Disposal of properties by Zambesa Investments Proprietary Limited, a wholly owned subsidiary of Freedom
FREEDOM PROPERTY FUND LIMITED
Incorporated in the Republic of South Africa
Registration number: 2012/129186/06
Share code: FDP
(“Freedom” or “the Company” or “the Group”)
DISPOSAL OF PROPERTIES BY ZAMBESA INVESTMENTS PROPRIETARY LIMITED, A WHOLLY OWNED
SUBSIDIARY OF FREEDOM
Shareholders are advised that Zambesa Investments Proprietary Limited, a wholly owned subsidiary
of Freedom, has signed an Offer to Purchase (“Offer”) submitted by Dr. Katlego Pholoana (“Purchaser”)
to acquire 8 residential units and 33 service stands situated in Burgersfort, collectively known as the
Tubatse Homes (“the Property”) (the “Sale”).
2. RATIONALE FOR THE SALE
The Sale is in line with Freedom’s strategy of divesting of non-core assets as communicated to
shareholders on 15 March 2016.
The proceeds from the sale of the Property will be utilised to reduce debt in the Group, in particular,
mortgage bonds held with Nedbank.
3. PURCHASE CONSIDERATION
The total purchase consideration is R12.6 million (exclusive of Value Added Tax), settled in cash as
• a deposit of R2.52 million being paid by 20 August 2018; and
• the balance of R10.08 million being paid by 27 August 2018.
The Sale has been concluded “voetstoots”, save for warranties that are standard in respect of a
transaction of this nature.
4. INFORMATION RELATING TO THE PROPERTY
The Property specifics are as follows:
Location: Erven 5973 and 5974, Burgersfort Extension 40, Limpopo Province
Rentable area: 1255 square metres
Valuation: (Note 1) R14.35 million
Weighted average rental Nil – No rental activity on the property is currently undertaken.
per square metre for the
rentable area: (Note 2)
Original purchase price: R17.67 million
Date initially acquired: 20 March 2014
Note 1 – An independent external valuation was obtained from Real Insights Proprietary Limited in
respect of the Property (“Independent Valuation”), which valuation was undertaken by TLJ Behrens
and HN Hartman (Professional Associated Valuer and Professional Valuer, respectively), registered
without restriction in terms of the Property Valuers Profession Act, No. 47 of 2000. The value
attributed at 28 February 2018 has been derived from the comparable sales method of valuation.
Note 2 – The Property is currently no longer being rented out hence the weighted average rental per
square metre for the rentable area is nil.
5. EFFECTIVE DATE
The effective date of the Sale will be the date of registration of the transfer of the Property into the
name of the Purchaser. The Sale is not subject to any further conditions.
6. VALUE OF NET ASSETS AND PROFIT ATTRIBUTALE TO THE PROPERTY
The value of the Property is R14.35 million in terms of the Independent Valuation.
Rental income to the value of R278 719 was generated by the Property during the financial year ended
28 February 2018, based on the unaudited management accounts of Freedom, reported in accordance
with the International Financial Reporting Standards. Freedom is satisfied with the quality of the
Freedom is satisfied with the Independent Valuation.
In terms of the JSE Limited Listings Requirements, the Sale is a Category 2 transaction and accordingly
does not require approval by shareholders.
15 August 2018
Sponsor and Corporate Advisor
Questco Corporate Advisory Proprietary Limited
Date: 15/08/2018 01:49:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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