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Audited preliminary condensed consolidated results for the year ended 31 August 2014
INGENUITY PROPERTY INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Company registration number 2000/018084/06)
Share code: ING ISIN: ZAE000127411
("INGENUITY" or "the Company")
AUDITED PRELIMINARY CONDENSED CONSOLIDATED RESULTS for the year ended 31 August 2014
KEY FINANCIAL INDICATORS
2014 2013
R'000 R'000
Total contractual rental income 221 952 82 200
Investment property portfolio fair value 2 556 325 1 301 297
Growth of asset base 96% 69%
Development property 183 417 87 790
Borrowings 1 579 249 727 753
Loan to value ratio* 56% 52%
Market capitalisation at year-end 1 029 749 684 718
Number of shares in issue (net of treasury shares) 1 142 536 316 736 616 773
Earnings per share 12.0 cents 10.1 cents
Headline earnings per share 4.2 cents 2.0 cents
Net asset value per share 94 cents 84 cents
Growth in net asset value per share 12% 12%
* Loan to value ratio is defined as interest-bearing debt divided by the total assets
(asset value of all properties and investments).
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
at 31 August 2014
2014 2013
R'000 R'000
ASSETS
Non-current assets 2 741 516 1 396 380
Investment properties 2 475 239 1 259 876
Straight-line lease accrual 76 333 38 845
Investment properties under development 183 417 87 790
Property and equipment 6 527 61
Loans receivable - 9 808
Current assets 53 176 29 783
Trade and other receivables 12 682 5 649
Straight-line lease accrual 4 753 2 576
Tax receivable 1 105 1 105
Cash and cash equivalents 34 636 20 453
Total assets 2 794 692 1 426 163
EQUITY AND LIABILITIES
Shareholders' interest 1 072 904 615 094
Share capital 12 115 8 055
Share premium 693 540 361 224
Treasury shares (34 928) (34 928)
Non-distributable reserve 257 317 171 464
Retained earnings 132 393 102 412
Total equity attributable to equity holders of the parent 1 060 437 608 227
Non-controlling interest 12 467 6 867
Non-current liabilities 1 679 808 782 361
Borrowings 1 576 279 727 753
Finance lease 3 740 -
Deferred tax 99 789 54 608
Current liabilities 41 980 28 708
Trade and other payables 19 101 14 199
Current portion of borrowings 2 970 -
Prepaid rent received 10 012 6 632
Share-based payment 9 897 6 437
Other financial liabilities - 1 440
Total equity and liabilities 2 794 692 1 426 163
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
for the year ended 31 August 2014
2014 2013
R'000 R'000
Revenue 261 216 95 675
- Contractual 221 952 82 200
- Straight-lining 39 264 13 475
Net operating expenses (74 861) (38 755)
Profit before fair value adjustments 186 355 56 920
Fair value adjustments to investment properties 105 407 74 438
Profit before interest and taxation 291 762 131 358
Interest received 1 303 1 872
Interest paid (111 239) (45 181)
Profit before taxation 181 826 88 049
Taxation (44 777) (17 471)
Profit for the year 137 049 70 578
Attributable to:
Equity holders of the parent 132 024 70 274
Non-controlling interest 5 025 304
137 049 70 578
Other comprehensive income:
To be reclassified subsequently to profit or loss:
Cash flow hedges 1 440 8 711
Income tax relating to components of other
comprehensive income (403) (2 439)
Other comprehensive income for the year, net of tax 1 037 6 272
Total comprehensive income for the year 138 086 76 850
Total comprehensive income attributable to:
Equity holders of the parent 133 061 76 546
Non-controlling interest 5 025 304
138 086 76 850
Cents Cents
Basic and diluted earnings per share 12.0 10.1
COMMENTS TO THE CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
1. Headline and diluted headline earnings per share 4.2 2.0
2. The calculation of earnings per share is based on a weighted average number of
1 101 828 192 (2013: 693 296 225) shares in issue during the year. The actual
number of shares in issue at the year-end is 1 211 469 543 (2013: 805 550 000).
R'000 R'000
Headline earnings are calculated as follows:
Earnings attributable to equity holders 132 024 70 274
Fair value adjustments to investment properties (105 407) (74 438)
Gain on bargain purchase (361) -
Total tax effects of adjustments 20 544 18 059
46 800 13 895
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 August 2014
Group Non-
distri-
Share Share Treasury butable
capital premium shares reserve
R'000 R'000 R'000 R'000
Balance at 1 September 2012 7 385 321 024 (34 928) 108 813
Decrease in non-controlling interest - - - -
Total comprehensive income for the year - - - 6 272
Profit for the year - - - -
Other comprehensive income - - - 6 272
Net change in fair value of cash flow hedge
recognised directly in other
comprehensive income - - - 6 272
Issue of 67 000 000 shares 670 40 200 - -
Realisation of share option reserve - - - -
Transfer to non-distributable reserve
- fair value adjustments to properties - - - 56 379
Dividend paid - one cent per share - - - -
Balance at 31 August 2013 8 055 361 224 (34 928) 171 464
Group
Share- Non-con-
based Retained trolling Total
payments earnings interest equity
R'000 R'000 R'000 R'000
Balance at 1 September 2012 863 94 520 6 977 504 654
Decrease in non-controlling interest - - (414) (414)
Total comprehensive income for the year - 70 274 304 76 850
Profit for the year - 70 274 304 70 578
Other comprehensive income - - - 6 272
Net change in fair value of cash flow hedge
recognised directly in other
comprehensive income - - - 6 272
Issue of 67 000 000 shares - - - 40 870
Realisation of share option reserve (863) 863 - -
Transfer to non-distributable reserve
- fair value adjustments to properties - (56 379) - -
Dividend paid - one cent per share - (6 866) - (6 866)
Balance at 31 August 2013 - 102 412 6 867 615 094
Non-
distri-
Share Share Treasury butable
capital premium shares reserve
R'000 R'000 R'000 R'000
Decrease in non-controlling interest
(settlement of agreement) - - - -
Increase in non-controlling interest
(business acquired) - - - -
Total comprehensive income for the year - - - 1 037
Profit for the year - - - -
Other comprehensive income - - - 1 037
Net change in fair value of cash flow hedge
recognised directly in other
comprehensive income - - - 1 037
Issue of 405 919 543 shares 4 060 332 316 - -
Transfer to non-distributable reserve
- fair value adjustments to properties - - - 84 816
Dividend paid - 1.5 cents per share - - - -
Balance at 31 August 2014 12 115 693 540 (34 928) 257 317*
* Comprising fair value reserve
Non-con-
Retained trolling Total
earnings interest equity
R'000 R'000 R'000
Decrease in non-controlling interest
(settlement of agreement) - (9 808) (9 808)
Increase in non-controlling interest
(business acquired) - 10 383 10 383
Total comprehensive income for the year 132 024 5 025 138 086
Profit for the year 132 024 5 025 137 049
Other comprehensive income - - 1 037
Net change in fair value of cash flow hedge
recognised directly in other
comprehensive income - - 1 037
Issue of 405 919 543 shares - - 336 376
Transfer to non-distributable reserve
- fair value adjustments to properties (84 816) - -
Dividend paid - 1.5 cents per share (17 227) - (17 227)
Balance at 31 August 2014 132 393 12 467 1 072 904
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 31 August 2014
2014 2013
R'000 R'000
Cash flows from operating activities
Cash generated from operations 158 522 36 689
Interest received 1 303 1 034
Interest paid (112 529) (39 271)
Taxation paid - (627)
Dividends paid (17 226) (6 867)
Net cash inflow/(outflow) from operating activities 30 070 (9 042)
Cash flows from investing activities
Additions to property and equipment (6 608) (31)
Acquisitions/additions to investment properties (1 027 707) (118 460)
Acquisitions/additions to investment properties
under development (110 417) (111 570)
Interest capitalised to investment properties and
investment properties under development (2 778) (15 567)
Prepayments for investment property acquired after year-end (105) (2 284)
Business combinations (42 922) -
Net cash outflow from investing activities (1 190 537) (247 912)
Cash flows from financing activities
Proceeds from the issue of shares 336 375 40 870
Financial liabilities raised 815 539 205 870
Repayments of finance lease (225) -
Proceeds from loan 22 961 -
Net cash inflow from financing activities 1 174 650 246 740
Net increase/(decrease) in cash and cash equivalents 14 183 (10 214)
Cash and cash equivalents at the beginning of the year 20 453 30 667
Cash and cash equivalents at the end of the year 34 636 20 453
CONDENSED CONSOLIDATED SEGMENTAL INFORMATION
at 31 August 2014
2014
Offices Retail Special Parking
R'000 R'000 R'000 R'000
Additions to non-current assets 648 350 333 418 112 232 160 805
Total assets 1 554 324 571 032 155 982 274 944
Revenue 133 417 51 129 12 578 22 210
Profit/(loss) before fair value adjustment 95 780 36 241 11 255 16 934
Fair value adjustment 67 655 35 409 6 991 10 142
Profit/(loss) before interest and taxation 163 435 71 650 18 246 27 076
Interest received - - - -
Interest paid - - - -
Profit/(loss) before taxation 163 435 71 650 18 246 27 076
Unseg- Straight-
mental lining Total
R'000 R'000 R'000
Additions to non-current assets 189 768 - 1 444 573
Total assets 238 410 - 2 794 692
Revenue 2 618 39 264 261 216
Profit/(loss) before fair value adjustment (13 119) 39 264 186 355
Fair value adjustment (14 790) - 105 407
Profit/(loss) before interest and taxation (27 909) 39 264 291 762
Interest received 1 303 - 1 303
Interest paid (111 239) - (111 239)
Profit/(loss) before taxation (137 845) 39 264 181 826
2013
Offices Retail Special Parking
R'000 R'000 R'000 R'000
Additions to non-current assets 368 036 123 277 2 750 36 532
Total assets 905 794 237 614 43 750 114 139
Revenue 54 414 16 162 3 410 8 214
Profit/(loss) before fair value adjustment 37 311 11 627 3 096 6 499
Fair value adjustment 51 879 11 279 2 781 8 499
Profit/(loss) before interest and taxation 89 190 22 906 5 877 14 998
Interest received - - - -
Interest paid - - - -
Profit/(loss) before taxation 89 190 22 906 5 877 14 998
Unseg- Straight-
Other mental lining Total
R'000 R'000 R'000 R'000
Additions to non-current assets (330) - - 530 265
Total assets - 124 866 - 1 426 163
Revenue - - 13 475 95 675
Profit/(loss) before fair value adjustment (250) (14 838) 13 475 56 920
Fair value adjustment - - - 74 438
Profit/(loss) before interest and taxation (250) (14 838) 13 475 131 358
Interest received - 1 872 - 1 872
Interest paid - (45 181) - (45 181)
Profit/(loss) before taxation (250) (58 147) 13 475 88 049
COMMENTARY
1. PRESENTATION OF PRELIMINARY CONDENSED CONSOLIDATED FINANCIAL RESULTS
The preliminary condensed consolidated financial results for the year ended
31 August 2014 have been prepared in accordance with the framework concepts, the
measurement and recognition requirements of IFRS and the SAICA Financial Reporting
Guides as issued by the Accounting Practices Committee or its successor and the
requirements of the Companies Act of South Africa and the JSE Listings Requirements.
The preliminary condensed consolidated financial results contain, as a minimum, the
information required by IAS 34: Interim Financial Reporting, and the accounting
policies adopted and methods of computation are in accordance with International
Financial Reporting Standards ("IFRS") and are consistent with those applied in the
preparation of the Annual Financial Results of the Group for the year ended
31 August 2013, except for necessary changes to accounting policies related to the
adoption of IFRS 10, which includes a revised definition of control, IFRS 11 on
joint arrangements as well as IFRS 13, which includes a revised definition of fair value.
The following standards have been applied for the first time as it became effective
during the current period
- IFRS 10: Consolidated Financial Statements
- IFRS 11: Joint Arrangements
- IFRS 12: Disclosure of Interests in Other Entities
- IFRS 13: Fair Value Measurement
The adoption of the above standards did not have a significant impact on the
preliminary condensed consolidated financial results.
The auditor, Mazars Inc., has issued an unqualified audit opinion on the preliminary
condensed consolidated financial results, which is available for inspection at the
Company's registered office. Their audit was conducted in accordance with International
Standards on Auditing and the applicable requirements of the South African Companies Act,
71 of 2008, as amended. The auditor's report does not necessarily report on all the
information contained in this report. Shareholders are therefore advised that in order
to obtain a full understanding of the nature of the auditor's engagement they should
obtain a copy of the auditor's report together with the accompanying financial
information from the registered office.
These preliminary condensed consolidated financial results were prepared under the
supervision of Mr M Wagenheim CA(SA), in his capacity as financial director.
2. JOINT CHAIRMAN'S AND CHIEF EXECUTIVE OFFICER'S REPORT
The past year has seen Ingenuity growing its property portfolio significantly from
R1.4 billion to R2.7 billion worth of prime assets and increasing its net asset
value per share by 12% from 84 cents to 94 cents. Total development property
included in the portfolio value is currently R183.4 million.
This has been achieved, despite challenging economic circumstances, by continuing
to focus on Western Cape assets and adding quality properties with excellent lease
profiles.
Since the inception of the Company, the executive team has demonstrated remarkable
skill in identifying redevelopment and new development opportunities and bringing
these to completion. Whilst development continues to be one of the Company's core
strengths and focuses, where good value is seen in well-let completed buildings,
these too have also been acquired.
A brief synopsis of the year's achievements is as follows:
PROPERTY ACQUISITIONS CONCLUDED
- A portfolio of eight prime properties and a 67% interest in Insight Property
Developers (Palmyra Road) Proprietary Limited for a total consideration of R863 million.
- The SARS building situated at 17 Lower Long Street for R47 million. This property
adjoins our Virgin Active property, is situated close to the Cape Town International
Convention Centre, and with new development rights negotiated will enable a
significant new development opportunity in the future.
- The Vineyard Centre in Claremont for R28.2 million. This acquisition completes
a major property assembly as it adjoins our 14 Dreyer and 72 on Main properties
and will enable a substantial new development in this prime location.
- The Chamber House building, now known as 19 Louis Gradner Street, for
R18.5 million. This completes our assembly of the entire Foreshore Block bounded
by Christiaan Barnard, Jack Craig and Louis Gradner Streets. The building is
presently being refurbished, extended in height and additional parking is under
construction to ensure the parking requirements for the whole city block are well
provided for.
- The central city block bounded by Strand, Rose, Castle and Chiappini Streets
("Strand Street block") for R86 million. A mixed-use development is being planned
on this prime property which is between the "De Waterkant" and "Bo-Kaap" precincts.
OTHER SIGNIFICANT INITIATIVES AND EVENTS AFTER THE REPORTING PERIOD
- A redevelopment of our property known as Food Lover's Market, situated at the
corner of Dreyer, Corwen and Vineyard Roads, Claremont is being planned for
commencement towards the end of 2015.
- The Company plans to commence the development of the Strand Street block early
in the new year.
- Post-year-end we acquired the remaining 50% share from Redefine Properties Limited
of our site on Hans Strijdom Avenue for R38 million. This will assist us in
achieving our development proposals for this strategic site.
- Post-year-end we acquired Pinewood Office Park in Pinelands for R35 million.
This is a well-let office park, currently let predominantly to Old Mutual Life
Assurance Company, with additional available bulk and land, which will be
developed in the future.
- Post-year-end we took transfer of 64 White Road, Retreat for R124.5 million.
This transaction was completed late last year but transfer was delayed due to a
land subdivision.
GENERAL
Last year the board decided to convert the Company to a Real Estate Investment Trust
(REIT) but after careful reconsideration it has been decided to no longer do this.
The board believes that because of the Company's major ongoing development initiatives,
the intelligent use of debt finance instead of equity and the tax incentives being
obtained on the Company's city developments, a REIT structure is inappropriate.
Lastly, the Company is pleased to announce its annual distribution to shareholders
of 2.5 cents per share. This represents a 66.7% increase when compared to the prior year.
Our thanks go to the executive team for their dedication and commitment to the
success of the Company, and to the shareholders for their support and encouragement.
3. GENERAL REVIEW
Ingenuity has continued on its drive to grow a focused niche property investment
business. It has maintained and built a portfolio that will continue to deliver
solid performance through years to come. The development focus has provided us with
a unique ability to extract maximum value in both new grass root developments and
building refurbishments. Our portfolio maintains its Western Cape flavour and
provides us with a platform to perform strongly in a market best known to us. Our
focus remains on quality deals, leases with blue-chip tenants and strong enduring
cash flows.
During the year under review the total asset base, including development assets
completed, increased in value by R1.35 billion, or 96%, whilst borrowings were
maintained at appropriate levels.
The increase in investment properties, due to properties acquired and developments
completed, resulted in a substantial increase in contractual revenues and, together
with the fair value adjustments to investment properties, resulted in a significant
increase in the deferred tax liability at year-end.
The Company remains focused to unlock land value and timeously deliver properties
under development.
4. BORROWINGS
The Company achieved a weighted average borrowing cost of 7.98% (2013: 8.82%).
Total borrowings at year-end amounted to R1.579 million (2013: R727.7 million) all
of which is floating at rates linked to prime, at a weighted average rate of 7.93%
(2013: R200 million was fixed at an all-inclusive rate of 10.65% and the balance was
floating at rates linked to prime at a weighted average rate of 7.76%). The increase
in borrowings for the current year came about as a result of the acquisition of
multiple properties during the year and borrowings on developments completed during
the year, including the Glacier Place and the Parkalot (Reeds) parking garages.
Total cash on hand at year-end amounted to R34.6 million (2013: R20.4 million).
Excess cash is applied to reduce borrowings or to grow the asset base where
appropriate.
The Company's loan to value ratio is 56% (2013: 52%) at year-end. This is considered
acceptable considering the development nature of the Company and the fact that we
seek to maximise growth of the business through leverage of the Company's own core
asset base.
5. PROPERTY PORTFOLIO ACTIVITIES
ATLANTIC CENTRE, REEDS, PARKALOT, 31 AND 33 MARTIN HAMMERSCHLAG WAY AND
19 LOUIS GRADNER - FORESHORE
Much of the last year was focused on this significant city block. Atlantic Centre,
which was completed during the previous financial period, has been well let with only
two floors remaining vacant at year-end. Both floors are currently under negotiation
and this vacancy should be closed in the next few months.
The parking garage, known as Parkalot, built on top of the existing Reeds Building
was completed in August 2014. This development added a further four floors to the
existing structure to create a parking garage comprising 896 bays. The parking will
service the entire office block and offer parking facilities to external users. The
total capital cost of this project was R69.4 million and achieves an initial yield
close to 10%.
A development application has also been submitted to the planning authorities for the
development of a prime A-grade office building on the site adjacent to Atlantic Centre.
19 Louis Gradner, which was acquired for the sum of R18.5 million during the year
is also under redevelopment and is due for completion during the first quarter of 2015.
The development will see two additional floors of offices being added to the existing
structure and seven levels of parking being built. The expected capital cost of this
development including the initial purchase price is estimated to be R63 million.
SANTAM BUILDINGS 1, 2 AND GLACIER PLACE - TYGER VALLEY
The internal upgrade of Santam Building 2 as well as the completion of the Glacier
parking extension, was completed in July 2014. These developments reinforce the
value of this significant grouping of properties.
6. RELATED PARTY TRANSACTIONS
During the year the group paid collection commission of R3.737 million
(2013: R1.393 million) to Rabie Property Administrators Proprietary Limited and
professional architects' fees of R3.569 million (2013: R878 000) to Fabian Architects.
During the year the group paid executive directors' remuneration of R6.932 million
(2013: R4.310 million) and non-executive directors' remuneration of R620 000
(2013: R550 000).
Relationships:
Rabie Property Administrators Proprietary Limited - LH Cohen (director of Ingenuity)
is a trustee of a shareholder of the holding company of Rabie Property Administrators
Proprietary Limited.
Fabian Architects - DB Fabian (director of Ingenuity) is the sole proprietor of
Fabian Architects.
7. DIVIDENDS TO SHAREHOLDERS
In respect of the current year the board of directors has declared a cash dividend
of 2.5 cents per share (2013: 1.5 cents per share), to be paid to shareholders who
are registered on the record date of 12 December 2014. The total estimated dividend
to be paid by the Company is R30.287 million (2013: R18.005 million).
The dividend, as defined in the Income Tax Act, has been declared from income reserves
and no secondary tax on companies credits have been utilised. A dividend withholding
tax of 15% will be applicable to all shareholders who are not exempt from paying
dividends tax.
Company tax reference number 9635/047/14/6
Gross cash dividends per share 2.5 cents
Net cash dividend amount per share 2.125 cents
Issued number of shares 1 211 469 543
Declaration date Monday, 3 November 2014
Last day to trade cum dividend Friday, 5 December 2014
First day to trade ex dividend Monday, 8 December 2014
Record date Friday, 12 December 2014
Payment date Monday, 15 December 2014
Shares may not be dematerialised or rematerialised between Monday, 8 December 2014
and Friday, 12 December 2014, both days inclusive.
8. CAPITAL COMMITMENTS AUTHORISED
Authorised and contracted for commitments amount to R36.3 million
(2013: R1 150 million) at year-end. The commitments include commitments for the
redevelopment of properties and commitments for additional work on completion of
two parking garages, which will be financed from existing cash resources and finance
facilities.
9. SHARE CAPITAL
During the year 405 919 543 (2013: 67 000 000) shares were issued in terms of
vendor placements at between R0.80 and R0.90 (2013: R0.61) per share to fund part
of the purchase prices of various properties during the year.
10. BUSINESS COMBINATIONS
On 1 September 2013 the group acquired 67% of the issued share capital of Insight
Property Developers (Palmyra Road) Proprietary Limited. The Company's only asset
is a shopping centre situated in Palmyra Road with a GLA of 2 868 square metres.
The purchase price was settled in cash.
Purchase consideration and fair value of assets acquired:
R'000
Investment property 69 236
Trade and other receivables 887
Cash and cash equivalents 758
Financial liabilities (34 107)
Finance lease (3 430)
Trade and other payables (1 882)
Fair value of assets acquired 31 462
Non-controlling interest (10 383)
Ingenuity Property Investments Limited share 21 079
Total purchase consideration (20 719)
Gain on bargain purchase - included in net operating expenses 360
Cost of shares 20 719
Loan acquired 22 961
Purchase consideration settled in cash 43 680
Less: cash on hand at acquisition (758)
Net cash outflow 42 922
The beginning of the annual reporting period is the same date as the acquisition
date, 1 September 2013.
Non-controlling interests were measured at the group's proportionate share of the
fair value of the assets acquired.
There was no contingent consideration.
The fair value of trade and other receivables is R887 178 and includes trade
receivables of R279 819. No trade receivables were impaired or past due. The fair
value of trade and other receivables represents gross contractual cash flows, all
of which is expected to be received.
The investment property was revalued at acquisition by an external, independent
valuation company, Mills Fitchet Magnus Penny Proprietary Limited, having
appropriate recognised professional qualifications and recent experience in the
location and category of the property being valued. Fair values are determined as
the price that would be received to sell assets in orderly transactions between
market participants at the measurement date.
Non-controlling interest was measured using the proportionate share of the
acquired entity's net identifiable assets. At acquisition, non-controlling interest
was identified as the remaining 33% in Insight Property Developers (Palmyra Road)
Proprietary Limited.
A gain on bargain purchase arose as a result of accounting adjustments made to
assets and liabilities in the financial statements of the subsidiary subsequent to
the negotiation of the purchase consideration.
Acquisition-related costs of R288 337 were incurred on the transaction.
R'000
Revenue since acquisition 9 191
After-tax profit since acquisition 6 314
11. EVENTS AFTER THE REPORTING PERIOD
The registration of transfer of Erf 127260, Cape Town, known as 64 White Road,
Retreat took place on 17 October 2014 at a cost of R124.5 million and was financed
by way of borrowings and internal cash resources.
The company has entered into an agreement of purchase and sale to acquire the
following properties together with all improvements thereon:
- Erf 4164, Pinelands, known as Pinewood Park,
- Sectional unit No. 1001 together with an undivided share in the common property
apportioned to it in the Sectional Title Scheme SS326/2005, known as Mutual Heights
for a total consideration of R35 million, with registration of transfer expected
on or about 1 February 2015.
The company has also entered into an agreement to acquire the rental enterprise,
including the property of an undivided half share in Erf 173153, Cape Town, for
R38 million with registration of transfer expected on or about 1 January 2015.
This is to be funded by borrowings and internal cash resources. This will result
in the company owning 100% of Erf 173153, Cape Town (known as The Modern). The
acquisition did not constitute an acquisition of a business in accordance
with IFRS 3.
Other than as mentioned above, there are no other material reportable events after
the reporting period which have occurred since the end of the financial year being
reported on and the date of this report.
12. PROSPECTS
2014 has been a significant year for Ingenuity and has strongly positioned us for
the future.
Despite continued worldwide economic uncertainty, the Company remains focused in its
strategy to build a superior quality property group with resultant prime investment
assets. This steadfast approach continues to deliver solid investment returns.
For and on behalf of the board
ARNOLD AARON MARESKY MARK WAGENHEIM
Chief Executive Officer Chief Financial Officer
Cape Town
4 November 2014
PREPARER OF THE PRELIMINARY CONDENSED CONSOLIDATED RESULTS
In compliance with the disclosure requirements of the Companies Act 71 of 2008, these
preliminary condensed consolidated results have been prepared by Ms Lauren Combrink
B.Compt (Hons), CTA, CA(SA) under the supervision of Mr M Wagenheim, B.Com (Hons),
CTA, CA(SA).
Directors: RC Squire-Howe (Chairman)*, AJ Branch* (British), J Bielich,
LH Cohen*, DB Fabian*, AA Maresky (CEO), RS Schur*, M Wagenheim
* Non-executive
Company secretary: M Wagenheim
Registered office:
Suite 102, 1st Floor Intaba, 25 Protea Road, Claremont, Cape Town, 7708
Postal address:
Suite 102, 1st Floor Intaba, 25 Protea Road, Claremont, Cape Town, 7708
Contact details:
Tel: 021 674 5170 Fax: 021 674 5135
E-mail: info@ingenuityproperty.com
www.ingenuityproperty.com
Transfer secretaries:
Computershare Investor Services Proprietary Limited
70 Marshall Street, Johannesburg, 2001
(PO Box 61051, Marshalltown, 2107)
Auditors:
Mazars Inc., Mazars House, Rialto Road, Grand Moorings Precinct,
Century City, Cape Town, 7441.
(PO Box 2785, Cape Town, 8000)
Attorneys:
Edward Nathan Sonnenbergs Inc., 1 North Wharf Square, Loop Street, Cape Town, 8001
(PO Box 2293, Cape Town, 8000)
Investment bank and sponsor:
Nedbank Capital, a division of Nedbank Limited
3rd Floor, Corporate Place, Nedbank Sandton, 135 Rivonia Road, Sandton, 2196
(PO Box 1144, Johannesburg, 2000)
Bank:
ABSA Bank Limited, 1st Floor Tijgerpark IV Building
Willie van Schoor Drive, Tyger Valley, Bellville, 7530
(PO Box 4453, Tyger Valley, 7536)
Date: 04/11/2014 04:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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