PUTPROP LIMITED - Acquisition of 51% Stake in Secunda Property Development and Withdrawal of Cautionary

Acquisition of 51% Stake in Secunda Property Development and Withdrawal of Cautionary

PUTPROP LIMITED
Incorporated in the Republic of South Africa
(Registration Number 1988/001085/06)
Share code: PPR ISIN: ZAE000072310
(“Putprop” or “the Company”)



ACQUISITION OF 51% STAKE IN SECUNDA PROPERTY DEVELOPMENT AND WITHDRAWAL OF
CAUTIONARY


1. INTRODUCTION AND RATIONALE

   The board of directors of Putprop (“the Board”) is pleased to inform shareholders that Putprop has
   entered into a subscription agreement dated 16 October 2014 (“the Agreement”) with Neo Trend Khala-
   Cose Proprietary Limited (“Neo Trend”) for the subscription of 510 shares of no par value at R510, which
   will result in a 51% stake in Neo Trend (“the Acquisition”). Neo Trend has been set up as a special
   purpose vehicle to hold and develop land situated in the township of Secunda, Registration Division I.S.,
   Mpumalanga Province. Neo Trend has entered into a development agreement for the purposes of
   developing the land into a retail site to be known as Secunda Value Centre.

   The Acquisition complies with the Company’s stated objective of strategic investments focussed on
   industrial and commercial opportunities, where yields are enhancing in the medium and long term as well
   as broadening of the current tenant base to reduce the risk of over dependence on a limited number of
   tenants.

2. THE ACQUISITION

   2.1 Details of Neo Trend
        Neo Trend is a special purpose vehicle which has been set up to own and develop land situated on
        Proposed Township Erf 3 Secunda extension 60, situated on Portion 1 of the Farm The Walker no
        817, Registration Division I.S., Mpumalanga Province (in extent 71 192 square metres). Neo Trend
        is in the process of acquiring the land and is awaiting transfer thereof. Neo Trend has entered into
        a development agreement with Neo Trend Property Developers Proprietary Limited (“the
        Developer”) to develop phase 1 of the Secunda Value Centre project, being Erf 8839 Extension 60
        Secunda (in extent of 32 722 square metres) which will have Builders Warehouse and Burger King
        as anchor tenants.

        Putprop will benefit from revenues generated from the rentals of the retail portions of Secunda
        Value Centre. It is estimated that the retail portion will comprise of a Gross lettable area of 7 776
        square metres. The weighted average rental per square metre has been estimated at R122.24.

   2.2 Purchase consideration
        The total purchase consideration of R17 043 218 (R17 042 708 on loan account and R510 for
        purchase of 510 shares), will be settled entirely in internally generated cash.

   2.3 Warranties
        The Sellers have provided warranties which are normal in a transaction of this nature.

   2.4 Effective date
        The effective date of the Acquisition is 16 October 2014.

   2.5 Conditions Precedent
        All conditions precedent, which the Acquisition is subject to, have been fulfilled..


3.   UNDERLYING FINANCIAL INFORMATION OF NEO TREND
     Due to the fact that the Secunda Value Centre project is still to commence and that Neo Trend has no
     other revenue generating assets, Neo Trend currently does not have any profits attributable to it.
     
     The value of Neo Trend’s sole asset (the land which the company owns and which is still subject to
     transfer) was valued at R3 078 850 on 29 August 2014.

4.   CLASSIFICATION OF THE ACQUISITION
     The Acquisition is classified as a Category 2 transaction in terms of the Listings Requirements of the
     JSE Limited.

5.   WITHDRAWAL OF CAUTIONARY
     Further to the cautionary announcement released on SENS on 15 September 2014, shareholders are
     advised that further to this announcement regarding the Acquisition, Shareholders no longer need to
     exercise caution when dealing in the Company’s securities.

Johannesburg
16 October 2014

Sponsor
Merchantec Capital

Date: 16/10/2014 03:30:00 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.