INVESTEC PROPERTY FUND LIMITED - Disposal of Simba Distribution Centre in Gauteng

Release Date: 06/08/2018 12:16
Code(s): IPF
 
Wrap Text
Disposal of Simba Distribution Centre in Gauteng

INVESTEC PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
(Reg. No: 2008/011366/06)
Approved as a REIT by the JSE
Share Code: IPF
ISIN: ZAE000180915
("IPF" or the “Fund")


DISPOSAL OF SIMBA DISTRIBUTION CENTRE IN GAUTENG


1.       INTRODUCTION

         Shareholders are advised that IPF has concluded a sale agreement with Equites Property Fund
         Limited (“Equites”), to dispose of the property situated at 117 Greenhills (the “Property”), for a
         disposal price of R462 million (“Purchase Price”) (the “Disposal”). The Purchase Price reflects an
         exit yield of 7.0% and represents a R25m (5.7%) premium to the current book value, assuming the
         Disposal becomes effective on 1 November 2018.

         The Property is a 40 428 m² distribution centre let to Simba Proprietary Limited and is situated on a
         101 769 m2 site in Elandsfontein, Germiston.

2.       RATIONALE

         The Disposal is in line with IPF’s stated strategy of value creation through the efficient recycling of
         capital and enables the Fund to deleverage its balance sheet on both an earnings and net asset value
         accretive basis. The attractively priced Disposal also provides the Fund with further balance sheet
         capacity to:

         -    take advantage of existing opportunities, being the remaining Euro 83.5 million commitment to
              the Fund’s Pan-European logistics platform which is delivering initial cash on cash returns in
              excess of 10% with further attractive growth prospects, and

         -    capitalise on opportunities in the direct market to the extent there is a re-pricing in line with the
              recent movement in the listed property sector.

3.       SALIENT TERMS OF THE AGREEMENT

         The Disposal is subject to the fulfilment of the following conditions precedent:

     -       completion of a due diligence investigation and Equites confirming it is satisfied with the results
             thereof;

     -       approval by the Competition Authorities; and

     -       general conditions considered ordinary in the course of property transfers.

4.   CATEGORISATION

      The Disposal is not categorisable for IPF in terms of the JSE Listings Requirements and this
      announcement is voluntary and for information purposes only.



Investec Property Fund Limited
Johannesburg

6 August 2018

Sponsor and Financial Advisor
Investec Bank Limited

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