CAPITAL PROPERTY FUND - Letter to Capital unitholders

Letter to Capital unitholders

CAPITAL PROPERTY FUND
(“Capital” or “the Fund”)
Share code CPL ISIN ZAE000001731
(A portfolio in Capital Property Trust Scheme, a Collective Investment Scheme in Property established in
terms of the Collective Investment Schemes Control Act, No 45 of 2002)
Managed by Property Fund Managers Limited
(Registration No. 1980/009531/06)
(“PFM”)

16 November 2012

Dear Unitholder

Recently, when Capital offered to acquire the Clairwood Racecourse, a disgruntled competitor threatened “dire
consequences” and a “dirty tricks campaign” unless Capital withdrew its offer. This threat was immediately brought to
the attention of this board and Capital’s JSE sponsor, who updated the relevant authorities. Needless to say, Capital
persisted in its efforts to acquire this attractive asset, and was successful.

The involvement of Andrew Teixeira in a property acquired by Fortress Income Fund Limited before it listed in 2009
was recently commented on in a Sunday newspaper. The relevant facts to Capital, which did not appear in the press, are
summarised below.

In 2009, when Andrew was approached with an opportunity to invest in a C-grade office block for redevelopment
purposes, he disclosed this opportunity to this board. This was not an opportunity within Capital’s strategic focus, and
the board consented to Andrew’s involvement in the project. Andrew’s co-shareholders handled the redevelopment.
Andrew’s involvement as an investor was in no way incompatible with his duties as a Capital executive.


Yours sincerely
The board of directors
Property Fund Managers Limited




                                                Managed by Property Fund Managers Limited
                                                         Reg. no. 1980/009531/06

   4th Floor Rivonia Village, Rivonia Boulevard, Rivonia, 2191   PO Box 2555, Rivonia, 2128   Tel: +27(11) 612 6870   Fax: +27(11) 612 6899

                        Directors: Willy Ross (Chairman); Barry Stuhler*; Iraj Abedian; Rual Bornman*; Des de Beer*;
                   Andries de Lange*; Protas Phili; Andrew Teixeira*; Banus van der Walt; Tshiamo Vilakazi; Trurman Zuma
                                                            (*Executive director)
                                                        Company secretary: Inge Pick

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