STOR-AGE PROPERTY REIT LIMITED - Enhanced asset management, property management and licencing fee revenues from the transfer of pipeline properties

Enhanced asset management, property management and licencing fee revenues from the transfer of pipeline properties

Stor-Age Property REIT Limited
(Incorporated in the Republic of South Africa)
(Registration number 2015/168454/06)
(Share Code: SSS ISIN ZAE000208963)
(Approved as a REIT by the JSE)
(“Stor-Age” or “the Company”)


Enhanced asset management, property management and licencing fee revenues
from the transfer of properties within pipeline

The board of directors of Stor-Age is pleased to provide an update in respect of new self storage
properties being developed by Roeland Street Investments 2 Proprietary Limited (“RSI 2”) and
Roeland Street Investments 3 Proprietary Limited (“RSI 3”) (collectively “Devco”).

Devco owns a portfolio of eight properties in the early stages of lease up and has secured a pipeline
of further development opportunities. Stor-Age earns property management fees and asset
management fees from managing and operating properties owned by Devco. In addition, Stor-Age
will also earn licencing fees and development fees for new properties developed by Devco.

Devco has taken transfer of the following properties which are being developed as new self storage
facilities which will be operated and managed by Stor-Age on completion. The salient details are set
out below:

Owner                          RSI 2                      RSI 2                    RSI 3

Property:                      Stor-Age Sunninghill       Stor-Age Berea, Durban   Stor-Age Randburg

Date of transfer to RSI 2:     16 November 2015           15 December 2015         28 January 2016

Address:                       2 Kikuyu Road,             23 Calder Road, Berea    225 Bram Fischer
                               Sunninghill                                         Drive, Randburg

Projected development cost:    R85 million                R72 million              R81 million
                                      2                          2                       2
Gross building area:           12 400m                    11 000m                  9 800m

Anticipated completion date
and start of trade:            October 2016               December 2016            February 2017


Stor-Age will earn the following fees (excluding VAT) from the development of these three new
properties as follows:

    1. A development fee equivalent to 1.75% of the total development cost payable in instalments
       over the period of the development;
    2. A licence fee of R1 000 000 for each property payable on completion of the development;
    3. A monthly property management fee equal to 7% of the gross monthly income of each
       property, subject to a minimum fee of R25 000 per month and a maximum fee of R75 000
       per month; and
    4. On completion of development, an asset management fee of approximately 0.88% per
       annum of the market value of each property, payable in monthly instalments.

The new properties will be highly visible, modern and purpose built facilities that are situated in
prominent locations within close proximity to high density, middle-to-upper-income suburbs. The
properties have been designed to complement the existing built environment in which they trade and

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are expected to further increase awareness of the Stor-Age brand and enhance Stor-Age’s presence
in Johannesburg and Durban.

Stor-Age will also have a pre-emptive right to acquire these new properties together with the existing
eight properties owned by Devco.

Stor-Age Independent Non-executive Chairman Paul Theodosiou commented: “It’s pleasing to see
that Stor-Age has secured the rights over another three good development opportunities. All these
sites have strong property fundamentals, and will be well supported by the fund’s robust operations
platform. Following on from an 8% year-on-year increase in customer enquiries for the quarter ended
December 2015, Stor-Age is well positioned for sustainable growth in the portfolio.”


Cape Town
1 February 2016



Sponsor




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