Sharenet Sites 
Sharenet Sites
Disposal of leases within the port of Durban
SA Corporate Real Estate Limited
(Incorporated in the Republic of South Africa)
Share Code: SAC ISIN Code: ZAE000203238
(Registration number 2015/015578/06)
(“SA Corporate” or the “Company”)
REIT status approved
DISPOSAL OF LEASES WITHIN THE PORT OF DURBAN
1. INTRODUCTION
Shareholders are advised that SA Corporate has entered into an agreement with Grindrod Property
Holdings Limited (“Grindrod Property” or “the Purchaser”), a wholly owned subsidiary of Grindrod Limited,
to dispose of various letting enterprises comprising head leases (“Head Leases”) and underlying sub-leases
(“Sub-leases”) (the “Leases”) held over five properties (the “Properties”) based within the Port of Durban
(the “Disposal”). The Properties are leased to wholly owned subsidiaries of the Company, which in turn
sub-lease the Properties to Grindrod South Africa Proprietary Limited.
The effective date of the Disposal will be the date on which the cession of the Leases is registered into the
name of the Purchaser at the Deeds Office, which is anticipated to be by the end of September 2020.
2. DETAILS OF THE DISPOSAL
2.1. Disposal consideration
SA Corporate, via its subsidiaries, will dispose of the Leases via a sale of letting enterprises and a
“cession of leases” to Grindrod Property for a consideration of R212 million, exclusive of VAT
(“Disposal Consideration”). The Disposal Consideration will be settled by the Purchaser against
registration of the Leases into the name of Grindrod Property.
2.2. Rationale and use of proceeds
The Disposal is aligned to SA Corporate’s strategy of divesting from leasehold properties that reflect
diminishing value and do not meet its industrial property portfolio primary investment criteria of
modern logistics.
The Disposal Consideration will be initially utilised to increase the Company’s cash reserves.
2.3. Conditions precedent
The Disposal is subject to the following conditions precedent:
2.3.1 Competition Commission approval; and
2.3.2 consent by the mortgagee to the cancellation of the existing mortgage bonds over the Head
Leases.
2.4. Value of the net assets and profits attributable to the net assets of the Disposal
The assets that are the subject of the Disposal were valued at R220.8 million as at 31 December 2019.
The annual net property income in respect of the year ended 31 December 2019 attributable to the
assets that are the subject of the Disposal was R20.48 million. This information has been extracted
from SA Corporate’s audited annual financial statements for the year ended 31 December 2019,
which have been prepared in terms of International Financial Reporting Standards.
3. DETAILS OF THE HEAD LEASES AND PROPERTIES
3.1. Details of the Head Leases are as follows:
Head Lease lessee Property description Head Lease expiry date
Blue Heron Investments Proprietary Limited Lease 32 of Lot 10014 1 December 2029
("Blue Heron") Lease 33 & 34 of Lot 10014 1 December 2029
Lease 35 of Lot 10014 1 June 2041
Dune Lark Investments Proprietary Limited Lease 29 & 30 of Lot 10014 7 January 2030
("Dune Lark") Lease 15 of Lot 10014 20 October 2041
Grey Heron Investments Proprietary Limited Lease 36 of Lot 10014 1 July 2028
("Grey Heron") Lease 37 of Lot 10014 1 February 2037
Rock Kestrel Investments Proprietary Limited Lease 56 of Lot 10014 1 August 2030
("Rock Kestrel")
Wood Ibis Investments Proprietary Limited Sub 1, 2, 4, 5, 6 Block M of 1 April 2054
("Wood Ibis") Lot 10014 1 April 2054
Rem of Sub 3 Block M of Lot
10014
The Properties are currently sub-let for storage for fertilizer, fluorspar and various minerals as well as
container handling.
3.2. Details of the Properties are as follows:
Head Lease Location Sector Rentable Weighted Value of the
lessee area average rental* Properties
per m2
(m2) (R) (R’000)
Blue Heron Cnr Shadwell & Logistics and 14 587 34.22 64 000
Jenkyn Roads, warehousing
Maydon Wharf,
Durban
Dune Lark 34 Shadwell Road, Logistics and 13 091 38.06 47 000
Maydon Wharf, warehousing
Durban
Grey Heron 137 Johnston Road, Logistics and 7 394 34.22 30 000
Maydon Wharf, warehousing
Durban
Rock Shadwell Road, Container yard 398 12.02 7 800
Kestrel Maydon Wharf,
Durban
Wood Ibis Methven Road, Logistics and 18 060 35.72 72 000
Maydon Wharf, warehousing
Durban
* Net of land lease rental.
4. CATEGORISATION
The Disposal constitutes a Category 2 transaction in terms of the JSE Limited Listings Requirements and
accordingly, no shareholder approval is required.
Cape Town
12 June 2020
Corporate sponsor
Nedbank Corporate and Investment Banking
Date: 12-06-2020 05:30:00
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