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Acquisition of Letting Enterprise
PUTPROP LIMITED
Incorporated in the Republic of South Africa
(Registration number 1998/001085/06)
Share code: PPR ISIN: ZAE0000072310
(“Putprop” or “the Company”)
ACQUISITION OF LETTING ENTERPRISE
1. INTRODUCTION
Shareholders are advised that Putprop entered into a sale of letting enterprise agreement (“Sale
Agreement”) with Growthpoint ABQ Proprietary Limited (“Seller”) on 8 June 2021 (“Signature Date”)
for the acquisition of the letting enterprise conducted by the Seller as described below (“the Letting
Enterprise”), for a purchase price of R15 million (“the Acquisition”).
The Letting Enterprise comprises:
o the “Property”, being the remaining Portion of Erf 33 Chislehurston, Registration Division I.R, the
Province of Gauteng, measuring 2 568m2 and held by the Seller under Deed of Transfer number
T141018/01, together with the building and all other improvements, including all appurtenances,
fixtures and fittings (“Building”);
o the “Leases”, being the agreements of lease entered into between the Seller, as landlord, and
various tenants in respect of the leased premises in the Building; and
o the “Contracts”, being all service and maintenance contracts in respect of the Letting Enterprise.
2. THE ACQUISITION
2.1 Details of the Property
The Property, together with the Building, located at 22 Impala Road, Chislehurston, Sandton,
2196, is commonly known as “22 Impala Road”.
The gross lettable area of the Property is 1 091.93m2 and the weighted average net rental per
square metre is currently R108.15.
2.2 Rationale for the Acquisition
The board of directors of Putprop (“Board”) believe that the Property, which houses the
Company’s new head office, is best suited to its future requirements and will also provide an
income stream going forward from an existing tenant.
2.3 Suspensive conditions and effective date
All suspensive conditions in respect of the Acquisition have been fulfilled.
The effective date of the Acquisition is 30 July 2021, being the fulfilment date of all suspensive
conditions.
The registration of transfer of the Property into the name of the Company (“Transfer”) has been
completed.
2.4 Purchase price
2.4.1 The purchase price payable in cash by the Company to the Seller for the Letting
Enterprise is an amount of R15 million, payable as follows:
2.4.1.1 within three days after Signature Date, a non-refundable deposit in the amount
of R5.5 million to the Seller’s attorneys (which deposit has been settled); and
2.4.1.2 on the date of Transfer, the balance of the purchase price, in the amount of
R9.5 million, to the Seller (which balance has been settled).
No costs have been incurred by Putprop in relation to the Acquisition.
The Sale Agreement contains warranties and undertakings which are standard for an acquisition
of this nature.
2.5 Details pertaining to the Seller
The Seller is a wholly-owned subsidiary of Growthpoint Properties Limited (“Growthpoint”), the
largest South African property company. The Seller is not a related party to Putprop.
3. FINANCIAL INFORMATION
The value of the net assets and the profit after tax attributable to the Acquisition were R15.0 million and
R1.047 million, respectively, as at 30 June 2021, as extracted from the audited annual financial
statements of Growthpoint for the year ended 30 June 2021.
The financial statements were prepared in accordance with International Financial Reporting Standards
and the Companies Act, 2008 (Act 71 of 2008), as amended.
4. INDEPENDENT VALUATION OF THE ACQUISITION
An external valuation of the Property, which attributed a value in the amount of R13.4 million, was last
performed on 30 June 2020 by Broll Valuation and Advisory Services who are independent and are
registered as a professional valuer in terms of the Property Valuers Profession Act, 2000 (Act 47 of
2000) (“Act”).
As at 30 June 2021, the Property was valued at an amount of R15.0 million, which is consistent with
Growthpoint’s policy that once a concluded offer has been received on the “willing buyer willing seller”
basis and at arms-length, the accepted offer price is utilised in that property’s valuation.
5. CATEGORISATION OF THE ACQUISITION
The Disposal is classified as a Category 2 transaction in terms of the Listings Requirements of JSE
Limited.
4 October 2021
Sponsor
Merchantec Capital
Date: 04-10-2021 01:35:00
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