Sharenet Sites 
Sharenet Sites
EMI - Emira Property Fund - Acquisition of letting enterprise from Hawley road developments (PTY) Limited EMIRA PROPERTY FUND (A property fund created under the Emira Property Scheme, registered in terms of the Collective Investment Schemes Control Act) Share code: EMI ISIN: ZAE000050712 ("Emira" or "the Fund") ACQUISITION OF LETTING ENTERPRISE FROM HAWLEY ROAD DEVELOPMENTS (PTY) LIMITED 1. INTRODUCTION In terms of a purchase agreement ("the Purchase Agreement") between Emira and Hawley Road Developments (Pty) Limited ("Hawley") (collectively "the Parties") on 24 April 2006, which was approved by Emira Participatory Interest ("PI") holders at a general meeting on 22 August 2006, Emira agreed to purchase the letting enterprise which Hawley operated from Erf 900, Karenpark Ext 9 ("the Property"). In terms of the Purchase Agreement the Parties agreed to exclude the Value Centre Land (defined in clause 1.2.47 of the Purchase Agreement) from the Purchase Agreement and that the Value Centre Land would be subdivided from the Property and transferred back to Hawley. PI holders are advised that Emira has entered into a further agreement ("the agreement") with Hawley not to implement the provisions relating to the Value Centre Land as contemplated in the Purchase Agreement and instead for Hawley to procure the development of a Builders Express Home and Garden Centre on the Value Centre Land ("the letting enterprise") and conclude a lease with Servistar (Pty) Limited ("the Lease"). As consideration for the aforesaid obligations of Hawley which will result in the acquisition by Emira of the letting enterprise ("the acquisition"), Emira shall pay Hawley an amount of R26 259 000 in cash. The details in respect of the acquisition are set out in paragraph 2.3 below. 2. THE ACQUISITION 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 acquisition will improve the quality of the portfolio and enhance the sustainable income attributable to PI holders. 2.2 Details of the letting enterprise In terms of the agreement, Emira will acquire the following enterprise from Hawley Road: Purchase Rentable Legal price area
Property description (Rands) (m2) Wonderpark Builders Express Erf 900, 26 259 000 3 948 Karenpark
Ext 9 Continued Weighted average Effective Vacancy Inde-
rental date (% pendent per m2 of the rentable valuation Property (Rands) acquisition area) (Rands) Wonderpark Builders 47,17 1 May 2008 - 26 259 000 Express 2.3 Description of the letting enterprise Wonderpark Builders Express Address: Corner R513 Brits Road and Heinrich Avenue, Karenpark, Pretoria Description: Retail area and garden centre constructed out of reinforced concrete frames and brick infill, on-grade open parking bays and undeveloped bulk rights of 1 662 m2 Tenant: Servistar (Pty) Limited t/a Builders Express 2.4 Pro forma financial effects of the acquisition The pro forma financial effects of the acquisition on distributions, net asset value and net tangible asset value per PI for the year ended 30 June 2008 are not significant (ie are less than 3%), and have therefore not been disclosed. 3. CONDITIONS PRECEDENT The implementation of the acquisition is not subject to any conditions precedent. 4. SMALL RELATED PARTY TRANSACTION As 34,4% of Emira`s PIs are held by Momentum Group, which is an associated company of the vendor, the acquisition is deemed a small related party transaction in terms of the JSE Limited ("JSE") Listings Requirements. Accordingly, a valuation report prepared by an independent valuer is required. The report of the independent valuer, Steven Levinsohn (who is registered as a professional associated valuer in terms of the Property Valuers Profession Act No. 47 of 2000) of Benchmark Valuation Group, effective 1 May 2008, is available for inspection at Emira`s registered office for a period of 28 days from the date of this announcement. The independent valuation of the letting enterprise is shown in the table above. Sandton 21 August 2008 Sponsor: Rand Merchant Bank (A division of FirstRand Bank Limited) Date: 22/08/2008 17:53:54 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.
