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TEXTON PROPERTY FUND LIMITED - Feedback on acquisitions

Release Date: 19/09/2014 15:26
Code(s): TEX     PDF:  
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Feedback on acquisitions

TEXTON PROPERTY FUND LIMITED
(formerly Vunani Property Investment Fund Limited)
Granted REIT status by the JSE
(Incorporated in the Republic of South Africa)
(Registration number 2005/019302/06)
JSE code: TEX
ISIN: ZAE000190542
(formerly ISIN: ZAE000185872)
(“Texton” or “the Company”)


FEEDBACK ON ACQUISITIONS

On 12 September 2014, the Company successfully acquired the entire share capital of Nungu Trading
88 Proprietary Limited through the Sale of shares and claims agreement. Nungu owns the property
known as Babcock House, situated at 10 Osbourne Lane, Bedfordview, measuring 3 865m2. This AAA
grade property is located in Bedfordview and tenanted by Babcock Ntuthuko Engineering Proprietary
Limited on a triple net lease at a net rental of R80/m2 with 71 basement parking bays, 58 covered bays
and 14 open bays with an additional 20 open bays being built. The lease escalates at 9% per annum
and has a remaining term of 4 years and 10 month with an option to renew for a further 2 years. The
acquisition will yield 9.35% and acquired for cash in the amount of R48.326 million.


On 18 September, the AAA grade Quintiles building situated in Bloemfontein and measuring 3 404m²
was transferred to the Company. The property is tenanted by Quintiles Clindepharm on a 5 year triple
net lease escalating at 8% per annum. The property will be purchased with cash at a yield of 9.6% for
the amount of R47.5 million.


Further to previous announcements, the “Naidoo Portfolio R129million” consisting of the Scott Street
building (4 329m2) in Waverley and the St Georges Mall sections (1 242m2) in Cape Town. Both
buildings are occupied by Mott Macdonald PDNA on a 3.5 year triple net lease and was transferred to
the Company on 18 September 2014. This transaction places 6.5% of the issued share capital in BEE
ownership. Accordingly, the Company is likely to achieve a Level 2 or at worst Level 3 BEE rating.


Dunkeld West
19 September 2014
Sponsor
Investec Bank Limited

Date: 19/09/2014 03:26:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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