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UPDATE REGARDING THE LIBERTY TOWERS ACQUISITION, THE SASOL KENT STREET ACQUISTION AND THE WITHDRAWAL OF CAUTIONARY
Vividend Income Fund Limited
Incorporated in the Republic of South Africa
(Registration Number 2010/003232/06)
JSE Alpha Code: VIF
ISIN: ZAE000150918
(“Vividend” or “the Company”)
UPDATE REGARDING THE LIBERTY TOWERS ACQUISITION, THE SASOL KENT STREET ACQUISTION AND THE WITHDRAWAL OF
CAUTIONARY ANNOUNCEMENT
A) LIBERTY TOWERS ACQUISITION
Vividend linked unitholders are referred to the SENS announcement dated 23 July 2012 in respect of the Company entering
into an agreement with Golden Pond Trading 350 (Proprietary) Limited to acquire the property and associated letting
enterprise commonly known as Liberty Towers (“the Liberty Towers Property”) situated at 214 Dr Pixley KeSeme (West)
Street Durban (“the Liberty Towers Acquisition”). Linked unitholders are hereby advised that the condition precedent
requiring a satisfactory conclusion to the due diligence investigation undertaken on the Liberty Towers Property has not been
fulfilled and accordingly the Liberty Towers Property will no longer be acquired by Vividend.
B) SASOL KENT STREET ACQUISITION
Vividend linked unitholders are referred to the SENS announcement dated 22 June 2012 in respect of the Company entering
into an agreement with the Sasol Pension Fund to acquire two Sasol Group tenanted properties and associated letting
enterprises (“the Sasol Kent Street Properties”) situated at 272 Kent Avenue Ferndale Randburg and 316 Kent Avenue
Ferndale Randburg (“the Sasol Kent Street Acquisition”). Linked unitholders are hereby advised that the condition precedent
requiring a satisfactory conclusion to the due diligence investigation undertaken on the Sasol Kent Street Properties has been
fulfilled and accordingly the Sasol Kent Street Properties will be acquired by Vividend using its existing debt financing facilities
to fund the aggregate purchase consideration
1. PROPERTY SPECIFIC INFORMATION
Revised details regarding the Sasol Kent Street Acquisition, as at the expected effective date, being 1 November 2012, are set
out below:
Property Final Purchase Average Lease Vacancy % Tenant Market Value
Name and Purchase Yield Escalation Duration by GLA
Address Consideration attributable
to Linked
Unitholders
316 Kent R129 000 000 11.11% 8% 3.5 years 0% Sasol Oil R129 200 000
Street,
Ferndale
Randburg
272 Kent R26 100 000 9.35% 9% 2.6 years 0% Sasol Gas R26 300 000
Street
Ferndale
Randburg
Total R155 100 000 10.81% 8.16% 3.35 years 0% R155 500 000
Notes:
a) The Purchase Yield attributable to linked unitholders assumes a 37% Loan to Value (LTV) gearing limit with an
annual interest cost of 8.3%, which is the current indicative cost available to the Company from its bankers.
b) National or corporate tenants with low levels of default risk (‘A Type’ Tenants) constitute 100% of the GLA and
100% of the Gross Rentals within the Sasol Kent Street Properties.
c) Save for costs associated with the transfer of the Sasol Kent Street Properties, which are estimated at
R300,000, no expenditure will be incurred by the Company in connection with the Sasol Kent Street
Acquisition.
d) The Market Value of the Sasol Kent Street Properties was arrived at by C van Heerden of Active Blue Valuation
Services cc as at 28 June 2012. C van Heerden is an independent valuer and is registered as a professional
valuer in terms of the Property Valuers Profession Act, No 47 of 2000.
2. PRO FORMA FINANCIAL EFFECTS OF THE SASOL KENT STREET ACQUISITION
The pro forma financial effects of the Sasol Kent Street Acquisition on net asset value and net tangible asset value per linked
unit are not significant and have therefore not been disclosed.
3. FORECAST INFORMATION ON THE SASOL KENT STREET ACQUISITION
The forecast financial information relating to the Sasol Kent Street Acquisition for the financial periods ended 31 August 2013
and 31 August 2014 is set out below. The forecast financial information has not been reviewed or reported on by a reporting
accountant in terms of section 8 of the Listings Requirements of the JSE Limited and is the responsibility of the Company’s
directors.
R000’s Forecast for the 10 month period Forecast for the 12 month period
ended 31 August 2013 ended 31 August 2014
Revenue 12 830 16 656
Operating Costs (274) (355)
Net Operating Income 12 556 16 301
Finance costs (3 969) (4 763)
Total Comprehensive Income
8 587 11 538
attributable to linked unitholders
Annualised purchase yield attributable
to linked unitholders, calculated with
10.55% 11.81%
reference to the applicable financial
year ended 31 August (%)
Notes:
1. Contractual Revenue includes Gross Rentals and other recoveries but excludes any adjustment applicable to the
straight lining of leases.
2. Operating Costs consist of administration charges relating directly to the properties that are not recovered from
the tenants in accordance with the prevailing lease agreements.
3. The forecast information for the 10 month period ended 31 August 2012 has been calculated from the anticipated
effective date of the Sasol Kent Street Acquisition, being 1 November 2012.
4. Contractual Revenue constitutes 100% of the Revenue for both the 10 month period ended 31 August 2013 and
for the 12 month period ended 31 August 2014.
5. 100% of Total Comprehensive Income attributable to linked unitholders is distributed to linked unit holders as
interest in accordance with the Debenture Trust Deed of the Company.
C) WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
Linked unitholders are referred to the cautionary announcement, dated 23 July 2012, and are advised that as a result of 1) the
relevant details of the Sasol Kent Street Acquisition being disclosed in this announcement 2) the Liberty Towers Property no
longer being acquired by Vividend, caution is no longer required by linked unitholders when dealing in the Company’s
securities.
22 August 2012
Cape Town
Sponsor
PSG Capital
Date: 22/08/2012 03:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
