PUTPROP LIMITED - Acquisition of a Further 15.51% of Pilot Peridot

Acquisition of a Further 15.51% 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”)


ACQUISITION OF A FURTHER 15.51% OF PILOT PERIDOT


1. INTRODUCTION

   The board of directors of Putprop (“the Board”) wishes to inform shareholders that the Company has
   concluded an agreement for the acquisition of a further 15.51% shareholding in Pilot Peridot 1 Proprietary
   Limited (“Pilot Peridot”) from JDC Property Investments Proprietary Limited for a total purchase
   consideration of R24 000 000 (“Purchase Consideration”), such that Putprop’s total shareholding in Pilot
   Peridot has increased to 53.461 (“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 30 657 square
       metres. Details of the property are as follows:

        Building:       Sector                     GLA       Weighted average
                                                   (square   rental per square
                                                   metres)   metre (ZAR)

        Building A      Commercial       100%      1 315     188.81
        Building C      Commercial       100%      4 990     235.61
        Building D      Retail           59%       4 405     105.03
                        Commercial       41%
        Building E1     Commercial       100%      7 203     178.04
        Building E2     Retail           100%      3 019     171.13
        Building E3     Commercial       100%      4 757     0
        Building G1     Retail           100%      4 968     141.83

       The total weighted average rental per square metre is R140.40.

   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.

       This additional purchase in Pilot Peridot allows the Group to enhance and protect its existing
       investment.

   2.3 Purchase Consideration

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

        -    The first tranche of R6 000 000 is payable no later than three business days after the
             Acquisition has been approved by the Board (“the First Payment Date”);

        -    the second tranche, being a minimum of R4 500 000, is payable within 30 days of the First
             Payment Date (“the Second Payment Date”);

        -    the third tranche, being a minimum of R4 500 000, is payable within 30 days of the Second
             Payment Date (“the Third Payment Date”); and

        -    the fourth tranche, being the balance of the Purchase Consideration, is payable within 30 days
             of the Third Payment Date.

   2.4 Effective Date

       The effective date of the Acquisition is 30 June 2017.

   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 28 February 2017 was R44 528 155.

   The loss after tax attributable to the net assets of Pilot Peridot for the year ended 28 February 2017 was
   R7 245 517 and the profit before interest and tax attributable to the net assets of Pilot Peridot for the
   year ended 28 February 2017 was R11 730 942.

   A valuation of the property of Pilot Peridot was performed 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 R480 000 000.

   A valuation of the property of Pilot Peridot is in the process of being completed by an independent and
   registered professional valuer in terms of the Property Valuers Profession Act, 2000 (Act 47 of 2000) and
   shareholders will be advised once this valuation has been finalised.

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
11 July 2017

Sponsor
Merchantec Capital

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