ADRENNA PROPERTY GROUP LIMITED - Announcement regarding the disposal of Sectional Title Units ("Properties")

Announcement regarding the disposal of Sectional Title Units ("Properties")

ADRENNA PROPERTY GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number 1998/012245/06)
(“the Company” or “Adrenna”)
ISIN Code: ZAE000163580 Share Code: ANA

ANNOUNCEMENT REGARDING THE DISPOSAL OF SECTIONAL TITLE UNITS (“PROPERTIES”)


Introduction
Shareholders are advised that three separate transactions have been finalised in
terms of which a wholly-owned subsidiary of the Company, Somerset Mall
Developments Proprietary Limited (“Somerset”), has disposed of a further two
sectional title units in the development known as Red Sails situated in Main Road,
Hout Bay. As detailed in the Company’s interim results for the 6 months ended
31 August 2016, shareholders were advised of the disposal of a sectional title unit in
Hout Bay.

Categorisation
Viewed individually the disposals fall below the thresholds of categorisation in terms
of the JSE Listings Requirements. However, on the basis of aggregation, the disposals
aggregate to a Category 2 transaction in terms of the JSE Listings Requirements.
None of the purchasers are related parties to Adrenna and shareholder approval is
not required.

Terms of the Disposals
The Properties disposed of comprise:

- Section 8 being a retail outlet measuring 134 square meters in extent which was
  sold to L Lubbe for a consideration of R2 680 000, exclusive of VAT.
- Section 6 being a retail outlet measuring 149 square meters in extent which was
  sold to the Jack Rubin Trust for a consideration of R2 880 000, exclusive of VAT.
- Section 5 being a retail outlet measuring 77 square meters in extent which was
  sold to L Lubbe for a consideration of R1 540 000, exclusive of VAT.

The effective date will be the registration of the different sections into the names of
the purchasers for each respective property.

Rationale
These units form part of a sectional title development which was undertaken in 2007
/ 2008 for the purpose of developing the property and:
- treating the residential units as inventory held specifically for the purpose of
  resale;
- retaining the retail segment as investment property.

As the retention of a retail portfolio falls primarily outside the core business of the
group, Somerset has disposed of these units over a number of years as and when
suitable opportunities arose.


Significant Terms
There were no other significant terms contained in the respective offers to purchase.

Financial Information
The net asset value of the three identified properties in the books of Adrenna for the
6 months ended 31 August 2016 were R6 745 000. This book value reflects a value
arrived at after the impairment of the cost of these sections to realistic market values
in prior periods. The disposals will result in a profit of R355 000 compared to the book
value of the sections sold.

The net profit after taxation attributable to the identified Properties for the six months
ended 31 August 2016 amounted to R239 136.

The proceeds are to be utilised in reducing Adrenna’s overdraft with its bankers and
will have a positive impact on the earnings of Adrenna going forward.


Johannesburg
23 November 2016

Sponsor
Arbor Capital Sponsors Proprietary Limited

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