ACCELERATE PROPERTY FUND LIMITED - APFE - Notification of a Change to the Credit Rating of the Issuer

APFE - Notification of a Change to the Credit Rating of the Issuer

Accelerate Property Fund Limited
(Incorporated in the Republic of South Africa)
(Registration No. 2005/015057/06)
Company code: APFE
(Approved as a REIT by the JSE)
(“Accelerate” or “the Issuer”)

NOTIFICATION OF A CHANGE TO THE CREDIT RATING OF THE ISSUER

Noteholders are advised that GCR Ratings (“GCR”) has, on 27 March 2020, downgraded the national
scale ratings assigned to the Issuer from BBB+(ZA) to BBB(ZA) for the long term and from A2(ZA) to
A3(ZA) for the short term, with a Stable Outlook. GCR has also downgraded the long-term credit
ratings assigned to the Senior Secured Notes issued by Issuer from AA-(ZA)(EL) to A(ZA)(EL), with a
Stable Outlook.

Accelerate fully debt funded the equalization of Fourways Mall (the Mall) in terms of which it is now
the 50% owner of the Mall. This in turn elevated LTV levels.

In anticipation of elevated LTV levels Accelerate embarked on a balance sheet optimization strategy.
To date R 730 million of non-core assets have been sold and transferred. A further R 650 million of
non-core assets are in various stages of negotiation/sale.

The above together with the headwinds facing the South African property sector and the effects of
COVID – 19 were major contributors to the downgrade.


27 March 2020

Debt Sponsor
RAND MERCHANT BANK
(A division of FirstRand Bank Limited)
Think Precinct, 1 Merchant Place
Cnr Fredman Drive & Rivonia Road
Sandton 2196, South Africa
P O Box 786273, Sandton, 2146, South Africa

Date: 27-03-2020 05:30:00
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
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.