SHERBOURNE CAPITAL LIMITED - Quarterly update to shareholders

Quarterly update to shareholders

Sherbourne Capital Limited
(Previously trading as IFCA Technologies Limited)
Incorporated in the Republic of South Africa
(Registration number 2006/030759/06)
Share code: SHB ISIN: ZAE000165403
("Sherbourne" or “the Company”)

QUARTERLY UPDATE TO SHAREHOLDERS

Background

The Directors are pleased to provide shareholders with an update on Sherbourne, its vision and the
acquisitions that have been made to help realise the Company’s potential.

Sherbourne realised that there was a need for student accommodation throughout the country and was
provided with an opportunity to acquire a strategically located piece of property, between two tertiary
educational facilities being The Vaal University of Technology and the North West University. The vision
is to develop this piece of property into a “Student Village” where students are provided with safe,
affordable accommodation, close to the establishments where they are studying. The vision for this
village is to not only to provide accommodation but to develop ancillary services such as fast food
outlets, ATM’s and coffee shops for the students and surrounding neighbourhoods to utilise.
Sherbourne has secured the following acquisitions to help it achieve these goals:

    •   The purchase of 100% of Applemint Properties 116 (Pty) Ltd (“Apple”)
    •   The purchase of 100% of Emergent Properties Group Limited (“EMG”)
    •   The purchase of 100% of Siabex (Pty) Ltd (“Siabex”)

The details of all the acquisitions were outlined in previous SENS announcements, dated 22 April 2013,
24 July 2013 and 16 October 2013 respectively.

We believe that Apple is the ideal transaction to help launch Sherbourne into the Student
Accommodation / Property Development sector. The acquisition of EMG allows Sherbourne to gain
access to overseas funding, primarily structured for infrastructure development, as well as a local
funding line through a major commercial bank. EMG has the rights to a number of property
developments, specifically focused on student accommodation and data centres. Siabex is a further
property, approximately 3 000 sqm in size, located between two tertiary educational facilities being the
University of Johannesburg (Doornfontein campus) and the Central Johannesburg College. This
acquisition further consolidates Sherbourne’s strategy to tap into significant growth opportunities in
South Africa with regards to student accommodation and property development as a whole.

Rationale/ Benefits of Acquisitions

As Sherbourne is purchasing the land and constructing the additions on said land, the Net Asset Value
for shareholders will increase every year. Each student will be paying a monthly rental to stay in the
“Student Village” and this, along with rental income from the ancillary services, should provide
Shareholders with strong annual earnings per share.
Circular to Shareholders

The Circular to shareholders which is currently being prepared for first submission during the course of
next week, will incorporate the following transactions:

    •   Acquisition of Apple
    •   Acquisition of EMG
    •   Acquisition of Siabex
    •   The adoption of a new Memorandum of Incorporation
    •   Revised listing particulars
    •   The inclusion of a preferential share to the capital structure of the company


This is to enable the appropriate approval of the above transactions as well as to expedite the lifting of
the suspension.

Sandton
22 October 2013
Designated Adviser: Bridge Capital Advisors (Pty) Ltd

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