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OCTODEC INVESTMENTS LIMITED - Update on the Edcon restructure

Release Date: 12/03/2019 07:05
Code(s): OCT     PDF:  
 
Wrap Text
Update on the Edcon restructure

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")


UPDATE ON THE EDCON RESTRUCTURE


Shareholders are advised that Octodec is a participating landlord in the Edcon Proprietary Limited ("Edcon")
recapitalisation and restructure programme ("the restructure"). In terms of the restructure, Octodec has agreed to a
rental reduction for a period of two years commencing on 1 April 2019 of approximately R11.0 million and will receive
equity in lieu of such rental reduction over the two year period. The value of the equity is uncertain at this stage

As at 31 August 2018, Octodec's exposure to Edcon amounted to 0.9% of its total gross lettable area ("GLA") and 1.2%
of rental income. The restructure relates to Octodec's current exposure to Jet, being 9 688m2 of GLA. The restructure
excludes approximately 4 061m2 of GLA in respect of which Jet and Red Square gave notice in 2018 pursuant to their
expiring lease agreements. As a result, Octodec's total exposure to Edcon is expected to reduce to 0.6% of GLA for the
year ending 31 August 2019, which includes a Jet and CNA with a GLA of 9 688m2 and 577m2 respectively.

The impact of the Edcon restructure on Octodec's distributable income for the financial year ending 31 August 2019 is
not material (R2,2 million or 0.4% of distributable income).

12 March 2019


Sponsor
Java Capital

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