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RDF - Redefine Properties Limited - Breaking News - Why Redefine Unitholders should vote yes for Hyprop transaction REDEFINE PROPERTIES LIMITED (formerly Redefine Income Fund Limited) (Registration No. 1999/018591/06) Share Code: RDF ISIN Code: ZAE000143178 ("Redefine") BREAKING NEWS - WHY REDEFINE UNITHOLDERS SHOULD VOTE YES FOR HYPROP TRANSACTION The following information has been distributed by Redefine as part of its Breaking News updates: What we stand to gain if unitholders vote YES: Effects on Redefine`s distributions If Redefine receives approval from its unitholders to acquire the Hyprop units from Coronation, Redefine will earn R5,55 in respect of these units in the 2011 financial year. This includes a distribution of R1,80 for the period 1 January 2010 to 30 June 2010, and a distribution of R3,75 for the period 1 September 2010 to 31 August 2011. The cost of funding of the Hyprop units being acquired from Coronation at an interest rate of 8,8% is R4,40 per unit. Therefore, the net gain to Redefine is R22,6-million, which translates to 0,84 cents per Redefine unit in 2011. In 2012, the forecast distribution is R4,26 and once funding costs have been taken into account, distributions will be diluted by R2,8-million, which translates to a mere 0.001 cents per linked unit. These estimates are based on publicly available information (including guidance published by Hyprop and analysts reports) and Redefine`s assessment of current and anticipated market conditions. The actual amount of the distributions will depend upon Hyprop`s results during the period in question. Control premium Redefine is not likely to acquire more than between 45% - 46% of Hyprop. Redefine could command R54/share, and with a control premium, this could well be in the region of R56/share. If Redefine were to dispose of its holdings in Hyprop with the "control premium", this would lead to a profit on the ex- Coronation units of R118-million. The disposal of Redefine`s holdings in Hyprop with the "control premium" would value Redefine`s total holdings in Hyprop at R4,2 billion. Redefine would be disposing of the Hyprop holding at a yield of approximately 6.5% and the proceeds could be utilised to repay debt at 9% or to acquire higher yielding assets with potentially greater growth prospects. What we stand to lose if unitholders vote NO: If Redefine is compelled to sell the 19 686 558 Hyprop units acquired from Coronation, the Hyprop price will in all probability drop and this could mean a loss to Redefine. If Redefine does not acquire any further Hyprop and retains its holding at 33,3%, there would be no control premium. The preliminary costs of the transaction incurred by Redefine, including fees payable to the funding banks are R33,8-million. The fee would have to be written off and if the Hyprop units are not acquired there would be no assets against the fee which would significantly affect Redefine`s distributions. A brochure outlining the benefits of voting YES and the circular and proxy form may be downloaded from the Redefine website, www.redefine.co.za. 11 August 2010 Sponsor Java Capital Date: 11/08/2010 09:55:01 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.
