FREEDOM PROPERTY FUND LTD - Further Cautionary Announcement And Debt Funding Facilities Secured By Freedom

Further Cautionary Announcement And Debt Funding Facilities Secured By Freedom

Freedom Property Fund Limited
(Incorporated in the Republic of South Africa)
(Registration No. 2012/129186/06)
Share code: FDP
ISIN: ZAE000185260
(“Freedom” or “the Company” or “the Group”)

FURTHER CAUTIONARY ANNOUNCEMENT AND DEBT FUNDING FACILITIES SECURED BY FREEDOM

1. FURTHER CAUTIONARY ANNOUNCEMENT

   Further to the cautionary announcement released on the Stock Exchange News Service of the JSE
   on 2 September 2014, Freedom’s shareholders are advised that the Company is still in
   negotiations, which if successfully concluded, may have a material effect on the price of the
   Company's securities.

   Accordingly, shareholders are advised to continue to exercise caution when dealing in the
   Company's securities until a further announcement is made.

2. DEBT FUNDING FACILITIES

   2.1. Steelpoort Industrial

         Steelpoort is a mining town in Limpopo Province’s platinum belt experiencing rapid
         development with a number of new mines being established. Steelpoort Industrial, which
         is effectively 100% owned by Freedom through Kadoma Investments (Pty) Ltd (“Kadoma”),
         is ideally placed to offer facilities to companies providing mining and related services - this
         is reflected in significant demand for industrial facilities in the area.

         In line with Freedom’s strategy to further develop Steelpoort Industrial, as set-out in
         Freedom’s pre-listing statement dated 5 June 2014, the Company is:
         • developing a further 7 industrial units to meet market demand, providing in excess of a
           further 8 050m2 gross lettable area (“GLA”). It is anticipated that the first of the new
           units will be completed and delivered by end October 2014, with the final units
           expected to be completed by end March 2015; and
         • upgrading and expanding existing facilities which it is anticipated will be completed by
           end November 2014.

         The new expansion at Steelpoort Industrial will provide a total GLA in excess of 27,000m2,
         excluding undeveloped stands which are let to certain tenants. Further industrial units will
         be developed as demand in the area dictates and new tenants are engaged.
          
         Further planned expansion includes initiating the Tweefontein Residential component of
         the zoned land owned by the Company in Steelpoort. Tweefontein Residential provides
         Freedom in excess of 4 000 residential development opportunities.

   2.2. New Funding Facilities

          The Company has concluded agreements with Nedbank Limited (“Nedbank”) to provide
          term funding facilities to Kadoma totalling R88 million (“New Facilities”), subject to agreed
          drawdowns and completion of units. The New Facilities will be applied to the Steelpoort
          Industrial expansion and further development within the Group, including Tweefontein
          Residential.

          The gearing within the Group, once the New Facilities are in place, will total R120 million
          (granted by Nedbank). The facilities are secured by first mortgage bonds over the
          developed Steelpoort Industrial properties and a surety provided by Freedom.



Johannesburg
15 October 2014

Sponsor                                                               Corporate Advisor
PSG Capital                                                           Base Capital

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