Wrap Text
UPDATE ON REVALUATION OF THE COMPANY’S PROPERTY PORTFOLIO
Freedom Property Fund Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2012/129186/06)
Share code: FDP
ISIN: ZAE000185260
(“Freedom” or the “Company”)
UPDATE ON REVALUATION OF THE COMPANY’S PROPERTY PORTFOLIO
Shareholders are referred to the announcement released by the Company on 17 August
2017, that informed shareholders that the board of directors of Freedom had
contracted the services of an independent property valuer, Theuns Behrens of Real
Insight, who is registered as a registered as a Professional Associated Valuer,
(SACPVP registration number: 3206/5) (“Independent Valuer”), to undertake a
revaluation of the Company’s property portfolio. The revaluation dates are as
follows:
- Date of sale to Freedom of various properties (“Sale Date Revaluation”);
- Year end 28 February 2015 (“2015 YE Revaluation”); and
- Year end 28 February 2017 (2017 YE Revaluation”),
collectively hereinafter the Revaluation.
The Board resolved to implement the Revaluation after the International Financial
Reporting Standards expert to the Company, in consultation with senior management
and the then Company external auditor, expressed discomfort with the historical
valuations undertaken by the Company.
The results of the Revaluation are set out below. The relevant numbers drawn from
the Revaluations will be included in the Company’s annual financial statements
for the years ended 29 February 2016 and 28 February 2017 (“Annual Financial
Results”). Shareholders are reminded that the release of the Annual Financial
Results are anticipated to include the restatement of the financial results of
the Company for the year ended 28 February 2015, notwithstanding such financial
results having previously been signed off by the then Company external auditor.
1 SALE DATE REVALUATION:
This table represents a comparison between the Sale Date Revaluation undertaken
close to the date of sale of certain properties to Freedom (“Sale Properties”)
and the valuations previously obtained by Freedom in relation to the Sale
Properties, and dated 8 April 2013 (“Initial Sale Valuation”).
No Company Sale Property Date of sale Date Initial Sale Date per Sale Date Date per Sale Variance
to Freedom conditions Valuation Initial Sale Revaluation Date
precedent met Valuation Revaluation
report Report
1 Ivory Sun Wespark Palms 02 May 2013 17 April 2014 10,600,000 08 April 4,800,000 02 May 2013 (5,800,000)
Trading 115 2013
Proprietary
Limited
2 Panzaweb La Hoff Mews 29 April 2013 16 April 2014 11,500,000 08 April 2,800,000 01 April 2013 (8,700,000)
Proprietary 2013
Limited
3 Hazel Hues Emfuleni 02 May 13 21 May 2014 54,000,000 08 April 5,900,000 02 May 2013 (48,100,000)
Trading 8 Estate 2013
Proprietary
Limited
4 Proziguard Propmed 30 April 2013 25 April 2014 12,400,000 08 April 7,000,000 30 April 2013 (5,400,000)
Proprietary 2013
Limited
5 Clear Creek Portolan 02 May 2013 22 Apr 2014 85,500,000 08 April 26,400,000 01 May 2013 (59,100, 000)
Trading 145 Place 2013
Proprietary
Limited
7 Tower Sky Miami Village 29 August 2013 27 May 2014 33,000,000 08 April 13,400,000 01 August 2013 (19,600,000)
Properties (Residential 2013
Proprietary Rental
Limited (1) Properties)
Tower Sky Miami Village 29 August 2013 27 May 2014 2,100,000 08 April 1,050,000 01 August 2013 (1,050,000)
Properties (Residential 2013
Proprietary Sale
Limited Properties)
9 Passion Way Stellenbosch 31 October 26 May 2014 53,000,000 38,000,000 01 October (15,000,000)
Props Industrial 2013 2013
Proprietary
Limited
10 Lazy Haze Sweet Waters 16-Aug-13 30 April 2014 54,600,000 01 April 8,400,000 21 August 2013 (46,200,000)
Stone Props Industrial 2013
Proprietary Park
Limited
11 Kadoma Steelpoort 08-Aug-13 01 March 2014 152,406,000 08 April 158,000,000 01 March 2014 5,594,000
Investments Industrial 2013
Proprietary
Limited
Tweefontein 376,200,000 08 April 1,600,000 01 March 2014 (374,600,000)
Residential 2013
15 Zambesa Tubatse Homes 22-Aug-13 20 March 2014 No valuation found 0
Investments
Proprietary
Limited
16 Zolo Props Gevonden 12-Aug-13 15 May 2014 16,900,000 08 April 9,450,000 14 August 2013 (7,450,000)
Pty Ltd 2013
19 Ligitprops Langebaan 03-Sep-13 01 March 2014 107,100,000 08 April 31,400,000 01 February (75,700,000)
184 Beach Resort 2013 2013
Proprietary
Limited (1)
20 Las Manos Montana 21-Aug-13 01 March 2014 6,100,000 08 April 5,400,000 25 August 2013 (700,000)
Investments Residential 2013
152
Proprietary
Limited
21 Tubatse Tubatse 22-Aug-13 20 March 2014 387,000,000 08 April 18,400,000 01 August 2013 (368,600,000)
Estate Residential 2013
Proprietary Estate,
Limited Tubatse
Industrial
Park
24 Bilko Elm Drive 24-Aug-13 27 May 2014 9,915,000 01 February 8,700,000 09 June 2014 (1,215,000)
2014
1,372,321,000 340,700,000 (1,031,621,000)
2 PRE-LISTING STATEMENT (“PLS”) VALUATION V SALE DATE REVALUATION:
This table represents a comparison between the valuations for the Freedom property
portfolio included by the Company in the PLS (“PLS Valuation”), and the Sale Date
Revaluation undertaken on dates close to the dates of the sales of the relevant
Sale Properties.
No Company Property Date of sale Date PLS Valuation Revaluation Date per Variance
to Freedom conditions Sale Date
precedent met Revaluation
report
1 Ivory Sun Wespark Palms 02 May 2013 17 April 14 11,700,000 01 February 4,800,000 02 May 2013 (6,900,000)
Trading 115 2014
Proprietary
Limited
2 Panzaweb La Hoff Mews 29 April 16 April 2014 13,000,000 01 February 2,800,000 01 April (10,200,000)
Proprietary 2013 2014 2013
Limited
3 Hazel Hues Emfuleni 02 May 2013 21 May 2014 56,000,000 01 February 5,900,000 02 May 2013 (50,100,000)
Trading 8 Estate 2014
Proprietary
Limited
4 Proziguard Propmed 30 Apr 2013 25 April 2014 12,400,000 01 February 7,000,000 30 April (5,400,000)
Proprietary 2014 2013
Limited
5 Clear Creek Portolan 02 May 2013 22 April 2014 99,600,000 01 February 26,400,000 01 May 2013 (73,200,000)
Trading 145 Place 2014
Proprietary
Limited
7 Tower Sky Miami Village 29 August 27 May 2014 30,000,000 01 February 13,400,000 01 August (16,600,000)
Properties (Residential 2013 2014 2013
Proprietary Rental
Limited Properties)
Tower Sky Miami Village 29 August 27 May 2014 1,900,000 01 February 1,050,000 01 August (850,000)
Properties (Residential 2013 2014 2013
Proprietary Sale
Limited Properties)
9 Passion Way Stellenbosch 31 October 26 May 2014 53,000,000 01 February 38,000,000 01 October (15,000,000)
Props Industrial 2013 2014 2013
Proprietary
Limited
10 Lazy Haze Sweet Waters 16 August 30 April 2014 62,600,000 01 February 8,400,000 21 August (54,200,000)
Stone Props Industrial 2013 2014 2013
Proprietary Park
Limited
11 Kadoma Steelpoort 08 Aug 2013 01 March 2014 171,000,000 01 February 158,000,000 01 March (13,000,000)
Investments Industrial 2014 2014
Proprietary
Limited
Tweefontein 384,000,000 01 February 1,600,000 01 March (382,400,000)
Residential 2014 2014
15 Zambesa Tubatse Homes 22 August 20 March 2014 125,000,000 01 February No value as (125,000,000)
Investments 2013 2014 part of
Proprietary Tubatse
Limited(2) Estate(2)
16 Zolo Props Gevonden 12 August 15 May 2014 17,700,000 01 February 9,450,000 14 August (8,250,000)
Proprietary 2013 2014 2013
Limited
19 Ligitprops Langebaan 03 September 01 March 2014 108,000,000 01 February 31,400,000 01 February (76,600,000)
184 Beach Resort 2013 2014 2013
Proprietary
Limited
20 Las Manos Montana 21 August 01 March 14 7,000,000 01 February 5,400,000 25 August (1,600,000)
Investments Residential 2013 2014 2013
152
Proprietary
Limited
21 Tubatse Tubatse 22 August 20 March 2014 398,700,000 01 February 18,400,000 01 August (380,300,000)
Estate Residential 2013 2014 2013
Proprietary Estate,
Limited(2) Tubatse
Industrial
Park
24 Bilko Elm Drive 24 August 27 May 2014 9,900,000 01 February 8,700,000 09 June 2014 (1,200,000)
2013 2014
1 561 500 000 340,700,000 (1,220,800,000)
3 2015 INTEGRATED REPORT (“2015 IR”) VALUATIONS VERSUS REVALUATIONS (SAME
PERIOD):
This table represents a comparison between the valuations for the Freedom property
portfolio included in the 2015 IR and the 2015 YE Revaluation.
No Company Property 2015 IR Valuation 2015 YE Revaluation Variance
1 Ivory Sun Trading 115 Proprietary Wespark Palms 8,450,000 5,200,000 (3,250,000)
Limited
2 Panzaweb Proprietary Limited La Hoff Mews 16,600,000 2,800,000 (13,800,000)
3 Hazel Hues Trading 8 Proprietary Emfuleni Estate 60,700,000 4,200,000 (56,500,000)
Limited
4 Proziguard Proprietary Limited Propmed 16,000,000 7,800,000 (8,200,000)
5 Clear Creek Trading 145 Portolan Place 115,900,000 32,400,000 (83,500,000)
Proprietary Limited
7 Tower Sky Properties Proprietary Miami Village (Residential 31,815,900 15,700,000 (16,115,900)
Limited (3) Rental Properties)
Tower Sky Properties Proprietary Miami Village (Residential 2,532,000 1,300,000 (1,232,000)
Limited Sale Properties)
9 Passion Way Props Proprietary Stellenbosch Industrial 59,500,000 42,800,000 (16,700,000)
Limited
10 Lazy Haze Stone Props Proprietary Sweet Waters Industrial Park 81,000,000 8,600,000 (72,400,000)
Limited
11 Kadoma Investments Proprietary Steelpoort Industrial 249,000,000 184,000,000 (65,000,000)
Limited
Tweefontein Residential 390,000,000 1,600,000 (388,400,000)
15 Zambesa Investments Proprietary Tubatse Homes 100,000,000 No value as part of (100,000,000)
Limited(2) Tubatse Estate(2)
16 Zolo Props Proprietary Limited Gevonden 21,100,000 10,500,000 (10,600,000)
19 Ligitprops 184 Proprietary Limited Langebaan Beach Resort 99,500,000 40,400,000 (59,100,000)
(3)
20 Las Manos Investments 152 Montana Residential 11,600,000 6,300,000 (5,300,000)
Proprietary Limited
21 Tubatse Estate Proprietary Tubatse Residential Estate, 424,000,000 18,400,000 (405,600,000)
Limited(1) Tubatse Industrial Park
1,687,697,900 382,000,000 (1,305,697,900)
4 2017 YE REVALUATION:
The table below sets out the 2017 YE Revaluation achieved for the Freedom property
portfolio for inclusion in the 2017 annual financial results.
No. Company Property 2017 YE Revaluation
1) Ivory Sun Trading 115 Proprietary Limited Wespark Palms 6,100,000
2) Panzaweb Proprietary Limited La Hoff Mews Sold
3) Hazel Hues Trading 8 Proprietary Limited Emfuleni Estate 4,200,000
4) Proziguard Proprietary Limited Propmed 8,700,000
5) Clear Creek Trading 145 Proprietary Limited Portolan Place 39,200,000
7) Tower Sky Properties Proprietary Limited Miami Village (Residential Rental Properties) 5,200,000
Tower Sky Properties Proprietary Limited Miami Village (Residential Sale Properties) 1,400,000
9) Passion Way Props Proprietary Limited Stellenbosch Industrial Sold
10) Lazy Haze Stone Props Proprietary Limited Sweet Waters Industrial Park 9,000,000
11) Kadoma Investments Proprietary Limited Steelpoort Industrial 217,000,000
Tweefontein Residential 2,200,000
15) Zambesa Investments Proprietary Limited(2) Tubatse Homes 13,900,000
16) Zolo Props Proprietary Limited Gevonden Sold
19) Ligitprops 184 Proprietary Limited Langebaan Beach Resort Sold
20) Las Manos Investments 152 Proprietary Limited Montana Residential Sold
21) Tubatse Estate Proprietary Limited(2) Tubatse Residential Estate, Tubatse 19,000,000
Industrial Park
24) Bilko Elm Drive Sold
325,900,000
Notes:
(1) Each of these properties considered inventory, that is, not disclosed as
investment property on the balance sheet.
(2) Tubatse Estate was envisaged to be developed into Tubatse Industrial Park
and Tubatse Residential Estate, respectively. These two projects did not
materialise and Freedom continues to own the land. Included in Tubatse
Estate were two additional properties namely erven 5973 and 5974.
These two erven were sold to Zambeza under a deed of sale dated on or
about 12 October 2011. Erf 5973 only transferred to Zambeza on 11 October
2016 whereas Erf 5974 remains registered in Tubatse Estate. The reason why
there is no value for Zambesa in the 2015 financial year is because there
were no properties registered in Zambesa during that period, and that the
value of the aforementioned erven are therefore already included in the
value of Tubatse Estate.
(3) Each of these properties considered inventory, that is, not disclosed as
investment property on the balance sheet.
Paarl
28 November 2017
Sponsor
Bravura Capital Proprietary Limited
Date: 28/11/2017 05:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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