Acquisition of 51% Stake in Secunda Property Development and Withdrawal of Cautionary PUTPROP LIMITED Incorporated in the Republic of South Africa (Registration Number 1988/001085/06) Share code: PPR ISIN: ZAE000072310 (“Putprop” or “the Company”) ACQUISITION OF 51% STAKE IN SECUNDA PROPERTY DEVELOPMENT AND WITHDRAWAL OF CAUTIONARY 1. INTRODUCTION AND RATIONALE The board of directors of Putprop (“the Board”) is pleased to inform shareholders that Putprop has entered into a subscription agreement dated 16 October 2014 (“the Agreement”) with Neo Trend Khala- Cose Proprietary Limited (“Neo Trend”) for the subscription of 510 shares of no par value at R510, which will result in a 51% stake in Neo Trend (“the Acquisition”). Neo Trend has been set up as a special purpose vehicle to hold and develop land situated in the township of Secunda, Registration Division I.S., Mpumalanga Province. Neo Trend has entered into a development agreement for the purposes of developing the land into a retail site to be known as Secunda Value Centre. The Acquisition complies with the Company’s stated objective of strategic investments focussed on industrial and commercial opportunities, where yields are enhancing in the medium and long term as well as broadening of the current tenant base to reduce the risk of over dependence on a limited number of tenants. 2. THE ACQUISITION 2.1 Details of Neo Trend Neo Trend is a special purpose vehicle which has been set up to own and develop land situated on Proposed Township Erf 3 Secunda extension 60, situated on Portion 1 of the Farm The Walker no 817, Registration Division I.S., Mpumalanga Province (in extent 71 192 square metres). Neo Trend is in the process of acquiring the land and is awaiting transfer thereof. Neo Trend has entered into a development agreement with Neo Trend Property Developers Proprietary Limited (“the Developer”) to develop phase 1 of the Secunda Value Centre project, being Erf 8839 Extension 60 Secunda (in extent of 32 722 square metres) which will have Builders Warehouse and Burger King as anchor tenants. Putprop will benefit from revenues generated from the rentals of the retail portions of Secunda Value Centre. It is estimated that the retail portion will comprise of a Gross lettable area of 7 776 square metres. The weighted average rental per square metre has been estimated at R122.24. 2.2 Purchase consideration The total purchase consideration of R17 043 218 (R17 042 708 on loan account and R510 for purchase of 510 shares), will be settled entirely in internally generated cash. 2.3 Warranties The Sellers have provided warranties which are normal in a transaction of this nature. 2.4 Effective date The effective date of the Acquisition is 16 October 2014. 2.5 Conditions Precedent All conditions precedent, which the Acquisition is subject to, have been fulfilled.. 3. UNDERLYING FINANCIAL INFORMATION OF NEO TREND Due to the fact that the Secunda Value Centre project is still to commence and that Neo Trend has no other revenue generating assets, Neo Trend currently does not have any profits attributable to it. The value of Neo Trend’s sole asset (the land which the company owns and which is still subject to transfer) was valued at R3 078 850 on 29 August 2014. 4. CLASSIFICATION OF THE ACQUISITION The Acquisition is classified as a Category 2 transaction in terms of the Listings Requirements of the JSE Limited. 5. WITHDRAWAL OF CAUTIONARY Further to the cautionary announcement released on SENS on 15 September 2014, shareholders are advised that further to this announcement regarding the Acquisition, Shareholders no longer need to exercise caution when dealing in the Company’s securities. Johannesburg 16 October 2014 Sponsor Merchantec Capital Date: 16/10/2014 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.