Wrap Text
Acquisition of new property, financial effects of RPP acquisition and withdrawal of cautionary
INVESTEC PROPERTY FUND LIMITED
Approved as a REIT by the JSE
(Incorporated in the Republic of South Africa)
(Registration Number 2008/011366/06)
Share code: IPF ISIN: ZAE000155099
(“Investec Property Fund” or “the Fund”)
ACQUISITION OF NEW PROPERTIES, FINANCIAL EFFECTS OF RPP ACQUISITION AND WITHDRAWAL OF
CAUTIONARY
1. NICOL MAIN ACQUISITION
1.1. Nicol Main Acquisition
Linked unitholders of Investec Property Fund (“Unitholders”) are hereby advised that the Fund has entered
into an agreement with various vendors, (“Nicol Main Vendors”) to acquire 5 office buildings located at 6
Bruton Road (bounded by Nicol Highway and Main Road), Bryanston (“Nicol Main Properties”) known as
the Nicol Main Office Park (“Nicol Main Acquisition”).
The Nicol Main Properties consist of 5 office blocks, 3 of which are developed and 2 that are currently
under construction. The effective dates of the acquisitions of each of the Nicol Main Properties is set out in
the table in paragraph 1.4 below, and is subject to fulfillment of the conditions precedent set out in 1.5
below.
Full details of the properties and the vendors are provided in paragraph 1.4 below.
1.2. Purchase consideration
The purchase consideration for the Nicol Main Acquisition is R298,435,522 payable in cash to be funded
through existing debt facilities.
The purchase considerations in respect of the properties still to be developed will be paid to the vendors
upon completion of the building, conclusion of leases and occupation of the premises by the tenants.
1.3. Rationale for the Nicol Main Acquisition
The Nicol Main Acquisition is consistent with Investec Property Fund’s growth and investment strategy of
building a quality portfolio by investing in well-priced income producing properties that optimise capital and
income returns over the medium- and long-term for Unitholders. The acquisition will extend the Fund’s
diversification into the office sector.
The Nicol Main Office Park is an AAA-grade office park located in a strong growth node, in the hub of
Bryanston’s commercial and retail node. The property is well situated directly across from the new Nicolway
regional shopping center with street frontages to both the William Nicol Highway and Main Road.
Each of the completed buildings are single-tenanted and are leased to 3 quality tenants, being Continental
Outdoor Media (one of South Africa’s largest providers of roadside and outdoor advertising), Yum (owners
of such brands as KFC) and Boogertman and Partners architects, for periods which are approximately 5
years in duration. The buildings under construction have been fully pre-let to tenants including Jardine
Lloyd (a specialist international insurer and re-insurer) and Joe Public (the fastest growing independent
communications group in South Africa) on 5 year leases ensuring a stable and secure income stream upon
completion.
1.4. Nicol Main Properties
The Nicol Main Office Park consists of 5 office properties, the details of which are set out below.
Effective
date of Rental/m2 Purchase
2
Building Vendor Tenant Erf Description acquisition GLA (m ) (R/m2) price (R)
A Belle Vue The Continental Portion 1 of Erf Mar-14 2,094 161.41 67,908,603
Wedge (Pty) Outdoor Media 5639, Bryanston,
Ltd City of
Johannesburg,
Registration
Division IR,
Provision of
Gauteng
B Belle Vue The Boogertman Portion 2 of Erf Mar-14 2,061 120.75 54,654,566
Wedge (Pty) Architects 5639, Bryanston,
Ltd & Tuffsan City of
Investments Johannesburg,
1044 (Pty) Ltd Registration
Division IR,
Provision of
Gauteng
C Belle Vue The Yum Portion 3 of Erf Mar-14 2,461 100.77 54,915,117
Wedge (Pty) 5639, Bryanston,
Ltd & Standard City of
Bank Johannesburg,
Properties Registration
(Pty) Ltd Division IR,
Provision of
Gauteng
D Belle Vue The JLT Insurance Portion 3 of Erf Jul-14 2,095 103.98 48,933,091
Wedge (Pty) 5639, Bryanston, (anticipated
Ltd & Standard City of date of
Bank Johannesburg, completion)
Properties Registration
(Pty) Ltd Division IR,
Provision of
Gauteng
E Belle Vue The Joe Public Portion 3 of Erf Nov-14 3,152 105.16 72,024,145
Wedge (Pty) Advertising 5639, Bryanston, (anticipated
Ltd & Standard Agency City of date of
Bank Johannesburg, completion)
Properties Registration
(Pty) Ltd Division IR,
Provision of
Gauteng
Total 11,863 298,435,522
1.5. Conditions Precedent
The Nicol Main Acquisition is subject to the following conditions precedent:
- The satisfactory completion of a due diligence investigation, to be performed by the Fund on each
of the Nicol Main Properties; and
- Confirmation that the transaction has been unconditionally approved by the competition authorities
in terms of the Competition Act 89 of 1998.
1.6. Warranties
The Nicol Main Vendors have provided warranties and indemnities to the Fund that are standard to a
transaction of this nature.
1.7. Financial effects of the Nicol Main Acquisition
The financial effects of the Nicol Main Acquisition on the Fund’s distribution per unit, earnings per unit,
headline earnings per unit and net asset value per unit is not significant and therefore has not been
included.
1.8. Categorisation
The Nicol Main Acquisition is a category 2 transaction in terms of the JSE Listings Requirements and
accordingly does not require approval by Unitholders.
2. FINANCIAL EFFECTS RELATING TO THE RPP ACQUISITION
Unitholders are referred to the announcement released on SENS on 17 October 2013 in which it was
announced that the Fund had concluded an agreement to acquire the RPP Portfolio from the RPP Vendors for
a purchase consideration of R571,570,319.
2.1. Financial effects of the RPP Acquisition
The financial effects of the RPP Acquisition on the Fund’s distribution per unit, earnings per unit, headline
earnings per unit and net asset value per unit is not significant and therefore has not been included.
3. WITHDRAWAL OF CAUTIONARY
Investec Property Fund unitholders are advised that following the release of the financial effects of the above
acquisitions, caution is no longer required to be exercised by unitholders when dealing in their securities in the
Fund.
Johannesburg
14 November 2013
Investment Bank and Sponsor
Investec Corporate Finance
Legal advisor
Fluxmans Inc.
Date: 14/11/2013 03:30:00 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. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
