ASCENSION PROPERTIES LIMITED - Proposed acquisition of 86 Main Street Johannesburg update on leasing activities and cautionary announcement

Proposed acquisition of 86 Main Street Johannesburg update on leasing activities and cautionary announcement

                      (formerly Grey Jade Trade and Invest 85 (Proprietary) Limited)
                     (Incorporated in the Republic of South Africa on 23 August 2006)
                                  (Registration number 2006/026141/06)
                          A-Linked Units: JSE code: AIA ISIN: ZAE000161881
                          B-Linked Units: JSE code: AIB ISIN: ZAE000161899
                                     (“Ascension” or “the Company”)

PROPOSED ACQUISITION OF 86 MAIN STREET, JOHANNESBURG, UPDATE ON LEASING ACTIVITIES AND CAUTIONARY ANNOUNCEMENT

INTRODUCTION

Ascension has concluded an agreement for the acquisition of a rental enterprise in respect of and including
the office building known as 86 Main Street, Johannesburg (“86 Main Street” or “the property”), for an
amount of R70 million (“the acquisition”). The vendor of the property is Bunker Hills Inv 530 (Proprietary)
Limited (“the vendor” or “Bunker Hills”).

RATIONALE FOR THE ACQUISITION

The acquisition is consistent with Ascension’s growth strategy and meets its investment criteria in terms of
its location and its tenant-, lease-, and net income profile.

DETAILS OF THE PROPERTY

86 Main Street (Erf 1121, Marshalltown in Gauteng) is a fully let B-grade office block with 8 056 square
metres of office space and 95 parking bays. The weighted average rental per square metre of 86 Main Street
is R71.0 per square metre. There are several leases in place. The major tenant is Johannesburg Water that
occupies 6 902 square metres which lease expires on 31 May 2020.

The board is satisfied that the value of the property is in line with the acquisition price being paid for it by
the Company. The directors of the Company are not independent and are not registered as professional
valuers or as professional associate valuers in terms of the Property Valuers Profession Act, No 47 of 2000.

TERMS OF THE ACQUISITION AND CONDITIONS PRECEDENT

The purchase price is payable against transfer of ownership of 86 Main Street into Ascension’s name on
which date the acquisition will become effective.

The purchase agreement provides for warranties and indemnities that are standard for acquisitions of this
nature.

CONDITIONS PRECEDENT

The acquisition is subject to the following key conditions:

      -     Ascension completing a due diligence investigation and advising the vendor in writing that it is
            satisfied with the outcome of that due diligence investigation;
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     -     Ascension obtaining a loan secured by a first mortgage bond over the property, on terms and
           conditions acceptable to Ascension;

     -     Ascension being satisfied that the vendor has lawfully assigned to the Company its rights and
           obligations under the lease agreements in respect of the property; and

     -     Approval from the Competition Authorities in terms of the Competition Act, 89 of 1998 to the
           extent it may be required;

which conditions are to be fulfilled or waived, as appropriate, by 20 December 2012.

FINANCIAL EFFECTS AND CAUTIONARY ANNOUNCEMENT

The financial effects of the acquisition on Ascension are in the process of being finalised and will be
published in due course.

Ascension linked unitholders are advised to exercise caution when dealing in the company’s linked units
until a further announcement is made.

CATEGORISATION OF THE ACQUISITION

The acquisition constitutes a category 2 transaction in terms of the JSE Listings Requirements and
accordingly does not require approval by linked unitholders.

UPDATE ON LEASING ACTIVITIES

Ascension is pleased to announce that it has concluded a five year lease with the Gauteng Provincial
Government for 11 500 square meters and 170 parking bays in its building known as the Bathopele building,
located at 91 Commissioner Street, Johannesburg, thereby significantly improving the lease expiry profile of
the building. The terms of the lease are in line with previous assumptions made in this regard and will
therefore not have a material effect on forecast distributions.

12 October 2012

Corporate advisor and sponsor
Java Capital

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