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RBA HOLDINGS LIMITED - Operational update

Release Date: 01/10/2013 07:45
Code(s): RBA     PDF:  
Wrap Text
Operational update

RBA HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1999/009701/06)
(JSE code: RBA  ISIN: ZAE000104154)
(RBA or the group)

OPERATIONAL UPDATE

The group has concluded a significant transaction which it believes may constitute price sensitive 
information and wishes to update shareholders on the salient features of the transaction.

The group had previously secured certain rights to acquire and develop Kirkney extension 40, a 
property in Tshwane, representing approximately 1 300 residential housing opportunities. The 
group has entered into a financing and land allocation agreement whereby these rights have been 
transferred to a third party. 

In terms of the agreement the group will be entitled to the following beneifits:

* the group will receive an origination fee of R10.5 million (excluding VAT);

* the third party will purchase the property and provide the full funding for the acquisition and 
services installation;

* the group will be responsible for the management of the land development process and the sale 
of affordable housing opportunities generated as a result of the project and will receive a 
success based management fee amounting to approximately 35% of the land development profit; and

* the group will be entitled to all the profits generated through the construction of the      
1 300 affordable houses.

The group expects the R10.5 million origination fee to be received in November 2013 and these 
proceeds will be used to further reduce debt and to meet ongoing operational requirements. The 
installation of services on Kirkney extension 40 is expected to commence in early 2014.

1 October 2013
Johannesburg

Designated Advisor
Exchange Sponsors

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