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Redefine - Acquisition By Redefine Of 90 Rivonia Road, Sandown

Release Date: 25/05/2004 17:00
Code(s): RDF
Wrap Text

Redefine - Acquisition By Redefine Of 90 Rivonia Road, Sandown Redefine Income Fund Limited (Registration No. 1999/018591/06) Share Code: RDF ISIN Code: ZAE000023503 ("Redefine") ACQUISITION BY REDEFINE OF 90 RIVONIA ROAD, SANDOWN 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 FHP Managers (Pty) Limited, a wholly-owned subsidiary of The Standard Bank of South Africa Limited ("SBSA") for the acquisition of the property letting business conducted in respect of 90 Rivonia Road, located in Sandown, Sandton (the "building"). 2 Rationale The building is well located in the heart of Sandton, the major commercial centre of Southern Africa. The entire building (measuring 14 270 square metres in total) is tenanted by the Alexander Forbes group ("the tenant") on a seven year "triple net" lease. In order for SBSA to secure the tenant, a major refurbishment of the building was required. The building has subsequently been modernised to current A-grade standards. The current rental payable by the tenant is below the average market rental for this location, and escalates by 11.5% per annum. 3 The acquisition In terms of the agreement, Outward will acquire the building with effect from the transfer date for a purchase price of R113 million, subject to the fulfilment of the conditions precedent set out below. The purchase price is payable in cash on the transfer date. The cash settlement of the purchase price is in line with Redefine"s stated strategy of reducing its holdings in listed securities, which are trading at a premium to fixed assets, and investing the proceeds directly into fixed assets. 4 Conditions precedent and related party transaction Given that SBSA currently owns 14,8% of the Redefine linked units currently in issue, the transaction is regarded by the JSE as a related party transaction. Accordingly, the acquisition is subject to the approval of linked unitholders in general meeting (excluding the votes of SBSA). An independent expert will be appointed to determine whether the terms of the transaction are fair and reasonable to Redefine unitholders. A copy of their report will be incorporated into the circular to be sent to unitholders. The acquisition is also subject to Competition Commission approval. 5. Financial effects of the acquisition As the effects of the acquisition on the historical earnings, headline earnings, net asset value and net tangible asset value per Redefine linked unit are immaterial they have not been disclosed. 6. Circular A circular will be posted to unitholders in due course. Rosebank 25 May 2004 Corporate and legal advisor Java Capital (Pty) Limited Sponsor Java Capital (Pty) Limited Date: 25/05/2004 05:00:04 PM Supplied by www.sharenet.co.za Produced by the JSE SENS Department

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