Acquisition of the Remaining 49% Stake in Neo Trend Khala-Cose Developers Proprietary Limited PUTPROP LIMITED Incorporated in the Republic of South Africa (Registration Number 1988/001085/06) Share code: PPR ISIN: ZAE000072310 (“Putprop” or “the Company” or “the Group”) ACQUISITION OF THE REMAINING 49% STAKE IN NEO TREND KHALA-COSE DEVELOPERS PROPRIETARY LIMITED 1. INTRODUCTION The board of directors of Putprop is pleased to advise shareholders that Putprop has concluded an agreement for the acquisition of the remaining 49% of the shares in Neo Trend Khala-Cose Developers Proprietary Limited (“Neo Trend”) that it does not already own (“the Sale Shares”) from Khala-Cose Fumani Property Developers Proprietary Limited and Bremer Investments Proprietary Limited (“the Sellers”) for a total purchase consideration of R22 316 846 (“the Acquisition”). 2. THE ACQUISITION 2.1 Details of Neo Trend Neo Trend is a special purpose vehicle set up to own and develop land situated on Proposed Township Erf 3 Secunda extension 60, situated on Portion 1 of the Farm The Walker no 817, Registration Division I.S., Mpumalanga Province (in extent 71 192 square metres) (“the Property”). Neo Trend acquired the land and entered into a development agreement with Neo Trend Property Developers Proprietary Limited to develop phase 1 of the Secunda Value Centre project, being Erf 8839 Extension 60 Secunda (in extent of 32 722 square metres) with anchor tenants Builders Warehouse, Sportsman’s Warehouse, Westpac lifestyle and Burger King. Putprop will benefit from revenues generated from the rentals of the retail portions of Secunda Value Centre. The retail portion comprises of a gross lettable area of 8 486 square metres. The average net rental per square metre is R94.64. 2.2 The rationale for the Acquisition The Acquisition complies with the Group’s stated objective of strategic investments focussed on industrial and commercial opportunities, where yields are enhancing in the medium and long term as well as broadening of the current tenant base to reduce the risk of over dependence on a limited number of tenants. 2.3 Purchase consideration The total purchase consideration of R22 316 846, including loan accounts, will be settled entirely by internally generated cash. 2.4 Warranties The Sellers have provided warranties which are normal in a transaction of this nature. 2.5 Effective date The effective date of the Acquisition is 30 June 2016. 2.6 Conditions Precedent All conditions precedent, which the Acquisition is subject to, have been fulfilled. 3. UNDERLYING FINANCIAL INFORMATION OF NEO TREND The value of the net assets that are the subject of the Acquisition as at 29 February 2016, being the date of the last audited accounts, prior to any revaluation done for acquisition purposes, was R30 272 696 (unaudited net asset value of R30 753 532 as at 30 June 2016). The loss attributable to the net assets that are the subject of the Acquisition for the year ended 29 February 2016 was R655 610 (unaudited profit of R930 548 for the 4 months ended 30 June 2016, Neo Trend will change its year end to 30 June effective 2016. A valuation of the Property was performed on 30 June 2016 by Peter Parfitt representing Quadrant Properties Valuers who is independent and is registered as a professional valuer in terms of the Property Valuers Profession Act, 2000 (Act 47 of 2000). The Property was valued at an amount of R110 million. 4. CLASSIFICATION OF THE ACQUISITION The Acquisition is classified as a Category 2 transaction in terms of the Listings Requirements of the JSE Limited. Johannesburg 4 July 2016 Sponsor Merchantec Capital Date: 04/07/2016 12:45:00 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.