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MARA DELTA PROPERTY HOLDINGS LIMITED - Cautionary Announcement

Release Date: 22/08/2016 14:15
Code(s): MDP     PDF:  
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Cautionary Announcement

Mara Delta Property Holdings Limited
(previously Delta Africa Property Holdings Limited)
(Registered by continuation in the Republic of Mauritius)
(Registration number 128881 C1/GBL)
JSE share code: MDP
SEM share code: DEL.N0000
ISIN: MU0473N00028
(“Mara Delta” or “the Company”)


                                  CAUTIONARY ANNOUNCEMENT

Shareholders are hereby advised that Mara Delta has entered into a non-binding heads of terms with Néréide Limited (“Vendor”),
a wholly-owned subsidiary of Lux Island Resorts Limited, for the acquisition of the hotel building known as Tamassa Resort, located
on Coastal Road, Bel Ombre, Mauritius, as well as the Vendor’s rights, title and interests in the lease agreement with the Vendor
and the Republic of Mauritius, in relation to the property on which the Tamassa Resort is located (“Property”), for a total
consideration of the Euro equivalent of USD 40,000,000 (Forty million US Dollars), on a cash free, debt free basis (“Acquisition”).

The Acquisition is subject to certain conditions precedent including approval from the Board of Investment of Mauritius and the
exchange and execution of a binding sale and purchase agreement acceptable to the parties (“SPA”).

Subsequent to the sale, the Property will be leased back to Néréide Limited, for an initial period of ten years (renewable at its
option, for a period not shorter than the initial lease term). The Euro denominated lease agreement will be on a triple net basis.
The annual rent payable during the initial period of the lease will represent between 8% and 9% of the purchase consideration,
resulting in a yield accretive investment for Mara Delta.

Lux Island Resorts Limited, being one of the largest listed hotel chains in Mauritius (with a market capitalisation of Rs8 billion or
approximately USD 228.5 million), will provide a guarantee for lease payments over the duration of the lease.

The Acquisition constitutes an undertaking in the ordinary course of business of Mara Delta and therefore does not fall under the
scope of Chapter 13 of the SEM Listing Rules. The categorisation of the Acquisition as per the JSE Listing Requirements will be
determined when the binding SPA is signed.

Accordingly, shareholders are advised to exercise caution when dealing in Mara Delta securities until the binding SPA is signed
and a full terms announcement is made.

22 August 2016

PSG Capital Proprietary Limited: JSE sponsor and corporate advisor to Mara Delta                 

Perigeum Capital: SEM Authorised Representative and Sponsor to Mara Delta

Directors: Sandile Nomvete (chairman), Bronwyn Anne Corbett*, Peter Todd (lead independent), Maheshwar Doorgakant,
Chandra Kumar Gujadhur, Ian Macleod, Leon van de Moortele*, Ashish Thakkar, Jaqueline Roxanne van Niekerk and David Stanley
Savage
(*executive director)
Company Secretary: Intercontinental Fund Services Ltd
Registered address: Level 5, Alexander House, 35 Cybercity, Ebene, 72201, Mauritius
Transfer secretary in South Africa: Computershare Investor Services (Pty) Ltd
Registrar and Transfer Agent (Mauritius): Intercontinental Secretarial Services Ltd
Sponsoring Broker: Capital Markets Brokers Ltd

This Notice is issued pursuant to SEM Listing Rule 11.3 and the Securities Act 2005 of Mauritius.
The board of directors of Mara Delta accepts full responsibility for the accuracy of the information contained in this communiqué.

Date: 22/08/2016 02:15:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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