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EQUITES PROPERTY FUND LIMITED - Finalisation announcement in respect of the clean-out distribution to Equites shareholders

Release Date: 10/09/2015 10:45
Code(s): EQU     PDF:  
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Finalisation announcement in respect of the clean-out distribution to Equites shareholders

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” or “company”)


FINALISATION ANNOUNCEMENT IN RESPECT OF THE CLEAN-OUT DISTRIBUTION TO EQUITES SHAREHOLDERS


Shareholders are referred to the announcement released on SENS on 3 September 2015 relating to the declaration of the clean-out
distribution (the “distribution”) pursuant to the acquisition by Equites of all of the shares and claims in Intaprop Proprietary
Limited in consideration for Equites shares (“the acquisition”).

Shareholders are advised that the final amount of the distribution per share for the period commencing on 1 March 2015 and
ending on the day before the effective date of the acquisition, being 1 July 2015 is R33 218 000, which is equivalent to 29.03409
cents per Equites share based on 114 410 255 shares in issue at the time of declaring the distribution. This distribution does not
include any of the results of the acquisition and is 5% higher than previously forecast in the pre-listing statement issued on
6 June 2014 on an adjusted 4 month basis.

In accordance with Equities’ status as a REIT, shareholders are advised that the distribution meets the requirements of a
“qualifying distribution” for the purposes of section 25BB of the Income Tax Act, No. 58 of 1962 (“Income Tax Act”). The
distribution will be deemed to be a dividend for South African tax purposes, in terms of section 25BB of the Income Tax Act.

The dividend received by or accrued to South African tax residents must be included in the gross income of such shareholders and
will not be exempt from income tax (in terms of the exclusion to the general dividend exemption, contained in paragraph (aa) of
section 10(1)(k)(i) of the Income Tax Act) because it is a dividend distributed by a REIT. This distribution is, however, exempt
from dividend withholding tax in the hands of South African tax resident shareholders, provided that the South African resident
shareholders, provided the following forms to their Central Securities Depository Participant (“CSDP”) or broker, as the case may
be, in respect of uncertificated shares, or the company, in respect of certificated shares:

a)     a declaration that the distribution is exempt from dividends tax; and

b)     a written undertaking to inform the CSDP, broker or the company, as the case may be, should the circumstances affecting
       the exemption change or the beneficial owner cease to be the beneficial owner,

both in the form prescribed by the Commissioner for the South African Revenue Service. Shareholders are advised to contact their
CSDP, broker or the company, as the case may be, to arrange for the abovementioned documents to be submitted prior to payment
of the distribution, if such documents have not already been submitted.

Distributions received by non-resident shareholders will not be taxable as income and instead will be treated as an ordinary
dividend which is exempt from income tax in terms of the general dividend exemption in section 10(1)(k)(i) of the Income Tax
Act. It should be noted that up to 31 December 2013 dividends received by non-residents from a REIT were not subject to
dividend withholding tax. Since 1 January 2014, any dividend received by a non-resident from a REIT will be subject to dividend
withholding tax at 15%, unless the rate is reduced in terms of any applicable agreement for the avoidance of double taxation
(“DTA”) between South Africa and the country of residence of the shareholder. Assuming dividend withholding tax will be
withheld at a rate of 15%, the net distribution amount due to non-resident shareholders is 24.67898 cents per share. A reduced
dividend withholding rate in terms of the applicable DTA, may only be relied upon if the non-resident shareholder has provided
the following forms to their CSDP or broker, as the case may be, in respect of uncertificated shares, or the company, in respect of
certificated shares:

a)     a declaration that the distribution is subject to a reduced rate as a result of the application of a DTA; and

b)     a written undertaking to inform their CSDP, broker or the company, as the case may be, should the circumstances affecting
       the reduced rate change or the beneficial owner cease to be the beneficial owner,

both in the form prescribed by the Commissioner for the South African Revenue Service. Non-resident shareholders are advised
to contact their CSDP, broker or the company, as the case may be, to arrange for the abovementioned documents to be submitted
prior to payment of the distribution if such documents have not already been submitted, if applicable.

The salient dates and times relating to the distribution remain unchanged.

Shares in issue at the date of declaration of distribution: 114 410 255.

Equities’ income tax reference number: 9275393180.
                               

10 September 2015


Corporate advisor and sponsor
Java Capital

Date: 10/09/2015 10:45:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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