FAIRVEST PROPERTY HOLDINGS LIMITED - South View Shopping Centre Development, Provision Of Financial Assistance

South View Shopping Centre Development, Provision Of Financial Assistance

FAIRVEST PROPERTY HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1998/005011/06)
Share code: FVT ISIN: ZAE000203808
(Approved as a REIT by the JSE)
(“the Company”)


       SOUTH VIEW SHOPPING CENTRE DEVELOPMENT, PROVISION OF FINANCIAL ASSISTANCE

ACQUISITION

1. The Company has entered into strategic relationship with Abland Proprietary Limited (“Abland”), with a newly
   incorporated subsidiary of the Company, South View Shopping Centre Proprietary Limited (“South View”),
   acquiring a vacant plot of land in Soshanguve, Gauteng from Melana Developments Proprietary Limited, in
   order to construct a shopping centre thereon.

2. The Company holds 50% of the issued shares in South View, which is accounted for as a subsidiary of the
   Company. The remaining 50% in South View is held by GGP Investments Proprietary Limited (“GGP”), an
   associate of Abland.

3. A development agreement has been concluded between Abland, the Company and GGP for the construction
   of a 7,602m2 shopping centre on the above land (“Development”), which will occur and be held in South View.
   The centre will be anchored by Shoprite and 87% of the gross lettable area will be occupied by national
   tenants, with the completion date scheduled for June 2018. The commencement yield of the Development is
   guaranteed at 10% by GGP to the Company for a period of 5 years escalating at 7% annually.

4. The Development is consistent with the Company’s growth strategy whereby the Company partners with
   experienced developers, bringing new retail assets to the market, while continuing to predominantly focus on
   assets in rural, underdeveloped areas in the lower LSM sectors.

5. The acquisition of the above land falls below the threshold for a Category 2 announcement under the JSE
   Listings Requirements and this is a voluntary announcement.

PROVISION OF FINANCIAL ASSISTANCE

6. Shareholders are notified in terms of section 45(5)(a) of the Companies Act, No. 71 of 2008 (“Companies Act”)
   that, pursuant to the authority granted to it by shareholders at the Company’s annual general meeting on
   15 November 2016, the board of directors of the Company (“Board”) approved the provision of a loan by the
   Company to South View of up to R70 000 000 for the development of the above rental enterprise and
   property.

7. Prior to authorising the aforementioned financial assistance, the Board considered and satisfied itself, in terms
   of section 45 of the Companies Act, that (1) immediately after providing the financial assistance, the Company
   would satisfy the solvency and liquidity test as contemplated in section 4 of the Companies Act, (2) there has
   been due compliance with the Company’s memorandum of incorporation and (3) the terms of the financial
   assistance are fair and reasonable to the Company.

8 November 2017

Cape Town
Sponsor

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