GROWTHPOINT DISPOSAL OF THE PROPERTY BUSINESS OF DRAGON

GROWTHPOINT PROPERTIES LIMITED
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
(REGISTRATION NUMBER 87/04988/06)
("GROWTHPOINT")

DISPOSAL OF THE PROPERTY BUSINESS OF DRAGON PROPERTIES SHARE BLOCK

(PROPRIETARY) LIMITED ("NEDBANK BUILDING NELSPRUIT")
1 INTRODUCTION

INVESTEC BANK LIMITED ("INVESTEC") IS AUTHORISED TO ANNOUNCE THAT GROWTHPOINT
WILL DISPOSE OF THE PROPERTY BUSINESS OF NEDBANK BUILDING NELSPRUIT TO CLIDET
69 (PROPRIETARY) LIMITED ("THE PURCHASER") REPRESENTED BY ERNEST H CORBETT, FOR
A CASH CONSIDERATION OF R44,0 MILLION ("THE DISPOSAL").

INVESTEC HAS A PUT OPTION AGAINST GROWTHPOINT ("THE PUT OPTION") IN RESPECT OF
NEDBANK BUILDING NELSPRUIT FOR A PERIOD OF TWO YEARS, UNTIL 7 JUNE 2001, SHOULD
THE PURCHASER DEFAULT ON THE PAYMENTS. SHOULD THE PUT OPTION BE EXERCISED IT
WILL BE AT A PRICE EQUAL TO THE OUTSTANDING BALANCE ON THE PURCHASER'S LOAN
ACCOUNT AT THE DATE ON WHICH THE PUT OPTION IS EXERCISED.
2. NATURE OF BUSINESS AND RATIONALE

NEDBANK BUILDING NELSPRUIT IS A SHARE BLOCK COMPANY WHICH LETS THE NEDBANK
BUILDING LOCATED ON ERF 2612 NELSPRUIT, MPUMALANGA. THE PROCEEDS OF THE
DISPOSAL WILL BE UTILISED TO REDUCE THE BORROWINGS WHICH WERE 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 NEDBANK BUILDING NELSPRUIT AT 31 MARCH 1999 WAS R29 332
769, TREATING INTEREST FREE SHAREHOLDERS' LOANS AS EQUITY AND THE EARNINGS
BEFORE TAX WERE R6 381 000 FOR THE YEAR ENDED 31 MARCH 1999.

ON THE ASSUMPTION THAT THE DISPOSAL HAD BEEN IMPLEMENTED ON 1 APRIL 1998, THE
NET ASSET VALUE PER GROWTHPOINT LINKED UNIT FOR THE YEAR ENDED 31 MARCH 1999
WOULD HAVE INCREASED BY 27,7% FROM 156,17 CENTS TO 199,43 CENTS AND THE
EARNINGS PER GROWTHPOINT UNIT WOULD HAVE INCREASED BY 13,7% FROM 14,16 CENTS TO
16,10 CENTS.
4. CONDITION PRECEDENT

THE DISPOSAL IS SUBJECT TO THE APPROVAL OF GROWTHPOINT UNITHOLDERS IN GENERAL
MEETING.
5. DOCUMENTATION

DETAILS OF THE DISPOSAL WILL BE INCLUDED IN A CIRCULAR TO GROWTHPOINT

UNITHOLDERS WHICH WILL, SUBJECT TO THE APPROVAL OF THE JOHANNESBURG STOCK
EXCHANGE, BE POSTED TO GROWTHPOINT UNITHOLDERS IN DUE COURSE.
JOHANNESBURG 13 OCTOBER 1999

MERCHANT BANK                      SPONSORING BROKER
INVESTEC                           INVESTEC
CORPORATE FINANCE                  SECURITIES

INVESTEC BANK LIMITED              INVESTEC SECURITIES LIMITED   (REGISTRATION
NUMBER 690476306)    MEMBER OF THE JOHANNESBURG STOCK EXCHANGE

                                   (REGISTRATION NO.720890506)