Sycom Property Fund - Announcement regarding the acquisition of a 60% undivided share in Woodlands Office Park

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 60% UNDIVIDED SHARE IN
WOODLANDS OFFICE PARK


1.    Introduction


     Sycom unitholders are advised that ABSA Bank Limited, acting as trustee for the Fund, has
     entered into an agreement with AECI Pension Fund to acquire the remaining 60% undivided
     share in the properties on which the office park known as the Woodlands Office Park (the
     Property) is located (the Acquisition).


     The Acquisition will be effective upon the date of transfer, which is expected to be on 1
     November 2012 (the Transfer date).

2.    Rationale for the Acquisition


     Sycom already owns 40% of the Property and the Acquisition will increase its shareholding in
     the Property to 100%. In terms of its strategy, Sycom continues to seek opportunities that will
     enhance Sycom unitholder value, including the acquisition of additional shares in co-owned
     assets as and when opportunities arise.

3.    Consideration for the Acquisition


     The purchase consideration for the Acquisition is R1 365 million (the Purchase Price), payable
     by the issue of vendor units and 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.    Unaudited pro forma financial effects of the Acquisition


     The unaudited pro forma financial effects of the Acquisition on net asset value per unit and net
     tangible asset value per unit have not been disclosed as these are not significant.

6.    Forecast information on the Property


     The summarised forecast financial information relating to the Property for the 5 months ending
     31 March 2013 and for the 12 months ending 31 March 2014, 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 Funds auditors.

                                                                                                                               2
                                                                                    Forecast                       Forecast
                                                                             5 months ending               12 months ending
                                                                               31 March 2013                  31 March 2014
                                                                                       R000                          R000


            Gross rentals                                                             49 622                        123 579
            Contracted revenue                                                        43 556                         98 606
            Uncontracted revenue                                                       6 066                         24 973
            Net rental income before interest                                         45 268                        110 203
            Net rental income after interest and taxation                             26 175                         64 381


           Notes:


           1. The forecast information for the 5 months ending 31 March 2013 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.





  7.       Specific information relating to the Property


           Details regarding the Property are set out below:


Property            Location    Sector        GLA       Single or     Weighted      Vacancy     Annualised      Purchase       Value
                                               m2           multi      average           by       property         price       Rm(1)
                                                         tenanted   rental per     rentable          yield            Rm
                                                                            m2         area              %
                                                                             R           m2
Woodlands           Woodmead    Office   114 396(2)          Multi      143.85      5 494(2)          7.9%         1 365     1 360.8
Office Park,           Drive,
Erven 1 and           Sandton
2, The
Woodlands
Township,
Registration
Division IR



           Notes:

           1. The value of 60% of the Property of R1 360.8m was arrived at by the independent external property valuer, HHMP
              Property Developers (Proprietary) Limited (trading as Quadrant), as at 1 November 2012.
           2. Represents 100% of the Property area.




  11 July 2012

  Cape Town

  Investment bank and sponsor
  Nedbank Capital

  Competition Law Advisor
  Vani Chetty

Date: 11/07/2012 09:10:00 Supplied by www.sharenet.co.za                     
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