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FREEDOM PROPERTY FUND LTD - Announcement Regarding the Acquisition of AH Plots 25,26,28,29 Lynnwood Road and Withdrawal of Cautionary

Release Date: 05/02/2015 17:00
Code(s): FDP     PDF:  
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Announcement Regarding the Acquisition of AH Plots 25,26,28,29 Lynnwood Road and Withdrawal of Cautionary

Freedom Property Fund Limited
(Incorporated in the Republic of South Africa)
(Registration No. 2012/129186/06)
Share code: FDP
ISIN: ZAE000185260
(“Freedom” or “the Company”)


Announcement Regarding the Acquisition of AH Plots 25,26,28,29 Lynnwood Road -
Katherine Street and Withdrawal of Cautionary Announcement

    1. Introduction
       Freedom Property Fund stakeholders are hereby advised that Freedom (‘the Purchaser’) has entered into an
       acquisition agreement with The Seaside Trust (“the Seller”) for the purchase of a 70% interest in Manu Bay
       which effectively owns the AH Plots 25, 26, 28 & 29 situated off Lynnwood Road, Pretoria for the purchase
       consideration of R53 390 000 (Fifty Three million Rand and three hundred and ninety thousand Rand only)
       excluding VAT (the “Purchaser Price”) ( “ the Acquisition”).

       The effective date of the Acquisition will be the date of registration of transfer of the property into the name
       of Freedom, which is expected to be on or about May 2015.

    2. Property
       The property subject to the Acquisition is the immovable property of the Manu Bay situated at AH Plots
       25,26,28,29 Lynnwood Road – Katherine Street, Shere Agricultural Holdings with title deed numbers
       T47836/95; T7413/2000; T64613/97; T7905/91 (“the Property”).

    3. Rational for acquisition
       The Acquisition is in line with Freedom’s strategy around Silver Park, with the Acquisition, being a well-
       located property within a high growth area, which represents an attractive medium to long term
       development investment that will enhance the overall quality and value of the portfolio.

    4. Conditions Precedent
       The Acquisition is subject to the condition precedent that the Purchaser successfully concluding the
       necessary funding agreements with its own funders, within 30 (thirty) days.

    5. Property Specific Information

        Property                                               AH Plots 25, 26, 28 & 29
        Location                                               Pretoria, Gauteng
        Sector                                                 Mixed Use Commercial
        GLA m²                                                 38 950
        Total Purchase Price                                   R53 390 000
        Valuation of Property                                  R53 390 000

        Notes
        1) The cost of the property is considered to be its fair market value, as determined by the directors of the
           Company. The directors of the Company are not independent and are not registered as professional
           valuers or as professional associate valuers in terms of the Property Valuers Act, No 47 of 2000.
        2) The costs associated with the Acquisition are estimated at R220 000.
        3) The weighted average rent per m2 is not applicable as the Property is currently vacant land.

6. Forecast Financial Information Of The Acquisition
   Due to the Property being vacant land to be used for development in the future, no forecast financial
   information can be given until such a time that a decision regarding the development are taken.

7. Pro Forma Financial Effects Of the Acquisition
   The pro forma effects of the Acquisition on the net asset value and net tangible asset value per linked unit
   are not significant and have therefore not been disclosed.

8. Consideration for acquisition
   The Purchase Price for the Acquisition is R53,390,000 (Fifty Three million Rand and three hundred and
   ninety thousand Rand only) excluding VAT (the “Purchase Price”).

   R13,650,000 (Thirteen million six hundred and fifty thousand Rand only) of the Purchase Price will be payable
   in cash on the transfer date, (and the remainder of the Purchase Price, being R39,740,000 (Thirty nine million
   seven hundred and forty thousand Rand only), will be payable in Freedom shares on the transfer date.

9. Warranties
   The Seller has provided warranties to the Company that are standard to a transaction of this nature.

10. Categorisation
    The Acquisition is a Category 2 transaction in terms of the JSE Limited Listings Requirements.

11. Withdrawal of Cautionary Announcement
    The cautionary announcement released by Freedom on the 22th of July 2014, renewed on the 2nd of
    September 2014, 15th of October 2014, 26th of November 2014 and 14th of January 2015 is hereby withdrawn
    and it is no longer necessary for caution to be exercised when dealing in Freedom shares.

    Johannesburg
    5 February 2015

    Sponsor                                                               Corporate Advisor
    PSG Capital                                                           Base Capital

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