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ARROWHEAD PROPERTIES LIMITED - Acquistion of Property Letting Enterprise and cautonary announcement

Release Date: 12/09/2012 12:55
Code(s): AWA AWB     PDF:  
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Acquistion of Property Letting Enterprise and cautonary announcement

ARROWHEAD PROPERTIES LIMITED
(formerly Nervada Trading 13 (Proprietary) Limited)
(Registration number 2011/000308/06)
JSE code: AWA ISIN: ZAE000158101
JSE code: AWB ISIN: ZAE000158119
(“Arrowhead”)

ACQUISITION OF PROPERTY LETTING ENTERPRISE AND CAUTIONARY ANNOUNCEMENT

INTRODUCTION
Linked unitholders are advised that Arrowhead has concluded an agreement for the acquisition of a property letting
enterprise together with its related immovable properties situated at the corner of Bram Fisher Drive and Bond Street,
Ferndale (the “immovable properties”) from Gold Edge II (Proprietary) Limited (the “vendor”) (“the acquisition”).
The immovable properties comprise mixed-use developments used for both retail and office purposes.
The acquisition provides Arrowhead with an opportunity to increase its property portfolio exposure whilst improving the
quality and average size of the portfolio.

TERMS OF THE ACQUISITION AND CONDITIONS PRECEDENT
The effective date of the acquisition will be the first day of the month in which the last of the immovable properties is
transferred to Arrowhead (the “effective date”).
The total purchase consideration payable by Arrowhead in respect of the acquisition is R109 600 000 which amount
includes VAT levied at a rate of 0% (the “purchase price”). The purchase price will be discharged on the effective date.
The purchase price will be discharged by the allotment and issue of 5 480 000 Arrowhead A linked units and 5 480 000
Arrowhead B linked units to the vendor or its nominee and cash of R54 800 000.
The acquisition remains conditional on:
- the shareholders of the vendor passing a special resolution approving the acquisition;
- approval by the Competition Authorities;
- the renewal of the lease of one of the lessees of the immovable properties, alternatively the conclusion of a new lease
   agreement between such lessee and the vendor;
- the vendor procuring the issue of a bank guarantee in favour of Arrowhead in respect of a rental guarantee given by
   the vendor in favour of Arrowhead; and
- no objections being received in respect of the town planning process being undertaken by the vendor in respect of the
   immovable properties.

THE PROPERTY PORTFOLIO
The property specific information required in terms of the JSE listings Requirements in relation to the acquisition
including property name and address, geographical location, rentable area, sector and weighted average rental per square
metre is set out below.

                                                                                                         Weighted Average
                                                           Geographical           Rentable Area                  rental per
Property name and address                  Sector          location                        (m2)                         m2
Bridge on Bond, Corner of Bram Fisher                      Randburg,
Drive and Bond Street, Ferndale            Commercial      Johannesburg                 11 240.72                     R 87.60


No independent valuation has been carried out and the board of Arrowhead is of the view that the purchase price of
R109 600 000 represents the value of the immovable properties as at the effective date.

CATEGORISATION OF THE ACQUISITION
The acquisition is classified as a Category 2 transaction in terms of the JSE Listings Requirements. Accordingly it is not
subject to approval by Arrowhead’s linked unitholders.

FINANCIAL EFFECTS AND CAUTIONARY
The financial effects of the acquisition are still in the process of being finalised and will be published in due course.
Unitholders of Arrowhead are advised to exercise caution when dealing in their linked units until the financial effects of
the transaction are announced.
12 September 2012


Sponsor

Java Capital

Date: 12/09/2012 12:55:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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