Disposal of Grand Central Property PUTPROP LIMITED Incorporated in the Republic of South Africa (Registration number 1988/001085/06) Share code: PPR ISIN: ZAE000072310 (“Putprop” or “the Company”) DISPOSAL OF GRAND CENTRAL PROPERTY 1. INTRODUCTION AND RATIONALE Shareholders are advised that the Company had entered into an agreement to dispose of its Grand Central Property (“the Property”) to Phumrello Property Proprietary Limited (“the Purchaser”) for a total cash consideration of R18 000 000 (“Disposal Consideration”) (“the Disposal”). The nature of business carried out by the current tenant occupying the property is that of an auto body repair entity. The Property was previously identified as a non-core property due to its location and tenant risk profile and the Disposal is consistent with the Company's strategy of disposing of properties situated in nodes considered not suitable for future capital growth. The proceeds of the Disposal will be ring-fenced for the acquisition of a more strategic income-producing property. 2. THE DISPOSAL 2.1 Property Specific Information Property name: Grand Central Location: 290 New Road, Midrand Sector: Retail Gross lettable area: 3 827m2 Disposal Consideration: R18 000 000 As at 30 Jun 2020 As at 31 Dec 2020 Weighted-average rental R32,2 m2 R46,8 m2 Value attributed to the Property: R19 553 1541 R18 000 0002 Net operating income: R1 207 0003,5 R702 0004, 5 Notes 1. The valuation was performed as at 30 June 2020 by JLL South Africa, 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 Act”). 2. The valuation as at 31 December 2020 was performed by the board of directors of the Company who are not independent, nor registered as professional valuers or as professional associate valuers in terms of the Act. 3. Calculated by taking the rental income of the Property as disclosed in the annual financial statements of the Company for the year ended 30 June 2020 and subtracting from it property expenses and property recoveries for the same period. 4. Calculated by taking the rental income of the Property for the six months ended 31 December 2020, and subtracting from it property expenses and property recoveries for the same period. 5. The financial information in this announcement is the responsibility of the directors of Putprop and has not been reported on or reviewed by a reporting accountant. There were no transaction costs incurred with the Disposal. 2.2 Initial Terms of the Disposal Putprop and the Purchaser (collectively, “the Parties”) initially entered into an agreement dated 12 November 2020 (“Agreement”), wherein it was agreed that the Disposal was conditional on the Purchaser: - supplying the relevant guarantees for the full Disposal Consideration on or before 15 January 2021; and - successfully obtaining bond approval for the full Disposal Consideration (“Bond Approval”). 2.3 Amended Terms of the Disposal During February 2021, the Purchaser part paid the Disposal Consideration in the cash amount of R5 467 294.24. Consequently, the Purchaser need no longer obtain Full Bond Approval but rather, bond approval for the amount of just R12 532 705.76 (“Remaining Amount”). Accordingly, the Parties have, as of 8 March 2021, subsequently amended the Agreement by way of addendum. It was agreed that: - the condition relating to Bond Approval be waived; and - the Purchaser will now need to supply the relevant bank guarantees for the Remaining Amount by no later than 15 March 2021 in order for the Disposal to proceed. The Company is pleased to advise shareholders that this last remaining condition precedent has been fulfilled with effect from today, and accordingly the effective date of the Disposal is 9 March 2021. With reference to the interim results for the six months ended 31 December 2020 released on SENS on 5 March 2021 wherein it was advised, in the “Subsequent Events” section, that the Company had already disposed of its Grand Central property during January 2021, shareholders are hereby advised that the Disposal is effective today. 2.4 Representations and warranties The agreement in respect of the Disposal contains warranties and undertakings which are standard for a disposal of this nature. 3. CLASSIFICATION OF THE DISPOSAL The Disposal is classified as a Category 2 transaction in terms of the Listings Requirements of the JSE Limited and as such does not require shareholder approval. Johannesburg 9 March 2021 Sponsor Merchantec Capital Date: 10-03-2021 07:05:00 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.