Growthpoint - Disposal Of A Significant Portion Of Growthpoint"s Listed Property

Growthpoint - Disposal Of A Significant Portion Of Growthpoint"s Listed Property
Investment Portfolio                                                            
Growthpoint Properties Limited                                                  
(Incorporated in the Republic of South Africa)                                  
Registration number 1987 / 004988 / 06                                          
ISIN: ZAE000037669                                                              
Share code:  GRT                                                                
("Growthpoint")                                                                 
DISPOSAL OF A SIGNIFICANT PORTION OF GROWTHPOINT"S LISTED PROPERTY INVESTMENT   
PORTFOLIO                                                                       
1. INTRODUCTION                                                                 
Investec Bank Limited is authorised to announce that Growthpoint has disposed of
a significant portion ("the disposals") of its listed property investment       
portfolio ("the portfolio") since December 2004.                                
The disposals comprised Growthpoint"s entire holding of:                        
- Acucap Properties Limited                                                     
- ApexHi Properties Limited "A" units                                           
- ApexHi Properties Limited "B" units                                           
- Freestone Property Holdings Limited                                           
- iFour Properties Limited                                                      
- Martprop Property Fund                                                        
- SA Retail Properties Limited                                                  
- Sycom Property Fund                                                           
- Hyprop Investments Limited                                                    
2. TERMS OF THE DISPOSALS                                                       
2.1 Rationale                                                                   
Prevailing market conditions favour a conversion of listed property units into  
physical property, with yields on physical property generally exceeding those of
listed units.  The disposals give Growthpoint additional capacity to continue   
expanding its physical property portfolio with geographically and sectorally    
diversified physical property assets, underscoring Growthpoint"s objective of   
ensuring long term, sustainable, escalating income streams.                     
2.2 Details of the disposal                                                     
The disposals were effected piecemeal on the JSE Limited for an aggregate       
consideration ("the disposal proceeds") of R671 million.  The disposal proceeds 
will be utilised by Growthpoint to re-invest into physical properties and to    
settle existing debt.                                                           
The original cost of the units sold was R409 million. The amount received in    
excess of the cost of the portfolio represents a capital profit of R262 million 
and will not significantly affect Growthpoint"s distributions. The disposals    
will give rise to capital gains taxation of approximately R38 million.          
For and on behalf of the board                                                  
Growthpoint Properties Limited                                                  
Sandton                                                                         
August 2005                                                                     
Merchant bank                      Sponsor                                      
Investec Corporate Finance         Investec Bank                                
17 August 2005                                                                  
Date: 17/08/2005 04:45:06 PM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department