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OCT - Octodec Investments Limited - Announcement regarding the acquisition of a property OCTODEC INVESTMENTS LIMITED (Incorporated in the Republic of South Africa) (Registration number 1956/002868/06) ISIN: ZAE000005104 Share code: OCT ("Octodec" or "the Company") ANNOUNCEMENT REGARDING THE ACQUISITION OF A PROPERTY 1. Introduction Octodec linked unitholders are advised that Octodec, through its wholly-owned subsidiary Presmooi (Proprietary) Limited, has entered into an offer to purchase ("the Agreement") with The Tannery Industrial Park (Proprietary) Limited ("the Seller") to acquire Erf 1385, Silverton Extension 1 and Portion 224 of the Farm Hartebeestpoort no 328, registration division JR, Gauteng, together with the property leasing enterprise ("the Property"), from the Seller ("the Acquisition"). The Property is commonly known as The Tannery Industrial Park and is situated at 309 Derdepoortweg, Silverton, Pretoria. The Acquisition will be effective upon fulfilment of the condition precedent set out in paragraph 4 below, which is expected to be during July 2011. 2. Rationale for the Acquisition In alignment with Octodec`s strategy of actively pursuing redevelopment and investment opportunities that will enhance the overall quality and value of its portfolio, the Acquisition represents an attractive investment in a prime location, situated in a busy industrial area in Silverton, Pretoria. The Property caters for a variety of enterprises and proudly hosts more than 124 light industrial factories. The Acquisition is likely to continue to contribute to the long term growth of Octodec`s distributions. 3. Consideration for the Acquisition The total purchase consideration for the Acquisition is R153.75 million ("the Purchase Price"), which includes agent`s commission and other costs in the amount of R3.75 million. The Purchase Price will be settled in cash. 4. Condition precedent The Acquisition is subject to Competition Authorities approval, if required. 5. Unaudited pro forma financial effects of the Acquisition The unaudited pro forma financial effects of the Acquisition on net asset value and net tangible asset value per unit have not been disclosed as they are not significant. 6. Forecast information on the Property The summarised forecast financial information relating to the Property for the one month ending 31 August 2011 and for the twelve months ending 31 August 2012, which is the responsibility of the Company`s directors, is set out below. The forecast financial information has not been reviewed and reported on by Octodec`s auditors. Forecast Forecast 1 month ending 12 months ending
31 August 2011 31 August 2012 R`000 R`000 Gross rentals 1 658 20 279 Net rental income before 1 307 15 985 interest Net profit after interest 66 1 379 and taxation Earnings available for 66 1 379 distribution Notes and assumptions: 1. The forecast information for the 1 month ending 31 August 2011 has been calculated from the anticipated effective date of the Acquisition, being 1 August 2011. 2. The interest rate used to finance the Purchase Price is 9.5% per annum. 7. Specific information relating to the Property Details regarding the Property are set out below: Property Erf 1385, Silverton Extension 1 and Portion 224 of the Farm Hartebeestpoort no 328, registration
division JR, Gauteng Location 309 Derdepoortweg, Silverton, Pretoria Sector Industrial GLA m2 35 990 Single or multi tenanted Multi Weighted average rental (1) 47.00 per m2 R Annualised property yield (1) 10.40 % Total purchase price 153.75 Rm Value Rm (2) 153.75 Notes: 1. Based on the forecast net rental income for the 12 months ending 31 August 2012. 2. The value of the Property of R153.75 million was arrived at by a directors` valuation, as at 18 April 2011. 8. Categorisation The Acquisition is a Category 2 transaction in terms of the JSE Limited Listings Requirements. 4 May 2011 Pretoria Investment bank and sponsor Nedbank Capital Date: 04/05/2011 12:12:01 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.
