Growthpoint Properties Limited to securitise R1,7 billion property portfolio

Growthpoint Properties Limited to securitise R1,7 billion property portfolio    
Growthpoint Properties Limited                                                  
(Incorporated in the Republic of South Africa)                                  
(Registration Number 1987/004988/06)                                            
Share code: GRT     ISIN: ZAE000037669                                          
("Growthpoint")                                                                 
MEDIA RELEASE FROM GROWTHPOINT PROPERTIES LIMITED                               
21 June 2006                                                                    
Growthpoint Properties Limited to securitise R1,7 billion property portfolio    
Growthpoint Properties Limited, South Africa"s largest JSE-listed property      
holding and investment company with property assets exceeding R13,5 billion,    
today announced that it would be accessing a further R969 million from the debt 
capital markets as part of its uniquely structured R5 billion commercial        
mortgage backed securitisation (CMBS) programme.                                
This exceeds the initial issue of R805 million in November 2005 and will be the 
largest commercial property securitisation issue placed in South Africa to date.
The issue is expected to be listed on the Bond Exchange of South Africa before  
the end of June 2006 and will comprise 5-year floating-rate notes linked to the 
3-month JIBAR (Johannesburg Inter Bank Agreed Rate). Growthpoint expects to     
raise funding at an all-in costs for the notes of between 8,5% to 8,75% having  
already secured interest rate fixes which will facilitate the swap out of       
floating rates for fixed funding.                                               
"We anticipate achieving substantial savings in the margin as a result of the   
securitisation structure, certainly compared to conventional bank funding," says
Norbert Sasse, CEO of Growthpoint Properties Limited.                           
Furthermore Sasse points out that the upfront and ongoing costs of this         
securitisation are reduced as Growthpoint is tapping into an existing structure 
put in place for the initial issue by the Investec Debt Capital Markets team,   
lead arranger and manager of Growthpoint"s securitisation.                      
"Securitisation has been an accepted alternative source of finance for some 25  
years in the international debt capital markets.  We are pleased to be able to  
provide these solutions to our South African clients such as Growthpoint" says  
Richard Wainwright, Head of Investec"s Treasury and Specialised Finance         
division.                                                                       
The issue is secured by 25 prime investment properties across South Africa      
valued at over      R1,7 billion, with a loan to value of approximately 60%. 21 
of the properties were purchased in Growthpoint"s most recent acquisition from  
Tresso with the remaining four also being recent acquisitions including City    
Mall Klerksdorp, the Auditor General"s building in Pretoria, Healthcare Park and
an office building acquired from International company Rectron, the leading     
computer components distributor in Southern Africa                              
Growthpoint"s securitisation special purpose vehicle (SPV) has a unique low-risk
structure with the securitised properties successfully ring-fenced into a trust,
the Growthpoint Securitisation Warehouse Trust, which was registered for the    
sole purpose of holding properties for its securitisation programme.            
"This second tranche of securitisation will further benefit Growthpoint"s linked
unitholders with increased distributions. Additional benefits include the       
lowered average cost of borrowings and the increased competitive advantage of   
Growthpoint to make value-enhancing acquisitions," explains Sasse.              
Growthpoint has stated that tapping into debt capital markets through           
securitisation is central to its future funding and Sasse anticipates a further 
R1 billion issue before the end of the year, underpinned by the bulk of the     
Metboard Properties Limited property portfolio.                                 
Metboard, with its prime industrial portfolio valued at approximately R2        
billion, is to be consolidated into Growthpoint with effect from 30 June 2006   
with all the conditions and approvals precedent for this transaction now        
fulfilled.                                                                      
"We were pleased with the success of our initial securitisation issue, which    
reflected both the quality of our properties and property management as well as 
the efficient manner in which the transaction was executed by the Investec Debt 
Capital Markets team, and expect Growthpoint"s second tranche of securitisation 
to be equally successful," concluded Sasse.                                     
Issued on behalf of:               Growthpoint Properties Limited               
Norbert Sasse: CEO                           

                                   Tel.      011 286 7306                       
                                   Cell      083 632 1599                       
                                   Investec Bank Limited                        
Nick Job: Head - Debt Capital Markets        

                                   Tel       011 286 9072                       
                                   Cell      082 450 6899                       
By:                                Marketing Concepts                           
Sandy Davey/Bronwen Noble                    

                                   Tel       011 880 2213                       
                                   Cell      083 453 6668  (Sandy)              
                                   Cell      082 855 4349 (Bronwen)             
Date: 21/06/2006 05:13:12 PM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department