ATLANTIC LEAF PROPERTIES LIMITED - Disposal of industrial warehouse based in Wombourne - UK

Disposal of industrial warehouse based in Wombourne - UK

Atlantic Leaf Properties Limited
(Incorporated in the Republic of Mauritius)
(Registration Number: 119492 C1/GBL)
SEM share code: ALPL.N0000
ISIN: MU0422N00009
JSE share code: ALP
www.atlanticleaf.co.za
(“Atlantic Leaf” or the “Company”)


DISPOSAL OF INDUSTRIAL WAREHOUSE BASED IN WOMBOURNE - UK


INTRODUCTION

Shareholders are advised that Atlantic Leaf concluded agreements for the disposal of the industrial warehouse located
at Heath Mill Road, Wombourne, United Kingdom (the “Property”) held through wholly owned subsidiary ALP
Guernsey Ltd to FWRE Limited (the “Purchaser”) (the “Disposal”) for an aggregate consideration of GBP 11.3
million (the “Consideration”).

RATIONALE AND USE OF PROCEEDS

The Disposal represents an opportunity for Atlantic Leaf to realise an attractive sale price, which represents an exit
IRR of over 30% (after all transaction related costs) on the initial equity investment.

The proceeds of the Disposal will be used to settle debt funding (GBP 6.7 million with an all-in funding cost of 3.8%)
related to the Property and to strengthen the Company’s cash position, which, when opportune, will be used to acquire
properties that are in line with Atlantic Leaf’s strategy of acquiring quality income generating property assets.

The Disposal highlights the continued resilience of the UK property market in a challenging economic environment
post the British European referendum vote.

SALIENT TERMS OF THE DISPOSAL AND CONDITION PRECEDENT

The Consideration excludes transaction related costs of GBP 351,700 (which includes interest rate swap break costs).
The legal agreements relating to the Disposal contain warranties that are typical for a transaction of this nature. All
conditions precedent, save for payment of the Consideration by the Purchaser, have been satisfied and the effective
date of the Disposal is expected to be 14 November 2016.

DETAILS OF THE PROPERTY

Key property specific information regarding the Property is set out below:
Property location                           Heath Mill Road, Wombourne, United Kingdom
Sector                                      Industrial
Tenant                                      Spectrum Brands Limited
Rentable area                               12,140 sq. m. (130,675 sq. ft.)
Rental income (p.a.)                        GBP 752,690
Rental per square metre                     GBP 62.00
Rental per square foot                      GBP 5.76
Lease expiry (years)                        13.3
Net yield on Consideration                  6.25%

The board of directors of Atlantic Leaf is satisfied that the aggregate value attributed to the Property is in line with the
Consideration. The directors of the Company are not independent and are not registered as professional valuers or as
professional associate valuers in terms of the Property Valuers Profession Act, No 47 of 2000.
CATEGORISATION OF THE DISPOSAL

The Disposal is classified as a category 2 transaction in terms of paragraph 9.5(a) of the JSE Listings Requirements
and accordingly does not require approval by Atlantic Leaf’s shareholders. The Disposal constitutes an undertaking in
the ordinary course of business of Atlantic Leaf and therefore does not fall under the scope of Chapter 13 of the SEM
Listing Rules.

Atlantic Leaf has its primary listings on both the Official Market of the Stock Exchange of Mauritius Ltd and the
Alternative Exchange of the JSE Limited.

By order of the board.

25 October 2016

For further information please contact:
South African JSE sponsor
Java Capital                                        +27 11 722 3050
South African corporate advisor
Leaf Capital                                        +27 21 657 1180
Corporate secretary
Intercontinental Trust Limited                      +230 403 0800
SEM authorised representative and sponsor
Perigeum Capital Ltd                                +230 4020890

This notice is issued pursuant to the JSE Listings Requirements, SEM Listing Rule 11.3 and the Mauritian Securities
Act 2005. The board of directors of Atlantic Leaf Properties Limited accepts full responsibility for the accuracy of the
information contained in this announcement.

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