INVESTEC PROPERTY FUND LIMITED - Recyling of proceeds from the disposal of two South African retail assets into offshore platforms

Recyling of proceeds from the disposal of two 
South African retail assets into offshore platforms

INVESTEC PROPERTY FUND LIMITED
Approved as a REIT by the JSE
(Incorporated in the Republic of South Africa)
(Registration Number 2008/011366/06)
Share code: IPF      ISIN: ZAE000180915
(“Investec Property Fund” or “the Fund”)


VOLUNTARY ANNOUNCEMENT - RECYCLING OF PROCEEDS FROM THE DISPOSAL OF TWO SOUTH AFRICAN 
RETAIL ASSETS INTO OFFSHORE PLATFORMS


Shareholders are advised that Investec Property Fund has concluded separate sale agreements, to dispose of its
undivided shareholding in the following properties:


-       Musina Mall (incorporating the adjacent Great North Plaza), a 35,037m 2 retail centre in Musina, Limpopo
        Province, in which the Fund owned a 66.7% interest; and

-       Boitekong Mall, a 17,668m2 regional mall situated in Rustenburg, North West Province, in which the Fund
        owned a 70.0% interest, (collectively, the “Properties”).

The aggregate cash disposal proceeds in respect of the Properties is R727 million (the “Disposals”), which equates
to a blended exit yield of 8.5% and represents a marginal discount to book value of 3%. The Disposals only remain
subject to Competition Commission approval and are anticipated to be concluded during March 2020.

The Disposals are in line with Fund’s strategy of unlocking value through the recycling of capital through disposals
and redeploying it into long term value-enhancing assets that provide superior risk-adjusted returns.

The Disposals allow the Fund to further de-gear its South African balance sheet on an earnings accretive basis,
whilst providing funding capacity to further deploy capital into the Pan-European logistics real estate and U.K Fund
strategies. The most recent Pan-European pipeline acquisition announced in December 2019, being two Belgium
logistics properties for a purchase consideration of EUR70.4 million(1), are expected to generate an investment yield
of 7.9% in EUR and 9.5% in ZAR. This is clear evidence of the Funds proactive recycling strategy coming to fruition.

Post the disposal of the Properties and the recent Belgium acquisition, the Fund’s LTV will remain in line with the
level reported at 30 September 2019 and the Fund’s offshore exposure will increase to c.23% (30 September 2019:
18.6%).

The Disposals are not categorizable for the Fund in terms of the JSE Listings Requirements and this announcement
is voluntary and for information purposes only.

Footnote:
(1)Full details of the Belgium acquisition were published on SENS on 12 December 2019

Sandton
27 January 2020

Financial Advisor and Sponsor
Investec Bank Limited




Date: 27-01-2020 09:36:00
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