Proposed disposal of Medscheme building for a consideration of R91 million
REBOSIS PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2010/003468/06)
JSE share codes:
REA ISIN: ZAE000240552
REB ISIN: ZAE000201687
Alpha code: REBI
(Approved as a REIT by the JSE)
(“Rebosis” or the “Company”)
PROPOSED DISPOSAL OF MEDSCHEME BUILDING FOR A CONSIDERATION OF R91 MILLION
Rebosis shareholders are hereby advised that the Company has, through its wholly-owned subsidiary
Ascension Properties Limited (the “Seller”), accepted an offer to purchase dated 29 May 2020 (the
“Offer”) the property described as Portion 106 (a portion of portion 27) of the farm Weltevreden No. 202,
Registration Division IQ Province Gauteng, measuring approximately 16 846m² together with all fixed
improvements thereto and the rental enterprise conducted thereon (the “Property”) to Old Fort
Crescendo Corevision (Pty) Ltd (Reg No 2019/339759/07) (the “Purchaser”) (the “Disposal”).
The Disposal will become effective on the date of registration of transfer of the Property into the name of
2. Rationale and use of proceeds
The Disposal is consistent with the Company's strategy to reduce its gearing to acceptable loan to value
levels. The proceeds of the Disposals will be used to repay existing debt facilities of the Company.
3. The Disposal
3.1 The Disposal Consideration
The consideration payable by the Purchaser to the Seller for the Property in terms of the Offer is
R91 million, payable in cash, excluding value added tax (“Disposal Consideration”). The VAT payable in
terms of the Disposal will be zero rated.
3.2 Conditions Precedent
The Offer is subject to the following conditions precedent:
3.2.1 Within 60 days of acceptance of the Offer:
184.108.40.206 the conclusion by the Purchaser of a due diligence investigation into the Property;
220.127.116.11 the Purchaser raising bank finance, secured by a mortgage bond over the Property;
18.104.22.168 confirmation that the third party independent valuer of the Purchaser arrives at a
valuation of the Property which is equal to at least the sum of the Purchase Price and the
commission payable by the Purchaser;
3.2.2 the conclusion of a sale agreement between the parties, including warranties and indemnities
that are typical of a transaction of this nature;
3.2.3 the Seller at its cost upgrading the parking area on the Property; and
3.2.4 the tenant at the Property waiving its first right of refusal to purchase the Property and signing a
cession of lease in favour of the Purchaser.
4. The Property and related financial information
4.1 Property information
Property: Medscheme Building
Location: Portion 106 (a portion of portion 27) of the farm Weltevreden No.
202, Registration Division IQ Province Gauteng
Lettable area: 6 792m²
Single of multi-tenanted: Single tenanted
Weighted average rental per m²: R122.04
Value of the Property*: R109 880 000
*The value of the Property has been extracted from the Company’s audited results for the year ended 31
August 2019, which have been prepared in terms of International Financial Reporting Standards (“IFRS”).
The valuation was performed by Valuation DNA, who is independent from the Company and registered as
a professional valuer in terms of the Property Valuers Profession Act, No. 47 of 2000.
An updated valuation of the Property was performed by CBRE Excellerate at 29 February 2020, who is
independent from the Company and registered as a professional valuer in terms of the Property Valuers
Profession Act, No. 47 of 2000. The value of the Property was determined by CBRE Excellerate at R92 880 000.
4.2 Value of and profits attributable to the net asset that are the subject of the Disposal
The value of the net assets that are the subject of the Disposal and the profits attributable to the net assets
that are subject of the Disposal are R109 880 000 and R11 003 358 respectively (“Financial Information”).
The Financial Information has been extracted from the Company’s audited results for the year ended 31
August 2019, was prepared in terms of IFRS, is the responsibility of the directors of Rebosis and has not
been reported on or reviewed by a reporting accountant.
The Disposal constitutes a Category 2 transaction for Rebosis in terms of the JSE Listings Requirements,
which merely requires an announcement.
1 June 2020
Investment Bank, Corporate Advisor, and Equity and Debt Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
Date: 01-06-2020 04:05:00
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