Disposal of Tokai Junction 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”) DISPOSAL OF TOKAI JUNCTION 1. INTRODUCTION Shareholders are advised that on 3 April 2020, the Company entered into an agreement (“Disposal Agreement”) with FPG Holdings Proprietary Limited (“Purchaser”), in terms of which the Company will dispose of the shopping centre rental enterprise operated by Fairvest, commonly known as Tokai Junction (“Rental Enterprise”), including the property on which the Rental Enterprise is being conducted on situated at Erf 10800, Constantia, Cape Town (“Property”) to the Purchaser, as a going concern, for a disposal consideration of R190 000 000 (“Disposal”). The effective date of the Disposal shall be the date of registration of transfer of ownership of the Property into the name of the Purchaser at the applicable Deeds Office (“Transfer Date”), which is expected to occur during July 2020. 2. RATIONALE FOR THE DISPOSAL The Disposal is consistent with the Company’s stated strategy of focusing on value extraction and practising disciplined, conservative financial management while maintaining a focus on retail assets with a weighting in favour of non-metropolitan areas and lower living standards measure (LSM) sectors. 3. DISPOSAL CONSIDERATION The disposal consideration for the Rental Enterprise of R190 000 000 (including value added tax at a rate of 0%) (“Disposal Consideration”) is payable in cash on the Transfer Date, subject to monthly escalation of 0.58% should registration of transfer of the Property occur after 1 August 2020. 4. APPLICATION OF THE DISPOSAL CONSIDERATION The Disposal Consideration will be utilised to reduce the Company’s debt. 5. CONDITIONS PRECEDENT The Disposal is subject to the fulfilment of the following outstanding conditions precedent (“Conditions Precedent”) that: - within a period of 20 business days following 1 May 2020, the Purchaser undertakes a due diligence investigation and is satisfied with the outcome thereof; and - if applicable, within a period of 90 days following the date on which the above Condition Precedent is fulfilled, the Disposal is unconditionally approved by the relevant competition authorities or, is approved upon such terms and conditions as are reasonably acceptable to the Purchaser. The date by which the Conditions Precedent must be fulfilled may be extended by the parties by written agreement. The Condition Precedent relating to the due diligence has been inserted for the benefit of the Purchaser which will be entitled to waive fulfilment of the said Condition Precedent. The Condition Precedent relating to competition approval may not be waived. 6. WARRANTIES AND OTHER SIGNIFICANT TERMS OF THE DISPOSAL AGREEMENT The Disposal Agreement contains representations and warranties by the Company in favour of the Purchaser which are standard for a transaction of this nature. 7. THE PROPERTY Details of the Property are as follows: Property Geographical Sector Gross Weighted Name and Location Lettable Area Average Address (m2) Gross Rental / m2 Tokai Junction Tokai, Western Retail 7 698 R183.47 Cape Details regarding the Property, as at the anticipated Transfer Date, are set out below: Disposal Yield Weighted Average Weighted Average Vacancy % by Attributable to Escalation Lease Duration Gross Lettable Shareholders (years) Area 8.59% 7.0% 6.1 4.8% Notes: a. Fairvest’s costs associated with the Disposal are estimated at R720 000. b. The Disposal Consideration payable in respect of the Rental Enterprise (which includes the Property) is considered to be its fair market value, as determined by the directors of the Company. The directors of the Company are not independent and are not registered as professional valuers or as professional associate valuers in terms of the Property Valuers Profession Act, No. 47 of 2000. 8. FINANCIAL INFORMATION The net asset value attributed to Rental Enterprise as at 31 December 2019, being the date of the last unaudited interim financial results of the Company, was R176 300 000. The audited profits after tax attributable to the Rental Enterprise for the most recent financial year ended 30 June 2019, was R14 217 426, based on the audited annual financial statements of the Company for that year, which were prepared in terms of IFRS. 9. CLASSIFICATION OF THE DISPOSAL The Disposal constitutes a category 2 transaction in terms of the JSE Limited Listings Requirements. 6 April 2020 Cape Town Transaction advisor Java Capital Sponsor PSG Capital Date: 06-04-2020 04:35:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.