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Further Acquisition Of A Property In The United Kingdom (“Uk”) And Expansion Of Texton’s Uk Property Portfolio
TEXTON PROPERTY FUND LIMITED
Granted REIT status by the JSE
(Incorporated in the Republic of South Africa)
(Registration number 2005/019302/06)
JSE code: TEX
ISIN: ZAE000190542
(“Texton” or “the Company”)
FURTHER ACQUISITION OF A PROPERTY IN THE UNITED KINGDOM (“UK”) AND EXPANSION OF TEXTON’S
UK PROPERTY PORTFOLIO
1. INTRODUCTION
Texton is pleased to advise the shareholders of the Company (“Shareholders”) that it has
concluded an agreement to acquire a retail park located in a prime location in Camborne in the
UK (“Camborne Retail Park”) for £9,850,000 at an acquisition yield of 6.40% (the “Camborne Retail
Park Acquisition”).
Camborne Retail Park is a purpose built single storey retail warehouse which is exclusively let to
B&Q plc (“B&Q”), a British multinational DIY and home improvement retailing company. B&Q is
a leading home improvement and garden centre retailer in Europe and the third largest in the
world with currently 350 stores in the UK and 8 stores in Ireland.
The Camborne Retail Park is well located in the town of Camborne, and is within close proximity
to the A30 highway, the Camborne railway station and the Newquay Cornwall Airport making it
a desirable retail location.
Property information and other details pertaining to the Camborne Retail Park Acquisition are
set out in section 3 below.
2. RATIONALE FOR THE CAMBORNE RETAIL PARK ACQUISITION
The Camborne Retail Park Acquisition strongly compliments the quality of Texton’s existing
underlying property portfolio providing, inter alia:
- prime retail property located in the busy market town of Camborne
- an underpin of a high quality blue chip tenant on a 25 year lease of which 12 years and 3
months are remaining;
- further retail and geographic diversification to Texton’s portfolio; and
- additional scale, quality and diversity to Texton’s existing UK portfolio through the
acquisition of a portfolio enhancing property in a manner consistent with the Company’s
stated investment strategy to achieve geographic diversification beyond South African
borders into the UK
3. INFORMATION RELATING TO THE CAMBORNE RETAIL PARK ACQUISITION
Details relating to the Camborne Retail Park are as follows:
Description: Acquisition of the Camborne Retail Park from London and
Metric Property plc through the acquisition of 100% of the
issued share capital of Forbesdale Investment Holdings
Limited, a new company registered in the British Virgin
Islands, which in turn will own the Camborne Retail Park
Property description: A modern design purpose built single storey retail
warehouse which extends to approximately 4.014 acres /
1.624 hectares and has the benefit of 484 car parking bays
Tenants: B&Q
Location: Camborne, UK
GLA: 48,066 sq ft
Tenure: Freehold
Lease expiry: 12 years
Net annual income: £631,200 (R14,366,112 converted at the spot exchange
rate as at 28 December 2015 of £1:R22.76)
Net rental per sq ft: Retail: £13.15 per sq ft (R299.29 per sq ft converted at the
spot exchange rate as at 28 December 2015 of £1:R22.76)
Purchase price: £9,850,000 (R224,186,000 converted at the spot exchange
rate as at 28 December 2015 of £1:R22.76)
Vendor: London and Metric
Acquisition yield: 6.40%
Forbesdale Investment Holdings Limited will be a wholly owned subsidiary of Texton and its
memorandum of incorporation will comply with the Listings Requirements of the JSE Limited
(“Listings Requirements”).
The board of directors of Texton (“Board”) is satisfied that the property value of the Camborne
Retail Park is in line with the purchase price being paid by Texton. The Board is not registered as
professional valuers or as professional associate valuers in terms of the Property Valuers
Profession Act, No 47 of 2000.
4. PURCHASE CONSIDERATION
The purchase consideration for the Camborne Retail Park Acquisition amounts to £9,850,000
(R224,186,000 converted at the spot exchange rate as at 28 December 2015 of £1:R22.76). The
aggregate purchase consideration of £9,850,000 will be funded through existing cash resources,
via a currency swap, and initially no external borrowings will be required to affect the Camborne
Retail Park Acquisition.
5. EFFECTIVE DATE
The effective date of the Camborne Retail Park Acquisition will be the date of transfer of the
Camborne Retail Park, which is expected to be on or about 8 January 2016.
6. CLASSIFICATION OF THE CAMBORNE RETAIL PARK ACQUISITION
The Camborne Retail Park Acquisition constitutes a category 2 transaction, in terms of the
Listings Requirements and accordingly does not require Shareholders’ approval.
Dunkeld West
29 December 2015
Investment Bank and Sponsor
Investec Bank Limited
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