DIPULA INCOME FUND LTD - Acquisition of Absa call centre building, SAPS VIP Building and SAPS IJS Building and Cautionary Announcement

Acquisition of Absa call centre building, SAPS VIP Building and SAPS IJS Building and Cautionary Announcement

DIPULA INCOME FUND LIMITED
(formerly Dipula Property Fund (Pty) Ltd)
Registration number 2005/013963/06
JSE code for A-linked units: DIA ISIN for A-linked units: ZAE000158317
JSE code for B-linked units: DIB ISIN for B-linked units: ZAE000158325
(“Dipula” or the “company”)

ACQUISITIONS OF ABSA CALL CENTRE BUILDING, SAPS VIP BUILDING AND SAPS IJS BUILDING AND CAUTIONARY ANNOUNCEMENT

Introduction

Linked unitholders are advised that Dipula has concluded agreements for the acquisition of the
Absa Call Centre building, the SAPS VIP building and the SAPS IJS building (together “the acquisitions”).

The acquisitions comprise high quality, single tenanted office buildings with A-grade
government and corporate tenants which continue Dipula’s strategy of improving the quality and
average size of its portfolio on a yield enhancing basis.

Terms of the acquisitions and conditions precedent

The total purchase consideration payable by Dipula in respect of the acquisitions is
R431 000 000 with R229 860 000 attributable to the SAPS VIP Building, R118 540 000
attributable to the SAPS IJS building and R82 600 000 attributable to the Absa Call Centre
building. Payment of the purchase consideration for each of the acquisitions will be secured by
way of debt and/or equity funding.

The purchase consideration shall be paid against registration of transfer of the properties into the
name of Dipula.

The properties have been acquired from the following vendors:

- Absa Bank Limited, the Fern Trust and West Dunes Properties 142 (Proprietary) Limited in
  respect of the Absa Call Centre building;
- Autumn Star Trading 74 (Proprietary) Limited in respect of the SAPS IJS building; and
- Abland Manapa Construction VIP (Proprietary) Limited in respect of the SAPS VIP
  building.

The acquisitions are inter-conditional and subject to the following key suspensive conditions:

- completion of a due diligence;
- Dipula Board approval;
- Dipula securing finance by way of debt and/or equity funding; and
                                                                                                  2


- approval by the Competition Authorities.

The property portfolio

The property specific information required in terms of the JSE listings Requirements in relation
to the acquisitions is set out below.

Property name        Geographical         Sector             Rental       area Weighted
and address          location                                (m2)              average gross
                                                                               rental per m2

Absa Call Centre     Pretoria, Gauteng    Office             5 048               R121.50
building
27 Beatrix Road,
Arcadia, Pretoria

SAPS IJS             Pretoria, Guateng    Office             7 699               R116.40
building
463 Prieska
Street,
Erasmuskloof,
Pretoria

SAPS VIP             Pretoria, Gauteng    Office             21 478              R91.23
building
3 Troye Street,
Sunnyside,
Pretoria

Each of the rental enterprise businesses is being acquired with effect from the date of transfer of
the underlying properties into Dipula’s name and each is valued by the company at an amount
equivalent to the purchase price payable for that business.

Categorisation of the acquisitions

The acquisitions are classified as a Category 2 transaction in terms of the JSE Listings
Requirements. None of the acquisitions are subject to approval by Dipula’s linked unitholders.

Financial effects and cautionary

The financial effects of the acquisitions are still in the process of being finalised and will be
published in due course. Unitholders of Dipula are advised to exercise caution when dealing in
their linked units until the financial effects of the acquisitions are announced.

28 August 2012


Sponsor
Javacapital
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