Acquisition of a Further 15.51% of Pilot Peridot PUTPROP LIMITED Incorporated in the Republic of South Africa (Registration number 1988/001085/06) Share code: PPR ISIN: ZAE000072310 (“Putprop” or “the Company”) ACQUISITION OF A FURTHER 15.51% OF PILOT PERIDOT 1. INTRODUCTION The board of directors of Putprop (“the Board”) wishes to inform shareholders that the Company has concluded an agreement for the acquisition of a further 15.51% shareholding in Pilot Peridot 1 Proprietary Limited (“Pilot Peridot”) from JDC Property Investments Proprietary Limited for a total purchase consideration of R24 000 000 (“Purchase Consideration”), such that Putprop’s total shareholding in Pilot Peridot has increased to 53.461 (“the Acquisition”). 2. THE ACQUISITION 2.1 Details of Pilot Peridot Pilot Peridot is a company incorporated in South Africa with interests in property developments. Its sole asset is a 50% undivided share in Summit Place, a mixed use retail and commercial development in the Menlyn area of Pretoria, with a gross lettable area (“GLA”) of 30 657 square metres. Details of the property are as follows: Building: Sector GLA Weighted average (square rental per square metres) metre (ZAR) Building A Commercial 100% 1 315 188.81 Building C Commercial 100% 4 990 235.61 Building D Retail 59% 4 405 105.03 Commercial 41% Building E1 Commercial 100% 7 203 178.04 Building E2 Retail 100% 3 019 171.13 Building E3 Commercial 100% 4 757 0 Building G1 Retail 100% 4 968 141.83 The total weighted average rental per square metre is R140.40. 2.2 Rationale for the Acquisition The Acquisition complies with the Group’s stated objective of strategic investments focussed on retail and commercial opportunities, where yields are enhancing in the medium and long term. This additional purchase in Pilot Peridot allows the Group to enhance and protect its existing investment. 2.3 Purchase Consideration The Purchase Consideration which will be settled by means of internally generated cash will be paid in four tranches, as follows: - The first tranche of R6 000 000 is payable no later than three business days after the Acquisition has been approved by the Board (“the First Payment Date”); - the second tranche, being a minimum of R4 500 000, is payable within 30 days of the First Payment Date (“the Second Payment Date”); - the third tranche, being a minimum of R4 500 000, is payable within 30 days of the Second Payment Date (“the Third Payment Date”); and - the fourth tranche, being the balance of the Purchase Consideration, is payable within 30 days of the Third Payment Date. 2.4 Effective Date The effective date of the Acquisition is 30 June 2017. 2.5 Conditions Precedent All conditions precedent in respect of the Acquisition have been fulfilled. 3. FINANCIAL INFORMATION The value of the net assets of Pilot Peridot as at 28 February 2017 was R44 528 155. The loss after tax attributable to the net assets of Pilot Peridot for the year ended 28 February 2017 was R7 245 517 and the profit before interest and tax attributable to the net assets of Pilot Peridot for the year ended 28 February 2017 was R11 730 942. A valuation of the property of Pilot Peridot was performed by Putprop’s directors, who are not registered as professional valuers in terms of the Property Valuers Profession Act, 2000 (Act 47 of 2000). The property was valued at an amount of R480 000 000. A valuation of the property of Pilot Peridot is in the process of being completed by an independent and registered professional valuer in terms of the Property Valuers Profession Act, 2000 (Act 47 of 2000) and shareholders will be advised once this valuation has been finalised. 4. CLASSIFICATION OF THE ACQUISITION The Acquisition is classified as a Category 2 transaction in terms of the Listings Requirements of the JSE Limited. Johannesburg 11 July 2017 Sponsor Merchantec Capital Date: 11/07/2017 02:00:00 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.