DELTA PROPERTY FUND LIMITED - Proposed disposal of Standard Bank Greyville

Proposed disposal of Standard Bank Greyville

DELTA PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2002/005129/06)
JSE share code: DLT
ISIN: ZAE000194049
(Approved as a REIT by the JSE)
("Delta" or the “Company”)

PROPOSED DISPOSAL OF STANDARD BANK GREYVILLE

1.     Introduction
       Delta shareholders are hereby advised that the Company (“Seller”) has entered into an agreement (“Agreement”) with Zeder
       Trading Proprietary Limited (“Purchaser”) to dispose of its property situated at 96 First Avenue, Greyville, Durban, together
       with all buildings and improvements thereon, as more commonly known as “Standard Bank Greyville” (the “Property”), for a
       cash consideration of R44.0 million (“Disposal Consideration”).

2.     Rationale and use of proceeds
       The Delta board of directors (“Board”) continues to confirm the strategy for the Company as being underpinned by the
       Sovereign, with a more refined approach to the definition of Sovereign. As part of the strategy, and the optimisation of the
       portfolio, it was agreed that the disposal of assets which were no longer strategic to the Company would be undertaken.
       Standard Bank Greyville is considered one such asset.

       The net proceeds (net of commission) will be utilised by the Company to reduce debt and the Loan to Value (LTV) by 0.2%
       from 58.2% to 58.0% and to reduce vacancy levels by 0.4% from 33.9% (31 August 2022) to 33.5%.

3.     Terms and conditions of the Disposal
       3.1 Purchaser
             The ultimate beneficial shareholder of the Purchaser is Salim Munshi. The Purchaser is not a ‘related party’ in terms
             of the JSE Limited Listings Requirements.

       3.2    Sale
              The Seller has agreed to sell, and the Purchaser has agreed to purchase the Property, with effect from, and
              inclusive, of the date on which the registration of transfer of the Property into the name of the Purchaser is
              affected, which date the Company anticipates will be approximately 28 February 2023.

       3.3    Disposal Consideration
              The Disposal Consideration payable for the Property by the Purchaser is R44.0 million exclusive of VAT.

       3.4    Conditions precedent
              The Agreement entered into does not have any conditions precedent.

       3.5    Representations and warranties
              The Agreement contains representations and warranties by the parties in favour of one another which are standard
              for transactions of this nature.

4.    Financial and property-related information in respect of the Property

                                                                  Standard Bank Greyville
      Location:                                                   96 First Avenue, Greyville, Durban
      Gross lettable area:                                        14 188m2
      Weighted average rental as at 31 August 2022:               R57.9/m2
      Net operating (loss)/income¹:                               (R0.3 million)
      Effective date of the Disposal:                             On or about 28 February 2023, being the anticipated transfer
                                                                  date of the Property into the name of the Purchaser
      Vacancy rate as at 31 August 2022:                          64.4%
      Value of the Property as at 31 August 20222:                R42 million
      Sector:                                                     Office


      Notes:
      1.     The net operating income in respect of the Property has been extracted from the Company’s results for the interim
             period ended 31 August 2022, which were prepared in terms of International Financial Reporting Standards.

      2.        The valuation was performed as at 31 August 2022 by Realworx who is independent from the Company and registered
                as a professional valuer in terms of the Property Valuers Profession Act, No. 47 of 2000.

      3.        The financial information in this announcement is the responsibility of the board and has not been reported on or
                reviewed by Delta’s auditors or a reporting accountant.

5.    Categorisation
      The Disposal of Standard Bank Greyville is classified as a Category 2 transaction in terms of the JSE Listings Requirements.
      Accordingly, it is not subject to shareholder approval.

Johannesburg
15 November 2022

Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited

Date: 15-11-2022 08:12:00
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