ORION REAL ESTATE LIMITED - Announcement regarding the disposal of the Mountain View Shopping Centre ("The Disposal")

Announcement regarding the disposal of the Mountain View Shopping Centre ("The Disposal")

ORION REAL ESTATE LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1997/021085/06)
Share Code: ORE ISIN: ZAE000075651
("Orion Real Estate" or “the company”)


ANNOUNCEMENT REGARDING THE DISPOSAL OF THE MOUNTAIN VIEW SHOPPING
CENTRE (“THE DISPOSAL”)


INTRODUCTION
Shareholders are advised of the disposal of the Mountain View Shopping Centre (“the
property”) as a going concern by Orion Property Holdings Trust (“the Seller”) to Milprops 365
(Pty) Limited (“the Purchaser”) for a consideration of R27 750 000.00. The effective date of
the transaction will be the date of transfer of the property into the name of the Purchaser.
The Purchaser is not a related party.

RATIONALE FOR THE DISPOSAL
Orion Real Estate continually evaluates its property portfolio and seeks to maximise its
return to its shareholders. The disposal of the Mountain View Shopping Centre is in line with
this strategy.

TERMS OF THE DISPOSAL
The total cash consideration for the disposal of the property is R27 750 000.00 plus VAT at
0%) payable by the Purchaser to the Seller on transfer of the property. If VAT becomes
payable, the Purchaser shall pay to the Seller an amount equal to the VAT so payable
forthwith on demand against delivery by the Seller to the Purchaser of the documentation
required in terms of the VAT Act to permit the Purchaser to claim a deduction in respect of
such VAT in terms of Section 16(3) of the VAT Act, together with any penalties which may
be raised by the Receiver of Revenue, if applicable.

PROPERTY SPECIFIC INFORMATION
Property specific information is detailed below:

 PROPERTY NAME                          ADDRESS              LOCATION               SECTOR
 Mountain View            Remainder Erf 542 and         Mountain View,              Retail
 Shopping Centre           Erf 558, Gordons Bay,          Stellenbosch
                       Corner of Avonrus Street
                                            and
                               Somerlust Street

 RENTABLE AREA            WEIGHTED AVERAGE             TENANT PROFILE             PROPERTY
                              RENTAL PER M2                                      VALUATION
 Erf 542 and                         R51.54           Woolworths food          R16 290 718
 Erf 558 – 3 427 m2                                     Anchor Tenant

FINANCIAL INFORMATION
The property was last valued by Bradley Ryle, an independent external registered property
valuer, on 30 June 2012 at a fair value or R17 040 351. The property is reflected in the
company’s financial statements at a fair value of R16 290 718 as at 30 June 2014 based on
an updated directors’ valuation. The sale consideration is R27 750 000.00 and brokerage of
2.5% is payable by the Seller, amounting to R693 750.

Impact on statement of comprehensive income:
The disposal, excluding brokerage costs, will result in an estimated profit/loss of
R11 459 282 and R10 448 493 before and after taxation.

Impact on statement of financial position:
The sale will result in a reduction of investment property of R16 290 718, a reduction in
borrowings of R21 958 050 and an increase in cash of R4 781 161, before brokerage costs
and after taxation.

CONDITION PRECEDENT AND DOCUMENTATION
All conditions precedent have been met and the Company is proceeding with the transfer
against the guarantee that has been provided by the Purchaser.




By order of the board
14 January 2015


Sponsor
Arcay Moela Sponsors Proprietary Limited

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