Wrap Text
Forecast financial and property specific information in respect of the proposed acquisition by Gemgrow
ARROWHEAD PROPERTIES LIMITED GEMGROW PROPERTIES LIMITED
(Incorporated in the Republic of South Africa) (Incorporated in the Republic of South Africa)
(Registration number 2011/000308/06) (Registration number 2007/032604/06)
JSE share code: AWA ISIN: ZAE000203105 JSE share code: GPA ISIN: ZAE0000223269
(Approved as a REIT by the JSE) JSE share code: GPB ISIN: ZAE0000223277
(“Arrowhead”) (Approved as a REIT by the JSE)
("Gemgrow")
FORECAST FINANCIAL AND PROPERTY SPECIFIC INFORMATION IN RESPECT OF THE PROPOSED
ACQUISITION BY GEMGROW OF ALL THE ARROWHEAD ORDINARY SHARES HELD BY ARROWHEAD
SHAREHOLDERS BY WAY OF A SCHEME OF ARRANGEMENT
Shareholders of Arrowhead and Gemgrow are referred to the joint SENS announcements (“announcements”)
released today in respect of, inter alia, the firm intention by Gemgrow to make an offer to acquire all of the
Arrowhead ordinary shares, but excluding the Arrowhead shares held in treasury, from Arrowhead shareholders
(“scheme participants”) by way of a scheme of arrangement (“scheme”) in terms of section 114 of the
Companies Act, No. 71 of 2008, as amended, to be proposed by the board of Arrowhead to scheme participants
(“transaction”) and withdrawal of cautionary announcements. Unless otherwise defined, terms in this
announcement have been defined in the announcements.
1. Forecast financial information
Set out below are the forecast statements of comprehensive income for Arrowhead (“forecasts”) for the
6 months ending 30 September 2019 and the year ending 30 September 2020 (“forecast periods”).
Due to the transaction being classified as a reverse acquisition in accordance with IFRS, Arrowhead is
regarded as the accounting acquirer that effectively acquires the issued share capital of Gemgrow that it
does not already own at the effective date. Accordingly, the forecast results presented for the enlarged
Gemgrow group will be a continuation of the financial results of Arrowhead.
The forecasts, including the assumptions on which they are based and the financial information from which
they are prepared, are the responsibility of the directors of Arrowhead and Gemgrow. The forecasts have
not been reviewed or reported on by reporting accountant in terms of Section 8 of the JSE Listings
Requirements.
The forecasts have been compiled in full compliance with Gemgrow’s IFRS compliant accounting policies
and on an aggregated basis for the Arrowhead property portfolio, with the exception of Indluplace
Properties Limited, (“Indluplace”) a subsidiary of Arrowhead. On the basis that the forecast financial
information of Indluplace was not readily available, due to the information being restricted price sensitive
information, the expected distribution to be received from Indluplace was included in the forecast earnings
under ‘Listed security’ income and prepared based on the distribution guidance that Indluplace has
communicated to the market on 9 May 2019.
Forecast for Forecast for
Notes the 6 months the year
ending ending
30 September 30 September
2019 2020
R'000
Property rental revenue and recoveries 3,4,5,6,7,8,19 873 293 1 774 299
Straight-line rental income accrual 10 - -
Listed security income 16,17,18 103 115 195 431
Gross property revenue 976 409 1 969 730
Property expenses 9,11,20,21 (330 709) (697 230)
Net profit from property operations 645 700 1 272 500
Corporate administrative expenses (50 037) (83 086)
Finance income 12 36 412 69 809
Operating profit before finance costs 632 075 1 259 223
Finance charges 13 (242 920) (478 981)
Profit before taxation 389 156 780 243
Taxation - -
Profit and total comprehensive for the period/year 389 156 780 243
Total comprehensive income equals distributable earnings.
Forecasts notes and assumptions
The forecasts incorporate the following material assumptions in respect of revenue and expenses that can
be influenced by the directors of Arrowhead:
1. The forecasts for the six months ending 30 September 2019 and the year ending 30 September 2020
are based on information derived from lease contracts, information provided by the property manager
and historic information.
2. Gemgrow and Arrowhead will not acquire any properties during the forecast periods, however
properties have been earmarked for disposal within the forecast periods. No revenues or related
expenditure have been included in the forecast periods past the intended date of sale of each property.
Per the forecast results presented, the disposal proceeds will be applied in reducing the borrowings of
Arrowhead and consequently an overall comparable interest saving.
3. Revenue and recoveries includes rental income and recoveries, of which the portion relating to basic
rental income amounts to R642.6 million for the six months ending 30 September 2019 and R1.29
billion for the year ending 30 September 2020.
4. Contracted revenue is based on existing lease agreements, including stipulated increases, all of which
are valid and enforceable. 92% of the rental income for the 6 months ending 30 September 2019
relates to contracted rental income, whilst 7% relates to near contracted rental income and 1%
uncontracted rental income. Of the rental income for the year ending 30 September 2020, 78% relates
to contracted rental, 21% relates to near contracted rental income and 1% relates to uncontracted
rental income.
5. Leases expiring during the forecast periods have been forecast on a lease-by-lease basis and have
been assumed to renew at current market rates unless the lessee has indicated its intention to
terminate the lease.
6. No new leases have been taken into consideration in the forecasts for the six months ending 30
September 2019 and year ending 30 September 2020.
7. Turnover rental (rental income based on the actual turnover of the tenant) has been forecast based on
management’s income budget in respect of each property.
8. Current vacant space has been forecast on a property-by-property basis and has been assumed to
remain vacant for the duration of the forecasts unless a tenant has been identified and a legally binding
agreement has been finalised.
9. Property operating expenditure has been forecast by the property manager on a line-by-line basis
based on management’s review of historical expenditure, where available, and discussions with the
property manager.
10. No fair value adjustments to investment properties, other than the adjustment as a result of straight-
line rental accrual has been provided.
11. Head Office administration costs include staff and overhead costs, and have been forecast to increase
by inflation.
12. Finance income is assumed to be earned at 5.5% per annum over the forecast periods.
13. Existing interest-bearing liabilities of R6.99 billion bear interest at a weighted average rate of 9.8% per
annum.
The forecasts incorporate the following material assumptions in respect of revenue and expenses that
cannot be influenced by the directors of Arrowhead:
14. The forecasts have assumed no vis majeure (acts of God, riots, political instability).
15. There will be no unforeseen economic factors that will affect the lessee's ability to meet their
commitments in terms of existing lease agreements.
16. The forecasts have been compiled in full compliance with Gemgrow’s IFRS compliant accounting
policies and on an aggregated basis for the property portfolio, with the exception of Indluplace, a
subsidiary (55.7% held) of Arrowhead. Indluplace was not consolidated into the forecast results of
Arrowhead for the 6 months ending 30 September 2019 and year ending 30 September 2020. On the
basis that the forecast financial information of Indluplace was not readily available, due to the
information being restricted price sensitive information, the expected distribution to be received from
Indluplace was included in the forecast earnings under ‘Listed security income’ and prepared based
on the distribution guidance that Indluplace has communicated to the market on 9 May 2019.
17. No dividend contribution from Rebosis Property Fund Limited, a company in which Arrowhead has an
investment (16.4%), has been included in the forecasts.
18. A dividend contribution is forecast to be received from Dipula Property Fund Limited (“Dipula”), a
company in which Arrowhead has an investment (8.6%), and has been included in ‘Listed security
income’ in the forecasts based on guidance communicated to the market by Dipula.
19. Consumption based recoveries are consistent with the independent property valuers’ property income
statements.
20. There are no items of expenditure expected to increase by greater than 15% from historical cost.
21. Material items of expenditure include:
• R152 million in electricity, R64 million in rates and taxes, and R37.4 million in salaries in respect
of the six months ending 30 September 2019; and
• R315.6 million in electricity, R131.7 million in rates and taxes, and R58.4 million in salaries in
respect of the year ending 30 September 2020 (Arrowhead’s short term incentive and long term
incentive, which is subject to remuneration committee approval, is provided for in full within the
last month of the respective financial periods, and is not evenly accrued).
2. Property specific information
The property specific information required in terms of the JSE Listings Requirements in relation to each of the properties comprising Arrowhead’s property
portfolio, as at 1 April 2019 is set out below.
As Gemgrow is currently a subsidiary of Arrowhead, the Arrowhead property portfolio includes the Gemgrow property portfolio.
Property name Address Province Sector GLA (m2) Weighted Valuation (R)
average rental
(R/m2)
1 1 Range Road 1 Range Road, Blackheath Western Cape Industrial 15 450 35.61 62 100 000
2 1 Sturdee1 1 Sturdee Avenue, Rosebank Gauteng Commercial 13 350 132.71 212 600 000
3 101 Dorp Street 101 Dorp Street, Pietersburg Limpopo Commercial 5 093 70.05 42 900 000
4 105 Landdros Mare Street 105 Landdros Mare Street, Polokwane Limpopo Office 571 95.88 4 600 000
5 106 Landdros Mare Street 106 Landdros Mare Street, Polokwane Limpopo Retail 1 200 81.95 7 050 000
6 115 Paul Kruger 115 Paul Kruger Street, Pretoria Gauteng Commercial 4 080 114.39 49 600 000
7 127 Bethlehem Street 127 Bethlehem Street, Rustenburg North West Commercial 6 997 98.78 61 700 000
8 135 Pietermaritz Street 135 Pietermaritzburg Street, Kwa Zulu Natal Commercial 2 198 57.49 14 400 000
Pietermaritzburg
9 137 Sivewright 137 Sivewright Street, New Doornfontein Gauteng Commercial 4 792 47.48 19 000 000
10 16 & 18 Forge Road 16 & 18 Forge Road, Erven 99 and 101 Gauteng Industrial 3 166 34.82 11 200 000
Spartan
11 18 Thabo Mbeki 18 Thabo Mbeki Street, Polokwane Limpopo Commercial 4 288 114.92 40 600 000
12 20 Trichardt 20 Songozwi Street, Louis Trichardt Limpopo Retail 2 017 152.16 28 700 000
13 249 Commissioner Street 249 Commissioner street, City & Gauteng Industrial 1 120 22.94 2 700 000
Suburban,
14 25 Owl Street crn Owl Street & Stanley Avenue, Gauteng Commercial 14 984 67.45 99 000 000
Auckland Park
15 31 Nikkel 31 Nikkel Street, Polokwane Limpopo Industrial 2 100 47.90 9 600 000
16 38 Derrick Road 38 Derrick Road, Spartan Gauteng Industrial 3 846 44.56 18 200 000
17 38 Prospecton Road 38 Prospecton Road, Isipingo Ext 12 Kwa Zulu Natal Retail 1 528 81.37 14 500 000
18 4 Weightman Avenue 4 Weightman Avenue, Empangeni Kwa Zulu Natal Retail 4 171 89.03 41 300 000
19 41 Emerald 41 Emerald Street, Polokwane Limpopo Industrial 1 362 69.28 7 900 000
20 46 Steel Road 46 Steel Road, Spartan Gauteng Industrial 3 790 47.22 18 200 000
21 5 Rissik - Polokwane 5 Rissik Street Limpopo Retail 898 94.03 7 600 000
22 5 Sapphire 5 Sapphire Street, Polokwane Limpopo Industrial 1 840 35.39 4 220 000
23 51 Schoeman - Polokwane 51 Schoeman Street, Polokwane Limpopo Retail 1 196 80.92 7 500 000
24 54 Agatha 54 Agatha Street, Arbor Park Limpopo Retail 1 405 80.15 7 850 000
25 54 Jones Cnr Phakamile Mabija Road and Currey Northern Cape Retail 469 143.91 5 600 000
Property name Address Province Sector GLA (m2) Weighted Valuation (R)
average rental
(R/m2)
Street, Kimberley
26 54 Schoeman 54 Schoeman Street, Polokwane Limpopo Commercial 2 001 96.76 15 100 000
27 55 Voortrekker 55 Thabo Mbeki Street, Mokopane Limpopo Retail 1 408 128.79 19 200 000
28 65 Silikon 65 Silikon Street, Polokwane Limpopo Industrial 1 040 42.60 4 500 000
29 68 Hans van Rensburg 68 Hans van Rensburg Street, Limpopo Retail 2 697 104.95 23 500 000
Polokwane
30 70 Landdros Mare 70 Landdros Mare Street, Polokwane Limpopo Retail 2 232 108.40 21 900 000
31 71 Biccard 71 Biccard Street, Polokwane Limpopo Retail 877 82.89 6 100 000
32 79 Hans Van Rensburg 79 Hans Van Rensburg Street, Limpopo Commercial 875 84.16 8 400 000
Polokwane
33 79 Market 79 Market Street, Polokwane Limpopo Retail 1 322 158.27 19 500 000
34 85 Kruger 85 Kruger Street, Polokwane Limpopo Retail 715 114.85 6 800 000
35 9 Montague Drive 9 Montague Drive, Montague Gardens Western Cape Industrial 2 649 61.95 17 200 000
36 908 Hoofweg 908 Hoofweg (Main) Street, Marble Hall Limpopo Retail 1 962 47.76 6 500 000
37 99 Agatha 99 Agatha Street, Arbor Park Limpopo Retail 1 417 63.77 7 750 000
38 Absa Cash Centre 4 Frosterley Crescent, Durban Kwa Zulu Natal Commercial 2 359 68.78 27 200
39 Absa Gezina Ben Swaart &Voortrekker drive, Gezina Gauteng Retail 2 053 102.80 12 000 000
40 Absa Nigel Hendrik Verwoerd and 2nd Avenue, Gauteng Retail 961 87.56 4 000 000
Nigel
41 Access City 5 Beacon Road, New Doornfontein Gauteng Industrial 24 932 25.59 44 800 000
42 Access Park 81 Chichester Road, Claremont Western Cape Retail 20 481 380.46 864 700 000
43 Alberton Voortrekker Rd 49 & 51 Voortrekker Road, Alberton Gauteng Retail 5 099 50.47 28 200 000
44 Allied - Klerksdorp 66 Oliver Tambo Street, Klerksdorp North West Retail 1 122 37.63 4 000 000
45 Bears - Northam Botha Road, Northam Limpopo Retail 2 052 107.16 20 100 000
46 Bedfordview 4-6 Skeen Boulevard, Bedfordview Gauteng Commercial 9 221 57.35 58 700 000
47 Beka Bloemfontein Total 82 Long Street, Hilton Free State Industrial 400 61.76 1 600 000
48 Beka Candela Cnr Westview Road and Cor Solomon Gauteng Industrial 20 338 76.78 148 600 000
Street, Olifantsfontein
49 Beka Durban 17 Cordova Place, Briardene Industrial Kwa Zulu Natal Industrial 490 38.61 2 100 000
Park
50 Boxer Boksburg Cnr of Leeupoort Street and Trichardt Gauteng Retail 3 678 94.76 41 700 000
Road, Boksburg
51 Bridge on Bond Corner of Bram Fischer Drive and Bond Gauteng Commercial 12 243 62.64 97 800 000
Street, Kensington B
52 Business Centre 8 Gemsbok road, Rivonia Gauteng Commercial 2 926 1888.34ss 25 300 000
53 Cape Town Bellville 73 Willie van Schoor Avenue, Bellville Western Cape Commercial 6 344 132.80 71 000 000
Suntyger
54 Cape Town Bellville Tijger Tijger Park, Bellville Park, Bellville Western Cape Commercial 20 157 138.75 268 000 000
Park
Property name Address Province Sector GLA (m2) Weighted Valuation (R)
average rental
(R/m2)
55 Cape Town Parow Cnr Fritz Spilhaus Avenue and Jean Western Cape Industrial 19 834 40.01 75 800 000
Industrial Park Simonis Street, Parow
56 Cape Town Westgate Mall Cnr Morgenster Road & Vanguard, Western Cape Retail 28 951 139.87 371 000 000
Mitchells Plain, Cape Town
57 Checkers Centre Louis Cnr Songozwi Munnik and Anderson Limpopo Retail 7 894 129.33 72 100 000
Trichardt Streets, Louis Trichardt
58 Church Street 219 Church Street, Pietermaritzburg Kwa Zulu Natal Commercial 5 259 68.82 25 900 000
(Pietermaritzburg)
59 Citizens Building Kimberley 8 - 14 Jones Road Northern Cape Retail 840 76.19 5 300 000
60 Citizens Cape Town 177 Main Road, Cape Town Western Cape Retail 1 480 135.35 25 600 000
61 Clearwater Crossing Cnr Hendrik Potgieter & Christ, Strubens Gauteng Retail 10 092 51.06 63 100 000
Valley, Roodepoort
62 Cleary Park Cnr Norman and Middleton Drive, Port Eastern Cape Retail 36 294 153.52 565 300 000
Elizabeth
63 Cmh Spartan 60 Steel Road, Spartan Gauteng Industrial 2 467 36.18 9 800 000
64 Creston 49 - 53 Forge Road, Spartan Gauteng Industrial 6 546 34.35 24 800 000
65 Crownwood Office Park 100 Northern Parkway,Omonde Gauteng Commercial 13 347 99.95 141 800 000
66 Danico 12 Beacon Road, New Doornfontein Gauteng Industrial 600 20.29 1 300 000
67 Dept. Of Forestry & Water 2 Hargreaves Avenue Eastern Cape Office 3 790 101.02 35 900 000
68 Diesel Road 12 - 14 Diesel Road, Isando Gauteng Industrial 7 923 26.16 23 600 000
69 Dikai Shopping Centre Main Road, Hazyview (R40 National Mpumalanga Retail 2 923 97.76 22 800 000
Highway Cnr R536)
70 Durban Receiver of 201 Dr Pixley Kaseme Street, Durban Kwa Zulu Natal Commercial 23 105 115.48 232 700 000
Revenue
71 Durban Valley View 24 Otto Volek Road, New Germany Kwa Zulu Natal Industrial 30 790 33.95 134 000 000
Industrial Park
72 East London Vincent Office 59 Western Avenue, Vincent, East Eastern Cape Commercial 9 040 118.07 86 000 000
Park London
73 Edufin PE 3 Sommers Road Eastern Cape Office 3 500 33.09 9 700 000
74 Ellerines - Northam Botha Road, Northam Limpopo Retail 877 95.48 7 310 000
75 Ellerines Dundee Cnr Wilson, King Edward & Victoria Kwa Zulu Natal Retail 3 518 58.68 21 100 000
Streets, Dundee
76 Ellerines Thohoyandou Thohoyandou CBD Limpopo Retail 829 102.23 7 900 000
77 Empire Place 106 Hans van Rensburg Street Limpopo Commercial 1 066 87.52 7 300 000
78 F B Motors 105 & 107 Hans Van Rensburg Street Limpopo Office 4 217 65.30 29 800 000
79 Federal Mogul 41 Anderson Street Mpumalanga Office 900 61.62 4 580 000
80 FNB Building 22 Jorissen Street, Polokwane Limpopo Retail 2 370 134.99 32 200 000
81 Foschini - Kimberley corner Phakamile Mabija road and Du Northern Cape Retail 1 763 105.89 17 300 000
Toits Road, Kimberley
82 Game Centre 112 & 124 Mphetu Road, Thohoyandou Limpopo Retail 7 934 160.44 122 800 000
Property name Address Province Sector GLA (m2) Weighted Valuation (R)
average rental
(R/m2)
83 Gearmatic 38 Kruger Street, City & Suburban, Gauteng Industrial 1 124 22.48 2 800 000
Johannesburg
84 Geen & Richards 20 Danie Joubert Street, Arbor Park Limpopo Retail 1 776 95.45 16 600 000
85 Germiston Meadowdale Herman Road, Meadowdale, Germiston Gauteng Industrial 35 016 50.15 178 000 000
R24
86 Greytown Shopping Centre Cnr Sergeant & Oakes Streets, Kwa Zulu Natal Retail 5 373 34.87 19 300 000
Greytown
87 Greywies Dry Cleaners 103 Kerk Street, Polokwane Limpopo Retail 2 248 79.16 17 400 000
88 Groblersdal Fruit & Veg 2 van Riebeeck Street Mpumalanga Retail 3 980 52.71 18 500 000
City
89 Hawana Noor Centre Cnr Songozwi and Krogh Street, Louis Limpopo Retail 9 817 136.35 135 100 000
Trichardt
90 Herfred Pietersburg 52 Bok Street Limpopo Retail 2 250 49.56 10 020 000
91 Hi Tech Mini Factories 14 - 16 Gerhardus Street,Strijdom Park Gauteng Industrial 2 719 41.67 13 200 000
92 Impala Centre Cnr Bethlehem and Fatima Bhayat North West Retail 3 604 244.04 82 800 000
Street, Rustenburg
93 Jane Furse Crossing Jane Furse Main Road, Jane Furse Limpopo Retail 10 766 158.71 160 000 000
94 Jet Industrial Park 7 Herold Flight Street, Jet Park Ext 5 Gauteng Industrial 10 209 18.47 20 400 000
95 Jet Phalaborwa Cnr of Palm Avenue and President Limpopo Retail 2 305 73.09 16 000 000
Nelson Mandela Drive, Phalaborwa
96 Jet Potchefstroom Walter Sisulu Lane, Potchefstroom North West Retail 1 636 41.07 5 300 000
97 Jhb - Isle of Houghton 36 Boundary Road, Houghton Estate Gauteng Commercial 27 249 110.62 259 500 000
98 Jhb Rosebank 158 Offices 9 Walter Street, Rosebank, Gauteng Commercial 19 510 140.13 252 900 000
Johannesburg
99 Jm Investments 1321 Spyker Crescent, Stormill Gauteng Industrial 2 700 24.48 7 900 000
100 John Orr - Klerksdorp 53 Oliver Tambo Street, Klerksdorp North West Retail 272 85.45 1 800 000
101 Karoo Junction Cnr Donkin St & Danie Theron, Beaufort Western Cape Retail 6 899 45.17 15 700 000
West
102 Kathu Shopping Centre 14 Rietbok Street, Kathu Northern Cape Retail 5 088 92.45 47 000 000
103 Kimberley Building 41 du Toitspan Way, Northern Cape Commercial 1 305 33.04 2 710 000
104 Kimberley Clark Bevan Road, Erf 587 Wadeville Ext 18 Gauteng Industrial 6 817 24.87 21 300 000
105 Kimberley Printing 13 Woodley Street, Northern Cape Commercial 1 193 10.00 2 100 000
106 King Williams Town Market Maclean Street, King William's Town Eastern Cape Retail 13 264 71.01 120 500 000
Sq
107 Klein Brothers 52 - 62 George Street Northern Cape Retail 915 62.91 4 300 000
108 Kolbenco 6 Liebenberg Street, Alrode Gauteng Industrial 12 660 19.10 21 800 000
109 La Rocca Corner Main Street and Petunia Street, Gauteng Commercial 2 935 75.78 24 400 000
Bryanston
110 Lakeview Terrace 7 Metica Moon Street, Richards Bay Kwa Zulu Natal Commercial 13 079 73.48 100 200 000
Property name Address Province Sector GLA (m2) Weighted Valuation (R)
average rental
(R/m2)
111 Lea Glen 3 Amanda Avenue,Lea Glen, Gauteng Industrial 3 411 33.95 13 000 000
Roodepoort
112 Longmarket Street Branch 188 Longmarket Street, Pietermaritzburg Kwa Zulu Natal Commercial 3 890 63.43 28 800 000
113 Lowveld Lifestyle Centre Waterval Avenue, Nelspruit Mpumalanga Retail 11 170 48.40 62 200 000
114 Lyndhurst Square Cnr Drome and Pretoria Road, Lyndhurst Gauteng Retail 6 352 73.29 53 200 000
115 Lynnwood Botco Place 61 Kasteel Road, Lynwood Glen Gauteng Commercial 493 55.97 3 000 000
116 Lynwood - Atrium Building 59 Kasteel Road, Lynwood Glen Gauteng Commercial 5 037 39.09 22 000 000
117 Mae West Building 92 Bok Street, Pietersburg Limpopo Commercial 2 922 104.56 30 200 000
118 Matsulu Shopping Centre Corner Madiba Drive and Simunye Mpumalanga Retail 6 087 112.68 67 900 000
Street, Matsulu - A
119 Maverick Corner 22 Albrecht Street, Jeppestown Gauteng Retail 1 570 81.17 11 900 000
120 McCarthy Centre - 3 End Street, City and Suburban Gauteng Industrial 5 935 43.10 24 000 000
Turffontein
121 MCG Building 33rd Street, Malvern Gauteng Industrial 16 000 43.82 80 200 000
122 Media Shop 138 Kelvin drive, Sandton Gauteng Commercial 2 522 80.41 22 700 000
123 Melville Properties 7th Street, Mellville Gauteng Retail 1 156 135.64 14 000 000
124 Metcash Welkom 4th 11th Street, Welkom Free State Industrial 6 812 24.77 15 400 000
125 Middelburg SAP 37 SADC Vos Street Mpumalanga Office 3 400 39.59 8 080 000
126 Midrand IBG International Gateway Business Park, Gauteng Commercial 8 515 95.89 87 800 000
Midridge Park
127 Midtown Mall Corner Loop and Fatima Bhayat, North West Retail 16 721 152.22 239 700 000
Rustenburg
128 Mkuze Plaza Main Road Kwa Zulu Natal Retail 8 535 81.64 65 700 000
129 Montclair Mall 169 Wood Road, Montclair, Durban Kwa Zulu Natal Retail 12 652 92.16 153 600 000
130 Monument Mall 9 Voortrekker Road, Krugersdorp Gauteng Retail 4 648 100.28 34 000 000
131 Motswedi House 495 Summit Road, Morningside Gauteng Commercial 1 630 87.53 16 400 000
132 Nedbank Kimberley 37 Chapel Street, Northern Cape Commercial 1 252 63.11 3 800 000
133 Nelspruit Centre Cnr Henshall & Anderson Streets Mpumalanga Retail 1 060 166.93 16 700 000
134 Nelspruit Ellerines 20 Bester Street Mpumalanga Retail 1 147 85.72 8 800 000
135 Nizams Phalaborwa Cnr of Palm Avenue and President Limpopo Retail 2 263 85.83 18 900 000
Nelson Mandela Drive, Phalaborwa
136 Noor Centre Cnr Songozwi Munnik and Krogh Street, Limpopo Retail 8 117 128.66 78 000 000
Louis Trichardt
137 North-End 653 Govan Mbeki Avenue, Port Elizabeth Eastern Cape Commercial 1 630 108.05 22 700 000
138 Nu - Payment 2 Kingfisher Crescent, Alberton Gauteng Commercial 1 408 38.49 10 100 000
139 Oakhill Roos Street, Fourways Gauteng Commercial 1 361 103.88 16 200 000
140 Odendaalsrus Shopping 68 Waterkant Street Cnr Free State Retail 3 683 85.56 37 400 000
Centre Wessel,Odendaalrus
Property name Address Province Sector GLA (m2) Weighted Valuation (R)
average rental
(R/m2)
141 Ok Klerksdorp Cnr Delver, Leask & Oliver Tambo North West Retail 7 931 19.73 17 600 000
Streets,Klerksdorp
142 Oudehuis Centre 122 Main Road Western Cape Mixed Use 4 182 93.11 31 100 000
143 Parc Du Bel 19 Strand Street Western Cape Mixed Use 2 299 69.29 14 300 000
144 Perm - Smith Street 343 Smith Street, Durban Kwa Zulu Natal Commercial 10 177 51.34 50 000 000
145 Perm Kimberley 33 du Toitspan Way, Northern Cape Commercial 4 967 49.00 15 100 000
146 Philippi Court Cnr New Eisleben & Lansdown Roads Western Cape Office 1 357 125.27 18 100 000
147 Pinetown Westmead 26–30 Kyalami Road, Westmead, Kwa Zulu Natal Industrial 16 914 63.82 103 600 000
Kyalami Industrial Park Pinetown
148 Plantation Road 18 18 Plantation Road, Eastleigh Gauteng Industrial 3 954 32.76 15 700 000
149 Plantation Road 20 20 Plantation Road, Eastleigh Gauteng Industrial 4 209 35.31 17 000 000
150 Propstars 15 Siemert Road, Doornfontein Gauteng Industrial 6 622 127.41 14 000 000
151 Pretoria Hatfield Festival 353 Festival Street, Pretoria Gauteng Commercial 5 317 83.65 42 500 000
Street Offices
152 Pretoria High Court 220 Madiba Street, Pretoria Gauteng Commercial 12 093 138.46 147 600 000
Chambers
153 Pretoria Lynnwood Excel 441 Lynwood Road, Pretoria Gauteng Commercial 3 529 86.61 15 000 000
Park
154 Pretoria Lynnwood Sanlynn Cnr of Sanlam, Alkantrand and Lynwood Gauteng Commercial 8 316 23.68 123 700 000
Streets, Pretoria
155 Pretoria Lynnwood 375 Queen's Crescent Gauteng Commercial 6 412 108.97 45 600 000
Sunwood Park
156 Pretoria Silverton 22 Axle 22 Axle Street, Silverton Gauteng Industrial 1 817 65.67 11 100 000
Street
157 Pretoria Silverton 294 294 Battery Street, Silverton Gauteng Industrial 5 787 46.61 24 000 000
Battery Street
158 Pretoria Silverton 301 301 Battery Street, Silverton Gauteng Industrial 3 784 56.40 18 500 000
Battery Street
159 Pretoria Silverton 309 309 Battery Street, Silverton Gauteng Industrial 3 770 57.79 20 500 000
Battery Street
160 Pretoria Silverton 330 330 Alwyn Street, Silverton Gauteng Industrial 1 185 46.30 5 150 000
Alwyn Street
161 Pretoria Silverton 34 34 Bearing Crescent, Silverton Gauteng Industrial 5 000 58.75 27 500 000
Bearing Crescent
162 Pta Eersterust Shopping Hans Coverdale West Street, Eersterust, Gauteng Retail 7 910 52.09 47 000 000
Centre Pretoria
163 Randburg Trevallyn Cnr River Road and Hyskraan, Randburg Gauteng Industrial 32 006 47.02 140 000 000
Industrial Park Kya Sands
164 Randburg Tungsten 5 CR Swart Drive, Randburg Gauteng Industrial 10 365 49.34 46 700 000
Industrial Park
165 RCS Cnr Voortrekker & Vanguard drive, Western Cape Commercial 7 143 105.87 86 100 000
Goodwood
Property name Address Province Sector GLA (m2) Weighted Valuation (R)
average rental
(R/m2)
166 Rivonia Boulevard 353 Rivonia Boulevard,Edenburg Gauteng Commercial 3 708 63.97 19 700 000
167 Roodepoort Robertville 255 Nadine Street, Roodepoort Gauteng Industrial 28 226 34.78 90 000 000
Industrial Park
168 Rosettenville Junction 592 Geranium Street, Rosettenville, Gauteng Retail 14 198 61.10 67 200 000
Johannesburg
169 Sandton Bryanston Cnr William Nicole Drive, Grosvenor Gauteng Retail 4 585 119.88 64 100 000
Grosvenor Shopping Road and Main Road, Bryanston
Centre
170 Sandton Bryanston St Sloane Street, Bryanston Gauteng Commercial 10 184 81.85 95 900 000
Andrews Complex
171 Sandton Hyde Park 50 Cnr 6th Avenue and 1st Road, Hyde Gauteng Commercial 4 110 141.88 59 100 000
Sixth Road Park
172 Sandton Rivonia 36 36 – 38 Homestead Street, Rivonia Gauteng Commercial 2 410 96.52 24 900 000
Homestead Road
173 Sandton Sunninghill Place 11 Simba Road, Sunninghill Gauteng Commercial 8 139 112.39 84 700 000
174 Sanlam Centre Vryburg 70 Market Street Northern Cape Retail 1 905 107.06 16 800 000
175 Saps - Mitchell's Plain Alpha Street, Mitchells Plain Western Cape Commercial 3 416 46.72 17 300 000
176 Saps Worcester 28 Fairbairn Street, Worcester Western Cape Commercial 3 848 79.60 32 700 000
177 Sasol Gas 272 Kent Avenue, Ferndale Gauteng Commercial 2 526 95.34 23 100 000
178 Selby Building 106 Booyens Road, Selby Gauteng Commercial 16 346 52.74 74 700 000
179 Shoprite Boksburg 262 Commissioner Street, Boksburg Gauteng Retail 3 034 79.71 25 300 000
180 Shoprite Brakpan Cnr Kitzinger, Kingsway Avenue and Gauteng Retail 6 954 43.12 34 400 000
Park Street, Brakpan, Brakpan
181 Shoprite Louis Trichardt Cnr Kruger Devenish and Burger Street, Limpopo Retail 8 263 92.02 66 100 000
Louis Trichardt
182 Sibasa Shopping Centre R524, Miluwani Limpopo Retail 4 102 104.25 39 200 000
183 Simgold Bunsen Road, Industria Gauteng Industrial 16 573 14.35 25 700 000
184 Simunye Shopping Centre R40 National Highway Mpumalanga Retail 6 538 51.35 28 600 000
185 Spark Schools Cnr Kruger & Market Streets, City & Gauteng Industrial 6 278 28.67 19 800 000
Suburban
186 Star Foods 2 Cardiff Road, Pietermaritzburg Kwa Zulu Natal Industrial 3 114 45.42 15 700 000
187 Sterkspruit Boxer Shopping 60 Main Street, Sterkspruit Eastern Cape Retail 6 385 115.97 66 000 000
Centre
188 Tarry's Head Office Cnr La Rochelle & Crystal Roads, Gauteng Industrial 10 824 4.98 5 800 000
Stafford
189 Taung Forum Station Road, Taung Northern Cape Retail 10 231 86.20 95 000 000
190 The Arches 7 Taylor Street Eastern Cape Mixed Use 2 707 112.69 23 000 000
191 The Crossing Cnr Grobler and Grimm Streets, Fauna Limpopo Retail 1 393 150.06 17 200 000
Park
192 The District 8 Kikuyu Road, Sunninghill Gauteng Commercial 3 888 111.94 33 000 000
Property name Address Province Sector GLA (m2) Weighted Valuation (R)
average rental
(R/m2)
193 The Main Change 20 Kruger Street, City & Suburban Gauteng Commercial 5 268 53.58 29 400 000
194 The Pond Shopping Centre James Crescent, Halfway House Ext 17 Gauteng Retail 5 501 51.98 34 800 000
195 The Terminus Shopping 1287 Embarkment Street, Klerksdorp North West Retail 11 377 73.60 95 600 000
centre
196 Theo's Building - Brits 40A Murray Avenue, Brits North West Retail 2 122 69.99 11 200 000
197 Thohoyandou Centre Central Business District, Thohoyandou Limpopo Retail 4 006 69.25 32 700 000
198 Thohoyandou Centre Thohoyandou CBD Limpopo Retail 2 723 160.83 40 100 000
199 Thohoyandou CBD Thohoyandou CBD Limpopo Retail 4 359 93.54 37 100 000
200 Thompsons Building 95 Munnik Street, Louis Trichardt Limpopo Retail 3 727 112.54 31 900 000
201 Town Centre Boksburg 95 Leeupoort Street, Boksburg Gauteng Retail 6 883 35.83 27 300 000
202 Trador 6 Kobalt Street, Polokwane Limpopo Industrial 15 001 39.44 46 700 000
203 Transforum Centre Cnr Nelson Mandela & Bethlehem Drive, North West Retail 4 777 355.86 173 300 000
Rustenburg
204 Transwire 28 Main Street, Clayville Gauteng Industrial 6 500 34.21 23 200 000
205 Truworths Corner Cnr Symphony Way & Minuet Lane, Western Cape Retail 520 250.38 9 200 000
Units 1 & 2 Truworths Corner
206 Tsolo Main Road,Tsolo Eastern Cape Retail 4 097 79.88 34 000 000
207 Urban Brew Building Cnr Harley & Surrey Avenue, Ferndale Gauteng Commercial 9 804 111.00 116 600 000
208 Vereeniging Voortrekker Cnr Voortrekker Street and Kruger Gauteng Retail 2 539 61.37 16 800 000
Str Avenue, Vereeniging
209 Virgin Active Benoni 8 Pioneer Road, Kleinfontein Lake Gauteng Industrial 3 154 90.62 22 000 000
210 Waterworld 234 Malibongwe Drive, North Riding Gauteng Industrial 6 524 54.46 39 300 000
211 Wilcon House 24 Fabricia Road, Fabricia Northern Cape Commercial 2 659 130.55 30 100 000
212 Wonderboom Carvenience Cnr Lavender & Braam Pretorius, Annlin, Gauteng Retail 10 526 86.41 70 300 000
Centre Pretoria North
10 879 620 000
Notes:
1. This property is occupied by Arrowhead and Gemgrow.
2. The properties in the table above have been valued as at 1 April 2019 by Rowan Collins of Yield Enhancement Solutions and Theuns Behrens of Real Insight, who
are independent external registered professional property valuers in terms of Section 13 of the JSE Listings Requirements and whom are both registered as a
professional valuer in terms of the Property Valuers Profession Act, No 47 of 2000.
3. Gemgrow is acquiring all of the issued shares of Arrowhead in terms of the scheme and the scheme consideration will be settled in so many Gemgrow B shares as
determined in terms of the swap ratio. No purchase price has been attributed to the Arrowhead property portfolio or individual properties within the Arrowhead property
portfolio. The effective date of the transaction is the date on which the scheme becomes unconditional.
4. The Gemgrow and Arrowhead consolidated investment property value as at 31 March 2019 was R11 243 305 203. Subsequent to 31 March 2019 the Gemgrow and
Arrowhead property portfolio have been externally valued to R10 879 620; translating to a R363 685 203 (3.23%) decrease in the direct property value.
8 July 2019
Corporate advisor and sponsor to Arrowhead
Investec Bank Limited
Independent corporate advisor and transaction sponsor to Gemgrow
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
Corporate advisor to Gemgrow
Investec Bank Limited
Strategic transaction advisor to Arrowhead
Ferryman Capital Partners
Legal advisor and competition lawyers
Cliffe Dekker Hofmeyr Incorporated
Reporting accountants
BDO South Africa Incorporated
Independent expert to Gemgrow
Questco Corporate Advisory Proprietary Limited
Independent expert to Arrowhead
Mazars Corporate Finance Proprietary Limited
Independent property valuers
Yield Enhancement Solutions Proprietary Limited
Real Insight Proprietary Limited
Date: 08/07/2019 05:07:00 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
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