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TREMATON CAPITAL INVESTMENTS LTD - Acquisition of apartment blocks in Parklands, Western Cape

Release Date: 17/03/2014 09:30
Code(s): TMT     PDF:  
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Acquisition of apartment blocks in Parklands, Western Cape

Trematon Capital Investments Limited
(Incorporated in the Republic of South Africa)
Registration number 1997/008691/06
Share code: TMT
ISIN: ZAE000013991
("Trematon" or "the company")



ACQUISITION OF APARTMENT BLOCKS IN PARKLANDS, WESTERN CAPE

1.    Introduction

Shareholders     are    advised      that   Trematon,     via    its   50%     held
subsidiary, Tremprop (Pty) Ltd (“Tremprop”), has entered into
an agreement in terms of which it has purchased 3 apartment
blocks     in    Parklands,          Cape   Town,      Western       Cape    (“the
property”)(“the acquisition”) for a total purchase price of
R53.0 million.

2.    Details of the properties

The properties are situated in on erven 5962, 5548 and 5810 in
Parklands and comprise three residential apartment blocks with
a total of 160 apartments.

3.    Rationale for the acquisition

Trematon    identified         the     acquisition      as      an   appropriate
investment to generate strong rental yields and capital profits
over the long-term, whilst increasing the company’s exposure in
the   residential      property      market.     The   acquisition      fits    the
investment criteria established in the residential investment
business   and   will     be    managed     by   the   existing      residential
property management infrastructure.

4.    Terms of the acquisition

4.1   The vendor

The property was purchased from Diluculo Properties (Pty) Ltd.
                                                                      2


4.2   Purchase consideration

Tremprop acquired the property for a purchase consideration of
R53.0 million (excluding applicable taxes).

The majority of the purchase consideration will be funded from
borrowings.

4.3   Conditions precedent

There are no outstanding conditions precedent.

4.4   Effective date

The effective date of the acquisition is the date of transfer
of the property into the name of Tremprop, which is expected to
be on or about 16 June 2014.

5.    Financial information

The acquisition will not have a significant effect on the
earnings and headline earnings or net asset value and tangible
net asset value of the company.


This announcement is published in terms of the JSE Listings
Requirements    as   the   acquisition   constitutes   a   category   2
transaction for the company.



17 March 2014

Cape Town

Sponsor

Sasfin Capital

(a division of Sasfin Bank Limited)

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