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Emira Property Fund - Acquisition Of Property, Trading Statement And Cautionary

Release Date: 11/02/2004 16:16
Code(s): EMI
Wrap Text

Emira Property Fund - Acquisition Of Property, Trading Statement And Cautionary Announcement Emira Property Fund A property fund created under the Emira Property Scheme, registered in terms of the Collective Investment Schemes Control Act Share code: EMI ISIN: ZAE000050712) ("Emira" or "the Fund") ACQUISITION OF PROPERTY, TRADING STATEMENT AND CAUTIONARY ANNOUNCEMENT 1. Introduction Rand Merchant Bank is authorised to announce that Emira has entered into an agreement with Momentum Property Investments (Proprietary) Limited ("MPI") in respect of the acquisition of the property described below (`the acquisition"). 2. Salient terms of the acquisition In terms of the acquisition, Emira has acquired Boundary Terraces in Newlands, Cape Town ("the acquired property") for a consideration of R56 100 000 payable in cash. The purchase consideration will incur interest at the ruling rate applicable to cash on call as quoted by Rand Merchant Bank from time to time from 8 December 2003 ("the effective date") to the date of payment of the consideration. Income earned from the acquired property is attributable to Emira from the effective date. All conditions precedent in respect of the acquisition have been fulfilled and the conveyancing attorneys have been instructed to proceed with registration of the acquired property. 3. Rationale for the acquisition Emira raised additional cash upon listing in order to finance properties identified subsequent to listing which would contribute to net income growth at yields which would enhance the performance of the Fund over the medium term. Emira"s investment committee has satisfied itself that the acquired property is a high quality commercial property, is yield enhancing and that its short-term vacancies rate has been adequately secured. Accordingly, it has been decided to proceed with the acquisition on the terms set out above. 4. Financial effects of the acquisition Although the acquisition is yield enhancing for Emira, pro forma financial effects have not been presented as the acquisition will not have a significant effect on Emira"s net asset value or net tangible asset value per participatory interest ("PI"), nor on its earnings or headline earnings per PI. 5. Related party transaction In terms of the Listings Requirements of the JSE Securities Exchange South Africa ("JSE"), the acquisition is regarded as a small related party transaction as the properties are being acquired from MPI, which holds 65.4% of the Emira PIs in issue. Accordingly, Emira has provided the JSE with written confirmation from an independent professional expert that the terms of the acquisition are fair and reasonable to holders of Emira PIs. The fair and reasonable opinion statement will lie for inspection at the registered office of Emira, 6 Protea Place, Sandton for a period of 28 days from the date of this announcement. 6. Trading statement and cautionary announcement PI holders are referred to Emira"s pre-listing statement dated 18 November 2003 and the pre-listing announcement dated 28 November 2003, which contained the following distribution forecasts for the one month period ending 31 December 2003: Distribution per PI (cents) Pre-listing statement 4,6 Pre-listing announcement 4,2 PI holders are advised that the actual distribution for the period ended 31 December 2003 is expected to be marginally higher than the forecast contained in the pre-listing statement and materially higher than the forecast contained in the pre-listing announcement. The financial information on which this trading statement is based has not been audited and accordingly PI holders are advised to exercise caution until such a time as the financial results for the period ended 31 December 2003 are released. Sandton 11 February 2004 Merchant bank and sponsor RAND MERCHANT BANK, A division of FirstRand Bank Limited, CORPORATE FINANCE Independent adviser KPMG Date: 11/02/2004 04:16:03 PM Supplied by www.sharenet.co.za Produced by the JSE SENS Department

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