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Acquisition of 49 & 51 Beach Road
NVEST FINANCIAL HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2008/015990/06)
(“NVest” or “the group”)
ISIN Code: ZAE000199865 JSE Code: NVE
ANNOUNCEMENT RELATING TO THE ACQUISITION OF PROPERTIES SITUATED AT ERF NUMBER: 76306
NAHOON, EAST LONDON (“49 & 51 BEACH ROAD”) BY NVEST PROPERTIES LIMITED (“NVEST PROPERTIES”)
1. Background
NVest shareholders are advised that the Shareholders of Sherpa Trade & Invest 61 (“The Seller”), a
South African Company with registration number 2007/027641/07, have sold assets of the Seller,
being the properties and buildings situated at 49 & 51 Beach Road, (“the Sale properties”), to
NVest Properties Limited, a 96% owned subsidiary of NVest for a total consideration of R13 000 000
(thirteen million Rand) (“the Acquisition”).
2. Description of the Sale Properties
The properties house two office buildings and are the current place of business of three NVest
subsidiaries and one external tenant.
3. Effective Date
The effective date for the Acquisition will be the date of the registration and transfer of the
property and payment will be made against transfer.
4. Rationale for the Acquisition
The rationale for the purchase by NVest Properties Limited is in terms of a wider strategy of the
NVest group to, where practical and reasonable, endeavour to own and be in control of the
properties from which NVest and/or its subsidiaries operate from.
5. Conditions precedent
The Acquisition is subject to:
5.1 The Seller being liable for the costs associated with the renovations currently underway at
the building located at 51 Beach Road, Nahoon, East London;
5.2 The Seller ensuring that the current tenants of 51 Beach Road, Nahoon, East London,
agree to pay a minimum of R5 900 (five thousand nine hundred Rand) per month,
excluding Value Added Tax, for the additional space being created as a result of the
renovations underway at the building, once the renovations are complete and the space
is being occupied;
5.3 The Seller agreeing to re-paint the building located at 49 Beach Road, Nahoon, East
London, at its own cost.
5.4 A due diligence investigation by NVest Properties, which due diligence has at date of this
announcement been satisfactorily concluded; and
5.5 NVest Properties obtaining approval in principle for Mortgage Bond Finance for a
minimum of R5 400 000 (five million four hundred thousand Rand).
6. Property Specific Information
Property specific information is detailed below:
Property Address Location Sector
Erf Number 76306, 49 & 51 Beach Road, East London Office premises
East London Nahoon
Rentable Area Weighted Average Rental Tenant Profile
Per M2
871m² plus parking bays R145.55 NVest subsidiaries and one external
engineering company
7. Classification of the transaction
The following parties, being shareholders of The Seller are considered to be related parties to the
above transaction in terms of the JSE Listings Requirements:
- BA Russell (was a director of NVest Securities [Pty] Limited, a subsidiary of NVest, within the past
12 months);
- BJ Connellan (was a director of NVest within the past 12 months);
- FT Knox (a current director of NVest);
- IET Business Trust (an associate of Anthony Godwin, director of NVest, him being a Trustee);
- TH McClure (was a director of NVest within the past 12 months);
- The Andrew and Heather Kent Trust (an associate of Andrew Kent, director of NVest, him
being a Trustee);
- The Gavin Ramsay Family Trust (an associate of Gavin Ramsay, who was a director of NVest
within the past twelve months, him being a Trustee);
- The Godwin Trust (an associate of Anthony Godwin, director of NVest, him being a Trustee);
However, in terms of paragraph 21.11(a) of the JSE Listings Requirements, the transaction does not
meet the requirements of a related party transaction, as defined, given the percentage ratio of
the consideration to current market capitalisation. As such, a fairness opinion and shareholder
approval is not required. Mr Godwin, Mr Knox and Mr Kent were all precluded from voting on the
acquisition by the NVest Board.
8. Financial Information
The company has calculated an estimated value of NFB House at approximately R13 000 000
(thirteen million Rand), being the purchase consideration.
The net yield of the property acquired is 8.60%, with contractual net rental income in aggregate
of R1 118 305 (one million one hundred and eighteen thousand three hundred and five Rand)
used to arrive at the calculated yield.
5 November 2015
East London
Designated Advisor
Arbor Capital Sponsors Proprietary Limited
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