Proposed property acquisition ANNUITY PROPERTIES LIMITED (formerly Niqsha Beleggings CC) (Incorporated in the Republic of South Africa) (Registration Number 2011/145994/06) Share code: ANP ISIN: ZAE000165643 (“Annuity”) PROPOSED PROPERTY ACQUISITION A. AVENG PROPERTY ACQUISITION Annuity is pleased to advise holders of Annuity linked units (“Linked unit holders”) that it has agreed terms with Salestalk 406 Proprietary Limited (the “Vendor”) to acquire a prime industrial warehouse and office building located within the well established light industrial node of Stormill, Johannesburg, and is exclusively tenanted by Aveng (Africa) Limited (“Aveng”), a subsidiary of Aveng Limited, (the “Aveng Property”) together with all leases and assets forming necessary parts of the letting enterprise (the “Aveng Letting Enterprise”) as a going concern (the “Acquisition”). The Aveng Property’s proximity to Johannesburg CBD, Roodepoort CBD, major arterial roads and the N1 highway place it in an extremely desirable industrial location. The cash flows from the Aveng Letting Enterprise are underpinned by a high quality blue chip tenant on a 10 year triple net lease, which escalates at a rate of 8.5%. Aveng has approximately 5 years and 6 months remaining on such lease, which terminates on 30 November 2018. This Acquisition is consistent with Annuity’s strategy to build a quality property portfolio that offers long-term distribution and capital growth underpinned by strong underlying contractual cash flows and also presents an opportunity for Annuity to increase its portfolio weighting within the industrial sector. The effective date of the Acquisition shall be the date of transfer of the Aveng Property into the name of Annuity, which is expected to take place by 1 July 2013. B. INFORMATION RELATING TO THE AVENG PROPERTY The property specific information in relation to the Aveng Property is set out in the table below: Description of the property: Erf 351 Stormill Extension 5 Township Location: 1156 Leader Avenue, Stormill, Johannesburg Single or multi-tenanted: Single tenanted Length of lease: 10 years (approximately 5 years and 6 months is remaining on the lease) Weighted average lease expiry: 5.5 years Weighted average escalation: 8.50% Forward yield*: 9.75% GLA (m2): Office component: 2,740m2 Industrial component: 3,225m2 Total GLA: 5,965 m2 Weighted average net rental per square metre (R/m2): Office component: R109.48/m2 Industrial component: R52.66/m2 Total GLA: R78.76/m2 *The forward yield is based on the Aveng Letting Enterprise’s net property income for 12 months to 31 May 2014. C. PURCHASE CONSIDERATION AND INDEPENDENT VALUATION The purchase consideration for the Aveng Letting Enterprise amounts to R63,660,024 and is payable through cash or issuance of Annuity linked units or a combination thereof. Accordingly, Annuity will fund the purchase consideration utilising a combination of debt and/or the issue of new Annuity linked units. An independent valuation as at 1 June 2013 was carried out by Jones Lang LaSalle, a registered professional valuer in terms of the Property Valuers Profession Act, No. 47 of 2000, the outcome of which is slightly (2.3%) lower than the aforementioned purchase consideration for the Aveng Letting Enterprise. D. CATEGORISATION OF THE ACQUISITION AND UNAUDITED PRO FORMA FINANCIAL EFFECTS The Acquisition constitutes a category 2 transaction in terms of the Listings Requirements of the JSE and accordingly does not require approval by Annuity linked unit holders. The Acquisition offers the opportunity to acquire a high quality value enhancing industrial property, with a blue chip tenant, strong lease covenants and above market escalations, at an attractive yield, which is expected to further enhance the earnings and growth prospects of Annuity. Linked unit holders are hereby advised the unaudited pro forma financial effects of the Acquisition on Annuity’s historical earnings, headline earnings and net asset value are not material and have therefore not been disclosed. Illovo 14 May 2013 Lead Investment Bank and Transaction Sponsor to Annuity Investec Bank Limited Joint Investment Bank to Annuity Sasfin Capital (A division of Sasfin Bank Limited) Sponsor to Annuity Rand Merchant Bank (A division of FirstRand Bank Limited) Date: 14/05/2013 05:15:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.