Announcement Regarding the Acquisition of a Letting Enterprise and property from Investec Property INVESTEC PROPERTY FUND LIMITED (Incorporated in the Republic of South Africa) (Registration Number 2008/011366/06) Share code: IPF ISIN: ZAE000155099 (“Investec Property Fund” or “the Fund”) ANNOUNCEMENT REGARDING THE ACQUISITION OF A LETTING ENTERPRISE AND PROPERTY FROM INVESTEC PROPERTY 1. INTRODUCTION The board of directors of Investec Property Fund is pleased to announce that the Fund has entered into an agreement with Investec Property Group Holdings Proprietary Limited (“Investec Property Group”) (“the Vendor”), a wholly-owned subsidiary of Investec Limited (“Investec”) for the acquisition of the Sumitomo building located in Jet Park, Boksburg (“Sumitomo”) or (“the Sumitomo Acquisition”). The effective date of the acquisition is 1 April 2017 (“Effective Date”). 2. PURCHASE CONSIDERATION FOR RELATED PARTY PROPERTIES The purchase consideration for Sumitomo amounts to R131,893,573 payable upon transfer of the property into the name of the Fund and will be funded out of existing facilities and cash. 3. RATIONALE FOR THE ACQUISITION The Sumitomo Acquisition is consistent with the Fund’s objective to build a quality portfolio of properties with strong contractual cash flows in order to achieve value enhancement and sustainable growth in distributions to shareholders. Given the high-quality tenant and the terms of the triple net lease, the Directors of the Fund believe the investment offers good value and will enhance the earnings and growth prospects of the Fund. Sumitomo is being acquired at a yield of 9%. 4. INFORMATION RELATING TO SUMITOMO Sumitomo is a single tenanted warehousing and distribution facility with newly constructed office section, located in the well-established and desirable industrial node of Jet Park situated just to the West of OR Tambo International Airport. The node is very well suited for warehousing and distribution operations due to its accessibility and location within the N12, R21 and R24 triangle, allowing for easy access to all regions within Gauteng. The property itself enjoys good eave heights with full sprinkler installation, and the building is well located on the site to maximize yard area. A new warehouse roof has recently been installed and all warehouse lighting replaced with energy efficient light fittings, which should significantly reduce the ongoing maintenance and operational expenses. Remaining Extent of Erf 448 Jet Park Extension 14 Description of the property: Township, Registration Division I.R., Province of Gauteng Location: 10 Jansen Road, Jet Park, Boksburg Single or multi-tenanted: Single-tenanted GLA (m2): 19 294m2 Weighted average gross rental per square R56.33 meter: Weighted average lease expiry (WALE) 6.5 years 5. VALUATION OF THE RELATED PARTY ACQUISITION An independent valuation has been performed by Magnus Penny Associates CC trading as Mills Fitchet Magnus Penny & Wolffs (“Independent Valuer”), who is an independent registered valuer as defined in section 13 of the JSE Listings Requirements. The valuation is R131 850 000 with an effective date of 1 April 2017. 6. CONDITIONS PRECEDENT The Sumitomo Acquisition is unconditional. 7. FORECAST FINANCIAL INFORMATION OF THE SUMITOMO ACQUISITION Forecast for the 12 months ending 31 March 2018 3 R'000 Gross income1 13,041 Property expenditure 2 1,170 Net property income 11,871 Annualised yield on property 9.0% Notes: 1. Gross income includes contractual rental income and rates & taxes recovered. 2. Property expenditure includes all consumption expenditure as well as property management fees. 3. The forecast information has been calculated from 1 April 2017 to 31 March 2018. 4. This forecast information has not been reviewed or reported on by a reporting accountant. 8. SMALL RELATED PARTY TRANSACTION The Sumitomo Acquisition, is classified as a small related party transaction in terms of the JSE Listings Requirements, as Investec Property Group Holdings Proprietary Limited is a wholly-owned subsidiary of Investec Limited. Based on the value of the property arrived at by the Independent Valuer, the directors of the Fund are of the opinion that the terms and conditions of the Acquisition are fair to Shareholders. The JSE has been provided with a summary of the sworn valuation of the property by the Independent Valuer. The full valuation report is available for inspection at the registered office of the Fund during normal business hours until 7 August 2017. Johannesburg 27 July 2017 Corporate Advisor and Sponsor Legal Advisor Investec Bank Limited Fluxmans Attorneys Date: 27/07/2017 12:55:00 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. 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