighall, Johannesburg, 2196,
on Tuesday, 7 March 2006 at 10:00 and 10:30 (or immediately after the
conclusion or adjournment of the general meeting of Pangbourne
shareholders, whichever is the later), respectively, to consider and,
if deemed fit, pass the requisite resolutions to approve the
acquisition ("the general meetings").The date of the general meetings
is subject to change and any such change will be published on SENS and
in the press.
6. DOCUMENTATION
The circular containing full details of the acquisition and the
Siyathenga disposal and notices of the general meetings will be posted
to Pangbourne combined unitholders on or about Monday, 13 February
2006.
Craighall
8 February 2006
Investment bank and sponsor Reporting accountants
Standard Bank Deloitte & Touche
Chartered Accountants (SA)
Corporate law advisers Property valuer
Edward Nathan Norman Griffiths
Attorneys Attorneys to TRFPT
Knowles Husain Lindsay Inc Jowell Glynn & Marais
Date: 08/02/2006 05:54:09 PM Produced by the JSE SENS Department
