The disposal by Accelerate of Kyalami Downs ACCELERATE PROPERTY FUND LIMITED (Incorporated in the Republic of South Africa) (Registration number: 2005/015057/06) Share code: APF ISIN: ZAE000185815 (“Accelerate”, “APF” or the “Company”) THE DISPOSAL BY ACCELERATE OF KYALAMI DOWNS 1. INTRODUCTION Shareholders are advised that the Accelerate (the “Seller”) has, entered into a sale of letting enterprise agreement (the “Agreement”) with HJA Prinia Proprietary Limited (a subsidiary company of Prinia Asset Management) (the “Purchaser”), to dispose of Kyalami Downs, Erf 8 & Ptn 1 of Erf 172, Kyalami Park, Gauteng (“Kyalami Downs” or the “Property”) (“the Transaction”). 2. THE PROPERTY Kyalami Downs is a convenience shopping centre located in Kyalami, Midrand, Northern Johannesburg. Kyalami Downs forms part of Accelerate’s retail portfolio acquired by Accelerate on or about 12 December 2013. As at 30 September 2019 Kyalami Downs was valued at R 108 727 997and is being sold for R99 500 000 (ninety-nine million and five hundred thousand Rand) at a yield of 10.5%. 3. THE CONSIDERATION AND APPLICATION OF THE SALE PROCEEDS The consideration for the Transaction is a total consideration of R99 500 000 split between R88 000 000 cash and R11 500 000 vendor loan (the “Consideration”). The vendor loan is payable within 6 months and will earn interest at the prime rate until maturity. APF intends to utilise the full sale proceeds towards the reduction of debt. 4. RATIONALE FOR THE TRANSACTION AND UPDATE ON BALANCE SHEET OPTIMISATION STRATEGY In anticipation of the Fourways Equalisation, whereby Accelerate will own 50% of the completed Fourways Mall Super Regional Centre, the Company has earmarked approximately R2,5 billion of non-core properties for sale and set a target loan to value ratio (“LTV”) of 35%. It is the intention that the proceeds from the sale of these properties will be used to either reduce debt or buy back Accelerate shares. Since 31 March 2019, properties to the value of approximately R500 million have been sold and further sales of approximately R365 million are well advanced, including Kyalami Downs. Accordingly, the Transaction is consistent with Accelerate’s ongoing balance sheet optimisation strategy. While the centre has performed adequately over the years it now requires defensive capital spend to not only maintain value but also to compete with new centres in the area. The centre is thus considered non-core and fits in the Fund’s portfolio optimisation strategy. 5. KEY TRANSACTION TERMS The effective date for the Transaction will be the date on which the last of the conditions precedent are fulfilled or waived, as the case may be, which is expected to be during October 2019. 6. CONDITIONS PRECEDENT The closing of the Transaction is subject to the following conditions precedent: • Guarantees to be issued within 30 business days after acceptance of the Due Diligence investigation; and • Other necessary consents and approvals customary for a transaction of this nature. 7. INFORMATION RELATING TO THE PROPERTY The details of the Property including location, gross lettable area (“GLA”), net rent, remaining lease term and independent valuation are as follows: Net Remaining Last Effective Property / GLA rent Disposal Location lease term valuation date of the Tenant (m2) per m2 Price (years) (ZAR) ** valuation * Erf 8 & Ptn 1 of Kyalami R Erf 172, 13,649 R 99 500 R 108 727 30 September Downs 63.79 / 4.45 years Kyalami Park, m2 000 997 2019 m2 Gauteng * The weighted average net rent per m2 (also the profit attributable to the net assets of Kyalami Downs), billed to tenants as at the date of signature of the sales agreements, . ** Directors valuation as at 30 September 2019 (which the Company is satisfied with) based on cash flows and forward net income achieved by the property at valuation date. 8. WARRANTIES The Seller has provided warranties and indemnities to the Purchaser that are standard for a transaction of this nature. 9. CATEGORISATION OF THE TRANSACTION In terms of the Listings Requirements of the JSE Limited the Transaction is classified as a Category 2 transaction for APF and does not require shareholder approval. Johannesburg 25 October 2019 Sponsor The Standard Bank of South Africa Limited CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS Certain statements in this announcement may be considered forward-looking. Although APF believes that the expectations reflected in any such forward-looking statements relating to the Transaction are reasonable. The information has not been reviewed or reported on by the reporting accountants and auditors and no assurance can be given by APF that such expectations will prove to be correct. APF does not undertake any obligation to publicly update or revise any of the information given in this announcement that may be deemed to be forward- looking. Date: 25/10/2019 08:45:00 Produced by the JSE SENS Department. 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