ACCELERATE PROPERTY FUND LIMITED - Announcement relating to the disposal by Accelerate of Pick n Pay FDC

Announcement relating to the disposal by Accelerate of Pick n Pay FDC

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

ANNOUNCEMENT RELATING TO THE DISPOSAL BY ACCELERATE OF PICK N PAY
FDC

1. INTRODUCTION

   Shareholders are advised that Accelerate (the “Seller”) has, entered into a sale of letting
   enterprise agreement (the “Agreement”) with Bellingan Properties (Pty) Ltd (the
   “Purchaser”), to dispose of Pick ‘n Pay FDC, Erf 3746 and Erf 3747 North End (“The
   Property”) situated in the Nelson Mandela Bay Metropolitan Municipality, division of Port
   Elizabeth (“Pick n Pay FDC” or the “Property”) (“the Transaction”).

2. THE PROPERTY

   The Property forms part of Accelerate’s portfolio acquired by Accelerate on or about 19
   November 2014.

   As at 31 March 2020 the Property was valued at R 54 772 849 by management and is
   being sold for R 50 500 000 (“Consideration”) at a yield of 10.0%. The yield is based on
   current income collected from Pick ‘n Pay on a month to month basis.

3. THE CONSIDERATION AND APPLICATION OF THE SALE PROCEEDS

   The Consideration of R50 500 000 is in cash without any deduction or set-off whatsoever
   (the “Consideration”). APF intends to utilise the full sale proceeds towards the reduction
   of debt.

   The Transaction is classified as a category 2 transaction in terms of the JSE Listings
   Requirements and accordingly does not require approval by Accelerate’s shareholders.

4. RATIONALE FOR THE TRANSACTION AND UPDATE ON BALANCE SHEET
   OPTIMISATION STRATEGY

   Following the Fourways Equalisation, whereby Accelerate own 50% of the completed
   Fourways Mall Super Regional Centre, the Company has earmarked approximately R1,4
   billion of non-core properties for sale and set a target loan to value ratio (“LTV”) of below
   40%. It is the intention that the proceeds from the sale of these properties will be used to
   reduce debt.

5. KEY TRANSACTION TERMS

   The effective date for the Transaction will be the date on which the last of the conditions
   precedent are fulfilled or waived, as the case may be, which is expected to be during
   September 2020.

6. CONDITIONS PRECEDENT

     The closing of the Transaction is subject to the following conditions precedent:

     •    The Purchaser obtaining notification or the necessary funding of a minimum of 70%
          of the Purchase Price from a financial institution within 25 days of signature of the
          Sale Agreement (which has been fulfilled); and
     •    Other necessary consents and approvals customary for a transaction of this nature.

7. INFORMATION RELATING TO THE PROPERTY


 Propert        Location               GLA           Net          Disposa        Remaining          Last           Effective
 y/                                    (m2)          rent         l Price        lease term         valuatio       date of
 Tenant                                              per m2                      (years)            n (ZAR)        the
                                                     *                                              **             valuation
 Pick N         Erf 3746 and           7,983m2       R52.44       R50 500        4.5 years          R54 772        31-Mar-20
 Pay            Erf 3747 North                                    000                               849
 FDC            End situated
                in the Nelson
                Mandela Bay
                Metropolitan
                Municipality,
                division of Port
                Elizabeth


* The weighted average net rent per m2 (also the profit attributable to the net assets of Pick N Pay DC), billed to tenants as at
the date of signature of the Agreement, which is an amount of R5 023 542.24 per annum.
** As per the Company’s last audited financial results for the 12 months ended 31 March 2020, reported on in terms of
International Financial Reporting Standards.

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

11 September 2020

Sponsor
The Standard Bank of South Africa 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: 11-09-2020 05:31:00
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