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VKE - Vukile Property Fund Limited - Announcement regarding the acquisition of a property Vukile Property Fund Limited (Incorporated in the Republic of South Africa) (Registration number 2002/027194/06) JSE Share code: VKE ISIN: ZAE000056370 NSX Share code: VKN ("Vukile" or "the company") ANNOUNCEMENT REGARDING THE ACQUISITION OF A PROPERTY 1. Introduction Vukile linked unitholders are advised that the company has entered into an agreement with Sanlam Life Insurance Limited ("Sanlam Life") dated 8 April 2011 (the "Agreement"). In terms of the Agreement, Vukile will acquire the rental enterprise relating to Erven 60 and 64 Giyani-Ba township (the "Enterprise"), situated in Danie Theron Street, Giyani, Limpopo (the "Property") known as Giyani Plaza (the "Acquisition"). The Acquisition will become effective upon the fulfilment or waiver of the suspensive conditions set out in paragraph 5 below. 2. Rationale for the Acquisition This Acquisition forms part of Vukile`s strategy to invest in properties with strong contractual cash flows in selected rural areas. 3. The purchase price for the Enterprise The Enterprise will be acquired for a total purchase price of R68.25 million, to be settled in cash (the "Purchase Price"). The Purchase Price has been determined on the basis that the Property will be transferred on or before 31 July 2011. Should the Property be transferred after this date, the Purchase Price will increase by an amount equal to 0.67% compounded for every month by which transfer takes place after 31 July 2011. 4. Small related party transaction As Sanlam Life currently has direct control over the exercise of votes attaching to Vukile linked units representing approximately 42% of Vukile`s issued capital, the Acquisition is a "small related party" transaction in terms of the JSE Limited Listings Requirements. The company has therefore appointed an independent registered valuer, Quadrant Properties (Proprietary) Limited ("the Valuer"), to value the Property. Linked unitholders will be advised in due course of the value ascribed to the Property by the Valuer. Based on this value, the Vukile directors will state whether they believe that the terms and conditions of the Acquistion are fair to Vukile linked unitholders. 5. Suspensive conditions The Acquisition is subject to the following suspensive conditions: - Vukile is satisfied in its sole and absolute discretion with the results of a due diligence investigation to be conducted with regard to the Enterprise; - the obtaining of any regulatory approvals, to the extent required; and - the raising of financing facilities within 90 days of the date of the Agreement. 6. Specific information relating to the Property Property Erven 60 and 64 Giyani-Ba Location Danie Theron Street, Giyani, Limpopo Sector Retail Rentable area 9 442.72 m2 Single or multi tenanted Multi-tenanted Weighted average rental per m2 73.27 R Vacancy by rentable area 221.11 m2 Annualised property yield 10.64 7. Pro forma financial effects of the Acquisition The pro forma financial effects relating to the Acquisition on Vukile`s earnings per share, headline earnings per linked unit, net asset value per linked unit ("NAV") and net tangible asset value per linked unit ("NTAV") for the six month period ended 30 September 2010, being the period relating to Vukile`s most recent published results, have not been disclosed as they are not significant. Johannesburg 11 April 2011 JSE sponsor: One Capital NSX sponsor: IJG Securities (Proprietary) Limited Date: 11/04/2011 15:45:01 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.
