ACCELERATE PROPERTY FUND LIMITED - The disposal by Accelerate of Ford Fourways Building

The disposal by Accelerate of Ford Fourways Building

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 FORD FOURWAYS BUILDING


1.   INTRODUCTION
     Shareholders and noteholders are advised that Accelerate (“Seller”) has entered into
     a sale of letting enterprise agreement (the “Agreement”) with Hatfield Property Holdings
     (Pty) Limited (“Purchaser”), to dispose of Erf 2043 Witkoppen Extension 91 (“Ford
     Fourways Building” or the “Property”) (the “Transaction”) on 31 January 2023.

2.   THE PROPERTY
     The Property, a motor retail building adjacent to The Buzz Shopping Centre, Witkoppen
     Road, Sandton, Fourways, Gauteng forms part of Accelerate’s retail portfolio and was
     acquired by Accelerate on or about 11 December 2013.

     As at 31 January 2023, the Property was valued at R 87,126,541.00 and is being sold for a
     maximum cash consideration of R80 000 000.00 (Eighty million Rand) at a yield of 8.9%.


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
     capital reinvestment into it’s core property portfolio.

4.   RATIONALE FOR THE TRANSACTION AND UPDATE ON BALANCE SHEET
     OPTIMISATION STRATEGY

     This decision was made as part of our ongoing efforts to review our assets and ensure that they
     align with our current business strategy and growth plans. The property in question was sold to
     its current tenant Hatfield Property Holdings (Pty) Limited.

     While this decision was not taken lightly, we believe that it is in the best interest of the Company
     and its shareholders.

     In light of the above, Accelerate has taken the decision to dispose of the property.

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 in March
       2023.

6.     CONDITIONS PRECEDENT
       The closing of the Transaction is subject to the following conditions precedent:

           •   The suspensive conditions will deem to be fulfilled once the Purchaser has
               obtained a loan on or before 3 March 2023 subject to any terms usually imposed
               by such banks or financial institutions.



7.     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 *
         Erf 2043
         Witkoppen
Ford     Extension                                                                               31
Fourways 91,Witkoppe           2,469    R245.5 R80 000
                                                             3,2 years              R87 126 541 March 2022
Building n Road,               m2       2      000
         Sandton,                       / m2
         Fourways,
         Gauteng




 8.    WARRANTIES
       The Seller has provided warranties and indemnities to the Purchaser that are standard for
       a transaction of this nature.


9.     CATEGORISATION OF THE TRANSACTION
       In terms of the Listings Requirements of the JSE Limited, the Transaction is classified as
       a Category 2 transaction for Accelerate and does not require shareholder approval.

Johannesburg

2 February 2023


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: 02-02-2023 02:35:00
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