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Announcement regarding the acquisition of SARS Bellville
Delta Property Fund Limited
(formerly Tuffsan 89 Investment Holdings Proprietary Limited)
(Incorporated in the Republic of South Africa)
(Registration number 2002/005129/06)
Share code: DLT ISIN: ZAE000172052
("Delta")
ANNOUNCEMENT REGARDING THE ACQUISITION OF SARS BELLVILLE
1. Introduction
Delta linked unitholders are advised that Delta ("the purchaser") has entered into an agreement
with Schaeffer Technologies Trust for the purchase of the property and letting enterprise
commonly known as "SARS Bellville" (“the property”), situated at the corner of Teddington and
De Lange Road, Bellville, Cape Town, Western Cape (“the acquisition”). The property is a multi-
tenanted office building occupied primarily by the South African Revenue Services (“SARS”).
The effective date of the acquisition will be the date of registration of transfer of the property into
the name of Delta, which is expected to be 1 July 2013.
2. Rationale for the acquisition
In line with Delta’s strategy around SARS, this acquisition, being a well-established property
with a low risk tenant, represents an attractive investment that will enhance the overall quality
and value of the portfolio. There is currently a negotiated three year letter of intent in place with
SARS which Delta intends to convert to a lease once transfer has taken place.
3. Consideration for the acquisition
The purchase consideration for the acquisition is R185 000 000 (one hundred and eighty five
million Rand) ("the purchase price"). The purchase price will be settled in cash upon registration
of transfer of the property into the name of Delta, and will be financed through a combination of
debt financing and existing equity.
4. Conditions precedent
The acquisition is subject to the purchaser being satisfied in its sole discretion with the results of
a comprehensive due diligence of the acquisition.
5. Unaudited pro forma financial effects of the acquisition
The unaudited pro forma financial effects of the acquisition on the net asset value and net
tangible asset value per Delta linked unit have not been disclosed as they are not significant.
6. Forecast information on the property
The summarised forecast financial information of the property for the 8 months ending 28
February 2014 and for the twelve months ending 28 February 2015 is set out below. The
forecast financial information, including the assumptions on which it is based, is the
responsibility of the directors of Delta. The forecast financial information has not been reviewed
or reported on by independent reporting accountants.
Forecast Forecast
8 months ending 12 months ending
28 February 2014 28 February 2015
R’000 R’000
Rental income 12,742,947 20,339,191
Straight-line rental income accrual 12,850 (9,889)
Total revenue 12,755,796 20,329,301
Net operating profit 6,753,211 11,173,221
Net profit after tax 57,782 73,398
Distributable earnings attributable to linked
unitholders 6,672,958 11,071,279
Notes:
1. The forecast information for the 8 months ending 28 February 2014 has been calculated from the anticipated effective
date of the acquisition of 1 July 2013.
2. Contracted rental income for the 8 months to 28 February 2014 constitutes 4% of forecast gross rental income and
2% of forecast gross rental income for the 12 months to 28 February 2015.
7. Specific information relating to the property
Details regarding the property are set out below:
Property Location Sector Gross Single or Weighted Total Value
lettable multi average purchase R (3)
area tenanted rental price(2)
m2 per m2(1) R
R
Cape Town,
Western
SARS Bellville Cape Office - other 17,270 Multi 87.58 185,631,000 185,631,000
Notes:
1. Based on office rental income for the period 1 July 2013 to 28 February 2014.
2. Includes capitalised costs of R631 000.
3. The value of the property was arrived at by a directors’ valuation as at 1 June 2013.
8. Categorisation
The acquisition is a Category 2 transaction in terms of the JSE Limited Listings Requirements.
06 June 2013
Johannesburg
Investment bank and sponsor
Nedbank Capital
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