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INVESTEC PROPERTY FUND LIMITED - Acquisition of a property portfolio from Zenprop for R7.06 billion

Release Date: 11/08/2015 15:19
Code(s): IPF     PDF:  
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Acquisition of a property portfolio from Zenprop for R7.06 billion

INVESTEC PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number 2008/011366/06)
Share code: IPF ISIN: ZAE000180915
(“Investec Property Fund” or “the Fund”)


ACQUISITION OF A PROPERTY PORTFOLIO FROM ZENPROP FOR R7.06 BILLION



Transaction Highlights
- Acquisition of an iconic R7.06bn property portfolio underpinned by strong real estate fundamentals and contractual cash flows
- Long lease profiles (weighted average lease expiry (“WALE”) of 4.3 years)
- High quality tenants with strong lease covenants – 80% ‘A’ grade tenants
- Majority of office and industrial properties are single tenanted with triple net leases
- Dominant regional and niche retail properties
- Opportunities for the Fund to acquire additional assets in the future from Zenprop
- Further enhances the quality, defensive nature and scale of the Fund’s existing portfolio
- Transaction to be funded 50% with equity (underwritten) and 50% with debt
- 65.2% irrevocable commitments / letters of comfort in support of the Transaction

1   INTRODUCTION

     The Fund is pleased to advise Investec Property Fund shareholders (“Shareholders”) that it has entered into agreements with
     Zenprop Property Holdings Limited, Friedshelf 113 Proprietary Limited (“Friedshelf”), Double Flash Investments 51 Proprietary
     Limited (“Double Flash”), and associated trusts (collectively “Zenprop”) for the acquisition of an iconic portfolio consisting of 26
     properties (collectively the “Zenprop Portfolio”) for an aggregate acquisition value of R7.06 billion (“Purchase Consideration”) at
     a blended yield of 7.5%.

    The Zenprop Acquisition will be implemented by means of:
    - the purchase of 100% of the shares of, and loan claims in, Friedshelf for the property referred to as Design Quarter;
    - the purchase of 100% of the shares of, and loan claims in, Double Flash for the property referred to as Nicol Grove - Seacom; and
    - the purchase of letting enterprises for the remainder of the Zenprop Portfolio.

    The effective date of the acquisition of the shares of, and loan claims in, Friedshelf and Double Flash will be the first day of the month
    following the fulfilment of the condition precedent set out in paragraph 6, while the effective date for the acquisition of the remainder
    of the Zenprop Portfolio is the date of transfer of the properties (“Effective Date”).

2   BACKGROUND TO THE ZENPROP PORTFOLIO

    The Zenprop Portfolio consists of 26 properties, the majority of which were developed by Zenprop, one of the largest property
    investment and development companies in South Africa. Founded in 1998, it has a track record of excellence, and has earned the
    reputation of 'best-of-breed' developer from its industry peers. The Zenprop Portfolio represents a portion of Zenprop’s total portfolio,
    and comprises an attractive mix of prime investments, which include retail, office and industrial properties.
3   RATIONALE FOR THE ZENPROP ACQUISITION

    The Zenprop Acquisition presents an opportunity for the Fund to acquire an iconic property portfolio that is unique in terms of
    location, quality and scale, underpinned by high quality tenants with strong lease covenants.

    The Zenprop Acquisition is consistent with the Fund’s growth and investment strategy of building a quality portfolio that optimises
    capital and income returns over the medium to long-term for Shareholders.

    The majority of office and industrial properties are single-tenanted with triple net leases, and have long expiry profiles, which will
    complement and augment the Fund’s existing expiry profile. All of the above will add to the quality, defensiveness and income
    predictability of the Fund. In addition, Newcastle Mall has available bulk, allowing scope for further development.

    The portfolio has contractual above-inflation escalations of 7.6%, a 4.3 year WALE, and minimal vacancies (0.5% after taking into
    account the rental guarantees referred to in paragraph 5.3 below).

    The Zenprop Acquisition almost doubles the size of the Fund’s existing portfolio, resulting in an increase in asset base from c.
    R9.5 billion (post the Griffin acquisition) to R16.4 billion, and introduces a high quality portfolio of income producing properties into
    the Fund’s asset base that further enhances the real estate fundamentals of the Fund’s existing portfolio. Although dilutive to the
    Funds growth in the short term, the inclusion of the Zenprop Portfolio enhances the quality of the Fund’s existing portfolio and is
    expected to result in enhanced returns over the medium to long term.

4   OVERVIEW OF THE ZENPROP PORTFOLIO

    The Zenprop Portfolio contains award winning properties, with exceptional and striking architectural designs, along with strong
    property fundamentals, and consists of 26 properties: 12 office properties, 11 industrial properties and 3 retail properties. A snapshot
    of the Zenprop Portfolio is summarised below:
                                                                                                                                                  Net rental             Net property
                Building                                Location                      Sector             GLA (m²)             WALE6                                                             Value (Rm)
                                                                                                                                                   (R/m2)5              income (Rm)1
Brandhouse                                  Elandsfontein, Gauteng               Industrial                     36,800                 5.0                   69.3                      30.4             410.2
Aberdare Cables                             Elandsfontein, Gauteng               Industrial                     50,157                 6.8                   36.9                      22.2             270.8
WACO                                        Elandsfontein, Gauteng               Industrial                     14,375                10.0                   55.6                       9.7             125.6
Lerwick Road                                Wentworth, Durban                    Industrial                     21,793                 6.4                   39.4                       8.6              97.2
Riverhorse – Midas                          Durban, KwaZulu-Natal                Industrial                     11,112                 3.3                   68.7                       9.6             131.9
Riverhorse – RTT                            Durban, KwaZulu-Natal                Industrial                     18,474                 4.9                   75.4                      16.8             233.2
Riverhorse – IHD                            Durban, KwaZulu-Natal                Industrial                      9,261                 2.5                   90.5                      10.4             143.0
Riverhorse – ABB                            Durban, KwaZulu-Natal                Industrial                      2,843                 1.8                   73.9                       2.5              34.6
Riverhorse - Adcock Ingram                  Durban, KwaZulu-Natal                Industrial                      9,987                 7.0                   90.9                      10.8             149.5
Riverhorse - Discovery Health 2             Durban, KwaZulu-Natal                Industrial                      6,109                 3.9                  133.2                       9.8             134.6
Riverhorse - Media24 3                      Durban, KwaZulu-Natal                Industrial                      3,266                 4.5                  131.0                       5.3              73.1
3 Sandown Valley Crescent                   Sandton, Gauteng                     Office                         13,889                 3.1                  133.6                      28.7             354.7
4 Sandown Valley Crescent                   Sandton, Gauteng                     Office                         11,020                 2.7                  158.5                      27.2             336.4
2929 on Nicol                               Bryanston, Gauteng                   Office                         16,149                 2.9                  136.0                      35.7             496.0
1 & 1A Protea Place                         Sandton, Gauteng                     Office                         20,066                 6.2                  200.0                      63.5             795.0
Nicol Grove - Business Centre               Fourways, Gauteng                    Office                          9,211                 4.5                  162.7                      20.8             277.0
Nicol Grove – Lexmark                       Fourways, Gauteng                    Office                          1,946                 4.3                  115.0                       3.4              45.5
Nicol Grove - Pod Communications            Fourways, Gauteng                    Office                          2,559                 2.7                  119.9                       3.9              51.6
Nicol Grove - Saatchi & Saatchi             Fourways, Gauteng                    Office                          4,243                 4.2                  145.2                       8.1             108.2
Nicol Grove – Seacom                        Fourways, Gauteng                    Office                          2,502                 4.5                  116.3                       4.6              61.5
Nedbank Umhlanga Rocks                      Umhlanga Rocks, Durban               Office                          7,038                 4.9                  170.4                      17.1             236.8
Union Castle Building                       Cape Town, Western Cape              Office                          9,066                 6.1                  105.3                      13.5             158.8
Woodmead North Office Park                  Woodmead, Gauteng                    Office                          7,848                 4.4                  154.1                      16.2             193.2
Design Quarter Mall                         Fourways, Gauteng                    Retail                         25,743                 2.3                  126.7                      42.0             560.3
  Nicol Grove - Golfer's Club               Fourways, Gauteng                    Retail                          2,500                 5.0                   96.0                       2.9              38.9
Newcastle Mall                              Newcastle, KwaZulu-Natal             Retail                         39,360                 3.8                  112.5                      51.6             769.6
Zevenwacht Mall                             Kuils River, Western Cape            Retail                        39,956                  3.2                  106.1                     54.9              773.0
Total                                                                                                         397,273                  4.3                                           530.2            7,060.4

   1.   Net property income for the period 1 November 2015 to 31 October 2016
   2.   Utilised as a call centre
   3.   Majority office
   4.   Transaction costs for the Zenprop Acquisition are estimated at 1% of the Purchase Consideration
   5.   Net base rental. Retail excludes parking and turnover rental
   6.   WALEs are inclusive of the rental guarantees as described in paragraph 5.3
   7.   The board of directors of the Fund is satisfied that the aggregate value of the Zenprop Portfolio as shown above is in line with the directors own assessment of the aggregate value of the portfolio

4.1 Office Portfolio

    Protea Place

    1 and 1A Protea Place (collectively “Protea Place”) consist of an award winning office building anchored by DLA Cliffe Dekker
    Hofmeyr, one of the largest business law firms in South Africa, with 7.2 years remaining on its current lease.

    Protea Place is well located in the centre of the Sandton commercial node and is within walking distance of South Africa’s
    “golden mile”, the Sandton City district. Protea Place’s close proximity to the Sandton Gautrain Station and other amenities within
    the Sandton CBD make it a very desirable business location.

    Protea Place was developed in 2010 and was nominated for the New Commercial Development Award at the SAPOA Innovative
    Excellence in Property Development awards 2011.

    Sandown Valley Crescent

    Sandown Valley Crescent consists of 2 quality contemporary office buildings situated adjacent to each other on Sandown Valley
    Crescent which is located within the Sandton commercial node and is within close proximity to the Sandton Gautrain Station and
    other amenities within the Sandton CBD. The buildings have long dated lease expiry profiles, with strong tenant covenants
    represented by the following international and national corporates:
    - TBWA (a leading international advertising agency);
    - Crowe Horwath (a South African national accounting and auditing firm);
    - Standard Chartered (the South African office of the listed global investment bank);
    - Alexander Proudfoot (a global consulting firm);
    - Marsh (a global leader in insurance broking and risk management); and
    - Boston Consulting Group (a leading international management consulting firm).

    The Fund has secured rental guarantees for a period of 5 years on the existing vacant space of 2,828m2 (11.4% of Sandown
    Valley Crescent).

    Nicol Grove

    The Nicol Grove office park, situated adjacent to the Design Quarter retail complex, consists of 5 individual office buildings
    tenanted by, inter alia:
    - Business Centre (a network of serviced office buildings with a national footprint);
    - Lexmark (the South African office of the NYSE listed company);
    - Saatchi and Saatchi (a global communications and advertising agency network with 140 offices in 76 countries); and
    - Seacom (a submarine cable operator servicing the East and West coasts of Africa).

    Nicol Grove is well located in Fourways, a rapidly growing commercial and residential hub in northern Johannesburg, which has
    become the home for many major corporates. The property’s location and its close proximity to the N1 and major arterial roads
    (Witkoppen Road and William Nicol Drive) make it a sought after business address, and an attractive alternative to Sandton.

    The Fund has secured rental guarantees for a period of 2 years on the existing vacant space of 1,019m2 (5.0% of Nicol Grove).

    2929 on Nicol

    2929 on Nicol is a new office development located on William Nicol Drive in Bryanston within close proximity to the Nicolway
    Shopping Centre and opposite the Fund’s existing investment in Nicol Main Office Park. The property is anchored by Samsung,
    with other tenants including:
    - Telkom Limited; and
    - J Walter Thompson (an international advertising agency with offices in over 90 countries).
    Woodmead North Office Park (“WNOP”)

    WNOP is a high-quality office park situated within the Woodmead node on Maxwell Drive with excellent exposure to the M1 and
    the N1 highways. The three properties being acquired are tenanted by:
    - Medtronic (the South African office of the leading provider of medical technology, listed on the NYSE);
    - Philips (the South African office of the diversified technology company, listed on the NYSE);
    - Bristol Myers Squibb (the South African office of the global pharmaceutical company listed on the NYSE); and
    - BT Global (a division of the UK telecommunications operator British Telecom Group, listed on the LSE and NYSE).

    Nedbank, Umhlanga

    The Nedbank building is situated in Umhlanga Rocks, Kwa-Zulu Natal with Nedbank as the anchor tenant, occupying 94% of
    the total GLA, with 5.2 years remaining on its current lease.

    The Nedbank building is ideally situated on the Umhlanga Ridge, which is a prominent office and retail node and within close
    proximity to the N2 highway and the Gateway Shopping Centre.

    The Nedbank property, developed in 2010, boasts a 4 star green rating by the Green Building Council of South Africa.

    Union Castle

    Union Castle is a 12 story office building located on St Georges Mall in the hub of the Cape Town City Centre. It is currently
    anchor tenanted by Capita plc (an international business process outsourcing and professional services company headquartered
    in London, and listed on the LSE) with a WALE of 6.1 years.

4.2 Industrial Portfolio

    Riverhorse

    The Riverhorse properties comprise 7 industrial properties which are situated in the Riverhorse Valley Industrial Park in Durban.
    The properties are located within the growing commercial and industrial hub of Riverhorse Valley in Durban and offer excellent
    visibility in a prime location between Durban and Umhlanga. The buildings are well positioned with valuable exposure to the N2
    freeway and access to other major road linkages in Durban North which makes it a desirable location for distribution centres and
    warehouses. The buildings offer secure access, 24 hour security and large truck access.

    The Riverhorse properties are tenanted by blue chip tenants, including:
        - Adcock Ingram;
        - Discovery Health;
        - Media24 (a subsidiary of JSE listed Naspers);
        - Midas (a national retailer of automotive parts);
        - RTT (a national company providing logistics and supply chain solutions);
        -    IHD (one of the largest pharmaceutical distributors in South Africa); and
        -    ABB (the South African office of the global leader in automation technology, listed on the NYSE).

    The RTT lease expires in 2017. The Fund has secured a rental guarantee for a period of 3 years subsequent to expiry.

    Elandsfontein properties

    The Elandsfontein properties consists of three standalone industrial buildings, with a combined GLA of 101,332m², situated in
    the well-established and sought-after Elandsfontein industrial node. The properties are located within close proximity to OR
    Tambo International Airport, and the N12, R24 and R21 highways which make them a very desirable industrial business location.
    The Elandsfontein properties are tenanted by Brandhouse, Aberdare Cables and WACO.

    The Brandouse lease expires in 2017. The Fund has secured a rental guarantee for a period of 3 years subsequent to expiry.
    Lerwick Road

    The Lerwick Road property comprises an industrial warehouse situated in the Clairwood industrial node. It is tenanted by
    Monteagle Logistics (a subsidiary of Marshall Monteagle plc, a JSE listed company) and Austral Marine (a private manufacturer
    of leisure boats). The property has excellent access to the N2 freeway and to other major road linkages (M4) in the south of
    Durban and is within close proximity to the proposed new deep water port and the Durban harbour.

4.3 Retail Portfolio

    Newcastle Mall

    Newcastle Mall is a leading regional shopping centre in Kwa-Zulu Natal, with strong national representation. The mall opened in
    April 2012, and comprises 39,360m² of retail trading area, with available bulk providing future development opportunities.
    Newcastle Mall is situated in Kwa-Zulu Natal’s 3rd most populous city, and located on the easily accessible N11 / R34 arterial
    route. The mall is the dominant shopping centre within Newcastle with a primary catchment area of 50km to 100km and a
    secondary catchment area of 200km in the north-western KwaZulu-Natal region.

    Newcastle Mall consists of over 93 shops. 85% of rental income originates from South African national retailers, including, inter
    alia, Checkers, Game, Pick n’ Pay and Woolworths that collectively constitute approximately 42% of total GLA. The centre won
    the Best New Shopping Centre award at the Retail Design and Development Awards in 2013.

    Zevenwacht Village Centre

    The Zevenwacht Village Centre is a leading regional shopping centre situated between Stellenbosch and Cape Town in the
    Western Cape, and comprises 39,956m² of prominent retail trading.

    Zevenwacht Village Centre consists of over 103 shops. 82% of rental income originates from national South African retailers,
    including, inter alia, Spar Group, Game and Woolworths that collectively constitute approximately 35.8% of total GLA.

    The centre is well located within its catchment area, and is frequented by a loyal customer base. There have been major road
    works in the area, which are expected to be completed in August 2015. Post completion, there will be improved accessibility to
    the centre, which will add to the convenience of the Zevenwacht Village Centre.

    Design Quarter

    Design Quarter is a niche design centre made up of mixed use retail and office space located off Leslie Avenue in Fourways,
    one of the fastest growing commercial and residential hubs in northern Johannesburg. The property’s location and its close
    proximity to the N1 and major arterial roads (Witkoppen and William Nicol Drive) make it a desirable retail and business location.

    Design Quarter offers shoppers a niche retail precinct focused on high-end interior design and furnishing of offices and homes.
    The precinct also serves as a unique dining destination with outdoor courtyard seating and includes upmarket restaurants such
    as Koi, Mythos and Kitchen Bar. The property comprises 17,400m² of ground floor retail and 5,000m² of first and second floor
    office, and is occupied by architects, advertising agencies, airlines and other retailers.

    Design Quarter consists of over 57 shops. 48% of rental income originates from South African national and regional retailers,
    including, inter alia, Woolworths, Mr Price Home, Boardmans, @Home, Bakos Brothers and Coricraft.

    Retail vacancies

    Newcastle Mall, Zewenwacht Mall and Design Quarter currently have vacancies of 716m2 (1.8%), 854m2 (2.1%) and 250m2
    (1.0%) respectively. No income attributable to the vacancies has been included in the Purchase Consideration. To the extent
    that Zenprop lets the vacant space within a period of 2 years on terms acceptable to the Fund, an agterskot payment will be
    made to Zenprop.
5   PURCHASE CONSIDERATION AND KEY TERMS

    5.1 Purchase Consideration and funding

        The Purchase Consideration of R7.06 billion will be settled as follows:

            -    R0.80 billion will be settled through the issue of Investec Property Fund shares to Zenprop at a price of R16.51 (ex
                 dividend), being the 30 day volume weighted average price (“VWAP”) excluding accrued distributions up to and
                 including 6 August 2015, being the last business day immediately prior to the signature date (“Share Consideration”);

            -    R0.20 billion will be settled through the transfer to Zenprop of Investec Australia Property Fund (“IAPF”) shares owned
                 by the Fund at a price of R11.58 (ex dividend) per IAPF share calculated with reference to the 30 day VWAP of IAPF
                 shares as at 6 August 2015; and

            -    the remaining R6.06 billion together with transaction costs estimated at 1% of the Purchase Consideration will be settled
                 in cash (“Cash Consideration”), and will be funded through a combination of debt and equity:

                     -    Debt:

                          The Fund will raise gearing on the Zenprop Portfolio of approximately 50% of the Purchase Consideration
                          which equates to gearing of R3.57 billion. Following the Zenprop Acquisition, the Fund will have a LTV of
                          c. 35%.

                     -    Equity

                          The Fund intends to undertake a fully committed rights offer of c. R2.57 billion to part fund the Zenprop
                          Acquisition (“Rights Offer”) at an ex-dividend Rights Offer price of R15.00, which represents a 9.1% discount
                          to the 30 day VWAP (excluding accrued distribution) up to and including 6 August 2015.

                          As detailed in paragraph 12 below:

                               -     Shareholders representing approximately 65.2% of the Fund’s Shareholders have committed to
                                     follow their rights in the Rights Offer in terms of irrevocable undertakings or letters of support for the
                                     Rights Offer; and
                               -     Shareholders representing approximately 65.2% of the Fund’s Shareholders have committed to vote
                                     in favour of the Zenprop Acquisition and the Rights Offer.

                          As a result, approximately R1.67 billion of the Rights Offer is covered by commitments or indications of
                          support, and accordingly, the remaining equity to be raised in the Rights Offer is approximately R0.90 billion.

                          If the Rights Offer is not fully subscribed, any shortfall will be underwritten by Zenprop through an increase in
                          the Share Consideration to the extent of the shortfall which will be settled by the issue of Investec Property
                          Fund shares at the ex-dividend Rights Offer price of R15.00 per share.

    5.2 Agterskots / purchase price adjustments

        The Fund has negotiated purchase price adjustments / agterskot payments for the following income streams to the extent the
        income is earned over the agterskot period:

            -    Vacancies in the retail portfolio (the Fund has not paid for the vacant space upfront);

            -    Turnover rentals;

            -    Parking income at Design Quarter; and

            -    Income from solar panels installed at certain of the properties in the Zenprop Portfolio.

        It is estimated that the agterskots / purchase price adjustments could amount to an additional payment to Zenprop of
        approximately R132.4 million based on additional net property income of up to R9.6 million.
    5.3 Rental guarantees

        Zenprop has provided the Fund with the following rental guarantees:

             -   a 3 year rental guarantee at market related rentals on the Brandhouse property from the expiry of the current lease
                 resulting in a WALE for the Brandhouse property of 5.0 years;

             -   a 3 year rental guarantee at market related rentals on the RTT property from the expiry of the current lease resulting in
                 a WALE for the RTT property of 4.9 years;

             -   a 5 year rental guarantee at market related rentals on the vacancies at 3 Sandown Valley Crescent (2,878m2) and
                 Protea Place (860m2) as from 1 November 2015; and

             -   a 2 year rental guarantee at market related rentals on the office vacancies at Nicol Grove (1,019m2) and Design Quarter
                 as from 1 November 2015.

6   CONDITIONS PRECEDENT

    Zenprop has granted the Fund the period until Friday, 30 October 2015 in order to secure all of the necessary approvals and the
    funding required to conclude the Zenprop Acquisition other than the approval required in terms of the Competition Act referred to
    below. The required approvals for the Fund will include, inter alia, the necessary approvals from Shareholders in order to conclude
    the Zenprop Acquisition and implement the Rights Offer as well as the relevant JSE approvals.

    After 30 October 2015, the Zenprop Acquisition will only be conditional upon the receipt of Competition Authority approval in terms
    of the Competition Act 89 of 1998 within a maximum period of 270 days from Signature Date.

7   ZENPROP PORTFOLIO OPTIONS AND RIGHTS OF FIRST REFUSAL

    Newcastle Mall, Nicol Grove - Seacom, Golfer’s Club and WNOP are subject to options and/or rights of first refusal. If these rights
    are exercised, these properties will be excluded from the Zenprop Acquisition.

8   WARRANTIES

    Zenprop has provided warranties and indemnities to the Fund that are standard for a transaction of this nature, and to address
    specific risks identified during the due diligence.

9   RIGHT OF FIRST REFUSAL – 140 WEST STREET

    As part of the Zenprop Acquisition, Zenprop has granted the Fund a right of first refusal over the 27,000m2 P grade office building
    currently being developed at 140 West Street.

10 MANAGEMENT FEE

    Investec Property, the manager of Investec Property Fund has agreed to waive its upfront entitlement to an ongoing management
    fee of 50 basis points on the value of the Zenprop Acquisition for a period of time. It has been agreed that Investec Property will
    charge the following management fees in relation to the Zenprop Portfolio:
                                                           Fee
     Year 1                                                0 basis points
     Year 2                                                10 basis points
     Year 3                                                25 basis points
     Year 4                                                35 basis points
     Year 5 and thereafter                                 50 basis points

11 VALUATION

   The Zenprop Portfolio has been independently valued by Mike Gibbons from Mills Fitchet, who is a professional valuer in terms of
   the Property Valuers Profession Act, No 47 of 2000. Details of the valuation will be included in the circular (referred to in paragraph
   13 below) that will be sent to Shareholders.

12 IRREVOCABLE COMMITMENTS

   The Fund has obtained irrevocable undertakings or letters of support from:

              -   Shareholders representing approximately 65.2% of the Fund’s Shareholders to follow their pro-rata share of the
                  Rights Offer; and
              -   Shareholders representing approximately 65.2% of the Fund’s Shareholders have committed to vote in favour of the
                  Zenprop Acquisition and the Rights Offer.

13 CATEGORISATION

   The Zenprop Acquisition is classified as a category 1 transaction in terms of the JSE Listings Requirements, and therefore
   Shareholder approval is required. Circulars convening a general meeting and providing further detail of the Zenprop Acquisition and
   the Rights Offer will be sent to the Fund’s Shareholders in due course.

14 WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT

   Shareholders are referred to the cautionary announcement dated 2 July 2015, and are hereby advised that as the details of the
   Zenprop Acquisition referred to above have been announced to Shareholders, caution is no longer required to be exercised by
   Shareholders when dealing in their Investec Property Fund shares.



Johannesburg
11 August 2015



                   Investment Bank and Sponsor                                          Legal Advisor
                        Investec Bank Limited                                           Fluxmans Inc.


                                                                                   Independent Reporting
                         Independent Valuer                                       Accountant and Auditors
                     Mills Fitchet Magnus Penny                                             EY

Date: 11/08/2015 03:19:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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