GOODERSON LEISURE CORPORATION LIMITED - Update On The Sale Of The Sanrock Resort And Conference Centre

Update On The Sale Of The Sanrock Resort And Conference Centre

Gooderson Leisure Corporation Limited
(Incorporated in the Republic of South Africa)
(Registration number 1972/004241/06)
JSE Share Code: GDN ISIN: ZAE000084984
  (“Gooderson” or “the company”)


  UPDATE ON THE SALE OF THE SANROCK RESORT AND CONFERENCE CENTRE


1. INTRODUCTION

    Shareholders are referred to the announcement dated 15 April 2016 where it was announced that Alawill
    Investments (Pty) Ltd, entered into an agreement for the sale as a going concern of the Gooderson
    Sanrock Resort to Lloyd and Mashudu Investment Group (Pty) Ltd.

    The initial conditions precedent to the agreement have lapsed.

    On 20 September 2016 Alawill Investments (Pty) Ltd (“Alawill”) (“the Seller”), a wholly owned subsidiary of
    Gooderson, has entered into a new agreement for the sale as a going concern, of the Gooderson Sanrock
    Resort & Conference Centre (“Sanrock Resort”)(“the property”) to Lloyd and Mashudu Investment Group
    (Pty) Ltd (“the purchaser”), subject to the terms and conditions described below (“the disposal”).

2. RATIONALE FOR THE DISPOSAL OF SANROCK RESORT

    The Sanrock resort did not fit the Gooderson business model and accommodation profile.

3. DESCRIPTION OF SANROCK RESORT

    The SanRock resort is situated on Portion 77 of the Farm Rietspruit 412 Registration Division KR Limpopo,
    160km from Johannesburg in the Waterberg and is situated 5km outside Modimolle (Nylstroom) and rest
    in the heart of the Waterberg region in the Limpopo Province. The hotel consists of 30 twin rooms and 4
    executive suites, 18 self-catering chalets which are fully furnished and equipped with a kitchenette, open
    plan lounge and dining room area and an en-suite bathroom and five conference rooms which can
    accommodate groups of 15 to 400 delegates


4. TERMS AND CONDITIONS OF THE DISPOSAL

    4.1. On 20 September 2016 Gooderson entered into an agreement with the purchaser to sell the Sanrock
         Resort for R10,500,000 subject to the following conditions precedent:

        4.1.1   The purchaser shall on or before 30 October 2016, deliver to the Conveyancers guarantees
                issued by bank or other financial institution reasonably acceptable to the seller for payment of
                R10,500,000 in accordance with the provisions of the Agreement;

        4.1.2   The purchaser obtains capital to finance the purchase price through the Industrial
                Development Corporation (IDC).

    4.2 The purchase price is payable as follows:

      4.2.1     R1,000,000.00 deposit in the form of cash or a Bank Guarantee on or before 30 October 2016.
       4.2.2    The balance on registration of transfer into the name of the purchaser.

       4.3.1    The purchaser of the property shall be entitled to take occupation of the property, subject to
                the fulfilment of the suspensive condition, the seller shall give and the purchaser shall take
                occupation of the Property on 1 November 2016.

       4.3.2    The purchaser shall for the period of occupancy, pay occupation rent in the amount of
                R75,000.00 per month, excluding VAT, payable monthly in advance until the date of transfer in
                the Deeds Office is effected.

5.   PROFITS AND NET ASSET VALUE ATTRIBUTABLE TO THE DISPOSAL

     The Net Asset Value of the property as at 29 February 2016 was R8.3 million and the loss generated by
     the property was R1.1 million.

6.   CATEGORISATION OF THE DISPOSAL

     The sale is categorised, in terms of the JSE Listings Requirements, as a Category 2 transaction and does
     not require shareholders’ approval.

7. FURTHER ANNOUNCEMENT

     Shareholders will be notified once all the conditions precedent have been met.


     21 September 2016
     Durban


     Designated Adviser
     Exchange Sponsors

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