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FREEDOM PROPERTY FUND LIMITED - DISPOSAL BY WHOLLY OWNED SUBSIDIARY OF FREEDOM

Release Date: 24/06/2016 16:02
Code(s): FDP     PDF:  
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DISPOSAL BY WHOLLY OWNED SUBSIDIARY OF FREEDOM

Freedom Property Fund Limited
(Incorporated in the Republic of South Africa)
(Registration No. 2012/129186/06)
Share code: FDP
ISIN: ZAE000185260
(“Freedom” or the “Group”)


DISPOSAL OF PORTION 1 OF ERF 493 LA HOFF TOWNSHIP BY FREEDOM WHOLLY OWNED
SUBSIDIARY, PANZAWEB PROPRIETARY LIMITED

1. INTRODUCTION
   Shareholders are advised that Panzaweb Proprietary Limited (the “Company”), a
   wholly owned subsidiary of Freedom, has entered into a sale agreement (“Sale
   Agreement”) with Bridge City Housing Consortium Proprietary Limited (the
   “Purchaser”) in terms of which the Purchaser will acquire (the “Sale”)
   Portion 1 of Erf 493 La Hoff Township (the “Property”), for a total
   consideration comprising R2,400,000 (two million and four hundred thousand
   Rand) in cash (“Cash Consideration”).

2. RATIONALE FOR THE SALE
   The Sale is in line with Freedom’s strategy of divesting of non-core assets
   as set out in an announcement released on the Securities Exchange News Service
   of JSE Limited (the “JSE”) on 15 March 2016 (the “Announcement”). The proceeds
   will be applied within the Group in accordance with the details set out in
   the Announcement.

3. BACKGROUND TO THE COMPANY AND THE PURCHASER

3.1.   The Company
       The Company is a wholly owned subsidiary of Freedom and the owner of the
       Property, located in the Registration Division IP Province of North-West
       and in extent 2,5175 ha (two comma five one seven five hectares).

3.2.   The Purchasers
       The Purchaser is a private company incorporated in South Africa.

4. MATERIAL TERMS OF THE SALE AGREEMENT

4.1.   Conditions Precedent
       All conditions precedent to the Sale, including approval by the boards of
       directors of each of the Seller and the Purchaser and other than:
       - the completion of a satisfactory due diligence by the Purchaser within
          30 calendar days of execution of the Sale Agreement, that is, 21 June
          2016; and
       - the solvency of the Purchaser having been confirmed and no judgement/s
          or adverse report/s having been reported against its name,
       have been fulfilled.

4.2.   Sale Consideration
       The Cash Consideration must be paid to the Company or the Company’s nominee
       on or before the date of registration of the Property into the name of the
       Purchaser or the Purchaser’s nominee, and will be secured by means of a
       bank guarantee acceptable to Freedom.

4.3.   Effective Date
       The effective date of the Sale Agreement will be the date of fulfilment
       (or waiver, as the case may be) of all of the conditions precedent set out
       in paragraph 4.1 above.

4.4.   Other
       Freedom and the Purchaser have each provided warranties that are standard
       to a transaction of this nature.

5. CATEGORISATION
Due to its relative size to the market capitalisation of Freedom, the Sale is
not categorisable in terms of the JSE Listings Requirements and this announcement
is made to the shareholders of Freedom for information purposes only.


Johannesburg
24 June 2016

Sponsor
Bravura Capital Proprietary Limited

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