ACCELERATE PROPERTY FUND LIMITED - The Disposal by Accelerate of Cherry Lane Shopping Centre

The Disposal by Accelerate of Cherry Lane Shopping Centre

ACCELERATE PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2005/015057/06)
LEI: 378900D514788C447E45
Share code: APF ISIN: ZAE000185815
Bond company code: APFE
("Accelerate", "APF" or the "Company")


THE DISPOSAL BY ACCELERATE OF CHERRY LANE SHOPPING CENTRE


1.    INTRODUCTION
      Shareholders and noteholders are advised that Accelerate ("Seller") has entered into a sale of
      letting enterprise agreement (the "Agreement") with Alma Trading CC, registration number
      1990/031330/23 ("Purchaser") on 4 December 2023 to dispose of Cherry Lane Shopping Centre,
      Erf 437 Nieuw Muckleneuk Township, Pretoria ("Cherry Lane" or the "Property") (the
      "Transaction").


      The ultimate beneficial shareholder of the Purchaser is Chrysoula Sourlis who is not a related
      party to Accelerate as defined in the Listings Requirements of the JSE Limited.


2.    THE PROPERTY
      The Property, a retail building located at 471 Fehrson Street, Nieuw Muckleneuk Township,
      Pretoria forms part of Accelerate's retail portfolio and was acquired by Accelerate on or about 11
      December 2013.


      As at 31 March 2023, the Property was valued at R 65,000,000 and is being sold for a cash
      consideration of R60 000 000.00 (Sixty million Rand).


3.    APPLICATION OF THE SALE PROCEEDS
      It is the intention of Accelerate to apply the full proceeds to the reduction of debt and/or capital
      reinvestment into its core property portfolio.

4.   RATIONALE FOR THE TRANSACTION AND UPDATE ON BALANCE SHEET OPTIMISATION STRATEGY
     This decision was made as part of Accelerate's ongoing efforts to review it's assets and ensure
     that they align with the Company's current business strategy and growth plans.


     While this decision was not taken lightly, the executive team believes that it is in the best interest
     of the Company and its shareholders.


5.   KEY TRANSACTION TERMS
     The Purchaser will pay a refundable deposit of R1,000,000.00 into the conveyancers' trust
     account within 48 hours of signature of the Sale Agreement.


6.   CONDITIONS PRECEDENT
     •     A 30 business days due diligence period from date of signature of the Sale Agreement; and
     •     A further 30 calendar days after that for the purchaser to provide guarantees.


7.   INFORMATION RELATING TO THE PROPERTY
     The details of the Property including location, gross lettable area ("GLA"), net rent, remaining
     lease term and independent valuation are as follows:


     Description                               For the year to               For the six months to
                                               31 March 2023                 30 September 2023
     GLA (m²):                                 11,429m²                      11,429m²
     Weighted average rent per m²:             R32,48/m²                     R32,48/m²
     Vacancy:                                  32.3%                         47.8%
     Net property income:                      R3,58 million                 R2,03 million
     Weighted average lease expiry:            0,54 years                    0,55 years
     *     Directors valuation as at 31 March 2023 (which the Company is satisfied with) based on
           cash flows and forward net income achieved by the Property at valuation date.


8.   WARRANTIES
     The Seller has provided warranties and indemnities to the Purchaser that are standard for a
     transaction of this nature.

9.    CATEGORISATION OF THE TRANSACTION
      In terms of the Listings Requirements of the JSE Limited, the Transaction is classified as a Category
      2 transaction for Accelerate and does not require shareholder approval.




Johannesburg
7 December 2023

Equity sponsor
The Standard Bank of South Africa Limited

Debt sponsor
Rand Merchant Bank (a division of FirstRand Bank Limited)


CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Certain statements in this announcement may be considered forward-looking. Although APF believes
that the expectations reflected in any such forward-looking statements relating to the Transaction are
reasonable. The information has not been reviewed or reported on by the reporting accountants and
auditors and no assurance can be given by APF that such expectations will prove to be correct. APF does
not undertake any obligation to publicly update or revise any of the information given in this
announcement that may be deemed to be forward- looking.

Date: 07-12-2023 09:00:00
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