ATLANTIC LEAF PROPERTIES LIMITED - Acquisition of office property based in Peterborough UK

Acquisition of office property based in Peterborough – 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”)


ACQUISITION OF OFFICE PROPERTY BASED IN PETERBOROUGH – UK


INTRODUCTION

Shareholders are advised that, on 30 January 2017, Atlantic Leaf concluded agreements and simultaneously completed
the acquisition of 100% of the issued share capital of SPCP Group III LOPD 14, Limited (“PropCo”), a British Virgin
Islands registered company which owns an office property based in the Peterborough Business Park, Peterborough,
East Midlands, United Kingdom (the “Property”) from SPCP Group III, LLC (the “Seller”) (the “Transaction”).

RATIONALE FOR THE TRANSACTION

The acquisition of the Property is consistent with Atlantic Leaf’s strategy of investing in quality investment grade real
estate assets which deliver suitable returns for investors through a combination of income and capital growth.

The Property has a combined rental area of 177,621 sq. ft. (16,501 sq. m.) and comprises headquarter offices that have
recently undergone a major refurbishment.

The Property is fully let to Thomas Cook Group UK Limited, a subsidiary of Thomas Cook Group plc (a global travel
company listed on the London Stock Exchange and a constituent of the FTSE 250), and Bauer Consumer Media
Limited, a subsidiary of H Bauer Publishing (Europe’s largest privately owned publishing group).

Peterborough is one of the United Kingdom’s fastest growing cities and the Property is located approximately
83 miles (134 km) north of London, 37 miles (60 km) northwest of Cambridge and 72 miles (117 km) east of
Birmingham.

SALIENT TERMS OF THE TRANSACTION AND CONDITIONS PRECEDENT

The net purchase consideration for the Property is GBP 22.9 million (excluding transaction related costs) that includes
a once off adjustment for a rental top-up by the Seller which is netted off the property valuation. This amount, in
addition to transaction related costs, will be settled through a combination of cash and debt funding.
All conditions precedent relating to the Transaction have been completed.

DETAILS OF THE PROPERTY

Key property specific information regarding the Property is set out below:

Property location                             Peterborough, East Midlands, United Kingdom
Property valuation                            GBP 25.1 million (before adjusting for rental top-up)
Sector                                        Office
Tenants                                       Thomas Cook Group UK Limited and Bauer Consumer Media Limited
Rentable area                                 16,501 sq. m. (177,621 sq. ft.)
Net operating income (pre-tax) (p.a.)         GBP 1.95 million
Rental per square metre                       GBP 118.33
Rental per square foot                        GBP 10.96
Weighted lease expiry (years)                 11.8
Property net yield                            7.6%
Estimated transaction related costs           GBP 0.65 million

The value of the net assets of PropCo following completion of the Transaction is GBP 11.8 million.

The Property valuation above was determined by the board of directors of Atlantic Leaf who are satisfied that the
aggregate value attributed to the Property is in line with the net purchase consideration (after adjusting for the rental-
top up) being paid by Atlantic Leaf. 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 TRANSACTION

The Transaction 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 Transaction 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
Listing Rules of the Stock Exchange of Mauritius Ltd (“SEM”).

Atlantic Leaf has its primary listings on both the Official Market of the SEM and the Main Board of the JSE Limited.

By order of the board

31 January 2017

For further information please contact:
South African corporate advisor
Leaf Capital                                         +27 21 657 1180
South African JSE sponsor
Java Capital                                         +27 11 722 3050
Corporate secretary
Intercontinental Trust Limited                       +230 403 0800
SEM authorised representative and sponsor
Perigeum Capital Ltd                                 +230 402 0890


This notice is issued pursuant to the JSE Listings Requirements, SEM Listing Rules 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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