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ACCELERATE PROPERTY FUND LIMITED - Renewal of cautionary announcement

Release Date: 18/07/2016 17:25
Code(s): APF     PDF:  
Wrap Text
Renewal of cautionary announcement

ACCELERATE PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number 2005/015057/06)
 Share code: APF ISIN: ZAE000185815
(Approved as a REIT by the JSE)
(“Accelerate” or “the Company”)


                         RENEWAL OF CAUTIONARY ANNOUNCEMENT

Further to the cautionary announcements dated 20 April 2016 and 3 June 2016, shareholders are
hereby advised that negotiations regarding the off-market acquisition of an offshore portfolio of
properties (“Initial Portfolio”) which, if successfully concluded, may have a material impact on the
price at which Accelerate shares trade on the JSE Limited, remain ongoing.

The Initial Portfolio acquisition is in line with the investment strategy for Europe announced on 20 April
2016, to establish a subsidiary that will focus on the acquisition, management and development of
single tenant net leased properties that are strategic to blue-chip multinational or large regional
tenants in Central and Eastern Europe.

The investment strategy complements Accelerate’s defensive focus in South Africa on quality retail
and strategic nodes/properties with Accelerate’s investment objectives to:
      -   Provide exposure only to blue-chip investment grade tenants in countries that are core to
          them and countries with established domestic industry demonstrated by high gross fixed
          capital formation, domestic/private consumption, GDP/capita, above average GDP growth
          and wage growth;
      -   Acquire and develop real estate that other international institutional investors want to own;
      -   Utilise geographic and tenant diversification and low leverage to mitigate portfolio risk;
      -   Deliver superior risk weighted income returns and demonstrateable long term capital
          growth.

Following conclusion of stage one due diligence on the Initial Portfolio and recent developments in
Europe, the Initial Portfolio has been down sized to ±€81 million (from ±€140 million announced on 20
April 2016). The transaction remains subject to normal conditions precedent for a transaction of this
nature including inter alia a second stage due diligence and final transaction agreements being
entered into.

Accordingly, shareholders are advised to continue exercising caution when dealing in Accelerate
shares until a further announcement in this regard is made

Johannesburg
18 July 2016

Investment Bank and Transaction Sponsor
Investec Bank Limited

Sponsor
The Standard Bank of South Africa Limited

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