Announcement regarding the acquisition of Knysna Mall INGENUITY PROPERTY INVESTMENTS LIMITED (Incorporated in the Republic of South Africa) (Registration number 2000/018084/06) ISIN: ZAE 000127411 JSE share code: ING (“Ingenuity” or “the Company”) ANNOUNCEMENT REGARDING THE ACQUISITION OF KNYSNA MALL 1. Introduction Ingenuity shareholders are advised that the Company has entered into an offer to purchase (“the Offer”) with The Waterbuck Trust (“the Seller”), in terms of which Ingenuity will acquire 75 % of the rental enterprise, including its improvements and leases, in respect of Erf 16472, Knysna, Western Cape (“the Property”) situated at Main Road, Knysna (“the Acquisition”) and known as Knysna Mall. The Acquisition will become effective on transfer which is expected to be on or about 1 November 2015 (“the Effective Date”). 2. Rationale for the Acquisition The Property has been acquired in line with the Company’s strategy to invest in value add opportunities in the Western Cape. The Knysna Mall has established itself as the dominant centre in the area. With proactive asset management further value can be extracted from this substantial asset. The attractive initial yield of 9,9% also represents good value in the current market. 3. Consideration for the Acquisition The total consideration for the Acquisition is R240 000 000 (“the Purchase Consideration”). The Purchase Consideration will be settled by Ingenuity in cash on transfer of the Property, with the option to issue shares to settle the Purchase Consideration via a vendor consideration placing to individuals or entities approved by Ingenuity as soon as possible after the Effective Date. 4. Conditions precedent The Acquisition is subject to the fulfilment of the following conditions precedent: 4.1 Ingenuity board approval by 31 August 2015; 4.2 mortgage finance approval on terms acceptable to Ingenuity by 11 September 2015; 4.3 Ingenuity being satisfied in their sole discretion with the results of a comprehensive due diligence by 11 September 2015; 4.4 Competition Commission approval to the extent required; and 4.5 such JSE regulatory requirements as may be necessary. 5. Property specific information relating to the Property Property Location Sector Land Gross Single or Weighted Purchase Value of Extent lettable Multi- average Consideration the hectares area tenanted net rental Rm(1) Property m2 per m2 Rm(2) R Erf 16472 Main Road Retail 2.717 27 835 Multi 108.11 240 240 Knysna Knysna 1. Purchase consideration for 75% of the Property. 2. No independent valuation has been performed on the Property. The value attributed to the Property has been derived at by the directors of the Company using the capitalisation of rental method. 6. Value of net assets and profits attributable to the net assets of the Acquisition The value of the net assets that are the subject of the Acquisition is R240 000 000 and the profits attributable to the net assets that are the subject of the Acquisition are R23 798 000 for the first year following the Effective Date. 7. Categorisation of the Acquisition The Acquisition is a Category 2 transaction in terms of JSE Listings Requirements. 17 August 2015 Cape Town Investment bank and Sponsor Nedbank CIB Date: 17/08/2015 12:47:00 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 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.