ORION REAL ESTATE LIMITED - Advice to shareholders regarding Orion's intentions to a proposed conversion to a real estate investment trust

Advice to shareholders regarding Orion's intentions  to a proposed conversion to a real estate investment trust

ORION REAL ESTATE LIMITED
Incorporated in the Republic of South Africa)
(Registration number: 1997/021085/06)
Share Code: ORE              ISIN: ZAE000075651
("Orion Real Estate" or “the Company”)


ADVICE TO SHAREHOLDERS REGARDING ORION’S INTENTIONS WITH
REGARDS TO A PROPOSED CONVERSION TO A REAL ESTATE INVESTMENT
TRUST (“REIT”)


Shareholders are referred to the recent changes in the JSE Listings Requirements
surrounding REIT’s. In February 2013 the REIT tax laws were promulgated into South
African law. This new tax dispensation is applicable to current listed property investment
companies and property unit trusts that elect and qualify to be listed as REITs on the
Johannesburg Stock Exchange on or after 1 April 2013. The Company’s year-end is 30
June 2013.

The board of directors has reviewed the provisions surrounding REIT’s in order to
evaluate the benefits and costs associated with applying for REIT status in terms of the
JSE Listings Requirements and has decided that it will not be applying for REIT status at
present.

This decision has been reached after considering the following:

1.     The initial and continuing provisions of the JSE Listings Requirements for REIT
       status;
2.     The current profile of the shareholders of Orion;
3.     The current size of the portfolio and the results of the Company; and
4.     No immediate clarity in relation to the benefits of Orion applying for REIT status.

The board will monitor the situation over the next year and re-evaluate its decision in due
course.

The board is of the view that there is no material impact of this decision for its current
linked unit holders.

01 July 2013

Sponsor
Arcay Moela Sponsors Proprietary Limited

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