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REDEFINE INCOME FUND LIMITED - DISPOSAL OF PROPERTY LETTING BUSINESSES

Release Date: 04/06/2004 16:26
Code(s): RDF
Wrap Text

REDEFINE INCOME FUND LIMITED - DISPOSAL OF PROPERTY LETTING BUSINESSES REDEFINE INCOME FUND LIMITED (Registration No. 1999/018591/06) Share Code: RDF ISIN Code: ZAE000023503 ("Redefine") DISPOSAL OF PROPERTY LETTING BUSINESSES 1. Introduction Java Capital is authorised to announce that Redefine, through its wholly-owned subsidiary, Outward Investments (Pty) Limited ("Redefine"), 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 agreements for the disposal of the property letting businesses (the "properties") conducted in respect of the buildings known as Parking on Pepper, Rodene Studios, The Chambers and Bromgood Studios (collectively, the "disposals"). The effective date of the disposals will be the transfer date in question. 2. The disposals The terms of the disposals are set out below: 2.1. Redefine will dispose of the property known as Parking on Pepper to Combined Projects (Pty) Limited, for a purchase price of R15 million; and 2.2. Redefine will dispose of the properties known as Rodene Studios, The Chambers and Bromgood Studios to Xtraprops 66 (Pty) Limited, for an aggregate purchase price of R20 million. The purchase prices payable in respect of each of the disposals will be settled entirely in cash on the transfer date in question. The cash will be utilised to reduce debt and for future acquisitions. Rationale The disposals are in line with Redefine"s stated strategy of disposing of property letting businesses with values below its investment threshold. Related party transactions The disposals are regarded by the JSE as small related party transactions. Fisher Hoffman PKF (Jhb) Inc., who were appointed as independent expert to determine whether the terms of each of the disposals are fair and reasonable to Redefine unitholders, have concluded that the disposals are both fair and reasonable. A copy of their report will be available for inspection at the offices of Redefine, 2 Arnold Road, Rosebank until 2 July 2004. Financial information The aggregate current carrying value of the properties in the financial statements of Redefine is R30,77 million. The effects of the disposal on the historical earnings, headline earnings, net asset value and net tangible asset value per Redefine linked unit are immaterial. Rosebank 4 June 2004 Corporate and legal advisor Java Capital (Pty) Limited Sponsor Java Capital (Pty) Limited Independent expert Fisher Hoffman PKF (Jhb) Inc. Date: 04/06/2004 04:26:56 PM Supplied by www.sharenet.co.za Produced by the JSE SENS Department

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