VUKILE PROPERTY FUND LIMITED - Potential transaction relating to Synergy and Synergy cautionary announcement

Potential transaction relating to Synergy and Synergy cautionary announcement

SYNERGY INCOME FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2007/032604/06)
JSE share code: SGA ISIN: ZAE000202883
JSE share code: SGB ISIN: ZAE000202891
(Approved as a REIT by the JSE)
(“Synergy”)


VUKILE PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2002/027194/06)
JSE share code: VKE NSX share code: VKN
ISIN: ZAE000180865
(Approved as a REIT by the JSE)
(“Vukile”)


ARROWHEAD PROPERTIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2011/000308/06)
JSE share code: AWA ISIN: ZAE000203105
(Approved as a REIT by the JSE)
(“Arrowhead”)


POTENTIAL TRANSACTION RELATING TO SYNERGY AND SYNERGY CAUTIONARY ANNOUNCEMENT


Shareholders are advised that Synergy, Vukile and Arrowhead are in advanced discussions about, and have reached broad
consensus on, the terms of a transaction in terms of which:

    - Synergy's asset management will be internalised;
    - Vukile will acquire all or the bulk of Synergy's retail assets in return for the sale by Vukile to Synergy of the majority of
      Vukile’s office and industrial assets; and
    - Synergy will acquire 100% of the shares in Cumulative Properties Limited, a subsidiary of Arrowhead that will house its
      portfolio of higher yielding retail, office and industrial properties, in return for the issue of Synergy B shares to
      Arrowhead,

(the “potential transaction”).

The potential transaction, if finally concluded and implemented, will result in:

    - Synergy becoming the vehicle for the implementation of Arrowhead's strategy of a separately listed high yielding, high
      growth fund;
    - Synergy being staffed by a dedicated management team and benefitting from Arrowhead’s expertise in managing a high
      yielding, high growth fund comprising the reconstituted portfolio; and
    - Vukile becoming a predominantly retail based fund and gaining exposure to the office and industrial sector through its
      shareholding in Synergy.

The final terms of the potential transaction still need to be negotiated and approved by the boards of the transacting parties and
Synergy shareholders are advised to exercise caution when dealing in their shares until a further announcement is made.



10 March 2016

Corporate advisor and sponsor
Java Capital

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