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ING - Ingenuity Property Investments Limited - Announcement regarding the acquisition of a sectional title scheme INGENUITY PROPERTY INVESTMENTS LIMITED (Incorporated in the Republic of South Africa) (Registration number 2000/018084/06) ISIN: ZAE 000127411 JSE share code: ING ("Ingenuity" or "the Company") ANNOUNCEMENT REGARDING THE ACQUISITION OF A SECTIONAL TITLE SCHEME 1. Introduction Ingenuity shareholders are advised that the Company has entered into sale agreements ("the Agreements") with Quickvest 361 (Proprietary) Limited, PDV Kantore (Proprietary) Limited, Spanish Ice Properties 45 (Proprietary) Limited and Antrimsuid (Proprietary) Limited (collectively "the Sellers"), in terms of which Ingenuity will purchase, subject to fulfilment of the suspensive condition set out in paragraph 4 below, the rental enterprise conducted in respect of the Property known as Units 1 to 6 inclusive of Sectional Title Scheme SS Edward 142, Scheme Number 704, located at Erf 38063, Bellville, situated at 142 Edward Street, Tyger Valley and its improvements and leases ("the Property") ("the Acquisition").
The effective date of the Acquisition is on transfer of the Property into Ingenuity`s name, which is to be on or as close as possible to 1 April 2011 ("the transfer date"). 2. Rationale for the Acquisition In line with Ingenuity`s investment strategy of growing the Company with quality assets, the Acquisition is earnings enhancing and represents an attractive investment. 3. Consideration for the Acquisition The total consideration for the Acquisition is R 31.9 million ("the purchase consideration"), to be settled in cash out of current cash resources and borrowing facilities on the transfer date. 4. Suspensive condition The Acquisition is subject to fulfilment of the following suspensive condition: mortgage finance approval by 28 February 2011. 5. Specific information relating to the Property Details regarding the Property are set out below: Property Location Sector Gross Single Weighte Annuali Total Value lettab or d sed purchas of
le multi- average propert e price Propert area tenante rental y yield of y Rm m2 d per m2R Propert (1) y Rm
Units Erf 38063 Office 2 592 Multi 111.57 10.5% 31.9 31.25 1 to 6 Bellville (inclu , sive), 142 Sectio Edward nal Street, Title Tyger Scheme Valley SS Edward 142, Scheme Number 704 1. The value of the Property of R 31.25 million was arrived at by an independent registered valuer, Mills Fitchet Magnus Penny (Pty) Ltd, as at 1 April 2011. 6. Unaudited pro forma financial effects ("Financial Effects") of the Acquisition Based on Ingenuity`s abridged audited consolidated results for the year ended 31 August 2010 ("Annual Results"), the Financial Effects of the Acquisition on Ingenuity`s earnings per share ("EPS"), headline earnings per share ("HEPS"), net asset value per share ("NAV") and net tangible asset value ("NTAV") are set out below. The Financial Effects are prepared for illustrative purposes only, and because of its nature, may not give a fair presentation of Ingenuity`s financial position or the effect and impact of the Acquisition. The Financial Effects are the responsibility of Ingenuity`s board. Before the After the Change Acquisition(1 Acquisition %
) EPS(2) (4) (5) 3.9 4.2 6 (cents) HEPS(2) (5) (cents) 1.0 1.3 24 NAV(3) (cents) 61 61 0 NTAV(3) (cents) 61 61 0 Share in issue net 606 385 618 606 385 618 of treasury shares Weighted average 615 705 614 615 705 614 number of shares in issue net of treasury shares Notes: 1. Based on Ingenuity`s Annual Results. 2. In calculating the Financial Effects on EPS and HEPS, it was assumed that the Acquisition was implemented on 1 September 2009 for income statement purposes. 3. In calculating the Financial Effects on NAV and NTAV, it was assumed that the Acquisition was implemented on 31 August 2010 for statement of financial position purposes. 4. In calculating EPS, the projected property income of R 3.9 million for the year ended 31 March 2012 was taken into account. 5. An average borrowing cost on the purchase consideration at a rate of 7.85% was utilised. 7. Categorisation The Acquisition is a Category 2 transaction in terms of the JSE Limited Listings Requirements. 8 February 2011 Cape Town Investment bank and sponsor Nedbank Capital Date: 08/02/2011 15:39:01 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.
