Capital Property Fund - Acquisition Of A Portfolio From The Fedbond

Capital Property Fund - Acquisition Of A Portfolio From The Fedbond             
Participation Mortgage Bonds ("Fedbond") And Cautionary Announcement            
Capital Property Fund                                                           
("Capital")                                                                     
Share Code:  CPL                                                                
ISIN: ZAE000001731                                                              
(A portfolio in Capital Property Trust Scheme, a Collective Investment Scheme in
Property established in terms of the Collective Investment Schemes Control Act, 
No 45 of 2002 managed by Property Fund Managers Limited ("PFM"))                
(Incorporated in the Republic of South Africa)                                  
(Registration No. 1980/009531/06)                                               
ACQUISITION OF A PORTFOLIO FROM THE FEDBOND PARTICIPATION MORTGAGE BONDS        
("FEDBOND") AND CAUTIONARY ANNOUNCEMENT                                         
Java Capital is authorised to announce that an agreement has been concluded     
between Capital and Fedbond in terms of which, subject to the conditions        
precedent specified below, Capital will acquire a portfolio of property letting 
businesses as going concerns (the "acquisition properties") for an aggregate    
purchase consideration of R410 000 000 ("the transaction"). The portfolio       
consists of a large number of properties, in all sectors, situated across South 
Africa.                                                                         
The transaction is subject to the following conditions precedent:               
-    the completion by 7 June 2006 to the satisfaction of Capital of a due      
diligence exercise to verify the income and expenditure schedules relating to   
the acquisition properties;                                                     
-    the securing by 7 June 2006 of the necessary approvals from the trustee of 
Capital and the board of directors of PFM to the conclusion of the transaction; 
-    to the extent required by Capital, the execution of a formal agreement of  
sale containing all the normal terms, conditions and warranties associated with 
a transaction of this nature; and                                               
-    the securing to the extent necessary, the necessary regulatory approvals   
(including Competition Authority approvals).                                    
Unitholders are advised that the transaction may have a material effect on the  
price of Capital"s securities and accordingly should exercise caution when      
dealing in Capital"s securities until a further announcement is made.           
Johannesburg                                                                    
2 June 2006                                                                     
Corporate advisor and sponsor to Capital                                        
Java Capital (Proprietary) Limited                                              
Date: 02/06/2006 10:20:20 AM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department