Proposed Acquisitions of Sunnypark Shopping Centre and an Industrial Warehouse

Posted On Thursday, 15 November 2012 19:22 Published by eProp@News
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Linked unitholders are advised that Rebosis has concluded an agreement for the acquisition (“the Sunnypark acquisition”) of a letting enterprise in respect of and including a property known as the Sunnypark Shopping Centre (“Sunnypark” or “the property”) from the Centre of the Sun Properties (Proprietary) Limited (“the seller”).

RATIONALE FOR THE SUNNYPARK ACQUISITION

The Sunnypark acquisition is consistent with Rebosis’ strategy of acquiring large high-quality and dominant retail properties yielding secure capital and income returns for linked unitholders.

The property is a multi-tenanted shopping centre occupied by the following defensive anchor tenants: Shoprite Checkers, Woolworths, the Foschini Group, the Truworths Group, Clicks, Spur and Virgin Active. This quality property is located in a well-established residential and growing office node, dominating retail around the eastside of the Pretoria CBD.

The Sunnypark acquisition will add critical mass to Rebosis’ property portfolio and further diversify the company’s retail income streams.

TERMS OF THE SUNNYPARK ACQUISITION AND CONDITIONS PRECEDENT

The purchase consideration payable by Rebosis for the property is R572.9 million. Payment of the purchase consideration will be settled in cash. If the property is not transferred by 1 March 2013(“Escalation Date”), the purchase consideration for the Sunnypark acquisition will be increased by 0.6458% (compounded monthly in arrears) up to and including the date of transfer and will be prorated for that portion of the month during which transfer is effected.

The Sunnypark acquisition will be with effect from the date of transfer of ownership of Sunnypark into Rebosis’ name 

Zenprop Property Holdings (Proprietary) Limited (“Zenprop”), the holding company of the seller, has provided Rebosis with a rental guarantee of R4.44 million for a period of 12 months from the date of transfer of the property.

Zenprop has undertaken to conclude a 24 month head lease with the seller for R125 000 per month in respect of vacant space, before the due diligence is completed. The head lease commences on the Escalation Date and escalates at a rate of 0.6458% per month on the anniversary of the Escalation Date for the period of the head lease.

Sunnypark is part of a sectional title scheme. The sectional title scheme also includes a hotel and residential apartments which do not form part of the Sunnypark acquisition.

The purchase agreement provides for warranties and indemnities that are standard for acquisitions of this nature.

The Sunnypark acquisition is subject to fulfilment or waiver of the following suspensive conditions:

- the Rebosis board confirming in writing to the seller on or before 23 December 2012 that it is satisfied with the outcome of the due diligence of the property and provides its approval for the conclusion and implementation of the Sunnypark acquisition; and

- receiving unconditional approval from the Competition Authorities by no later than 1 May 2013.

DETAILS OF THE PROPERTY

Sunnypark, situated in Pretoria in Gauteng, is a retail centre with 24 318 square metres of retail space including space for the Virgin Active gym, 3 179 square metres of office space and 608 parking bays in respect of the retail and office components. The weighted average rental per square meter of Sunnypark is R132 per square metre.

The board is satisfied that the value of the property is in line with the purchase consideration being paid for it by the company. The directors of the company are not independent and are not registered as professional valuers or as professional associate valuers in terms of the Property Valuers Profession Act, No 47 of 2000.

CATEGORISATION OF THE SUNNYPARK ACQUISITION AND CAUTIONARY ANNOUNCEMENT

The Sunnypark acquisition constitutes a category 2 transaction in terms of the JSE Listings Requirements and accordingly does not require approval by linked unitholders.

Linked unitholders of Rebosis are advised to exercise caution when dealing in their linked units until the financial effects of the Sunnypark acquisition are announced.

ACQUISITION OF AN INDUSTRIAL WAREHOUSE

Rebosis has concluded an agreement for the acquisition of a letting enterprise in respect of and including a property (“the Antalis property”) for a purchase price of R120 million from Stonibut Trading and Invest 13 (Proprietary) Limited (“the Antalis acquisition”)

The Antalis acquisition is consistent with Rebosis’ strategy of acquiring large high-quality and defensive commercial properties yielding secure capital and income returns for linked unitholders.

The Antalis property is a specialised single tenanted industrial warehouse with a gross lettable area of 18 729m2. The Antalis property is occupied by Antalis SA (Proprietary) Limited (”Antalis SA”) which is a leading distributor of graphic equipment and paper communications support materials in South Africa, at a net rental (including parking) of R51.66 per square metre. Antalis SA has occupied the property since 1995 and the current triple net lease, which is underpinned by the international parent company, listed on the Paris Stock Exchange, expires on 31 December 2019. The Antalis property is strategically located in a light industrial node in Selby, Johannesburg with great connectivity to key highways and provides additional bulk for future tenant driven expansions.

Last modified on Friday, 16 November 2012 05:59

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