FREEDOM PROPERTY FUND LIMITED - DISPOSAL OF PROPERTY

DISPOSAL OF PROPERTY

Freedom Property Fund Limited
(Incorporated in the Republic of South Africa)
(Registration No. 2012/129186/06)
Share code: FDP
ISIN: ZAE000185260
(“Freedom” or the “Company” or the “Group”)


DISPOSAL OF PORTION 18 OF FARM 799 BY FREEDOM’S WHOLLY OWNED SUBSIDIARY, CLEAR
CREEK TRADING 145 PROPRIETARY LIMITED

1. INTRODUCTION
   Shareholders are advised that a wholly owned subsidiary of Freedom, Clear
   Creek Trading 145 Proprietary Limited (the “Seller”) has entered into a sale
   agreement (“Sale Agreement”) with Struwig Project Managing CC (the
   “Purchaser”) in terms of which the Purchaser will acquire (the “Sale”) the
   remainder of Portion 18 of Farm 799 in the division of East London in the
   Eastern Cape Province (the “Property”), for a total consideration of
   R13,680,000.00 (thirteen million six hundred and eighty thousand Rand) in cash
   inclusive of Valued Added Tax (the “Consideration”).

2. RATIONALE FOR THE SALE
   The Sale is in line with Freedom’s strategy of divesting of non-core assets
   as set out in an announcement released on SENS on 15 March 2016 (the
   “Announcement”). The proceeds will be applied within the Group in accordance
   with the details set out in the Announcement.

3. BACKGROUND TO THE SELLER AND THE PURCHASER

3.1.   The Seller
       The Seller is a wholly owned subsidiary of Freedom and the owner of the
       Property, located in the Registration Division of East London and in extent
       17,9910 ha (seventeen comma nine nine one zero hectares).

3.2.   The Purchaser
       The Purchaser is a closed corporation registered in South Africa.


4. MATERIAL TERMS OF THE SALE AGREEMENT

4.1.   Conditions Precedent
       All conditions precedent to the Sale have been fulfilled.

4.2.   Sale Consideration
       The Consideration is payable as follows:
       - R5,000,000.00 (five million Rand) is payable on the date of transfer of
          the Property;
       - R2,500,000.00 (two million five hundred thousand Rand) is payable on or
          before 30 April 2017;
       - R1,680,000.00 (one million six hundred and eighty thousand Rand) is
          payable on the refund by the South African Revenue Service of the VAT
          component of the Consideration to the Purchaser; and
       - R4,500,000.00 (four million five hundred thousand Rand) is payable on
          or before 30 April 2018.

4.3.   Effective Date
       The effective date of the Sale is 8 March 2017.

4.4.   Other
       The Seller and the Purchaser have each provided warranties that are
       standard to a transaction of this nature.

5. VALUE AND PROFITS ATTRIBUTABLE TO THE PROPERTY
The value of the Property, effective as of 28 February 2015, and as determined
by an external valuer to the Seller, Mr JS Bosman (M.I.V) (SA), is as set out
below:


Title deed number:          1685/2014
Location:                   Gonubie, Eastern Cape
Sector:                     Residential
Original purchase price:    R46,500,000.00 (forty-six million five hundred
                            thousand Rand)
Valuation:                  R115,900,000.00 (one hundred and fifteen million nine
                            hundred thousand Rand)
Gross lettable area:        47,589sqm


The Property was held for development and hence the gross lettable area, the
weighted average rental per square meter and rental income amounts are not
available.

The Property contributed R54,021,000.00 (fifty-four million and twenty-one thousand
Rand) to earnings being the revaluation of the Property net of deferred taxes
for the period ending 28 February 2015. The revaluation was not taken into
consideration for the determination of headline earnings and hence the
contribution of the Property to same was Rnil for this period.


6. CATEGORISATION
Due to its relative size to the market capitalisation of Freedom, the Sale is
deemed to constitute a Category 2 transaction under the JSE Listings Requirements.

Johannesburg
9 March 2017

Sponsor
Bravura Capital Proprietary Limited

Date: 09/03/2017 02:50:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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