Financial Effects and Withdrawal of Cautionary in respect of Atterbury House ASCENSION PROPERTIES LIMITED (Incorporated in the Republic of South Africa) (Registration number 2006/026141/06) JSE share code for A-linked units: AIA ISIN: ZAE000161881 JSE share code for B-linked units: AIB ISIN: ZAE000161899 (Approved as a REIT by the JSE) (“Ascension” or “the company”) FINANCIAL EFFECTS AND WITHDRAWAL OF CAUTIONARY IN RESPECT OF ATTERBURY HOUSE INTRODUCTION Linked unitholders are referred to the announcement released on SENS on 11 June 2013 in which it was announced that Ascension had concluded an agreement for the acquisition of a rental enterprise conducted in respect section 1 of the Sectional Title Scheme known as Shell House and Ovenstone House commonly known as Atterbury House or Shell House (“Atterbury House”) from Atterbury Investment Holdings Limited for a purchase price of R341 million (“the Atterbury acquisition”). The purpose of this announcement is to set out the financial effects of the Atterbury acquisition. FORECAST FINANCIAL INFORMATION OF THE ACQUISITION Set out below are the forecast rental revenue, operating profit, net profit after taxation and distributable earnings of Atterbury House (“the Atterbury House forecasts”) for the 10 months ending 30 June 2014 and the year ending 30 June 2015. The Atterbury House forecasts have been prepared on the assumption that the acquisition will be implemented on 1 September 2013. The Atterbury House forecasts, including the assumptions on which they are based and the financial information from which they are prepared, are the responsibility of the directors of Ascension. The Atterbury House forecasts have not been reviewed or reported on by independent reporting accountants. The Atterbury House forecasts presented in the table below have been prepared in accordance with the company’s accounting policies and in compliance with IFRS. 10 months ending Year ending 30 June 2014 30 June 2015 R’000 R’000 Contractual rental and tenant recoveries 36 386 47 288 Straight-line of lease income adjustment 1 249 570 Rental revenue 37 635 47 858 Operating profit* 24 877 31 032 Net profit after taxation*^ (10) (125) Distributable earnings 14 750 19 808 *Includes the effects of straight-lining rental income and asset management fees. ^ Includes the effects of finance costs and debenture interest. The Atterbury House forecasts incorporate, inter alia, the following material assumptions: 1. Contracted revenue is based on existing lease agreements. 2. Uncontracted revenue comprises 27.2% and 51.1% of gross rental revenue for the 10 months ending 30 June 2014 and the year ending 30 June 2015 respectively. 3. All existing lease agreements are valid. 4. R151.1 million of the purchase price (including acquisition costs) is assumed to be funded through third party interest-bearing borrowings. These interest-bearing borrowings are assumed to incur interest at an effective melded fixed and variable rate of 7.05 % p.a. 2 5. The balance of the purchase price and capital expenditure will be funded through the proceeds raised from the placement of A-linked units which was announced on 13 August 2013. 6. No fair value adjustment has been provided for in respect of the 10 months ending 30 June 2014 or the year ending 30 June 2015. 7. In terms of the asset management agreement with Ascension Property Management Company (Proprietary) Limited (“the manager”), Ascension will pay the manager a monthly fee equivalent to 1/12th of 0.45% of the aggregate of the market capitalisation and the borrowings of Ascension. 8. Ascension will pay the property manager, Broll Property Group (Proprietary) Limited, for all property management services a monthly fee equivalent to 2.0% of gross monthly income collected (including VAT). 9. Debenture interest will be paid to A- and B-linked unitholders in accordance with the provisions of the debenture trust deed. UNAUDITED PRO FORMA FINANCIAL EFFECTS OF THE ATTERBURY ACQUISITION The unaudited pro forma financial effects of the acquisition on Ascension’s net asset value and tangible net asset value per A-linked unit and per B-linked unit, based on the condensed audited consolidated statement of financial position as at 30 June 2013, are not significant and have not been presented. WITHDRAWAL OF CAUTIONARY Ascension linked unitholders are referred to the cautionary announcements dated 11 June 2013 and 25 July 2013 and are advised that following the release of the financial effects of the Atterbury acquisition, caution is no longer required to be exercised by linked unitholders when dealing in their linked units. 30 August 2013 Corporate advisor and sponsor Java Capital Date: 30/08/2013 09:45:00 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. 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