| Thu 25 May 2006, 15:38 | | OCPF - Acquisition of the Ridge @ Shallcross and W |
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OAS
OAS
OCPF - Acquisition of the Ridge @ Shallcross and Withdrawal of Cautionary
Oasis Crescent Property Fund
(Incorporated in the Republic of South Africa)
(Registration number 2003/012266/06)
Share code: OAS ISIN: ZAE000074332
("OCPF")
ACQUISITION BY OCPF OF THE RIDGE @ SHALLCROSS ("THE RIDGE") AND WITHDRAWAL OF
CAUTIONARY ANNOUNCEMENT
1 Introduction
Further to the cautionary announcement issued on 11 May 2006, participatory
interest holders are hereby advised that Oasis Crescent Property Fund Managers
Limited has entered into an agreement, on behalf of OCPF, for the purchase of
the freehold land and improvements thereon, which comprise The Ridge, a
community shopping centre in Shallcross, Durban, KZN, with a rentable area of 15
300m2 for a consideration of R117 million ("the acquisition"). The vendors are
Autumn Star Trading 100 (Pty) Limited, and Zelpy 2940 (Pty) Limited. The
effective date of the acquisition is 1 July 2006. The acquisition is categorised
as a Category 3 transaction in terms of Section 21 of the JSE Limited Listings
Requirements ("LRs"). At the date of this announcement The Ridge had not yet
been valued by an external property valuer.
2 Background and rationale
The Ridge represents an excellent opportunity for OCPF to diversify its
portfolio, both by property type and by location. The centre opened for trading
on 24 November 2005 and is anchored by Checkers Hyper and House & Home. There is
also potential to develop a further 3 500m2 as phase 2 of The Ridge, planning
for which will commence at an appropriate time. The average rental is R90 per m2
and the current vacancy level is 8.7% of rentable area. In terms of Shari"ah
principles the non-permissible component of the property will be sold by
sectional title, thereby eliminating the exposure to non-permissible business
activities.
3 Purchase consideration
It is expected that R71 million of the purchase price will be settled by OCPF
from cash on hand, R10 million from short-term borrowings and R36 million will,
subject to the requisite shareholder and trustee approvals being received, be
raised from a proposed general issue of participatory interests for cash.
4 Financial effects
The acquisition will not have a significant impact on the net asset value of the
fund based on the current funding structure as detailed in paragraph 3. Based on
an initial yield of 8.6% the net operating income forecast for the nine-month
period 1 July 2006 to 31 March 2007 is R7.5 million. The acquisition will
enhance the pre-listing statement forecast distribution including non-
permissible income of 104.09c for the 12 months to 31 March 2007 but that impact
will not be significant.
5 Agreement and conditions precedent
The acquisition agreement contains warranties which are customary for a
transaction of this nature.
There are no material conditions precedent which remain outstanding at the date
of this announcement.
6 Documentation
A brief circular containing details of the general meeting, which will be
convened to seek participatory interest holder approval for the general issue of
participatory interests for cash transaction, will be posted to participatory
interest holders in due course.
7 Withdrawal of cautionary
Participatory interest holders are advised that, having regard of the
disclosures made above, the requirement to exercise caution is no longer
required.
Note: The listing of participatory interests in the fund is on the ALTX.
Participatory interest holders are advised of the risks of investing in an
entity listed on the ALTX. Participatory interest holders are advised that the
JSE does not guarantee the viability or the success of an entity listed on the
ALTX. In terms of the JSE Listings Requirements a designated advisor has to be
retained by the entity. The designated advisor is required to, inter alia,
attend all board meetings held by the entity to ensure that all JSE Listings
Requirements and applicable regulations are complied with, approve the financial
director of the entity and guide the entity in a competent, professional and
impartial manner. If the entity fails to retain the designated advisor it must
make arrangements to appoint a new designated advisor within 10 business days,
failing which the entity faces suspension of trading of its securities. If a
designated advisor is not appointed within 30 days of its suspension the entity
faces the termination of its listing without an offer to minority participatory
interest holders.
Sandton
25 May 2006
Sponsor
Ernst & Young Sponsors (Pty) Ltd
(Registration number 2000/031843/07)
Date: 25/05/2006 03:38:17 PM Produced by the JSE SENS Department
