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Release Date: 01/03/2019 17:19
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Edcon update

(Incorporated in the Republic of South Africa)
(Registration no: 1999/018591/06)
JSE share code: RDF
Company bond code: BIRDF
ISIN: ZAE000190252
(Approved as a REIT by the JSE)
(“Redefine” or the “company”)


As a further update to the Edcon situation, we have been informed that binding agreements have
been concluded with all the relevant stakeholders to restructure and recapitalise Edcon.

Redefine as a significant landlord to Edcon with a gross lettable area exposure of 78 760 sqm
housing the Edgars and Jet brands, is a party to these arrangements, whereby Redefine will make
a contribution to the recapitalisation of Edcon in exchange for equity in Edcon. Should the
restructure be successfully implemented, Redefine’s equity contribution will amount to
R54,6 million. As a consequence, Redefine will receive 100% of its rental due from Edcon on
56 788 sqm, representing in force leases for profitable Edcon stores.

In addition to the equity contribution, Redefine has also agreed to rental reductions up to the
maximum amount of R13,8 million over a two-year period, in respect of leases totaling
21 972 sqm. These leases will either expire or Redefine has the right to take back the space prior
to expiry, once a replacement tenant has been secured, subject to a three month notice period.

Edcon’s recapitalisation is conditional upon obtaining the normal regulatory approvals required for
a transaction of this nature. The restructuring of the leases, applicable to the Edgars and Jet
brands, will be effective from 1 April 2019.

Redefine maintains its previous distribution guidance of growth of 4% to 5% per share on the prior

1 March 2019

Java Capital

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