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SYC - Sycom Property Fund - General issue of shares for cash

Release Date: 16/02/2012 14:16
Code(s): SYC
Wrap Text

SYC - Sycom Property Fund - General issue of shares for cash 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") GENERAL ISSUE OF SHARES FOR CASH 1. Introduction Sycom unitholders are advised that Sycom has issued a total of 32 422 638 units for cash, representing 14.998% of the issued unitholder capital of Sycom, in terms of a general authority to issue units as contained in the Deed of Trust governing Sycom, which is a Collective Investment Scheme in Property registered in terms of the Collective Investment Schemes Control Act, No 45 of 2002 ("the cash issue"). 2. Consideration and number of new Sycom units issued in terms of the cash issue In total, 32 422 638 units were issued at a price of R23.00 per unit. The units were issued at a discount of 54 cents (2.29%) to the 30 day volume weighted average price prior to 8 February 2012, being the date the board of directors of Sycom approved the cash issue. A total cash amount of R745.7 million has been raised in terms of the cash issue and the new Sycom units issued in terms of the cash issue rank pari passu with the existing units in issue. The new Sycom units were placed with public shareholders as defined in paragraphs 4.25 and 4.26 of the JSE Limited Listings Requirements. 3. Application of proceeds of the cash issue On 10 November 2011, Sycom announced the acquisition of the remaining 30% interest in Paarl Mall not already owned by the Fund, as well as the Kraft Foods building in the Harrowdene Office Park, for a combined consideration of R271 million, representing a purchase yield of 8%. These acquisitions are in line with Sycom`s strategy of growing its portfolio by increasing its share in co-owned assets. Growth is also achieved through the extension of properties which have additional development rights and where there is strong demand for space from both existing and new tenants. Such an opportunity has presented itself at Vaal Mall, where planning for a substantial extension is well advanced. Part of the capital raised in terms of the cash issue has been earmarked for this purpose. In addition, there are a number of co-owned assets in Sycom`s portfolio where the Fund is in discussions to increase its interest, with the intention of enhancing long-term distribution growth while maintaining its strategy of holding a small number of high quality South African office and retail property assets. It is the intention of Sycom to utilise the proceeds from the cash issue for this purpose. 4. Financial effects of the cash issue The unaudited pro forma financial effects of the cash issue on earnings per unit, headline earnings per unit, net asset value per unit and net tangible asset value per unit have not been disclosed as these are not significant. The financial effects are the responsibility of Sycom`s board of directors. Cape Town 16 February 2012 Investment bank and Sponsor Nedbank Capital Date: 16/02/2012 14:16:01 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.

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