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EMI - Emira Property Fund - Acquisition of letting enterprises from RMB

Release Date: 19/12/2007 14:18
Code(s): EMI
Wrap Text

EMI - Emira Property Fund - Acquisition of letting enterprises from RMB properties (PTY) LTD EMIRA PROPERTY FUND A property fund created under the Emira Property Scheme, registered in terms of the Collective Investment Schemes Control Act ISIN: ZAE000050712 Share Code: EMI ("Emira" or "the Fund") ACQUISITION OF LETTING ENTERPRISES FROM RMB PROPERTIES (PTY) LTD 1 INTRODUCTION Participatory interest ("PI") holders are advised that Emira has entered into agreements with RMB Properties (Pty) Ltd in respect of the acquisition of two letting enterprises set out in paragraphs 2.2 and 2.3 below ("the Acquisitions"). The vendor of the letting enterprises is a related party in terms of the JSE Limited ("JSE") Listings Requirements, as it is a subsidiary of FirstRand Limited, which as at 30 June 2007 held 36.64% of Emira through Momentum Group Limited. Accordingly, in terms of the JSE Listing Requirements the Acquisitions are considered to be small related party transactions. 2 THE ACQUISITIONS 2.1 Rationale It is Emira`s strategy to increase the size and quality of its portfolio through the acquisition of properties at market-related prices that will enhance net income growth of the Fund over the medium to long term. The Fund`s directors believe that the Acquisitions will improve the quality of the portfolio and enhance the sustainable income attributable to PI holders. 2.2 Details of the letting enterprises In terms of the agreements signed on 8 October 2007 and 19 November 2007 respectively, Emira will acquire the following enterprises from RMB Properties (Pty) Ltd: ----------------------------------------------------------------------------- Property Legal Description Purchase Rentable Price (Rands) Area
(m2) ----------------------------------------------------------------------------- Menlyn Woods Remainder Erf 3 Faerie 29,897,094 2,045 Phase 4 Glen Township ----------------------------------------------------------------------------- TIS Corporate Park Erven 291 and 292, 90,100,000 15,183 Randjespark Ext 103 and Erf 298, Randjespark Ext
104 ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- Property Weighted Effective Vacancy Independent Average Date (% Rentable Valuation Rental per Area) (Rands) m2 (Rands)
----------------------------------------------------------------------------- Menlyn Woods 119.41 1 December 0% 31,288,000 Phase 4 2007 ----------------------------------------------------------------------------- TIS Corporate Park 39.57* Later of 57.25%* 90,817,000 transfer or practical completion.
Practical completion estimated to be 31 August
2008 ----------------------------------------------------------------------------- * 6,490m2 of the building has been let to TIS, with the balance covered under a gross rental warranty detailed further in paragraph 2.3 below. The weighted average rental per m2 above includes payment for the vacant space from the vendor under the rental warranty. 2.3 Description of the letting enterprises Menlyn Woods Phase 4 Address: 291 Sprite Avenue, Faerie Glen Description: Emira currently owns phases 1, 2 and 3 of the A-grade office park known as Menlyn Woods, which is occupied by blue-chip tenants. The enterprise to be acquired is a new A-grade
office development and will become the fourth phase of this office park. Tenants: Softline VIP (2,045m2) TIS Corporate Park Address: Corporate Park North, Midrand Description: 15,183m2 prime industrial park to be developed comprising two separate, but sub-divisible buildings. Tenants: Technology Integrated Systems (Pty) Ltd (TIS), a division of Aberdare Cables (Pty) Ltd (6,490m2) In terms of the purchase agreement, RMBP will provide an eighteen month gross rental warranty over the vacant space from the effective date. 2.4 The purchase consideration The total purchase consideration will be settled through cash payments on the effective dates above, totaling R119,997,094.00, to be funded through cash raised from disposals and bank debt. 2.5 Pro forma financial effects of the Acquisitions The pro forma financial effects of the Acquisitions on distributions per PI for the year ended 30 June 2008 are not significant (i.e. are less than 3%), and have therefore not been disclosed. 3. CONDITIONS PRECEDENT - The implementation of the Menlyn Woods Phase 4 acquisition is subject to RMB Properties (Pty) Ltd becoming the registered owner of the property. - The implementation of the TIS Corporate Park acquisition is not subject to any conditions precedent. 4. SMALL RELATED PARTY TRANSACTION As 36.64% of Emira`s PIs are held by Momentum Group Limited, which is an associated company of the vendor, the Listings Requirements of the JSE require that an independent expert carry out a valuation report of the letting enterprises. The reports of Steven Levinsohn of Benchmark Valuation Group will be available for inspection at Emira`s registered office for a period of 28 days from the date of this announcement. The independent valuations of both enterprises are shown in the table above. Sandton 19 December 2007 Merchant bank and sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 19/12/2007 14:18:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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