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INGENUITY PROPERTY INVESTMENTS LTD - Announcement regarding the Disposal of the Loerie Centre

Release Date: 27/02/2013 11:04
Code(s): ING     PDF:  
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Announcement regarding the Disposal of the Loerie Centre

INGENUITY PROPERTY INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2000/018084/06)
ISIN: ZAE 000127411 JSE share code: ING
(“Ingenuity” or “the Company”)



ANNOUNCEMENT REGARDING THE DISPOSAL OF THE LOERIE CENTRE


1.   Introduction

     Ingenuity shareholders are advised that the Company has entered into an agreement of sale
     (“the Agreement”) with K2012103571 (Proprietary) Limited, whose name is currently being
     changed to Interurban Property Fund Proprietary Limited (“Interurban” or "the Purchaser"), in
     terms of which Ingenuity will dispose of the rental enterprise, including the property situated at
     Erf 4769, George and known as the Loerie Centre (“the Property") (“the Disposal”).

     The Disposal will become effective on transfer which is expected to be on or about 31 May 2013
     (“the Transfer Date”).


2.   Rationale for the Disposal

     The Property was acquired in September 2010 and had been upgraded and fully tenanted. The
     offer received from the Purchaser was considered attractive and provided the Company the
     opportunity to realise value and allow it to reduce borrowings.


3.   Consideration for the Disposal

     The total consideration for the Disposal is R56.5 million (“the Disposal Consideration”), to be
     settled in cash on the Transfer Date.

     The proceeds on disposal will be utilised to reduce borrowings.


4.   Conditions precedent

     The Disposal is subject to fulfilment of the following conditions precedent:

     4.1     the Purchaser shall have the right to undertake a due diligence investigation; and

     4.2     the Purchaser is granted a mortgage securities loan of an amount of R33.9 million within
             21 days after acceptance of the due diligence letter of satisfaction.

5.   Property specific information

     Property                 Location          Sector         Gross    Single or      Weighted         Disposal     Value of the               
                                                            lettable       Multi-       average    Consideration         Property
                                                                area     tenanted         gross               Rm           Rm (1)                                                                           
                                                                                     rental per    
                                                                                             m2
                                                                                              R

                              Erf 4769
     Loerie Centre                              Retail         4 624        Multi        103.00             56.5             55.3
                                George


     1. The value of the Property is based on a directors’ valuation as set out in Ingenuity’s audited consolidated results for
       the year ended 31 August 2012.



6.   Unaudited pro forma financial effects ("Financial Effects") of the Disposal

     The Financial Effects of the Disposal on Ingenuity's earnings per share, headline earnings per
     share, net asset value per share and net tangible asset value per share have not been disclosed
     as these are not significant. The Financial Effects are the responsibility of Ingenuity's board.


7.   Categorisation of the Disposal

     The Disposal is categorised as a Category 2 transaction in terms of the JSE Limited Listings
     Requirements.




27 February 2013

Cape Town


Investment bank and Sponsor
Nedbank Capital

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