PUTPROP LIMITED - Acquisition of a Further 12.03% of Pilot Peridot

Acquisition of a Further 12.03% of Pilot Peridot

PUTPROP LIMITED
Incorporated in the Republic of South Africa
(Registration number 1988/001085/06)
Share code: PPR   ISIN: ZAE000072310
(“Putprop” or “the Company” or “the Group”)


ACQUISITION OF A FURTHER 12.03% OF PILOT PERIDOT


1. INTRODUCTION

   The board of directors of Putprop (“the Board”) is pleased to inform shareholders that the Company has
   concluded an agreement for the acquisition of a further 12.03% shareholding in Pilot Peridot
   Investments 1 Proprietary Limited (“Pilot Peridot”) from Frischgewaagd Projects Proprietary Limited for
   a total purchase consideration of R23 382 257.00 (“Purchase Consideration”), such that Putprop’s total
   shareholding in Pilot Peridot has increased to 73.24% (“the Acquisition”).

2. THE ACQUISITION

   2.1 Details of Pilot Peridot

       Pilot Peridot is a company incorporated in South Africa with interests in property developments. Its
       sole asset is a 50% undivided share in Summit Place, a mixed-use retail and commercial
       development in the Menlyn area of Pretoria, with a gross lettable area (“GLA”) of 31 120 square
       metres. Details of the property are as follows:

                                                                     GLA         Weighted average rental
       Building        Sector                   %        (square metres)          per square metre (ZAR)
       Building A      Commercial             100                  1 315                          205.31
       Building C      Commercial             100                  4 804                          219.13
       Building D      Retail                 100                  4 751                          150.04
       Building E      Commercial             100                 15 282                          192.85
       Building G1     Retail                 100                  4 968                          160.93

       The total weighted average rental per square metre is R188.00.

   2.2 Rationale for the Acquisition

       The Acquisition complies with the Group’s stated objective of strategic investments focussed on retail
       and commercial opportunities, where yields are enhancing in the medium and long term.

       The acquisition of the additional 12.03% in Pilot Peridot allows the Group to enhance and protect its
       existing investment and pursue its strategy of holding an 100% holding in Pilot Peridot.

   2.3 Purchase Consideration

       The Purchase Consideration which will be settled by means of internally generated cash will be paid
       in two tranches, as follows:

        -    The first tranche of 60% of the aggregated Purchase Consideration, amounting to
             R14 029 354.20, will be paid within 7 business days of the signature date of the agreement
             (“the First Payment Date”); and

        -    the second tranche, being the remaining balance of 40% of the aggregated Purchase
             Consideration, amounting to R9 352 902.80 is payable within 30 days of the signature date of
             the agreement (“the Second Payment Date”).

   2.4 Effective Date

       The effective date of the Acquisition is 24 March 2022.

   2.5 Conditions Precedent

       All conditions precedent in respect of the Acquisition have been fulfilled.

3. FINANCIAL INFORMATION

   The value of the net assets of Pilot Peridot as at 31 December 2021 was R61 527 101.

   The profit after tax attributable to the net assets of Pilot Peridot for the year ended 30 June 2021 was
   R26 896 802 and the profit before interest, fair value adjustments and tax attributable to the net assets of
   Pilot Peridot for the year ended 30 June 2021 was R24 327 152.

   The profit after tax attributable to the net assets of Pilot Peridot for the six months ended 31 December
   2021 was R13 256 249 and the profit before interest, fair value adjustments and tax attributable to the
   net assets of Pilot Peridot for the six months ended 31 December 2021 was R16 856 266.

   A valuation of Summit Place, the main asset of Pilot Peridot, was performed on 30 June 2021 by JLL
   South Africa, who are independent and registered as a professional valuer in terms of the Property
   Valuers Profession Act, 2000 (Act 47 of 2000). A valuation of R527 800 000 was recorded.

   A valuation of Summit Place was performed on 31 December 2021 by Putprop’s directors, who are not
   registered as professional valuers in terms of the Property Valuers Profession Act, 2000 (Act 47 of
   2000). The property was valued at an amount of R528 723 446.

4. CLASSIFICATION OF THE ACQUISITION

   The Acquisition is classified as a Category 2 transaction in terms of the Listings Requirements of the
   JSE Limited.


Johannesburg
25 March 2022

Sponsor
Merchantec Capital

Date: 25-03-2022 08:30:00
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