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The Disposal By Accelerate Of The Leaping Frog Shopping Centre
ACCELERATE PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2005/015057/06)
Share code: APF ISIN: ZAE000185815
Bond company code: APFE
(“Accelerate”, “APF” or the “Company”)
THE DISPOSAL BY ACCELERATE OF THE LEAPING FROG SHOPPING CENTRE
1. INTRODUCTION
Shareholders and noteholders are advised that Accelerate (“Seller”) has entered into
a sale of letting enterprise agreement (the “Agreement”) with Dorpstraat Capital
Growth Fund Proprietary Limited (“Purchaser”), to dispose of The Leaping Frog
Shopping Centre (“Leaping Frog” or the “Property”) (the “Transaction”) on 5 April
2022.
2. THE PROPERTY
The Leaping Frog, a convenience shopping centre located on the corner of William Nicol
Drive and Mulbarton Road, Beverley, Fourways, Gauteng forms part of Accelerate’s retail
portfolio and was acquired by Accelerate on or about 12 December 2013.
As at 30 September 2021, The Leaping Frog was valued at R 140 300 000.00 and is being
sold for a maximum cash consideration of R130 000 000.00 (One Hundred and thirty
million Rand) at a yield of 8.8%.
3. THE CONSIDERATION AND APPLICATION OF THE SALE PROCEEDS
It is the intention of Accelerate to apply the full proceeds to the reduction of debt and/or
reinvestment.
4. RATIONALE FOR THE TRANSACTION AND UPDATE ON BALANCE SHEET
OPTIMISATION STRATEGY
While the centre has performed adequately over the years it now requires a significant
re-development in order to maintain value and compete with new centres in the area. The
purchaser has significant expertise in the redevelopment of convenience and
neighborhood shopping centres.
Given Accelerate’s ongoing drive to strengthen it’s financial position, the decision was
taken to dispose of the asset, which will be redeveloped by the Purchaser within certain
agreed parameters. Accelerate retains at it’s sole discretion an option to repurchase 50%
of the Property post redevelopment.
In light of the above, Accelerate has taken the decision to dispose of the property at a
7,1% discount to current book value.
5. KEY TRANSACTION TERMS
The effective date for the Transaction will be the date on which the last of the conditions
precedent are fulfilled or waived, as the case may be, which is expected to be during May
2022.
7. CONDITIONS PRECEDENT
The closing of the Transaction is subject to the following conditions precedent:
• Due diligence period of 45 days post signature date;
• Guarantees to be issued within 3 business days after successful completion of the
due diligence exercise; and
• Other necessary consents and approvals customary for a transaction of this nature.
8. INFORMATION RELATING TO THE PROPERTY
The details of the Property including location, gross lettable area (“GLA”), net rent,
remaining lease term and independent valuation are as follows:
Net
Remaining Effective
Property GLA rent Disposal Last valuation
Location lease term date of the
/ Tenant (m2) per Price (ZAR) **
(WALE)(years) valuation
m2 *
Erven 937 and
938 Beverley
The Ext 67 and
30
Leaping Portion 351 of 11,027 R86,6 R130 000
2,2 years R140 300 000.00 September
Frog the farm m2 / m2 000
2021
Zevenfontein
407 JR,
Gauteng
* The weighted average net rent per m2 (also the profit attributable to the net assets of Leaping Frog), billed to
tenants as at the date of signature of the sale agreements.
** Directors valuation as at 30 September 2021 (which the Company is satisfied with) based on cash flows and
forward net income achieved by the Property at valuation date.
9. WARRANTIES
The Seller has provided warranties and indemnities to the Purchaser that are standard for
a transaction of this nature.
10. CATEGORISATION OF THE TRANSACTION
In terms of the Listings Requirements of the JSE Limited the Transaction is classified as
a Category 2 transaction for APF and does not require shareholder approval.
Johannesburg
07 April 2022
Equity Sponsor
The Standard Bank of South Africa Limited
Debt Sponsor
Rand Merchant Bank (a division of FirstRand Bank Limited)
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Certain statements in this announcement may be considered forward-looking. Although APF
believes that the expectations reflected in any such forward-looking statements relating to the
Transaction are reasonable. The information has not been reviewed or reported on by the
reporting accountants and auditors and no assurance can be given by APF that such
expectations will prove to be correct. APF does not undertake any obligation to publicly update
or revise any of the information given in this announcement that may be deemed to be forward-
looking.
Date: 07-04-2022 01:23:00
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