Acquisition of a property by PLG Properties Pty Ltd and Renewal of Cautionary PEMBURY LIFESTYLE GROUP LIMITED (Incorporated in the Republic of South Africa) (Registration number 2013/205899/06) (“PL Group” or “the Company”) ISIN Code: ZAE000222949 JSE Code: PEM ANNOUNCEMENT RELATING TO THE ACQUISITION OF A PROPERTY BY PLG PROPERTIES PROPRIETARY LIMITED (“PLG PROPERTIES”) AND RENEWAL OF CAUTIONARY ANNOUNCEMENT 1. Background PL Group shareholders are advised that the PLG Properties, a subsidiary of PL Group, has entered into an agreement with Kopf Electronics CC (“Seller”) to acquire a property in Bryanston, for a total consideration of R40 000 000 (“the Acquisition” or “Property”). Shareholders are reminded that, as announced on 16 May 2017, PL Group acquired the business of Pembury Retirement Lodges through PLG Retirement Villages Proprietary Limited, with effect from 1 July 2017. The Property is one of the original Pembury Retirement Lodges and has been leased from the Seller for the past 18 years. 2. Terms of the Acquisition The consideration of R40 000 000 per the agreement is payable to the Seller against the registration of transfer of the property as follows: - R24 000 000 in cash or an acceptable bank guarantee payable on registration of the property; and - The balance will be payable by the issuing 26 666 666 PL Group shares at R0.60 per share. 3. Description of the property The Property is located in Bryanston with on Erf Number 3182/41464147 in the extent of approximately 10 000 square meters. The Property comprises of 71 retirement rooms and a frail care facility with excellent security situated at a convenient location. 4. Effective Date The effective date will be the date of the registration of the property into PLG Properties name. 5. Rationale for the Acquisition Rationale for the Acquisition is in terms of a wider strategy of the PL Group to, where practical and reasonable, endeavour to own and be in control of the properties from which its subsidiaries operate, either the Groups’ schools or retirement villages. 6. Conditions precedent The Acquisition is subject to: - The obtaining of a bank approved loan to the value of R24 000 000 by PL Group within 180 days of signature of the Acquisition agreement by all parties; and - The approval by the Board of directors of PL Group. 7. Property Specific Information Property specific information is detailed below: Property Name Address Location Sector Erf Number 2 Hobart Road, Bryanston Retirement village 3182/41464147 Bryanston Rentable Area Weighted Average Rental Tenant Profile (Square meters) Per M2 6 151 39.62 per m2 PL Group and its subsidiaries 8. Classification of the transaction The Acquisition is classified as a category 2 transaction on terms of the JSE Listings Requirements, as a result, shareholder approval is not required. 9. Financial Information The company has calculated an estimated value of the property at approximately R40 million, being the purchase consideration. PLG Retirement Villages has a rental agreement which currently provides for a monthly rent payment of R277 812, inclusive of VAT. Pursuant to the Acquisition, the rental income and rental expense will be eliminated on consolidation and the company will account for interest on the bond. 10. Renewal of cautionary announcement Shareholders are referred to the cautionary announcement dated 25 October 2017 and are advised that negotiations relating to potential acquisitions of additional retirement assets are still on-going. Accordingly, shareholders are advised to continue to exercise caution when dealing in the Company’s securities. BY ORDER OF THE BOARD 30 October 2017 Johannesburg Designated Advisor Arbor Capital Sponsors Proprietary Limited Date: 30/10/2017 05:37:00 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.