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TOWER PROPERTY FUND LIMITED - Update on the refurbishment of Cape Quarter Piazza

Release Date: 23/04/2018 08:00
Code(s): TWR     PDF:  
Wrap Text
Update on the refurbishment of Cape Quarter Piazza

TOWER PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2012/066457/06)
JSE share code: TWR ISIN: ZAE000179040
(Approved as a REIT by the JSE)
("Tower" or the "company")


UPDATE ON THE REFURBISHMENT OF CAPE QUARTER PIAZZA


In June 2013, Tower acquired the commercial properties known as Cape Quarter Piazza, Cape Quarter Square and
32 Napier Street, which make up the Cape Quarter Precinct, which included 5 403 m2 of developable bulk at Cape
Quarter Piazza alone. The Cape Quarter Precinct is situated in De Waterkant, a highly desirable residential area with
strong demand and high selling prices.

Tower is pleased to advise shareholders that the refurbishment of the Cape Quarter Piazza, which will be renamed the
Old Cape Quarter upon completion, and the development and sale of 55 new residential apartments (the "Old Cape
Quarter refurbishment") will be launched by the Cape Quarter Company Proprietary Limited, a wholly-owned
subsidiary of Tower, at the end of April 2018, in line with its strategy to realise the capital value in the developable
bulk to its best advantage.

High selling prices are currently being achieved in the De Waterkant area, with the latest sales of apartments in the
adjacent Napier Street residential development achieving prices of R92 000 per m2 incl VAT. In Tower's view, the
current demand for residential property means that a residential development offers the best opportunity for Tower to
realise the capital value in the developable bulk to its best advantage.

Upon completion the Old Cape Quarter will comprise parking, two floors of retail and office space (the re-developed
existing structure) and 55 apartments. The retail offering will be focused towards a unique food market type offering
while the offices are expected to be let to strong local and national tenants given the current high demand in the node.
The apartments will be upmarket residential apartments, with budgeted selling prices in the region of R79 000 per m2.

The Cape Quarter refurbishment will be funded, through either drawing down on existing undrawn facilities or bank
development funding, advanced as sales are concluded. Tower will ensure that its resultant loan to value remains
below 40%.

The proceeds from the development will be used to strengthen Tower's balance sheet by reducing debt and/or
repurchasing Tower shares (should the purchase price remain attractive). Should the sales market come under
pressure, Tower may retain the residential units and let them out on a short-term basis at an attractive yield.

For information on the development and the units to be sold, shareholders may visit the following website –
www.capequarter.co.za

23 April 2018


Sponsor
Java Capital

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