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Disposal by Redefine of a portfolio of property letting businesses to Prima

Release Date: 13/11/2003 07:00
Code(s): RDF
Wrap Text

Disposal by Redefine of a portfolio of property letting businesses to Prima Property Trust Redefine Income Fund Limited (Registration No. 1999/018591/06) Share Code: RDF ISIN Code: ZAE000023503 ("Redefine") Disposal by Redefine of a portfolio of property letting businesses to Prima Property Trust 1. Introduction Java Capital is authorised to announce that Redefine, through its wholly-owned subsidiary, Outward Investments (Pty) Limited ("Outward"), which owns a portfolio of commercial properties covering the retail, office and industrial sectors and a portfolio of listed securities focused exclusively on the real estate sector of the JSE Securities Exchange South Africa ("JSE"), has concluded an agreement ("the agreement") with Absa Bank Limited, in its capacity as the trustee of Prima Property Trust ("Prima") and Prima Property Trust Managers Limited ("PPTM"), Prima"s management company, for the disposal of 16 of Redefine"s smaller property letting businesses (the "businesses") with effect from 1 November 2003. 2. The disposal The price payable by Prima to Outward in respect of the disposal is R117 070 000, to be settled by the payment of R9 000 000 in cash on the transfer date and the balance by the issue of 120 077 778 Prima units at an issue price of 90 cents per unit. The disposal is conditional upon, inter alia, the approval of Prima unitholders and Redefine unitholders being obtained. 3. Rationale The disposal is in line with Redefine"s strategy of disposing of individual properties having a value of less than R12 000 000. Redefine expects the disposal to be earnings enhancing. Redefine currently holds 88 235 294 Prima units (amounting to approximately 53% of the total Prima units in issue). As a result of the disposal to Prima, Redefine will hold in aggregate 208 313 072 Prima units at an average cost of 88 cents per unit. The Redefine holding in Prima, post the disposal of the properties, will represent 51.3% of Prima"s total units in issue at a total cost to Redefine of R183 070 000. It is anticipated that Prima will in due course be rerated once the additional units have been issued and liquidity improves. In accordance with its investment policy, it is Redefine"s intention to reduce its exposure to Prima. Redefine will dispose of some of the Prima units in a responsible and measured manner as and when it deems it appropriate to do so. 4. Related party transaction The disposal is regarded by the JSE as a related party transaction, given that Corpcapital Limited (through one of its wholly-owned subsidiaries) is a material linked unitholder in Redefine and owns all of the equity in PPTM. An independent expert will therefore be appointed to assess whether the transaction is fair and reasonable to unitholders. Corpcapital will not be entitled to vote at the general meeting of Redefine linked unitholders in respect of the disposal to Prima. 5. Financial effects of the disposal The financial effects of the disposal on the historical earnings, headline earnings, net asset value and net tangible asset value per Redefine linked unit are not significant and financial effects have therefore not been included in this announcement. A circular will be distributed to linked unit holders in due course. Rosebank 12 November 2003 Corporate and legal advisor and sponsor Java Capital (Proprietary) Limited Reporting accountants and auditors Fisher Hoffman PKF (Jhb) Inc. Date: 13/11/2003 07:00:28 AM Supplied by www.sharenet.co.za Produced by the JSE SENS Department

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