SPEAR REIT LIMITED - Voluntary Announcement - Acquisition Of Tyger Manor Retail Centre

Voluntary Announcement - Acquisition Of Tyger Manor Retail Centre

Spear REIT Limited
(previously known as Arrow 2 Investments Proprietary Limited)
Incorporated in the Republic of South Africa
(Registration number: 2015/407237/06)
Share code: SEA
ISIN: ZAE000228995
Approved as a REIT by the JSE
(“Spear” or “the Company”)

VOLUNTARY ANNOUNCEMENT - ACQUISITION OF TYGER MANOR RETAIL CENTRE

1.   INTRODUCTION

     The board of directors of Spear is pleased to advise shareholders that
     the Company, through its wholly-owned subsidiary Spear Holdco
     Proprietary Limited (“Purchaser”), has entered into a sale of letting
     enterprise agreement with Accelerate Property Fund Limited (“Seller”)
     dated 21 July 2017 (“the Agreement”)to acquire the property situated
     on Erf 34109, Bellville, City of Cape Town, known as Tyger Manor
     Retail Centre (“the Property”) and the letting enterprise conducted
     by the Seller as a going concern (“Letting Enterprise”) in respect of
     the Property (“the Acquisition”).

2.   RATIONALE

     The Acquisition is in line with Spear’s strategy to increase its
     investments in the Tygervalley node and is at a yield of 9,31%, which
     is accretive to shareholders. The Property is in very close proximity
     to Spear’s existing properties in the area and will allow Spear to
     enhance value to the Property given Spear’s acute understanding of
     tenant demands in the area.

3.   PURCHASE CONSIDERATION

     In terms of the Agreement, the purchase price for the Property and
     the Letting Enterprise is R59 600 000 (inclusive of VAT at a rate of
     0%) and will be funded by debt facilities and /or a vendor
     consideration placing.

4.   CATEGORISATION

     The Acquisition is uncategorised in terms of the JSE Listings
     Requirements, and the information contained in this announcement has
     been voluntarily disclosed by the Company.

26 July 2017
Cape Town

PSG Capital Proprietary Limited
Transaction Adviser and Sponsor

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