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ACP
ACP
Acucap - Acquisition of a 58% interest in Hillcrest Corner
ACUCAP PROPERTIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2001/021725/06)
Share code: ACP & ISIN: ZAE000037651
("Acucap" or "the company")
ANNOUNCEMENT REGARDING THE ACQUISITION OF A 58% INTEREST IN HILLCREST
CORNER, HILLCREST ("HILLCREST CORNER")
1. Introduction
Linked unitholders are advised that Acucap has entered into various
agreements for the acquisition of a 58% interest in a new R260
million, + 19 200m2 community shopping centre to be known as Hillcrest
Corner, Hillcrest, Kwa-Zulu Natal ("the acquisition"). The centre is
currently under construction and is expected to commence trading at
the end of March 2007.
2. Details of and consideration for the acquisition
Hillcrest Corner comprises two properties and Acucap"s interest in
these properties is as follows:
2.1 a joint venture with Shoprite Checkers (Proprietary) Limited for
the purchase of a 50% interest in the development of the larger
property, which includes + 16 000m2 of Hillcrest Corner. The
consideration for 50% of the land amounts to R10.75 million in
cash and approximately R100 million will be spent, out of
existing facilities, on Acucap"s 50% share of the building works;
and
2.2 the purchase of the completed remaining + 3 200m2 of Hillcrest
Corner from Black Ginger 11 (Proprietary) Limited for
approximately R43 million in cash.
Hillcrest Corner is situated in the heart of Hillcrest and the shopping
centre will be anchored by Checkers and Woolworths, and will also include
Truworths, Ackermans and Nedbank. Negotiations with other national tenants
are well advanced, with national tenants expected to account for 70% of
income.
3. Rationale for the acquisition
Since its listing, Acucap has sought an appropriate entry into the Kwa
Zulu Natal commercial property market. Hillcrest Corner will be a
sizeable quality product, operating in a growth node with
predominantly medium to long term lease profiles and is consequently
expected to fit well into the Acucap portfolio.
4. Valuation
The acquisition is based on a 9% initial yield and the agreements
provide for rental underpins for the first year of operation. The
purchase yield is within market norms for acquisitions of this nature
as determined by an independent registered valuer, Quadrant Property
Group.
5. Financial information relating to the acquisition
Since the acquisition has been categorised as less than a Category 3
transaction in terms of the JSE Limited Listings Requirements, this
announcement is made for information purposes only and its financial
effects are not material.
Cape Town
30 August 2006
Investment bank and sponsor
Nedbank Capital
Date: 30/08/2006 12:51:03 PM Produced by the JSE SENS Department
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