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TOWER PROPERTY FUND LIMITED - Disposal of Pick n Pay Distribution Centre

Release Date: 04/09/2018 16:00
Code(s): TWR     PDF:  
Wrap Text
Disposal of Pick n Pay Distribution Centre

(Incorporated in the Republic of South Africa)
(Registration number 2012/066457/06)
JSE share code: TWR ISIN: ZAE000179040
(Approved as a REIT by the JSE)
("Tower" or "the company")


Shareholders are referred to the audited consolidated annual financial statements for the year ended
31 May 2018, wherein shareholders were advised that Tower had entered into a sale agreement in respect of
the disposal of the Pick n Pay Distribution Centre in Pinetown, Kwazulu Natal, for a total purchase
consideration of R96 million (being its 31 May 2018 book value) (the "transaction" or "disposal").

Tower is pleased to inform shareholders that the transaction has now been implemented. This property was
not core to Tower and there was uncertainty regarding the probability of renewal of the lease on its expiry in

Tower has not provided distribution guidance for its financial year ending 31 May 2019. However, Tower
provided property net income guidance and will continue to update shareholders on the progress of its asset
management initiatives, including the disposal of non-core properties, as the investment of these proceeds is
key to Tower's sustainable income and total return strategy.

The disposal is consistent with Tower's strategy of recycling assets where Tower has already successfully
unlocked value and utilising the proceeds of such disposal to strengthen Tower's balance sheet and funding
investments in assets where there is still growth to be unlocked. Tower will utilise 55% of the proceeds to
reduce the company’s local debt. The remaining funds will be used by Tower to realise accretive and defensive
capital projects in its existing property portfolio, and to continue to repurchase Tower shares should the
circumstances be favourable.

The transaction is not categorisable in terms of the JSE Listings Requirements and this announcement is
voluntary and for information purposes only.

4 September 2018

Java Capital

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