ASCENSION PROPERTIES LIMITED - Disposal of property letting enterprise

Disposal of property letting enterprise

ASCENSION PROPERTIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2006/026141/06)
JSE share code: AIA  ISIN: ZAE000204566
(Approved as a REIT by the JSE)
(“Ascension” or the “company”)


DISPOSAL OF PROPERTY LETTING ENTERPRISE

Introduction

Shareholders are advised that Ascension has concluded an agreement for the disposal of the property letting enterprise in respect
of the property known as Island Centre (the “property”) to Buffshelfco 43 Proprietary Limited (the “purchaser”) for an
aggregate consideration of R115 000 000 (exclusive of VAT at zero percent) (the “disposal”).

The property is no longer core to Ascension’s strategy and the disposal will enable Ascension to focus on its larger core buildings
with more sustainable growth. The disposal forms part of Ascension’s stated strategy to dispose of non-core assets, in the ordinary
course. The proceeds of the disposal will be used to reduce the existing debt of Ascension.

Terms of the disposal

The purchaser will acquire the property letting enterprise, which includes the property, with effect from the date of registration of
transfer of the property into the purchaser’s name (the “transfer date”). The sale consideration for the property letting enterprise
will be payable in cash on the transfer date.

The disposal remains conditional upon:
-      the purchaser obtaining debt finance for the sale consideration payable; and
-      the approval of the Competition Authorities.

The disposal includes warranties, undertakings and indemnities which are normal for a disposal of this nature.

Property specific information

The property specific information required in terms of the JSE Listings Requirements in relation to the property is set out below.

Property name and address                                         Island Centre, Cumberland Road, Paarden Eiland, Cape Town
Sector                                                            Industrial
Geographical location                                             Western Cape
Rentable Area (m2)                                                24 195m2
Weighted Average rental per m2                                    R38.6/m2
Value attributed to the property                                  R109 000 000
Net operating income (1 Sept 2015 to 31 Aug 2016)                 R9 488 109

The property was valued at as at 31 August 2016 by LDM Valuation Solutions (Pty) Ltd, a registered professional valuer in terms
of the Property Valuers Profession Act, No. 47 of 2000.

The value of the net assets being disposed of in terms of the disposal, being the value attributed to the properties, is R109 000 000,
which is the value reported in the financial records of Ascension.

Categorisation of the disposal

The disposal is classified as a Category 2 transaction in terms of the JSE Listings Requirements. It is not subject to approval by
Ascension shareholders.

26 January 2017


Sponsor
Java Capital

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