Growthpoint - Acquisition of the City Mall Shopping Centre in Klerksdorp

Growthpoint - Acquisition of the City Mall Shopping Centre in Klerksdorp        
GROWTHPOINT PROPERTIES LIMITED                                                  
(Incorporated in the Republic of South Africa)                                  
(Registration number 1987/004988/06)                                            
Share code: GRT & ISIN: ZAE000037669                                            
("Growthpoint" or "the company")                                                
ACQUISITION OF THE CITY MALL SHOPPING CENTRE IN KLERKSDORP                      
("CITY MALL")                                                                   
1. INTRODUCTION                                                                 
Investec Bank Limited is authorised to announce that Growthpoint has concluded  
an agreement with the Johannesburg Municipal Pension Fund and the City of       
Johannesburg Pension Fund, in terms of which Growthpoint will acquire City Mall 
for a total purchase consideration of R105 million ("the acquisition").         
The effective date of the acquisition will be the date of transfer of City Mall,
which is subject to Competition Commission approval. The anticipated date of    
transfer is expected to be before the end of December 2005 ("the transfer       
date").                                                                         
2. TERMS OF THE ACQUISITION                                                     
     2.1  Acquisition consideration                                             
Growthpoint will acquire City Mall for a total purchase consideration 
          of R105 million, which will be settled in cash as follows:            
          -    R2.5 million on date of signature; and                           
          -    R102.5 million on the date of transfer and registration of City  
Mall into the name of Growthpoint,  by utilising Growthpoint"s   

               existing debt facilities.                                        
     2.2  City Mall                                                             
          City Mall Shopping Centre is located in Klerksdorp, a regional        
commercial node in the Northwest Province which is supported by a     
          catchment area including Orkney, Stilfontein and Wolmaransstad. The   
          property is situated in the central business district of Klerksdorp   
          and serves as the premier shopping centre of Klerksdorp.              
The building, constructed in 1997, comprises a single level shopping  
          centre and a cinema complex. The centre has a gross lettable area of  
          18 197m2 with the following anchor tenants: Pick `n Pay (3 428m2);    
          Woolworths (3 374m2); Nu Metro (2 063m2) and Jet Stores (1 556m2).    
Other well known national retailers represented are Mr Price,         
          Foschini, New Clicks and Truworths. There are no vacancies with a     
          tenant mix of national tenants greater than 80%.                      
          The leases of the two largest anchor tenants, being Pick "n Pay and   
Woolworths, have leases expiring in 2017 and 2012 respectively. There 
          are also exciting opportunities to redevelop existing space to address
          the demand from national retailers to expand.                         
     2.3  Rationale for the acquisition                                         
Growthpoint management continues to seek acquisition opportunities    
          which will enhance the quality of the Growthpoint direct property     
          portfolio as well as the quality, long-term sustainability and growth 
          of the income stream available to Growthpoint linked unitholders.     
Growthpoint also seeks to offer its linked unit holders exposure to a 
          sectorally well-balanced, geographically diversified, quality direct  
          property portfolio and the directors are of the opinion that City Mall
          fits the above investment criteria whilst improving Growthpoint"s     
exposure to the buoyant retail property market in Klerksdorp.         
          The estimated initial annual forward yield of the acquisition is      
          10.35% from the transfer date.                                        
For and on behalf of the board                                                  
Growthpoint Properties Limited                                                  
Sandton                                                                         
3 October 2005                                                                  
Merchant bank                                                                   
Investec Corporate Finance                                                   
   Investec Bank Limited                                                        
  (Registration number 1969/004763/06)                                          
Sponsor                                                                         
Investec Bank Limited                                                        
  (Registration number 1969/004763/06)                                          
Date: 03/10/2005 03:14:09 PM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department