Sharenet Sites 
Sharenet Sites
Disposal of warehouse and industrial property in East London
ELLIES HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2007/007084/06)
JSE share code: ELI ISIN: ZAE000103081
("Ellies" or the "company")
DISPOSAL OF WAREHOUSE AND INDUSTRIAL PROPERTY IN EAST LONDON
INTRODUCTION
Shareholders are advised that on 28 January 2020 ("signature date"), Ellies, through its wholly-owned subsidiary
Ellies Properties Proprietary Limited ("Ellies Properties"), concluded an agreement to sell the rental enterprise
comprising the warehouse and industrial property situated on the corner of Bowls Road and Dyer Place in Arcadia,
East London ("the property"), to Ironvest Properties Proprietary Limited ("Ironvest") ("the transaction").
The rental enterprise includes the immovable property land and buildings together with all other aspects of the
business necessary for carrying on the rental enterprise, including all existing lease agreements pertaining to the
property and any tenant deposits.
RATIONALE FOR THE TRANSACTION
In line with Ellies' strategy to return to sustainable profitability, the company has resolved to dispense of its
investment properties and to lease back only these required for operations.
SALIENT TERMS AND SUSPENSIVE CONDITIONS OF THE TRANSACTION
Ironvest will acquire the property, with effect from the date of registration of transfer of ownership into Ironvest's
name ("the effective date"), which is expected to be on or about 4 May 2020. Ownership, risk and benefit in the
rental enterprise will pass to Ironvest as from the effective date. The purchase price of the property is R 5 million
which will be settled in cash on the effective date.
The transaction is subject to the completion of the following suspensive conditions within seven days from signature
date:
- Ellies will conclude a new lease agreement with in respect of a portion of the rental enterprise for a period of
five years (with an option to extend for a further five years) commencing on 1 February 2020. A monthly
rental of R61 347.00, with an annual escalation of 6% has been agreed to; and.
- the inspection and if necessary, repair of the roof of the property
The sale of property agreement contains undertakings, warranties and indemnities which are normal for a transaction
of this nature.
FINANCIAL INFORMATION
As at 31 October 2019, the value of the property was determined to be R 3 228 319. The net asset value of the
property has been extracted from the interim results for the period ended 31 October 2019 which were prepared in
terms of Ellies’ accounting policies and International Financial Reporting Standards ("IFRS").
The profits attributable to the property earned by Ellies Property were R320 000 for the period 1 May 2019 to 31
December 2019.
The above financial information has been extracted from the unaudited management accounts for the period ended
31 December 2019. The management accounts were prepared in terms of Ellies' accounting policies and IFRS. Ellies
is satisfied with the quality of these management accounts for the purposes of this announcement.
CATEGORISATION OF THE TRANSACTION
The transaction is classified as a category 2 transaction in terms of the JSE Listings Requirements and accordingly
does not require approval by Ellies' shareholders.
29 January 2020
Sponsor
Java Capital
Date: 29-01-2020 05:35:00
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