Tuesday 6 April 2004

ACQUISITIONS UNLOCK VALUE AT GENSEC PROPERTY SERVICES Sanlam, Gensec Property Services, a division of Sanlam Ltd, Pam Golding Commercial, BEE Montsi Consortium, and a Management Consortium have signed heads of agreement to launch new fully-fledged independent commercial property services company to be called - Gensec Pam Golding

Johannesburg - Tuesday 6 April 2004 - Gensec Property Services has announced the signing of the heads of agreement that is the first step in the new company's repositioning from an institutional property service provider into a fully fledged independent, multi-client property services company. The deal is still subject to the conclusion of all the formalities.

The agreement involves a 45% buyout by a BEE consortium and senior management of Gensec Property Services (20% BEE and 25% Management), both financed by Sanlam, with intent to increase it to more than 51%. The Pam Golding Property Group will acquire 20% and Sanlam's Independent Financial Services' business cluster will retain 29% of the new company, Gensec Pam Golding.

Ms Marna van der Walt, CEO of Gensec Property Services, will become the CEO of Gensec Pam Golding.

"The agreement between the various stakeholders enables us to truly position ourselves as a multi-client property services company, opening our world-class services with an industry beating track record to all commercial property industry clients, including occupiers of space, brokers and property owners. With the history, experience, skill and expertise all round, the new stakeholders bring real value to the table which will aid in Gensec Pam Golding aggressively growing its business through challenging the conventional paradigms of the industry. In addition, the black economic empowerment component further illustrates Sanlam's commitment to opening up economic opportunities to the broader section of South African society," Van der Walt said.

The deal forms part of Gensec Pam Golding's rejuvenated structure where the process of transformation is addressed on multiple tiers. This includes staff, empowerment, skills transfer, ownership, culture, client base and service offerings.

The BEE consortium, headed up by businessman and passionate property investor and developer Sam Montsi of Montsi Investments, brings extensive experience to the new company. As a board member of Sasol and various other leading companies, Montsi will take an active role in Gensec Pam Golding.

Other members of the consortium include Fazila Surti-Montsi, Dyambu Holdings, lead by Hilda Ndude as well as Isaac Nkama who heads the Nkama consortium.

Pam Golding's purchase of 20% of the company is a symbiotic move to further their leadership in the commercial property sector. Pam Golding Commercial will be able to unlock the value of what is undisputedly a premier brand in the industry. With its incorporation the opportunity will also be there to maximise on the entrepreneurial focus for which the company is known. Pam Golding Commercial boasts not only international affiliation but also a wide network within the industry that will undoubtedly bring unparalleled opportunity. They also bring their marketing expertise and outward focus to Gensec Pam Golding.

Chief Executive of Pam Golding Commercial, the commercial arm of the Pam Golding Property Group, Peter Golding says, "The fusion of these companies brings a best-of-breed offering to the market which will unlock value for stakeholders, staff and clients. The move further solidifies our positioning as a leading property brand in South Africa."

With the acquisition, Pam Golding Commercial brings approximately R2bn of additional properties under management to Gensec Pam Golding, supplementing the current R11bn Gensec portfolio.

The management buyout (financed by Sanlam) is broad-based within the senior management structures retaining the intellectual capital that has seen the company outperform SAPIX/IPD South Africa Property Index over the last five years. It is a transformed management, which is addressing empowerment both from the top down and bottom up. Skills have already been enhanced; bringing specialists in their relevant fields under one umbrella.

Sanlam's Independent Financial Services' retention of its 29% stake in Gensec Pam Golding is a show of commitment to the new company and forms part of its pioneering empowerment initiatives. Gensec Pam Golding will still be an arms-length service provider to the Sanlam portfolio, whilst proactively capturing new revenue streams and business opportunities.

Van der Walt concludes, "The market now has access to a well-rounded and comprehensive property services offering. All stakeholders will be actively involved in day-to-day operations. We will continue to challenge the conventional paradigms of the commercial property industry with our long-term focus on delivering tangible returns for both property owners and tenants with our tailored approach to each entity's unique needs. With a deeper national footprint and offering we are poised for exponential success and growth."

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Distributed by MagentaSoft (Pty) Ltd on behalf of Gensec Property Services.

For further information contact Joanne Ross of MagentaSoft on 011 575 3828.

SAPIX

SAPIX was created to develop with IPD an authoritative databank on property investment performance in South Africa. The Databank compiles information on

17 portfolios (including those of the three largest investors in the South African market) covering nearly 2,000 properties with a total market value of R46.7bn. Each property was measured using a common approach to valuation.

Gensec Property Services and Sanlam's Independent Financial Services In 2003 Sanlam announced the restructuring of Gensec to form Sanlam Capital Markets.

That process is almost completed. In the restructuring, Gensec Property Services became part of Sanlam's Independent Financial Services.

This business cluster in the Sanlam Group invests in independent customer facing entities and intermediary businesses operating in the financial services industry. On 31 December 2003, Gensec Property Services had property valued in excess of R11billion and lettable area of 3,2 million m² under management.