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RMB HOLDINGS LIMITED - RMB Holdings Limited (RMH) announces second transaction in the execution of its property strategy

Release Date: 27/06/2016 13:59
Code(s): RMH     PDF:  
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RMB Holdings Limited (RMH) announces second transaction in the execution of its property strategy

RMB HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1987/005115/06)
ISIN: ZAE000024501
JSE ordinary share code: RMH
("RMH")

RMB HOLDINGS LIMITED (RMH) ANNOUNCES SECOND TRANSACTION IN THE
EXECUTION OF ITS PROPERTY STRATEGY

Following investment in leading South African property group, Atterbury, RMH makes a
34% investment in urban renewal property company, Propertuity

Investment holding company RMH announces the second transaction in the execution of its
property investment business that is set to expand alongside its current, single 34% investment in
FirstRand Limited. As a further step in the strategy of establishing a diversified portfolio of scalable
entrepreneur-led businesses with proven track records in managing and building out property
portfolios, RMH confirms its intention to make a 34% investment in leading South African urban
renewal group, Propertuity Development Company (Propertuity).

Propertuity represents the first investment into RMH’s specialist portfolio that will focus on niche
areas of the property sector. As communicated in the announcement on the Stock Exchange News
Service on 3 May 2016, the specialist portfolio sits alongside RMH’s core property portfolio that will
target the more traditional and larger areas of South African property. Atterbury is RMH’s key
development partner in the core portfolio.

The specialist portfolio will house best-of-breed specialist developers and managers focused on
key niches in the property market. This portfolio is aimed at achieving higher yields and faster net
asset value growth than the more traditional core portfolio.

As communicated previously, the overall RMH property strategy will focus on owner-managed
businesses across a broader value chain in property. It will primarily target unlisted opportunities
and will balance net asset value growth and yield. RMH will continue to follow a phased approach
in acquiring its various property investments over the coming years.

Shareholding in Propertuity post the transaction will consist of management (46%), RMH (34%)
and Buffet Investments (20%). Buffet is an established property investor which has had significant
success in backing entrepreneurial property investments.

Since its creation seven years ago, Propertuity has focused on the redevelopment of dilapidated
industrial and office areas in Johannesburg and Durban. The group currently has around 50
properties in Johannesburg and 20 in Durban, with early entrance into the Pretoria CBD underway.
The financial effects of this transaction will be immaterial on the financial results of RMH over the
short to medium term. RMH intends to fund its investment into Propertuity through preference
share funding.

The successful conclusion of the investment into Propertuity is subject to regulatory and
commercial approvals.


Sandton
27 June 2016

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

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