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INVESTEC PROPERTY FUND LIMITED - Finalisation announcement in respect of the clean out dividend

Release Date: 03/12/2015 17:10
Code(s): IPF     PDF:  
Wrap Text
Finalisation announcement in respect of the clean out dividend

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”)



FINALISATION ANNOUNCEMENT IN RESPECT OF THE CLEAN OUT DIVIDEND


Introduction

Further to the announcement of the declaration of a clean out dividend (“Clean Out Dividend”) which was
released on the Stock Exchange News Service of the JSE Limited (“SENS”) on Tuesday, 24 November 2015, shareholders
are advised that the Clean Out Dividend has been finalised.

Rationale

The Clean Out Dividend was declared in order to enable all existing shareholders to receive their share of accrued income
prior to the issue of the rights offer shares. The Clean Out Dividend will be paid to all shareholders recorded in the register
on the date prior to the listing of the rights offers shares. The Clean Out Dividend was calculated as the pro rata of the
dividend from the existing Investec Property Fund and Griffin portfolios for the period 1 October 2015 to the record date of
the rights offer. The Clean Out Dividend enables existing shares and the rights offer shares to rank pari passu to the
entitlement to dividends from the date of issue of the rights offer shares.

Details

The details of the Clean Out Dividend remain unchanged from those announced in the abovementioned SENS
announcement and have been included below for ease of reference.

The Clean Out Dividend of 29.67986 cents per share was declared in respect of the period 1 October 2015 to the record
date of the rights offer.

Other information:
    - The Clean Out Dividend has been declared from income reserves
    - A dividend withholding tax will be applicable on the dividend portion to all shareholders who are not exempt
    - The issued share capital at the declaration date is 480,740,038

In accordance with Investec Property Fund’s status as a REIT, shareholders are advised that the dividend 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 dividends on the shares will be deemed to be dividends for South African tax purposes in terms of section
25BB of the Income Tax Act.

Tax implications for South African resident shareholders:

Dividends 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 section
10(1)(k)(i)(aa) of the Income Tax Act because they are dividends distributed by a REIT. These dividends are however
exempt from dividend withholding tax (“Dividend Tax”) in the hands of South African resident shareholders provided that
the South African resident shareholders have provided to their CSDP or broker, as the case may be, in respect of
uncertificated shares, or the Fund, in respect of certificated shares, a DTD(EX) (Dividend Tax: Declaration and undertaking
to be made by the beneficial owner of a share) form to prove their status as South African residents.
If resident shareholders have not submitted the abovementioned documentation to confirm their status as South African
residents, they are advised to contact their CSDP or broker, as the case may be, to arrange for the documents to be
submitted prior to the payment of the dividend.

Tax implications for non-resident shareholders:

Dividends received by non-resident shareholders from a REIT will not be taxable as income and instead will be treated as
ordinary dividends which are exempt from income tax in terms of the general dividend exemption section 10(1)(k) 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 Tax. With effect from 1 January 2014, any dividend received by a non-resident from a REIT will be
subject to Dividend Tax at 15%, unless the rate is reduced in terms of any applicable agreement for the avoidance of double
taxation between South Africa and the country of residence of the non-resident shareholder (“DTA”). Assuming Dividend
Tax will be withheld at a rate of 15%, the net amount due to non-resident shareholders is 25.22788 cents per share. A
reduced dividend withholding rate in terms of the applicable DTA may only be relied on 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 Fund,
in respect of certificated shares:

    -   A declaration that the dividend is subject to a reduced rate as a result of the application of the DTA; and
    -   A written undertaking to inform their CSDP, broker or the Fund, 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 of the South African Revenue Services.

    If applicable, non-resident shareholders are advised to contact their CSDP, broker or the Fund, as the case may be, to
    arrange for the abovementioned documents to be submitted prior to payment of the dividend if such documents have
    not already been submitted.


Timetable of the Clean Out Dividend

                                                                                              2015
 Last date to trade in Investec Property Fund shares in order to receive the Clean            Thursday, 10 December
 Out Dividend

 Investec Property Fund shares commence trading on the JSE ex Clean Out                       Friday, 11 December
 Dividend entitlement

 Record date for determination of shareholders entitled to receive the Clean Out              Friday, 18 December
 Dividend (Clean Out Dividend Record Date)

 Clean Out Dividend paid/posted to certificated shareholders and accounts                     Monday, 21 December
 credited by CSDPs or brokers to dematerialised shareholders on or about




Sandton
3 December 2015

Sponsor
Investec Bank Limited

Date: 03/12/2015 05:10:00 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.

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