Acquisition of Tunney Ridge Business Park EQUITES PROPERTY FUND LIMITED (Incorporated in the Republic of South Africa) (Registration number 2013/080877/06) JSE share code: EQU ISIN: ZAE000188843 (Approved as a REIT by the JSE) (“Equites”) ACQUISITION OF TUNNEY RIDGE BUSINESS PARK 1. INTRODUCTION Equites has concluded an agreement for the acquisition of the property letting enterprise conducted in respect of Erf 497 Tunney Extension 15 Township Registration Division I.R., Gauteng and known as the Tunney Ridge Business Park (the “property”), from Tunney Ridge Proprietary Limited (the “seller”). 2. RATIONALE FOR THE ACQUISITION 2.1. This acquisition is consistent with Equites’ growth and investment strategy of building a quality industrial portfolio that promotes capital growth and increasing income returns in the medium to long term for shareholders. 2.2. Three of the four industrial buildings on the property have long dated leases in places with quality tenants. Equites has obtained a three year rental guarantee in respect of the fourth building. The property will therefore add to the quality, defensiveness and income predictability of Equites. 3. TERMS OF THE ACQUISITION 3.1. The purchase consideration payable in respect of the acquisition is R137 000 000 (exclusive of VAT at zero percent) to be settled on the effective date, against transfer of the property. 3.2. The effective date of the acquisition is 1 November 2015 or as soon as is possible and practicable thereafter, provided that the conditions precedent have been fulfilled and/or waived. 3.3. The agreement governing the acquisition provides for warranties and indemnities that are standard for acquisitions of this nature. 4. DETAILS OF THE ACQUISITION Name of property and address Tunney Ridge Business Park, Erf 497 Tunney Extension 15 Township Registration Division I.R. Region Gauteng Sector Industrial Rentable area (m2) 13 808 Weighted average rental per m2 R67,59* Value attributable to the property R137 000 000 Net operating income (November 2015 to October 2016) R11 284 423,15 Acquisition yield 8.24% *The weighted average rental includes income from offices and parking. No independent valuation has been carried out and the board of directors of Equites is of the view that the value attributed to the property above represents the value of the property acquired. The value of the net assets of the acquisition (including the property) is R137 000 000. 5. CONDITIONS PRECEDENT The acquisition remains subject to the following conditions: 5.1. Equites obtaining any requisite regulatory consents pursuant to the conclusion of the acquisition on or before 15 December 2015; 5.2. That by no later than 31 August 2015, Equites delivers a written notice to the seller confirming that: 5.2.1. it is satisfied with the results of the due diligence investigation conducted in respect of the property; and 5.2.2. the board of directors of Equites has approved the acquisition. 6. CATEGORISATION OF THE ACQUISITION The acquisition is classified as a Category 2 transaction in terms of the JSE Listings Requirements. Accordingly it is not subject to approval by Equites shareholders. 19 August 2015 Corporate advisor and sponsor Java Capital Attorneys to Equites DLA Cliffe Dekker Hofmeyr Date: 19/08/2015 03:40:00 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.