Wrap Text
Reviewed preliminary condensed consolidated financial results for the year ended 31 March 2015
Investec Australia Property Fund
Registered in Australia in terms of ASIC (ARSN 162 067 736)
Registered in terms of the Collective Investment Schemes
Control Act No. 45 of 2003
Share code: IAP
ISIN: AU60INL00018
Investec Australia Property Fund 2015
Reviewed preliminary condensed consolidated financial results
for the year ended 31 March 2015
Successful execution of strategy outlined on listing
Highlights
Final distribution of
4.15cpu pre WHT
9.1% annualised growth
Full year distribution of
8.18cpu pre WHT
7.6% annualised growth
Portfolio growth of 178%
2.8x growth since listing
AUD156mn (77%)
of rights offer capital
deployed in six months –
strongly acquisitive in
very competitive market
Fund geared at 27%*
Geared growth effect
materialised
Strong underlying
property fundamentals
6.4 years WALE
1.3% vacancy
Quality tenant base supports
sustainable earnings
98.7% leased
9.7%** NAV growth
since listing – driven
by underlying property
performance
Historically low funding
rates locked in
4.15% all in funding rate
and 100% hedged
FY16 guidance
10% to 12%
growth pre WHT
* Post Glendenning acquisition (valued at AUD19.2mm).
** Pre-transaction costs.
Operational KPIs*
Number of properties
2015 2014
17 9
Property portfolio
2015 2014
AUD361mn AUD154mn
Gross lettable area
2015 2014
125 118m(2) 54 249m(2)
Weighted average lease expiry
(by income)
2015 2014
6.4 years 7.3 years
Weighted average escalations
2015 2014
3.4% 3.5%
Occupancy rate
2015 2014
98.7% 99.5%
Units in issue
2015 2014
246 581 298 134 685 000
Financial KPIs
Distribution per unit pre WHT
2015 2014
8.18 7.60
Distribution per unit post WHT
2015 2014
7.88 7.10**
Cost to income ratio
2015 2014
13.2% 14.8%
Gearing
2015 2014
27%^ 14%
Funding costs
2015 2014
4.15% 4.69%
Weighted average debt expiry
2015 2014
4.8 years 2.0 years
Weighted average swap expiry
2015 2014
5.5 years 1.9 years
Hedged position
2015 2014
100% 100%
* Post Glendenning acquisition (valued at AUD19.2 mn)
** Annualised
^ Gearing post the distribution in June will be approximately 30%
Condensed consolidated statement of profit or loss and other comprehensive income
Audited
period from
Reviewed 12 December
year ended 2012 to
AUD'000 Notes 31 March 2015 31 March 2014
Revenue, excluding straight-line rental revenue adjustment 22 180 10 129
Straight-line rental revenue adjustment 2 040 1 051
Revenue 24 220 11 180
Property expenses (2 867) (1 498)
Net property income 21 353 9 682
Fair value adjustments – investment property 2 2 051 (18)
Other operating expenses (2 500) (941)
Operating profit 20 904 8 723
Finance costs (4 803) (1 388)
Finance income 195 152
Other income 46 6
Total comprehensive income and profit for the period 16 342 7 493
Number of units
Units in issue at the end of the period 246 581 134 685
Weighted average number of units in issue for the period 190 633 57 214
Basic and diluted earnings per unit (cents) 3 8.84 13.10
Condensed consolidated statement of financial position
Reviewed Audited
AUD'000 Note 31 March 2015 31 March 2014
ASSETS
Non-current assets 342 130 154 381
Investment property 342 130 154 364
Financial instruments held at fair value – 17
Current assets 3 609 6 657
Cash and cash equivalents 2 361 6 370
Trade and other receivables 1 248 287
Total assets 345 739 161 038
EQUITY AND LIABILITIES
Unitholders' interest 248 704 132 058
Contributed equity 246 496 131 025
Retained earnings 2 208 1 033
Total unitholders' interest 248 704 132 058
Non-current liabilities 81 652 22 185
Long-term borrowings 78 752 22 185
Financial instruments held at fair value 4 2 900 –
Current liabilities 15 383 6 795
Trade and other payables 5 157 2 193
Distributions payable 10 226 4 602
Total equity and liabilities 345 739 161 038
Units in issue 246 581 134 685
Net asset value per unit (cents) 100.86 98.05
Condensed consolidated statement of cash flows
Audited
period from
Reviewed 12 December
year ended 2012 to
AUD'000 31 March 2015 31 March 2014
Cash generated from operations 18 832 9 543
Finance income received 195 135
Finance costs paid (1 856) (1 329)
Distribution paid to unitholders (14 533) (1 858)
Net cash inflow from operating activities 2 638 6 491
Net cash outflow used in investing activities (183 675) (153 331)
Net cash inflow from financing activities 177 028 153 210
Net (decrease)/increase in cash and cash equivalents (4 009) 6 370
Cash and cash equivalents to beginning of the period 6 370 –
Cash and cash equivalents at the end of the period 2 361 6 370
Condensed consolidated statement of changes in equity
Total
Contributed Retained unitholders'
AUD'000 equity earnings interest
Balance at 12 December 2012 – – –
Profit for the period – 7 493 7 493
Total comprehensive income – 7 493 7 493
Transaction with unitholders in their capacity as unitholders
Issue of ordinary units 131 025 – 131 025
Distributions paid/payable to ordinary unitholders – (6 460) (6 460)
Balance at 31 March 2014 131 025 1 033 132 058
Profit for the period – 16 342 16 342
Total comprehensive income – 16 342 16 342
Transaction with unitholders in their capacity as unitholders
Issue of ordinary units 120 462 – 120 462
Distributions paid/payable to ordinary unitholders (4 991) (15 167) (20 158)
Balance at 31 March 2015 246 496 2 208 248 704
Condensed segmental information
AUD'000 Office Industrial Total
Statement of profit or loss and other comprehensive income 2015
Revenue from external customers, excluding straight-line
rental revenue adjustment 16 179 6 001 22 180
Straight-line rental revenue adjustment 1 493 547 2 040
Property expenses (2 228) (639) (2 867)
Segment results 15 444 5 909 21 353
Net investment property revaluation 2 312 (261) 2 051
Total segment results 17 756 5 648 23 404
Statement of financial position extracts at 31 March 2015
Investment property balance 1 April 2014 105 254 49 110 154 364
Acquisitions 137 941 45 734 183 675
Straight-line rental revenue receivable 1 493 547 2 040
Fair value adjustments 2 312 (261) 2 051
Investment property at 31 March 2015 247 000 95 130 342 130
Statement of profit or loss and other comprehensive income 2014
Revenue from external customers, excluding straight-line
rental revenue adjustment 4 208 5 921 10 129
Straight-line rental revenue adjustment 311 740 1 052
Property expenses (824) (674) (1 499)
Segment results 3 695 5 987 9 682
Net investment property revaluation (480) 462 (18)
Total segment results 3 215 6 449 9 664
Statement of financial position extracts at 31 March 2014
Investment property balance 12 December 2012 – – –
Acquisitions 105 423 47 908 153 331
Straight-line rental revenue receivable 311 740 1 051
Fair value adjustments (480) 462 (18)
Investment property at 31 March 2014 105 254 49 110 154 364
Notes to the reviewed preliminary condensed consolidated financial results
Audited
period from
Reviewed 12 December
year ended 2012 to
AUD'000 Notes 31 March 2015 31 March 2014
1. Distribution reconciliation
Profit and total comprehensive income for the period 16 342 7 493
Less: Straight-line rental revenue adjustment (2 040) (1 051)
Add back: Fair value adjustments – investment property (2 051) 18
Add back: Fair value adjustments – derivatives 2 917 –
Antecedent distribution a 4 991 –
Total distributable earnings 20 159 6 460
Less: Pre-listing distribution paid – (1 858)
Less: Interim distribution paid (9 932) –
Final distribution pre withholding tax 10 227 4 602
Withholding tax paid/payable to the Australian Taxation Office (460) (290)
Final distribution post withholding tax 9 767 4 313
Number of units
Units in issue at the end of the period 246 581 134 685
Weighted average number of units in issue for the period 190 633 57 214
Cents
Final distribution per unit (cents) (pre withholding tax) 4.15 3.42
Interim distribution per unit (cents) (pre withholding tax) 4.03 –
Total distribution per unit (cents) (pre withholding tax) a 8.18 3.42
Final distribution per unit (cents) (post withholding tax) 3.96 3.20
Interim distribution per unit (cents) (post withholding tax) 3.92 –
Total distribution per unit (cents) (post withholding tax) a 7.88 3.20
Basic and diluted earnings per unit for the period b 8.57 13.10
Basic and diluted headline earnings per unit for the period b 9.77 13.13
(a) The full year and half year distributions include the antecedent distribution associated with the rights offer which was
completed in October 2014. This amounts to AUD5.0mn.
(b) The annualised basic and diluted earnings per unit and the headline earnings per unit for the period from listing to
31 March 2014 was 8.27 cents per unit and 8.28 cents per unit respectively.
2. Fair value adjustment of investment property
The Fund's policy is to value investment properties at year-end, with independent valuations performed on a rotational
basis to ensure each property is valued at least every 24 months by an independent external valuer (in compliance with
the Fund's debt facility). Where directors' valuations are performed, the valuation methods include using the discounted
cash flow model and the capitalisation model.
Revaluations were performed at year-end by independent valuers for all properties held by the Fund prior to the rights
offer which took place in October 2014. Independent external valuations were obtained at the time of acquisition for all
of the Fund's acquisitions during the year.
Tightening yields across all sectors contributed to strong valuation uplifts for the properties that were revalued. These
properties recorded a AUD14.2mn (7.9%) uplift in value. This was offset by the write off of AUD10.1mn of transaction
costs associated with the more recent acquisitions. Total net revaluations for the current year amounted to AUD2.05mn
as set out below:
Audited
period from
Reviewed 12 December
year ended 2012 to
AUD'000 31 March 2015 31 March 2014
Gross investment property fair value adjustment 4 091 1 033
Less: Straight-line rental revenue adjustment (2 040) (1 052)
Total fair value adjustment – investment property 2 051 (18)
Fair value adjustment on interest rate swap (2 917) 17
Net fair value adjustments (866) (1)
3. Headline earnings reconciliation
Profit and total comprehensive income for the period 16 342 7 493
Add back: Fair value adjustments – investment property 2 051 18
Headline earnings 18 393 7 512
Basic and diluted headline earnings per unit (cents) 9.65 13.13
4. Working capital management
The Fund utilises its monthly cash flows to pay down its debt facility whilst maintaining the facility limit. The Fund will draw
this cash back from the debt facility in order to pay its final distribution in June 2015. This results in the most efficient use
of the Fund's strong cash flows. The current undrawn facility limit is AUD11.0mn and the Fund has the ability to draw on
this unconditionally.
5. Related party transactions
The Fund entered into the following significant related party transactions during the year with the Investec Group and its
subsidiaries:
Transaction with related parties (AUD'000) 31 March 2015 31 March 2014
Payments to Investec Group and its subsidiaries:
Investec Property Management Pty Limited
Asset management fee 1 583 439
Property management fee* 320 61
Leasing fee 41 –
Investec Bank Limited
Sponsor fee 10 10
Capital raising fees and listing costs 888 2 160
Receipts from Investec Group and its subsidiaries:
Investec Australia Limited
Payments to the Fund under income support arrangements** 1 161 834
* Investec Property Management Pty Limited (IPMPL) has been contracted to perform property management services. IPMPL has sub-contracted this
to third party property managers who receive this fee from IPMPL.
** The two tenancies that were the subject of these income support arrangements have now been leased to third parties.
6. Financial instruments
Financial instruments held at fair value consist of interest rate swaps, which are classified as level 2. These are valued
using valuation models which use market observable inputs such as quoted interest rates. No other financial instruments
are carried at fair value.
7. Comparative period
The comparative period results presented cover the 15-month period from 12 December 2012 (being the date the
Fund was established) to 31 March 2014; however, the period relevant to unitholders is from the listing date (being
24 October 2013) to 31 March 2014. Therefore, the comparative results are limited in their comparability with the current
preliminary results.
Commentary
Introduction
Investec Australia Property Fund ("the Fund") is the first inward-listed Australian REIT on the JSE. It is an income-producing fund that
operates in a stable and developed market. The Fund currently comprises 17 properties in Australia with a total gross lettable area
("GLA") of 125 118m(2) and a portfolio value of AUD361.3mn, post the Glendenning acquisition.
The Fund aims to maximize sustainable returns to unitholders by investing in quality office, industrial and retail properties in Australia,
giving unitholders exposure to the Australian real estate market.
Financial results
The results below are the outcome of the successful implementation of the strategy outlined at listing, namely:
- Acquiring quality real estate, backed by solid property fundamentals:
- good location, strong tenant covenants, contractual escalations, new or near new buildings or limited capital expenditure
requirements with attractive depreciation shields
- Deploying the gearing capacity from the listing and subsequent equity capital raised quickly and effectively, by accessing off-
market transactions and benefiting from the positive spread between property yields and cost of debt, locking in near all-time low
interest and credit spreads through conservative and effective balance sheet and interest rate management
The board of directors of Investec Property Limited ("IPL") is pleased to announce a 9.1% increase in the pre withholding tax final
distribution to 4.15 cents per unit (2014: 3.80cpu annualised) bringing the total distribution for the year to 8.18 cents per unit pre
withholding tax (2015: 7.60cpu annualised), representing growth for the full year of 7.6%.
The Fund is also reporting an 11.6% increase in the post withholding tax final distribution to 3.96 cents per unit. This brings the total
post withholding tax distribution for the year to 7.88 cents per unit, representing growth for the full year of 11.0% post withholding
tax. The effective rate of withholding tax on the distribution has been impacted by the antecedent distribution (which is not subject to
withholding tax) and once off tax deductions which are not expected to be repeated in future years. The normalised distribution per
unit post withholding tax without the effect of these once off items would have been approximately 7.73 cents per unit representing
normalised growth of 8.8% post withholding tax.
The Fund's second half results are of particular importance, given that it is the first period for which comparable results have been
presented since listing in October 2013. The Fund's average level of gearing during the year was 17.4% (2014: 2.9%), which when
combined with the spread of property yield over cost of debt of approximately 4%, has led to the 9.1% distribution growth for the
six-month period and 7.6% for the full year.
Distribution growth – pre WHT
Cents per unit H2 Full year
2014 annualised 3.80 7.60
2015 4.15 8.18
+/- 9.1% 7.6%
The Fund also recorded good asset value growth on the back of strong revaluations across the portfolio (7.8% uplift year
on year). This, along with the strong performance of the property portfolio as a whole, has translated into NAV growth of
8.7% year on year and 9.7% since listing, pre transaction costs. The NAV growth post transaction costs (largely stamp
duty of approximately 5.5% of transaction value) is diluted to 3.4% due to the extent of acquisitive growth that the Fund has
experienced from its portfolio of AUD154.4mn last year.
Properties
The Fund currently has a core portfolio of 17 quality and well located properties. The strength of the property fundamentals is
evidenced by a long dated WALE of 6.4 years with 64% of leases expiring after five years. The portfolio currently has 98.7%
occupancy, strong tenant covenants and attractive average rental escalations of approximately 3.4% per annum.
Property
% of % of Cap
Book value portfolio Total area portfolio rate
Sector (AUD) by value (m(2)) by area %
Industrial portfolio
48 Hawkins Crescent, Ipswich QLD Industrial 3 580 000 1.0 2 045 1.6 8.00
47 Sawmill Circuit, Hume ACT Industrial 10 400 000 2.9 5 535 4.4 7.25
57 Sawmill Circuit, Hume ACT Industrial 9 100 000 2.5 7 079 5.7 7.75
24 Sawmill Circuit, Hume ACT Industrial 9 400 000 2.6 6 300 5.0 7.75
44 Sawmill Circuit, Hume ACT Industrial 9 500 000 2.6 4 639 3.7 8.75
2 – 8 Mirage Rd, Direk SA Industrial 10 000 000 2.8 6 782 5.4 8.00
Industrial assets acquired during the year
30 – 48 Kellar Street, Berrinba QLD Industrial 8 200 000 2.3 4 102 3.3 8.34*
165 Newton Road, Wetherill Park NSW Industrial 18 500 000 5.1 12 529 10.0 7.86*
24 Spit Island Close, Newcastle NSW Industrial 8 350 000 2.3 5 258 4.2 8.04*
67 Calarco Drive, Derrimut VIC Industrial 8 100 000 2.2 7 149 5.7 7.73*
Office portfolio
449 Punt Road, Cremorne VIC Office 34 000 000 9.4 6 384 5.1 7.50
35 – 49 Elizabeth Street, Richmond VIC Office 61 000 000 16.9 11 917 9.5 7.50
Building 20, 2404 Logan Road, Eight Mile
Plains QLD Office 21 000 000 5.8 3 571 2.9 8.25
Office assets acquired during the year
186 Reed Street, Greenway ACT Office 26 500 000 7.4 5 407 4.3 7.84*
757 Ann Street, Fortitude Valley QLD Office 65 500 000 18.1 9 125 7.3 8.34*
21 – 23 Solent Circuit, Baulkham Hills NSW Office 39 000 000 10.8 10 835 8.7 7.77*
Total at 31 March 2015 342 130 000 108 657
Acquired subsequent to 31 March 2015
66 Glendenning Road, Glendenning NSW Industrial 19 170 000 5.3 16 461 13.2 7.66
Total 361 300 000 125 118
* Acquisition yield.
Acquisitions
During the year the Fund completed AUD183.7mn of property acquisitions and has completed a further AUD21.5mn acquisition post
year-end, increasing the portfolio value by 122% for the year and 2.8x since listing in October 2013.
The acquisitions comprise a mix of high quality office and industrial properties which are well located and have strong tenant
covenants. They also reflect management's strategic focus and ability to unlock off-market transactions through the Investec network
in a very competitive market.
Yields have continued to tighten across all market sectors over the year which is reflected in the recent acquisitions. This has reduced
the net property income yield across the portfolio, which has been mitigated by downward pressure on borrowing costs, proactively
managed by management. The weighted average property yield of the portfolio is now 8.23% (31 March 2014: 8.44%; on listing:
8.59%). This yield compression has also had a positive effect on property valuations.
Vacancy levels
The property portfolio currently has 1.3% vacancy which comprises 1 636m(2) at the recently acquired property at 21 – 23 Solent
Circuit, Baulkham Hills NSW. This vacancy represents an opportunity to increase the already attractive yield on which this asset was
purchased from 7.8% to 9.4%. No other tenancies have become vacant during the period.
Lease expiry profile by sector
The Fund's lease expiry profile at year-end remains very strong with a weighted average lease expiry of 6.4 years by income and with
64% of leases expiring after five years. The lease expiry profile reflects the quality and sustainability of the Fund's net property income.
Geographic spread by GLA (%)
31 March 2015
NSW 26%
QLD 17%
ACT 27%
SA 6%
VIC 24%
Geographic spread by income (%)
31 March 2015
NSW 3%
QLD 22%
ACT 26%
SA 4%
VIC 45%
Capital funding
On listing, and in a subsequent fully subscribed rights offer, the Fund has raised AUD234.2mn of equity capital.
The Fund's balance sheet remains well positioned for growth with gearing currently at 27%, post the Glendenning acquisition. At the
Fund's target gearing ratio of up to 40% this gives the Fund up to AUD67.0mn in debt capacity to continue to aggressively pursue
attractive acquisition opportunities.
The Fund has continued to review its fixed borrowing costs and has taken advantage of falling interest rates in Australia by locking
in lower forward rates during the year. The Fund has renegotiated its debt facility, increasing the tenor by three years to five years
and simultaneously reducing the margin by 42.5bps to 1.275%. The Fund now has a long dated debt and swap maturity profile of
4.84 years and 5.52 years respectively and a current hedged position of 100%. The Fund has also achieved an all in cost of funding
of 4.15% at a 100% hedged level – a 15% reduction of 64bps since listing.
Australian REIT structure
The Fund allows for the tax efficient flow-through of net income to unitholders. The Fund is an uncapped and open-ended fund
and existing and future unitholders will hold a participatory interest in the Fund, which entitles unitholders to a pro rata share of
the underlying income generated by the Fund and a pro rata beneficial interest in the assets of the Fund. The Fund is registered
as a Managed Investment Scheme in Australia. The Fund is governed and operated by IPL and managed by Investec Property
Management Pty Limited.
Unit capital
The Fund has unit capital of AUD246.5mn at 31 March 2015. The Fund had 134.7mn units in issue at the beginning of the year.
In October 2014, the Fund issued 111.9mn new units as part of a AUD120.0mn rights offer taking the total units in issue to 246.6mn
at year-end.
Unitholders
Investec Property Fund Limited and Investec Bank Limited are the only unitholders holding in excess of 5% of the Fund's total issued
units, holding 18.56% and 16.33% respectively.
Number of units in issue 246 581 298
Number of unitholders 2 839
Changes to the board
In July 2014, unitholders were informed of the unfortunate and untimely passing of Michael Crawford. Mr Crawford was an independent
non-executive director of IPL and a member of the Audit and Risk Committee. Mr Crawford made an invaluable contribution to the
board and board committees of IPL and to the listing and initial growth phase of the Fund.
Sam Hackner resigned as a non-executive director of IPL effective 7 July 2014.
Stephen Koseff was appointed as a non-executive director of IPL effective 7 July 2014.
Hugh Martin was appointed as an independent non-executive director of IPL effective 30 September 2014. Mr Martin is also a
member of the Audit and Risk Committee.
Prospects
The FY 2015 results reflect the positive outcome of the successful execution of the Fund's strategy to date. The Fund is therefore
well positioned to continue with the execution of its strategy to deliver long-term sustainable income and capital growth through the
acquisition and efficient management of quality properties and conservative yet proactive balance sheet and interest rate management.
The board of IPL is therefore pleased to communicate expected distribution growth in FY 2016 of between 10% and 12% pre
withholding tax. The lower end of this guidance assumes no change in the current property portfolio and a gearing level of 30%. The
upper end of this guidance assumes further deployment of gearing capacity during FY 2016 into similar yielding assets. The Fund
currently has AUD67.0mn of gearing capacity up to 40% gearing to deploy into new acquisitions.
This forecast is based on the assumptions that the macro-economic environment will not deteriorate markedly, no tenant failures will
occur and budgeted renewals will be concluded. Budgeted rental income was based on in force leases, contractual escalations and
market-related renewals.
The information and opinions contained above are recorded and expressed in good faith and are based upon sources believed to be
reliable. No representation, warranty, undertaking or guarantee of whatever nature is made or given concerning the accuracy and/or
completeness of such information and/or the correctness of such opinions.
The independent auditor's review report does not report on all of the information contained in this announcement. Any reference to
future financial information included in this announcement has not been reviewed or reported on by the Fund's independent auditors.
On behalf of the board of Investec Property Limited as responsible entity for Investec Australia Property Fund.
Richard Longes Graeme Katz
Chairman Chief Executive Officer
21 May 2015
Basis of accounting
The reviewed preliminary condensed consolidated financial results for the year ended 31 March 2015 have been prepared in
accordance with the recognition and measurement criteria of International Financial Reporting Standards ("IFRS"), the presentation
and disclosure requirements of IAS 34: Interim Financial Reporting as issued by the International Accounting Standards Board, the
SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by
Financial Reporting Standards Council.
The accounting policies applied in the preparation of the reviewed preliminary condensed consolidated financial results for the year
ended 31 March 2015 are in terms of IFRS and are consistent with those adopted in the audited financial statements for the period
ended 31 March 2014, except for the following newly effective standards: IFRS 10: Consolidated Financial Statements and IFRS 12:
Disclosures of Interests in Other Entities.
IFRS 10 introduces a single control model to determine whether an investee should be consolidated. IFRS 12 brings together in
a single standard all the disclosure requirements about an entity's interests in subsidiaries, joint arrangements, associates and
unconsolidated structured entities. These standards do not have a significant impact on the Fund.
Review conclusion
These reviewed preliminary condensed consolidated financial results for the year ended 31 March 2015 have been reviewed by
KPMG, who expressed an unmodified review conclusion. A copy of the auditor's review report is available for inspection at IPL's
registered office together with the financial statements identified in the auditor's report.
Distribution
Notice is hereby given of a final distribution declaration number 3 of:
- 4.14727 cents per unit pre withholding tax
- 3.96077 cents per unit post withholding tax
for the period from 1 October 2014 to 31 March 2015, payable to holders of the units as recorded in the register of unitholders of
the Fund at the close of business on Friday, 12 June 2015. Withholding tax of 0.18650 cents per unit (4.49690%) will be withheld
from the distribution paid to non-Australian unitholders and will be paid to the Australian Taxation Office. The distribution includes the
antecedent distribution associated with the rights offer which was completed in October 2014.
The distribution amount declared from net rental income will be converted from AUD to ZAR at the spot rate on Thursday,
28 May 2015 and the ZAR amount will be announced on SENS Friday, 29 May 2015. The distribution will be paid to unitholders
in ZAR.
The salient dates relating to the distribution are as follows:
Last day to trade in order to participate in the distribution Friday, 5 June 2015
Units to trade ex distribution Monday, 8 June 2015
Distribution amount transferred to South Africa Thursday, 11 June 2015
Record date Friday, 12 June 2015
Distribution posted/paid to certificated unitholders Monday, 15 June 2015
Accounts credited by CSDP or broker to dematerialised unitholders Monday, 15 June 2015
Units may not be dematerialised or rematerialised between Monday, 8 June 2015 and Friday, 12 June 2015, both days inclusive.
The above dates and times are subject to amendment. Any such amendment will be released on SENS and published in the press.
Number of units in issue at the date of the declaration: 246 581 298
The distributions, net of withholding tax, received by South African institutional and individual unitholders will constitute income and
will be subject to income tax in South Africa at the unitholders' marginal tax rate. Individual unitholders will be able to claim a rebate
against the withholding tax paid in Australia (0.18650 cents per unit). Non-tax paying institutional unitholders will not be taxed and will
therefore not be entitled to claim a rebate. The effective withholding tax rate on the distribution is 4.49690%.
The above summary of the tax treatment of the foreign distribution does not constitute legal or tax advice and is based on taxation
law and practice at the date of this announcement. Unitholders should take their own tax advice as to the consequences of their
investment in the Fund and are encouraged to consult their professional advisors should they be in any doubt as to the appropriate
action to take.
By order of the board
Investec Property Limited
Company Secretary
21 May 2015
Directors of the Responsible Entity Manager
Richard Longes# (Non-executive chairman) Investec Property Management Pty Limited
Stephen Koseff (Non-executive) (ACN 161 587 391)
Graeme Katz (Executive) Level 23, Chifley Tower
Samuel Leon (Non-executive) 2 Chifley Square
Sally Herman# (Non-executive) Sydney
Hugh Martin# (Non-executive) New South Wales
# Independent 2000
Australia
Directors of the Manager
Graeme Katz (Executive) Transfer Secretaries
Zach McHerron (Executive) Computershare Investor Services Proprietary Limited
Matthew Liston (Executive) 70 Marshall Street
Jason Sandler (Executive) Johannesburg
Samuel Leon (Non-executive) 2001
(PO Box 61051, Marshalltown, 2107)
Investec Australia Property Fund Phone: +27 11 370 5159
Registered in Australia in terms of ASIC (ARSN 162 067 736)
Registered in terms of the Collective Investment Schemes Sponsor
Control Act No. 45 of 2003 The Corporate Finance division of Investec Bank Limited
Share code: IAP 2nd Floor
ISIN: AU60INL00018 100 Grayston Drive
Sandown
Company Secretary of the Responsible Entity Sandton
Paul Lam-Po-Tang (BCom, LLB) 2196
(PO Box 785700, Sandton, 2146)
Registered office and postal address of the Responsible
Entity and date of establishment of the Fund
Custodian
Australia: Perpetual Corporate Trust Limited
Level 23, Chifley Tower (ACN 000 341 533)
2 Chifley Square Level 12, 123 Pitt Street
Sydney Sydney
New South Wales New South Wales
2000 2000
Australia Australia
Local representative office:
2nd Floor
100 Grayston Drive
Sandown
Sandton
2196
Established on 12 December 2012 in Sydney, Australia.
Registered as a Managed Investment Scheme with ASIC under
the Corporations Act on 6 February 2013. On 23 August 2013
the Registrar of Collective Investment Schemes authorised the
Fund to solicit investments in the Fund from members of the
public in the Republic of South Africa in terms of Section 65 of
the Collective Investment Schemes Control Act, 45 of 2002, as amended.
Responsible Entity
Investec Property Limited
(ACN 071 514 246 AFSL 290 909)
Level 23, Chifley Tower
2 Chifley Square
Sydney
New South Wales
2000
Australia
Date: 21/05/2015 07:51:00 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
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