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GROWTHPOINT - DISPOSAL OF THE PROPERTY BUSINESS

Release Date: 30/10/1998 08:29
Code(s): GRT
Wrap Text
GROWTHPOINT PROPERTIES LIMITED
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
(REGISTRATION NUMBER 87/04988/06)
("GROWTHPOINT")

DISPOSAL OF THE PROPERTY BUSINESS OF ERF 3067 ELLISRAS SHARE BLOCK (PROPRIETARY) LIMITED ("OK CENTRE ELLISRAS") 1. INTRODUCTION
INVESTEC BANK LIMITED IS AUTHORISED TO ANNOUNCE THAT GROWTHPOINT WILL DISPOSE OF THE PROPERTY BUSINESS OF OK CENTRE ELLISRAS TO GEDEELTE 28 ERF 2631 ELLISRAS (PROPRIETARY) LIMITED REPRESENTED BY JOHANNES STANDER PISTORIUS, FOR A CASH CONSIDERATION OF R7,425 MILLION ("THE DISPOSAL"). 2. NATURE OF BUSINESS AND RATIONALE
OK CENTRE ELLISRAS IS A SHARE BLOCK COMPANY WHICH LETS THE OK SHOPPING CENTRE LOCATED IN ELLISRAS. THE PROCEEDS OF THE DISPOSAL WILL BE UTILISED TO REDUCE THE BORROWINGS WHICH WHERE RAISED FOR THE PURPOSE OF EFFECTING THE PARTIAL REDEMPTION OF DEBENTURES, AS SET OUT IN THE CIRCULAR TO GROWTHPOINT UNITHOLDERS DATED 8 APRIL 1997. 3. FINANCIAL EFFECTS OF THE DISPOSAL
THE NET ASSET VALUE OF OK CENTRE ELLISRAS AT 31 MARCH 1998 WAS R5 802 463 AFTER TREATING INTEREST FREE SHAREHOLDERS' LOANS AS EQUITY AND THE EARNINGS BEFORE TAX WERE R1 174 000 FOR THE YEAR ENDED 31 MARCH 1998.
ON THE ASSUMPTION THAT THE DISPOSAL HAD BEEN IMPLEMENTED ON 1 APRIL 1997, THE NET ASSET VALUE PER GROWTHPOINT LINKED UNIT FOR THE YEAR ENDED 31 MARCH 1998 WOULD HAVE INCREASED BY 2,9% FROM 160,3 CENTS TO 165,0 CENTS. THE DISPOSAL WILL NOT HAVE A MATERIAL EFFECT ON THE EARNINGS PER GROWTHPOINT LINKED UNIT. 4. DOCUMENTATION
DETAILS OF THE DISPOSAL INCLUDING A NOTICE OF GENERAL MEETING OF GROWTHPOINT UNITHOLDERS WILL BE INCLUDED IN A CIRCULAR WHICH WILL, SUBJECT TO THE APPROVAL OF THE JOHANNESBURG STOCK EXCHANGE, BE POSTED TO GROWTHPOINT UNITHOLDERS IN DUE COURSE. JOHANNESBURG 30 OCTOBER 1998 MERCHANT BANK INVESTEC BANK LIMITED (REG NO 62/04763/06) SPONSORING BROKER INVESTEC SECURITIES LIMITED MEMBER OF THE JOHANNESBURG STOCK EXCHANGE (REG NO 72/08905/06)

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