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SYC - Sycom Property Fund - Announcement regarding the acquisition of a 15% shareholding in Paarl Mall Sycom Property Fund A Collective Investment Scheme in property registered in terms of the Collective Investment Schemes Control Act, No. 45 of 2002 and managed by Sycom Property Fund Managers Limited ("Sycom Property Fund Managers") (Registration number 1986/002756/06) JSE Share code: SYC & ISIN: ZAE000019303 ("Sycom" or "the Fund") ANNOUNCEMENT REGARDING THE ACQUISITION OF A 15% SHAREHOLDING IN PAARL MALL 1. Introduction Sycom unitholders are advised that ABSA Bank Limited, acting as trustee for the Fund, has entered into an agreement with Changing Tides 91 (Proprietary) Limited ("Changing Tides" or "the Seller") to acquire a further 15% shareholding in the properties on which the shopping centre known as the Paarl Mall ("the Property") is located from the Seller ("the Acquisition"). The Acquisition will be effective upon the date of transfer, such date not being earlier than 1 January 2012. The expected transfer date is 28 February 2012 ("the transfer date"). 2. Rationale for the Acquisition Sycom already owns 70% of the Property and the Acquisition will increase its shareholding in the Property to 85%. In terms of its strategy, Sycom continues to seek opportunities that will enhance shareholder value, including the acquisition of additional shares in co-owned assets as opportunities arise. 3. Consideration for the Acquisition The purchase consideration for the Acquisition is R91.5 million ("the Purchase Price"), payable in cash on the transfer date. 4. Conditions precedent The Acquisition is subject to: 4.1 Competition Authorities approval; and 4.2 obtaining of any other regulatory approvals, to the extent required. 5. Small related party transaction As Sycom is transacting with a company in which a director of Sycom Property Fund Managers has an interest, the Acquisition is considered a "small related party" transaction in terms of the JSE Limited ("JSE") Listings Requirements. Sycom has accordingly appointed an independent expert, KPMG Services (Proprietary) Limited ("KPMG"), to review the terms of the Acquisition. KPMG have reviewed the terms and conditions of the Acquisition and are of the opinion that these terms and conditions are fair and reasonable to Sycom unitholders. KPMG has expressed this opinion in writing and such opinion is available for inspection at the Fund`s registered office for a period of 28 days from the date of this announcement. 6. 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 these are not significant. 7. Forecast information on the Property The summarised forecast financial information relating to the Property for the 1 month ending 31 March 2012 and for the twelve months ending 31 March 2013, which is the responsibility of Sycom Property Fund Managers` directors, is set out below. The forecast financial information has not been reviewed and reported on by the Fund`s auditors.
Forecast Forecast 1 month ending 12 months 31 March 2012 ending R`000 31 March 2013
R`000 Gross rentals 4 540 56 374 Contracted revenue 4 263 48 736 Uncontracted revenue 277 7 638 Net rental income before 589 7 366 interest Net rental income after 59 1 327 interest and taxation Notes: 1. The forecast information for the 1 months ending 31 March 2012 has been calculated from the transfer date. 2. The assumptions for uncontracted revenue are that rentals on new leases and / or renewals will be at market related rates. 8. Specific information relating to the Property Details regarding the Property are set out below: Property Location Sector GLA Single or Weighted m2 multi average rental tenanted per m2 R
Paarl Mall, Cecile Retail 36 multi 126.21 Erven 2859, Road, 125Squa 12211 and Paarl red 9271, Paarl and Remainder 26219, Paarl Property Vacancy by Annualised Purchase price Value Rm{1) rentable area property yield Rm
m2 % Paarl Mall, 305(Squared) 8% 91 500 90 000 Erven 2859, 12211 and 9271, Paarl and Remainder 26219, Paarl Notes: 1. The value of 15% of the Property of R90m was arrived at by the independent external property valuer, HHMP Property Developers (Proprietary) Limited (trading as Quadrant), as at 1 January 2012. 2. Represents 100% of the Property area. 10 November 2011 Cape Town Investment bank and sponsor Nedbank Capital Vani Chetty Competition Law Advisor Date: 10/11/2011 15:35:58 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.
