VKE - Vukile Property Fund Limited - Vukile to acquire R1.5 billion property

VKE - Vukile Property Fund Limited - Vukile to acquire R1.5 billion property    
portfolio from Sanlam                                                           
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")                                                     
VUKILE TO ACQUIRE R1.5 BILLION PROPERTY PORTFOLIO FROM SANLAM                   
Johannesburg, 14 November 2011 - Property loan stock company Vukile is to       
acquire a portfolio of 20 properties, worth nearly R1.5 billion, from Sanlam    
Life Insurance.                                                                 
The acquisition is expected to be effective in June next year, once a number of 
conditions precedent have been fulfilled, and will be funded through a          
combination of debt and the issue of new linked units.                          
Vukile chief executive Laurence Rapp says the acquisition is in line with       
Vukile`s new strategy of growing a quality portfolio of properties with strong  
contractual cash flows in order to achieve meaningful capital appreciation and  
sustainable growth in distributions.  "It will enhance the quality of our       
current property portfolio and will strengthen our presence in the Western      
Cape."                                                                          
Rapp says Vukile has been managing this portfolio on behalf of Sanlam for some  
time and, therefore, has an in-depth understanding of the properties being      
acquired, making this a low risk acquisition opportunity for the company.  "The 
buildings being acquired are well located with good quality specifications," he 
says.                                                                           
At the same time, the Public Investment Corporation (PIC) has reached an        
agreement with Sanlam, in terms of which it will acquire 70.2 million Vukile    
linked units from Sanlam.  Following the transaction between Sanlam and the PIC,
Sanlam`s holding in Vukile will decrease to 13.6%, of which 7.6% will be held by
Sanlam policy holder funds and, as such, constitutes an institutional holding.  
The PIC`s stake in Vukile will be around 20%.                                   
The introduction of the PIC as an investor is a positive development for Vukile 
as it will broaden its shareholder base and should lead to an increased JSE free
float.  "The PIC is one of the largest property investors in South Africa and   
the introduction of such an esteemed property investor is an affirmation of     
Vukile`s new strategy," says Rapp.                                              
The properties being acquired are: Bassonia Office Park, Bellville Barons,      
Bellville Santyger, Bellville Tijger Park 1, Bellville Tijger Park 2, Bellville 
Tijger Park 3, Bellville Tijger Park 4, Bellville Tijger Park 5, Bloemfontein   
Trador Cash & Carry, Durban Westville Surrey Park, Durban Workshop, Johannesburg
Empire Road Offices, Johannesburg Houghton, Pretoria Sanlynn, Midrand IBG,      
Pretoria Rosslyn Joshua Doore Warehouse, Pretoria Sancardia, Sandton Ascot      
Offices, Sandton Rivonia Tuscany and Sandton Sunninghill Park.                  
For further information contact Laurence Rapp, CEO Vukile Property Fund Limited,
on 083 266 3011                                                                 
Issued by du Plessis Associates on behalf of Vukile Property Fund Limited.      
dPA contact Helen McKane Tel : +27 11 728 4701,Fax: +27 11 728 2547, Mobile: 082
330 2034 or  e-mail: vukile@dpapr.com                                           
website: www.vukileprops.co.za                                                  
Merchant bank and transaction sponsor:                                          
RAND MERCHANT BANK (A division of FirstRand Bank Limited)                       
Date: 14/11/2011 07:31:16 Supplied by www.sharenet.co.za                     
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