TRUSTCO GROUP HOLDINGS LIMITED - Operational Update: Property Division (Part of the Insurance and its Investments Segment)

Operational Update: Property Division (Part of the Insurance and its Investments Segment)

TRUSTCO GROUP HOLDINGS LIMITED
Incorporated in the Republic of Namibia
(Registration number 2003/058)
Registered as an external company in South Africa
(External registration number 2009/002634/10)
NSX share code: TUC
JSE share code: TTO
ISIN Number: NA000A0RF067
(“Trustco” or “the Company”)


OPERATIONAL UPDATE: PROPERTY DIVISION (PART OF THE INSURANCE AND ITS INVESTMENTS
SEGMENT)


Introduction
Shareholders are referred to page 60 of the Integrated Annual Report 2019 of the insurance and its
investment segment (volume two of five) (“IAR”) (www.tgh.na) and specifically to the Farm Herboths
development:


“To unlock the future potential in land value, an application for the permission of the need and
desirability to establish the new township was submitted to the City of Windhoek during the reporting
period. It is estimated that the increase in fair value, once the new approval has been obtained would
be significant.”


Shareholders are advised that an application for the approval of the Need and Desirability for
Township establishment on the remainder of Farm Herboths No 485 (“Herboths Blick”) was submitted
to the Ministry of Urban and Rural Development on 7 September 2018.


Shareholders are further advised that the Need and Desirability for Township establishment on the
Herboths Blick development has been approved in principle, by the Ministry of Urban and Rural
Development on 30 July 2019. The Issuer was advised of this fact on 2 September 2019.
The provisional approval is subject to certain documentation to be compiled and a meeting to be held
between the representative of the Issuer and the Local Authority within a 60 day period.


Shareholders are further advised that the Ministry of Urban and Rural Development confirmed that
after the 60 day period has lapsed, the board will recommend the application to the Minister for
approval.


History of the Herboths Blick Development
As part of the investment strategy of the insurance segment, the property was acquired in 2014 for
NAD 41 860 000.00 (Forty One Million Eight Hundred and Sixty Thousand Namibian Dollars), which
property is situated 21 kilometres east of Windhoek CBD, strategically situated on the main arterial
road halfway between Windhoek and the main international airport. The development comprises of
2 766 hectares of land of which approximately 1 660 hectares is estimated to be sellable land.


Herboths Blick is envisaged to be a mixed land use development comprising of 65% residential land
development and 35% commercial land development. The sales prices of comparable land in the
vicinity in terms of mixed land use developments is currently NAD 1 650 per square meter for serviced
residential land and NAD 2 200 per square meter for the serviced commercial land.


The carrying value of the land was valued at NAD30 per square meter as at 31 March 2019.


Conclusion
Upon final approval by the Minister for the Need and Desirability for Township establishment on the
Herboths Blick development, a re-valuation of the property will be attended to as such approval will
have a significant effect on the fair value of the property investments of the Issuer. This long term
development comprises of 68% of the total property land bank portfolio.


Shareholders are referred to the link https://tinyurl.com/y47xmqhp indicating the concept design
and future layout of the Herboths Blick development.



Windhoek, Namibia
                                                    


3 September 2019




Amanda Bruyns
Company Secretary: Trustco Group Holdings Limited


JSE Sponsor
Vunani Corporate Finance


NSX Sponsor
Simonis Storm Securities Proprietary Limited

Date: 03/09/2019 04:35:00
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