EQUITES PROPERTY FUND LIMITED - Small related party transaction involving the disposal of DUrban Square

Small related party transaction involving the disposal of D’Urban Square

EQUITES PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2013/080877/06)
JSE share code: EQU ISIN: ZAE000188843
(Approved as a REIT by the JSE)
(“Equites” or “the company”)


SMALL RELATED PARTY TRANSACTION INVOLVING THE DISPOSAL OF D’URBAN SQUARE


INTRODUCTION AND RATIONALE

Shareholders are advised that Equites has concluded an agreement for the disposal of an office building known as D’Urban
Square, situated at Bella Rosa Street, Erf 31292 Bellville, in the City of Cape Town, Cape Division, Western Cape Province
(“D’Urban Square” or “the property”) to Gamlan Investments Proprietary Limited (“Gamlan”) for a consideration of
R50 820 520 (exclusive of VAT at zero percent) (the “disposal”).

This disposal is in line with Equites’ strategy to sell its office assets and focus on logistics property assets.

TERMS OF THE DISPOSAL

Equites will dispose D’Urban Square with effect from the date of registration of transfer of the property into the name Gamlan
(the “transfer date”). The consideration for the property will be payable in cash on the transfer date. The proceeds of the disposal
will be used to reduce the existing debt of Equites.

The disposal is not subject to any conditions precedent. The disposal includes warranties, undertakings and indemnities which are
normal for a disposal of this nature.

PROPERTY SPECIFIC INFORMATION

The property specific information required in terms of the JSE Listings Requirements in relation to the property is set out below.

Property name                                                                   D’Urban Square
Sector                                                                          Office
Geographical location                                                           Western Cape
Rentable Area (m2)                                                              3 070
Weighted Average rental per m2                                                  R163/m2
Value attributed to the property as at 1 January 2017                           R46 000 000*
Net property income for the period ended 31 August 2016                         R4 082 582
*The difference between the valuation and the consideration receivable is as a result of the valuation being an open market value,
while the consideration receivable is the value negotiated between the parties.

SMALL RELATED PARTY CONSIDERATIONS

Giancarlo Lanfranchi, a non-executive director of Equites, has a 57% beneficial interest in Gamlan. The consideration receivable
from Gamlan as a percentage of the market capitalisation of Equites is 0.91%. The disposal is a transaction with a related party
involving immovable property. Given the size of consideration receivable, the disposal constitutes a small related party transaction
in terms of 10.7 of the JSE Listings Requirements.

D’Urban Square was valued by Michael Gibbons of Mills Fitchet Magnus Penny & Wolffs Proprietary Limited (“Mills Fitchet”),
who is an independent external registered professional valuer in terms of the Property Valuers Profession Act, No. 47 of 2000. In
accordance with the JSE Listings Requirements, the board of Equites hereby confirms that it is of the opinion that the disposal is
fair insofar as shareholders are concerned, having had regard to the independent property valuation and the fact that the
consideration exceeds the value attributed to the property by Mills Fitchet. Copies of the independent property valuation will be
open for inspection at the registered office of the company (14th Floor, Portside Tower, 4 Bree Street, Cape Town, 8001) for a
period of 28 days from the date of this announcement.

On the basis of the aforegoing, the disposal is not subject to shareholder approval.

12 January 2017

Sponsor
Java Capital

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