ACCELERATE PROPERTY FUND LTD - Early Exercise and Amendment to Fourways Development Option and Cautionary Announcement

Early Exercise and Amendment to Fourways Development Option and Cautionary Announcement

Accelerate Property Fund Limited
Incorporated in the Republic of South Africa
Registration number 2005/015057/06
Share code: APF
ISIN: ZAE000185815
(“Accelerate” or “the Company”)
(Approved as a REIT by the JSE)


EARLY EXERCISE AND AMENDMENT TO FOURWAYS DEVELOPMENT OPTION
AND CAUTIONARY ANNOUNCEMENT

Background

Shareholders are referred to Accelerate’s Pre-listing Statement, dated 27 November 2013, in which it
was stated that Accelerate had entered into an agreement with Fourways Precinct Propriety Limited
(“Fourways Precinct”) to develop approximately an additional 90 000m² of retail space adding to the
existing Fourways Mall Shopping Centre (“the Development”) in order to convert the current Fourways
Mall into a super-regional shopping centre of c. 170 000m² under one roof (“the Agreement”).

As part of the Development, Fourways Precinct will undertake fundamental infrastructure and traffic
upgrades to significantly improve access to the Fourways Mall Shopping Centre at the cost of Fourways
Precinct, which will have significant benefits for the Fourways Mall Shopping Centre and surrounding
Accelerate properties.

In terms of the Agreement, following completion of the Development, Accelerate and Fourways
Precinct will each own an undivided share in Fourways Mall, including the Development (“Combined
Letting Enterprises”), and either party will have an option to acquire further undivided shares from
the other in order to ensure equal ownership in the aforementioned redeveloped mall based on a
capitalisation rate of 7% (“the Option”).

The ultimate ownership of the Combined Letting Enterprises is dependent upon the revenue
contribution of each of Accelerate and Fourways Precinct. It is anticipated that the relative split
between the parties on completion of the Development will be 60:40 in favour of Fourways Precinct.
Shareholders are hereby advised that Accelerate is currently engaged in advanced negotiations with
Fourways Precinct, and its associated entities, regarding the early exercise of the Option in order to
equalize ownership, at an amended acquisition capitalisation rate of 8% for a super-regional shopping
centre.

Cautionary

Accelerate believes that, if concluded, the early exercise of the Option may have a material impact on
the price of the Company’s securities. Shareholders are therefore advised to exercise caution when
dealing in their Accelerate securities until a further announcement in this regard is made.


Fourways
22 June 2015

Merchant bank and Transaction Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Legal advisors
Glyn Marais Inc.

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