INVESTEC PROPERTY FUND LIMITED - Sale of equity interest in the UK Fund

Sale of equity interest in the UK Fund

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
Bond Code: INV
ISIN: ZAE000180915
("Investec Property Fund" or "the Fund")


SALE OF EQUITY INTEREST IN THE UK FUND


1.   BACKGROUND AND RATIONALE

     In line with a long-term strategy to build scale and relevance in its core South African and Pan-European
     markets, Investec Property Fund has been seeking to consolidate its investment portfolio. As a result, the
     Fund has resolved to sell its investment in the UK. This will enable the Fund to further de-lever its balance
     sheet and create further capacity to support the growth of its Pan-European logistics business.

2.   KEY TERMS

     Shareholders are therefore advised that the Fund has concluded a share purchase agreement on 8 March
     2021 wherein the Fund has agreed to sell its 38.04% equity interest in the UK Fund (the “UK Fund” or “Sale”),
     to Argo Real Estate Limited (“Purchaser”), for a cash consideration of GBP35 million (the “Sale Proceeds”).
     The selling price represents a £12.7m impairment against the carrying value of £47.7m at 30 September 2020.

     Conditions:

     -   The Sale is subject to satisfactory completion of a due diligence investigation by the Purchaser;
     -   The Sale Proceeds will be paid on completion, which is anticipated to take place before the end of March
         2021;
     -   The Sale is subject to warranties and undertakings that are standard for a transaction of this nature.

3.   FINANCIAL INFORMATION

     As contained in the latest reviewed interim condensed financial results of the Fund, released on SENS on
     18 November 2020, the carrying value of the investment in the UK Fund as at 30 September 2020 was £47.7m
     (R1.0 bn). The Fund recognized a loss of R92 million attributable to the UK investment in the income statement
     for the six months ended 30 September 2020. This loss was largely attributable to impairments of the UK
     Fund’s property portfolio.

4.   CATEGORISATION OF THE SALE

     The Sale is classified as a Category 2 transaction in terms of the JSE Listings Requirements. Accordingly, it
     is not subject to shareholder approval.


Johannesburg
9 March 2021

Financial Advisor and Sponsor
Investec Bank Limited

Date: 09-03-2021 09:06:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.