FAIRVEST PROPERTY HOLDINGS LIMITED - Qumbu Development And Provision Of Financial Assistance

Qumbu Development And 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)
(“Fairvest” or “the Company”)

QUMBU DEVELOPMENT AND PROVISION OF FINANCIAL ASSISTANCE

QUMBU DEVELOPMENT

Fairvest entered into a development agreement with Stilopro Proprietary Limited (“Stilopro”) in Fairvest’s
newly incorporated subsidiary, FPP Property Venture 121 Proprietary Limited (“FPP121”), for the development
of the Qumbu Plaza retail centre in Qumbu, Eastern Cape (“Development”). The total development cost will
not exceed R51.6 million. While the Development is not required to be announced, Fairvest wishes to provide
shareholders with information, on a voluntary basis.

Fairvest holds 51% of the issued shares in FPP121, with the remaining 49% being held by Stilopro.

The Development is expected to be completed by 1 November 2019 with a gross lettable area of 5 470m². The
centre will be anchored by Boxer Superstores. The initial yield of the Company’s 51% shareholding is
guaranteed at 11% p.a. by Stilopro to Fairvest for a period of 5 years, escalating at 7% annually.

The Development is consistent with the Company’s communicated growth strategy whereby the Company
enters into strategic relationships, for both brownfield and greenfield projects, by developing strategic
partnerships with experienced property developers, bringing new retail assets to the market, while continuing
to focus predominantly on assets in rural, under-developed areas in the lower LSM sectors.

PROVISION OF FINANCIAL ASSISTANCE

Shareholders are referred to Special Resolution Number 3, relating to the provision of direct or indirect financial
assistance in terms of section 45 of the Companies Act, No. 71 of 2008, as amended
(“Companies Act”), to related or inter-related companies, which was approved at the annual general meeting
of Fairvest on 14 November 2018.

Fairvest shareholders are notified, in terms of section 45(5)(a) of the Companies Act, that the board of directors
of the Company ("Board") has approved the provision of financial assistance, pursuant to the above
shareholder approval, to FPP121. This Board approval authorises financial assistance by way of a loan to
FPP121 of up to R40.0 million in connection with the Development.

The financial assistance provided, as detailed above, is greater than one-tenth of 1% of Fairvest's net worth
as at the date of the Board approval. 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.

Cape Town
6 September 2019

Sponsor
PSG Capital

Date: 06/09/2019 03:00:00
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