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FAIRVEST PROPERTY HOLDINGS LIMITED - Update on Shoprite Empangeni Acquisition, Provision of financial assistance

Release Date: 02/06/2017 16:15
Code(s): FVT     PDF:  
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Update on Shoprite Empangeni Acquisition, Provision of financial assistance

FAIRVEST PROPERTY HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1998/005011/06)
Share code: FVT ISIN: ZAE000203808
(Approved as a REIT by the JSE)
(“the Company”)


UPDATE ON SHOPRITE EMPANGENI ACQUISITION, PROVISION OF FINANCIAL ASSISTANCE

UPDATE ON ACQUISITION

1. Shareholders are referred to the Company’s SENS announcement dated 1 March 2017, advising that the
   Company had entered into a sale agreement with Growthpoint Properties Limited to acquire the property
   and rental enterprise known as Shoprite Empangeni, on the terms detailed in that announcement
   (“Acquisition”).

2. All suspensive conditions to the Acquisition have been fulfilled and registration of transfer of the above
   property is expected to occur by 31 July 2017.

PROVISION OF FINANCIAL ASSISTANCE

3. Immediately following implementation of the Acquisition, the Company will transfer the rental enterprise
   and property to its wholly-owned subsidiary, FPP Property Venture 102 Proprietary Limited (“FPP 102”).

4. Shareholders are notified in terms of section 45(5)(a) of the Companies Act, No. 71 of 2008 (“Companies
   Act”) that, pursuant to the authority granted to it by shareholders at the Company’s annual general meeting
   on 15 November 2016, the board of directors of the Company (“Board”) on 1 June 2017 approved the
   provision of the following financial assistance (“Board Resolutions”) to FPP 102:

4.1.   the Company will provide a loan to FPP 102 of up to R100 000 000 to enable FPP 102 to acquire the rental
       enterprise and property; and

4.2.   the Company will provide a guarantee of R86 000 000 on behalf of FPP 102 in respect of bank loans raised.

5. Prior to authorising the aforementioned financial assistance, the Board considered and satisfied itself, in
   terms of section 45 of the Companies Act, that (1) immediately after providing the financial assistance, the
   Company would satisfy the solvency and liquidity test as contemplated in section 4 of the Companies Act, (2)
   there has been due compliance with the Company’s memorandum of incorporation and (3) the terms of the
   financial assistance are fair and reasonable to the Company.

2 June 2017
Cape Town

Sponsor
PSG Capital
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