OCTODEC INVESTMENTS LIMITED - Small related party transaction

Small related party transaction

OCTODEC INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1956/002868/06)
JSE share code: OCT ISIN: ZAE000192258
(Approved as a REIT by the JSE)
("Octodec" or "the company")


SMALL RELATED PARTY TRANSACTION


1.      Introduction
Shareholders are advised that Octodec and City Property Administration Proprietary Limited ("CPA") have concluded
an agreement to renew the leases (the "lease agreements") of certain properties owned by Octodec or wholly-owned
subsidiaries of Octodec and rented by CPA.

2.     Details of the lease agreements
In terms of the lease agreements, Octodec will lease following properties to CPA for a period of five years,
commencing on 1 July 2018 and expiring on 30 June 2023:

                                                                          Gross lettable     Monthly rental
Property name / leased premises                                                     area             amount
CPA Place, 19 Loveday Street, Johannesburg                                       1 252m2           R134 330
CPA House, 101 Du Toit Street, Pretoria                                          6 208m2           R458 100
Jardown 1, 371 Johannes Ramokhoase Street, Pretoria                                679m2            R70 700
Jardown 2, 384 Madiba Street, Pretoria                                           35 bays            R15 150
Bosch Building, 363-365 Johannes Ramokhoase Street, Pretoria                     83 bays            R36 550
Total monthly rental amount                                                                        R714 830

The lease agreements are subject to the following additional terms and conditions:
   - rental escalation of 6% per annum;
   - CPA will be liable for its pro rata portion of increases in assessment rates;
   - CPA House, 101 Du Toit Street, Pretoria, will receive one month’s rental as an installation allowance;
   - on expiry of the lease agreements, CPA will return the properties in the same condition as at 1 July 2018,
     subject to fair wear and tear; and
   - CPA may terminate the lease agreements should the asset management agreement between CPA and Octodec
     be terminated.

3.      Small related party transaction
In terms of section 10 of the JSE Listings Requirements, the signature of the lease agreements constitutes a small
related party transaction, as CPA and Octodec are related parties due to the fact that Jeffrey Wapnick and Sharon
Wapnick are directors of Octodec and CPA, and the Wapnick family are material shareholders of both Octodec and
CPA. Accordingly, BDO Corporate Finance Proprietary Limited ("BDO"), an independent expert acceptable to the
JSE, has been appointed to provide a fairness opinion in this regard.

A further announcement will be published on finalisation of the independent expert’s fairness opinion in respect of the
lease agreement.

4 December 2018


Sponsor
Java Capital

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