ApexHi Properties Limited has acquired 19 office, retail and industrial properties for R297,3-million since end June 2005, over and above the recent purchase of the Prima portfolio for R1,020-billion.

The acquisitions include, among others, a fully let 24,000m² office building in Randburg for R155-million, and 12 industrial and retail properties in the Eastern Cape, Gauteng and KwaZulu Natal from Capital for R62-million.

ApexHi director, Deon Feinblum says a number of the properties that were recently acquired are located in secondary areas such as Rustenburg and Benoni. “ApexHi’s strategy to purchase properties in these areas has been very successful. They typically have high yields, loyal tenants with few alternative options, low vacancies and good rentals. ApexHi’s portfolio currently comprises some 400 properties, spread throughout the nine provinces, and this critical mass makes it viable for Broll, our property managers, to establish offices in these areas to provide a “hands on” service,” he says.

ApexHi recently stated its objective to acquire an additional R500-million in properties in the financial year to end June 2006, and to increase its gearing to 30% to take advantage of the current low interest rate environment.

“While we are well on our way to achieving our acquisition target, our gearing has not increased significantly, as the vendors are increasingly requesting units instead of cash. The latest purchase has been settled by the issue of 6,246,800 ApexHi A and B units and R169,3-million in cash. We have seen a huge shift in vendor sentiment due to the phenomenal share price growth which has seen the ApexHi share price climb from R19,75 in January 2005 to a high of R25,00 at end September 2005.

“In addition, ApexHi has disposed of eight underperforming buildings for R140-million since end June 2005. The proceeds of these disposals have been used to reduce debt and pay for the cash portion of the acquisitions. As a result, ApexHi’s gearing is currently pitched at 27%,” he says.

Ends

For further information, please contact:

Deon Feinblum

ApexHi Properties

Tel: (011) 283 0150

Monica Meyer / Sandra Mason

Ogilvy Public Relations Worldwide / South Africa

Tel: (011) 709 9660

Date: 31 October 2005