PUTPROP LIMITED - Acquisition of a Further 7.75% of Pilot Peridot

Acquisition of a Further 7.75% 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 7.75% 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 7.75% shareholding in Pilot Peridot Investments 1
  Proprietary Limited (“Pilot Peridot”) from JDC Property Investments Proprietary Limited and Bokspits
  Investments Proprietary Limited for a total purchase consideration of R14 643 322.68
  (“Purchase Consideration”), such that Putprop’s total shareholding in Pilot Peridot has increased to
  61.21% (“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 30 500 square
       metres. Details of the property are as follows:

        Building:       Sector                     %                    GLA       Weighted average rental
                                                            (square metres)        per square metre (ZAR)
        Building A      Commercial               100                  1 315                        204.80
        Building C      Commercial               100                  4 804                        235.61
        Building D      Retail                    59                  4 350                        148.10
                        Commercial                41
        Building E1     Commercial               100                  7 203                        175.60
        Building E2     Retail                   100                  2 940                        171.80
        Building E3     Commercial               100                  3 604                          5.00
        Building E4     Commercial               100                  1 316                        224.40
        Building G1     Retail                   100                  4 968                        148.30

       The total weighted average rental per square metre is R161.60.

   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 three tranches, as follows:
        -    The first tranche of R5 000 000 is payable no earlier than 1 March 2018 and no later than
             31 March 2018 (“the First Payment Date”);

        -    the second tranche, being a minimum of R5 000 000, is payable within 30 days of the First
             Payment Date (“the Second Payment Date”);

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

   2.4 Effective Date

       The effective date of the Acquisition is 1 March 2018.

   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 30 June 2017 was R43 853 302.

   The loss after tax attributable to the net assets of Pilot Peridot for the year ended 28 February 2017 was
   R5 350 340 and the profit before interest, fair value adjustments and tax attributable to the net assets of
   Pilot Peridot for the year ended 28 February 2017 was R14 250 077.

   Pilot Peridot subsequently changed its financial year-end date to 30 June. The loss after tax attributable
   to the net assets of Pilot Peridot for the four months ended 30 June 2017 was R2 152 102 and the profit
   before interest, fair value adjustments and tax attributable to the net assets of Pilot Peridot for the four
   months ended 30 June 2017 was R8 328 474.

   A valuation of Summit Place, the main asset of Pilot Peridot, was performed on 30 June 2017 by Peter
   Parfitt of Quadrant Properties Proprietary Limited, who is independent and registered as a professional
   valuer in terms of the Property Valuers Profession Act, 2000 (Act 47 of 2000). A valuation of
   R479 413 128 was recorded.

   A valuation of Summit Place was performed on 31 December 2017 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 R485 000 000.

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
6 March 2018

Sponsor
Merchantec Capital

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