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INVESTEC AUSTRALIA PROPERTY FUND - Distribution update, announcement of distribution re-investment price and confirmation of finalisation information

Release Date: 29/11/2016 08:37
Code(s): IAP     PDF:  
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Distribution update, announcement of distribution re-investment price and confirmation of finalisation information

INVESTEC AUSTRALIA PROPERTY FUND
Incorporated and registered in Australia in terms of ASIC (ARSN 162 067 736)
Registered in terms of the Collective Investment Schemes Control Act No.45 of 2003
Operated by Investec Property Limited (ACN 071 514 246; AFSL 290 909) (“Responsible Entity”)
Share code: IAP
ISIN: AU60INL00018
(“IAPF” or the “Fund”)



DISTRIBUTION UPDATE, ANNOUNCEMENT OF DISTRIBUTION RE-INVESTMENT PRICE AND CONFIRMATION OF
FINALISATION INFORMATION


Introduction


Unitholders are referred to the announcement relating to the reviewed interim condensed consolidated financial results for the six
months ended 30 September 2016 released on SENS on Wednesday, 16 November 2016 (“Results Announcement”) containing
details of the interim distribution declaration number 6.


As required by the Listing Requirements of the JSE Limited, the Fund has entered into a forward exchange contract to convert the
AUD distribution to ZAR such that the locked in exchange rate is communicated to unitholders at least one week before the last day
to trade in relation to the final distribution.


Accordingly, unitholders are advised that this distribution has been converted from AUD to ZAR at an exchange rate of AUD
1.00000 : ZAR 10.28500. The resulting distribution is 49.48494 ZAR cents per unit (pre withholding tax paid in Australia) and
47.73927 ZAR cents per unit (post withholding tax paid in Australia).


Furthermore, unitholders will be entitled to re-invest the cash distribution (post withholding tax paid in Australia) of 47.73927 ZAR
cents per unit (“Cash Distribution”) in return for units (“Re-Investment Alternative Units”), as declared in the Results
Announcement.


Re-Investment Price


The unit price applicable to unitholders electing to receive Re-Investment Alternative Units and recorded in the register on Friday, 9
December 2016 (“Record Date”), is ZAR 14.00 (“Re-Investment Price”). The Re-Investment Price represents a discount of 2.1% to
the closing clean price of ZAR 14.30 on Monday, 28 November 2016 and a discount of 2.4% to the five-day volume weighted
average traded price of ZAR 14.35 on Monday, 28 November 2016.


Tax implications


The Fund and its management arrangements are structured to meet the required criteria to be classified as a Managed Investment
Trust for Australian tax purposes. As a Managed Investment Trust, the Responsible Entity will be required to withhold tax in
Australia at a concessional rate of 15% on distributions to individual and institutional Unitholders resident in South Africa. However,
the effect of this tax on the Fund’s distribution for the period from 1 April 2016 to 30 September 2016 has been reduced to 3.57348%,
equivalent to 0.16973 Australian cents per Unit, through certain deductions such as depreciation.


The distributions, net of Australian withholding tax, received by South African institutional and individual unitholders will constitute
income and will be subject to income tax in South Africa at the unitholder’s marginal tax rate. Tax paying unitholders will be able to
claim a rebate against the withholding tax paid in Australia. Non-tax paying unitholders will not be entitled to claim a rebate.
The above summary of the tax treatment of the foreign distribution does not constitute legal or tax advice and is based on taxation
law and practice at the date of this circular. Unitholders should take their own tax advice as to the consequences of their investment
in the Fund and are encouraged to consult their professional advisors should they be in any doubt as to the appropriate action to
take.


The impact of the withholding tax on unitholders has been illustrated by way of the example below:


Distribution per unit pre-withholding tax (AUD cents)                       4.81137
Less: Australian withholding tax (AUD cents)                                0.16973
Distribution per unit post-withholding tax (AUD cents)                      4.64164
AUD / ZAR exchange rate                                                    10.28500
Distribution per unit post-withholding tax (ZAR cents)                     47.73927
Re-Investment Price (ZAR)                                                  14.00000
New units issued per 100 units                                              3.40995


Due to the fact that the Cash Distribution or election to receive Re-Investment Alternative Units may have tax implications for
unitholders, unitholders are encouraged to consult their professional advisors should they be in any doubt as to the appropriate
action to take.


In terms of the Listings Requirements of the JSE Limited, the following additional information is disclosed:


        -   The Cash Distribution portion has been declared from the Fund’s reserves.
        -   As at the date of this announcement, the Fund has 322,359,497 ordinary units of no par value each in issue.


Trading of IAPF units


As published in the Results Announcement, unitholders electing to receive Re-Investment Alternative Units are requested to note
that the Re-Investment Alternative Units will be listed on LDT + 3 and these can only be traded on LDT + 3 as the settlement of the
Re-Investment Alternative Units will occur three days after record date, which differs from the conventional one day after record date
settlement process.


Units may not be dematerialised or rematerialised between commencement of trade on Wednesday, 7 December 2016 and close of
trade on Friday, 9 December 2016.


Johannesburg
29 November 2016


Investment Bank and Sponsor
Investec Bank Limited

Date: 29/11/2016 08:37:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

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