FAIRVEST PROPERTY HOLDINGS LIMITED - Update on acquisitions

Update on acquisitions

Fairvest Property Holdings Limited
Incorporated in the Republic of South Africa
(Registration number: 1998/005011/06)
Linked unit code: FVT   ISIN: ZAE000034658
(“Fairvest” or “the Company”)

UPDATE ON ACQUISITIONS

1.   UPDATE ON THE RICHMOND SHOPPING CENTRE ACQUISITION

1.1.   Linked unitholders of the Company are referred to the
       Company’s SENS announcement dated 15 May 2014 (“the Initial
       Announcement”), in which linked unitholders were advised
       that the Company had entered into an agreement (“Sale
       Agreement”) with Magnificent Four Properties Proprietary
       Limited (“Seller”) to acquire, as a going concern, the
       rental enterprise operated by the Seller, including the
       cession and delegation of the notarial lease (“Notarial
       Lease”) held by the Seller over the property commonly known
       as Richmond Shopping Centre, situated in Richmond, KwaZulu-
       Natal (“Richmond Property”) (“Richmond Shopping Centre
       Acquisition”).

1.2.   Linked unitholders are also referred to the Company’s SENS
       announcement dated 21 July 2014, in which they were advised
       that the Company had entered into an addendum for the
       extension of the fulfillment dates of the conditions
       precedent in the Sale Agreement.

1.3.   Linked unitholders are advised that the Company has entered
       into a further addendum to the Sale Agreement (“Addendum”),
       pursuant to which –

1.3.1.   the   purchase  consideration   has   increased  from  the
         previously agreed amount of R61 390 000, reflected in the
         Initial Announcement, to an amount of R61 538 000; and

1.3.2.   an additional condition is to be fulfilled prior to the
         implementation of the Richmond Shopping Centre
         Acquisition. The further condition precedent requires
         that the Seller concludes a written agreement with the
         landlord of the Notarial Lease, in terms of which (i) the
         monthly rental in respect of the Richmond Property,
         payable as at the signature date of the Addendum, will be
         no more than R20 000, excluding VAT, with no escalation
         for a period of five years and with escalations thereafter
         being no more than 8% per annum; and (ii) that the period
         of the rates holiday afforded to the Richmond Property
         will be extended by a further period of five years from 1
         December 2015.

1.4.   Linked unitholders are advised that the conditions precedent
       referred to in paragraphs 6.1 and 6.5 of the Initial
       Announcement have been fulfilled.

1.5.   Accordingly, the only remaining conditions precedent to be
       fulfilled, are those referred to in paragraphs 6.2, 6.3 and
       6.4 of the Initial Announcement, as well as the further
       condition precedent detailed in paragraph 1.3.2 above. The
       date for the fulfillment of these remaining conditions
       precedent has been extended to 22 October 2014.

2.   ACQUISITION NOT PROCEEDING

2.1.   Linked unitholders are referred to the Company’s SENS
       announcements on 26 June 2014 and on 3 September 2014
       regarding the conclusion of agreements for the acquisition
       by the Company, from Sporting Affair Investments 40
       Proprietary Limited, of the properties commonly known as
       Nondwengu Shopping Centre and Ezulwini Royal Shopping
       Centre, both situated in Ulundi, KwaZulu-Natal
       (collectively, “Ulundi Acquisition”).

2.2.   Linked unitholders are advised that the Company has
       withdrawn from the Ulundi Acquisition and that certain of
       the conditions precedent were not met, and that the Ulundi
       Acquisition will, accordingly, not be proceeding.

3 October 2014
Cape Town

Sponsor
PSG Capital

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