SYCOM PROPERTY FUND - SYC - Results of Ballot to increase the gearing limits of Sycom

SYC - Results of Ballot to increase the gearing limits of Sycom

SYCOM PROPERTY FUND
A Collective Investment Scheme in Property ("CISP") registered in terms of the Collective Investment
Schemes Control Act, No. 45 of 2002 and managed by Sycom Property Fund Managers Limited
("SPFM")
(Registration number 1986/002756/06)
JSE Share code: SYC
ISIN: ZAE000019303
("Sycom” or the “Fund”)
(Granted REIT status by the JSE, effective 1 April 2013)

RESULTS OF BALLOT TO INCREASE THE GEARING LIMITS OF SYCOM

1.    INTRODUCTION

      In announcements published on the Stock Exchange News Service of the JSE Limited
      ("SENS") on 28 March 2013 and 25 April 2013, and in the South African Press on 28 March
      2013 and 26 April 2013, respectively, holders of participatory interests ("Units") in Sycom
      ("Unitholders") were advised that SPFM was to obtain the approval of Unitholders registered to
      vote in respect thereof ("the Ballot") as at 17 May 2013, to increase the borrowing limits
      imposed on the Fund in terms of the trust deed between SPFM and FirstRand Bank Limited
      (acting through RMB Custody and Trustee Services division) ("Trust Deed" and "Trustee"
      respectively) from the current limit of 30% of the value of the Fund's underlying assets, to 60%
      of such value ("the Amendments").
      A circular incorporating details of the Amendments proposed to the Trust Deed, was posted to
      all Unitholders on 24 May 2013 ("Ballot Circular").

2.    RESULTS OF THE BALLOT

      Unitholders are advised that the requisite majority of Unitholders holding no less than 25% in
      value of the total number of Units (excluding SPFM as manager) responded in favour of the
      Amendments in terms of the Ballot. Accordingly, the borrowing limits imposed on the Fund will
      now increase from 30% of the value of the Fund's underlying assets to 60% of such value. The
      Ballot process was approved by the Registrar and the Fourth Supplemental Trust Deed was
      signed by SPFM and the Trustee and approved by the Registrar on 12 July 2013.
      As stated in the circular to Unitholders dated 14 June 2013 relating to the Hyprop transaction
      referred to in more detail in paragraph 3 below ("the Hyprop Transaction"), notwithstanding
      approval of the Amendments, the long-term strategy of the SPFM Board is to generally
      maintain the borrowing limits at a level below 40% of the underlying value of the assets of
      Sycom, and to only exceed this level as a result of the temporary effect of the specific
      transactional activity in terms of which it may be required. Furthermore, until implementation of
      the Hyprop Transaction, SPFM has undertaken only to exceed a 30% gearing limit in certain
      limited circumstances.

3.    HYPROP TRANSACTION- FULFILMENT OF CONDITION PRECEDENT

      On 28 March 2013 and 3 June 2013 it was announced on SENS that SPFM and Hyprop
      Investments Limited (registration number 1987/005284/06) ("Hyprop") had entered into an
      agreement in terms of which SPFM will dispose of the Somerset Mall Shopping Centre in
      Somerset West, Western Cape, to Hyprop and Hyprop will transfer and deliver 81,500,000.00
      Units in consideration therefore.
      A successful Ballot is a condition precedent to the Hyprop Transaction, as specified in the
      circular to Unitholders dated 14 June 2013 and this condition precedent has accordingly been
      satisfied.


Cape Town
15 July 2013

Sponsor, Corporate Advisor and Investment Bank
Absa Bank Limited (acting through its Corporate and Investment Banking Division)

Legal advisor
DLA Cliffe Dekker Hofmeyr

Date: 15/07/2013 03:16:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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