LODESTONE REIT LIMITED - Acquisition of a stake in Greenbay Properties Ltd

Acquisition of a stake in Greenbay Properties Ltd

LODESTONE REIT LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2010/017830/06)
(JSE share code: LDO)
(ISIN: ZAE000197935)
(Approved as a REIT by the JSE)
(“Lodestone” or “the company”)


ACQUISITION OF A STAKE IN GREENBAY PROPERTIES LTD


1.   Introduction

     Shareholders are referred to the announcements released by Greenbay Properties Ltd (“Greenbay”) on SENS on
     31 May 2016 and 1 June 2016 relating to an accelerated bookbuild undertaken by Greenbay (“bookbuild”). In terms of the
     bookbuild, Lodestone acquired 125 000 000 Greenbay shares for a total consideration of R150 000 000 (“the acquisition”).
     The Greenbay shares were registered in Lodestone’s name on 8 June 2016.

     The acquisition resulted in Lodestone directly owning a circa 3.8% stake in Greenbay post the issue of new Greenbay shares
     in terms of the bookbuild.

2.   Description of Greenbay

     Greenbay (formerly known as Green Flash Properties Ltd and changed its name to Greenbay Properties Ltd with effect from
     16 March 2016) is a Category One Global Business Licence Company registered in Mauritius. Greenbay has a primary
     listing on the Stock Exchange of Mauritius Ltd and a secondary listing on the Alternative Exchange of the Johannesburg
     Stock Exchange. Its objectives are investing in global real estate assets and listed companies, predominantly in the retail
     sector.

3.   Rationale

     Lodestone continues to seek investment opportunities which will create long-term value for its shareholders. The acquisition
     is in line with Lodestone’s strategy of diversifying into global markets that demonstrate favourable returns on a risk-
     weighted basis.

4.   Consideration for the acquisition

     Lodestone paid a cash consideration of R150 000 000, settled by way of bank funding, for the 125 000 000 Greenbay shares.

5.   Conditions precedent

     The acquisition is not subject to any conditions.

6.   Value and profits attributable to the net assets

     As announced on SENS on 12 May 2016, the value of the net assets of Greenbay as at 31 March 2016, the last reported date,
     was GBP1 200 961 and the net losses attributable to the net assets of Greenbay for the six months ended 31 March 2016
     were GBP(450 153).

7.   Categorisation

     The acquisition is a category 2 transaction in terms of the JSE Listings Requirements and accordingly does not require
     approval by shareholders.

9 June 2016


Designated advisor
Java Capital

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