Financial and property information - category 1 acquisition by Arrowhead of Fairvest via a scheme of arrangement ARROWHEAD PROPERTIES LIMITED (Incorporated in the Republic of South Africa) (Registration number 2007/032604/06) JSE share code: AHA ISIN: ZAE000275491 JSE share code: AHB ISIN: ZAE000275509 (Approved as a REIT by the JSE) (Arrowhead) FINANCIAL AND PROPERTY SPECIFIC INFORMATION IN RESPECT OF THE PROPOSED CATEGORY 1 ACQUISITION BY ARROWHEAD OF FAIRVEST BY WAY OF A SCHEME OF ARRANGEMENT 1. Introduction Shareholders are referred to the joint SENS announcement (Firm Intention and Category 1 Announcement) released by Arrowhead and Fairvest Property Holdings Limited (Fairvest) today in respect of, inter alia, a proposed merger to be implemented by way of a scheme of arrangement in terms of section 114 of the Companies Act, No. 71 of 2008, and to which Arrowhead will be a party (Transaction). In terms of the Transaction, Arrowhead has offered to acquire 100% of the Fairvest ordinary shares (Fairvest Shares) in issue, excluding the Fairvest Shares held in treasury, from Fairvest shareholders, which Transaction will constitute a category 1 acquisition for Arrowhead in terms of the JSE Listings Requirements. In compliance with paragraphs 9.15(d) and (e) and paragraphs 13.11(a) and 13.19 of the JSE Listing Requirements, the information contained in paragraphs 2 and 3 below is disclosed in addition to the information disclosed in the Firm Intention and Category 1 Announcement. 2. Financial Information of Fairvest The value of the net assets and the profit attributable to the net assets of Fairvest are R2 441 524 000 and R332 553 000 respectively (Financial Information). The Financial Information in this announcement has been extracted from Fairvest's audited results for the year ended 30 June 2021 (Fairvest Results), which was prepared in terms of International Financial Reporting Standards, and which is the responsibility of the directors of Fairvest. BDO South Africa Incorporated issued their audit report on the Fairvest Results on 10 September 2021, however the Financial Information in this announcement has not been reported on or reviewed by a reporting accountant. 3. Property specific information of Fairvest The table below sets out the details of the properties within the Fairvest property portfolio as at 30 June 2021, and as included in the Fairvest Results. Weighted Rentable average Valuation Cost of area rental per 30 June 2021 Date of acquisition Property Name Location Sector (m2) m2 (R) (R'000) acquisition (R'000) Kwazulu-Natal Shoprite Empangeni Empangeni Retail 13 660 152.47 223 800 18-Jul-17 172 500 Westville Junction Westville Retail/Office 6 330 173.69 98 400 19-Jan-01 16 500 Richmond Shopping Centre Durban Retail 8 798 93.23 99 200 21-May-15 61 538 CHEP Building Westville Office 3 337 # 76 600 1-Dec-12 51 076 Qualbert Centre Durban Retail 4 684 163.32 79 000 30-Jan-14 68 778 425 West Street Durban Retail/Office 5 162 122.37 59 900 18-Jan-13 54 500 Coronation Walk Queensburgh Retail/Office 3 047 167.08 49 300 19-Nov-01 9 000 210 Church Street Pietermartitzburg Retail 1 897 # 30 000 18-Dec-12 19 556 212 Church Street Pietermartitzburg Retail 1 980 # 36 800 14-Dec-12 30 000 Mkuze Corner Mkuze Retail 3 388 87.16 32 200 13-Dec-12 15 000 52 283 785 200 Western Cape Nonkqubela Mall Khayelitsha Retail 10 765 174.12 171 000 23-Aug-19 162 900 Nyanga Junction Nyanga Retail 10 683 170.49 170 900 16-May-13 58 000 Paddagat George Retail 11 007 101.59 115 800 13-Dec-12 44 000 Macassar Shopping Centre Macassar Retail 5 516 146.57 85 900 12-Sep-16 41 500 Omniplace Bellville Office 2 627 112.00 30 200 13-Dec-12 20 000 Nyanga Shopping Centre Nyanga Retail 1 242 # 4 900 24-May-13 8 427 41 840 578 700 Free State Middestad Centre Bloemfontein Retail 18 609 150.44 287 600 26-Aug-15 190 987 Megapark Bloemfontein Retail 6 744 118.29 83 900 26-Aug-15 52 015 Zamdela Shopping Centre Zamdela Retail 2 247 112.70 29 500 20-Feb-13 13 867 Bradlows Building Bloemfontein Retail 2 563 44.52 11 600 19-Nov-01 4 100 30 163 412 600 Gauteng Bara Precinct Soweto Retail 24 486 146.16 368 100 18-Dec-17 322 435 Southview Shopping Soshanguve Retail 7 644 124.42 106 300 18-Jun-18 92 914 Clubview Corner Centurion Retail 6 074 126.02 81 300 17-Jan-13 27 000 Sebokeng Plaza* Sebokeng Retail 5 693 112.67 72 000 26-Apr-13 35 298 The Ridge Shopping Centre Roodepoort Retail 4 663 151.25 69 000 12-Mar-13 30 000 Jan Niemand Spar Pretoria Retail 2 139 # 23 800 19-Feb-15 20 000 Orange Farm Orange Farm Retail 2 685 88.39 28 200 15-Jan-13 15 781 Pick `n Pay Vereeniging Vereeniging Retail 3 538 91.98 28 700 10-Apr-13 12 934 The Palms Midrand Office 2 597 67.45 13 900 2-Mar-07 10 558 Score Stretford Stretford Retail 1 508 # 14 000 19-Feb-13 9 509 Score Sharpeville Sharpeville Retail 1 139 # 14 700 19-Feb-13 6 914 62 166 820 000 Limpopo Mala Plaza Malamulele Retail 6 076 147.01 101 000 27-Jan-14 64 766 Masingita Shopping Centre Giyani Retail 5 363 143.55 71 700 27-Jan-14 48 466 11 439 172 700 Northern Cape Sibilo Shopping Centre Postmasburg Retail 8 476 148.08 129 400 24-Aug-15 96 323 Kim Park Kimberley Retail 9 301 122.60 117 400 8-Jan-14 53 014 17 777 246 800 Eastern Cape Boxer Elliotdale Elliotdale Retail 7 360 117.30 81 100 9-May-16 59 830 Bokleni Plaza Libode Retail 4 990 120.03 67 700 3-Oct-18 49 000 Qumbu Plaza Qumbu Retail 5 395 107.50 67 300 1-Dec-19 51 911 Boxer Mqanduli Mqanduli Retail 4 689 111.70 48 500 15-Jul-16 37 600 Boxer Tabankulu Tabankulu Retail 4 117 109.45 42 400 7-Jul-16 32 000 26 551 307 000 Mpumalanga Cosmos Centre Bethal Retail 4 692 136.85 80 800 5-Mar-15 58 000 Investment property held for sale Parow Valley Spar Parow Retail 3 985 101.77 36 200 10-May-16 20 255 * - 50% undivided share 250 896 134.35 3 440 000 Vacant unlettable property Fattis Mansions Johannesburg Retail 1 921 - - 19-Nov-01 6 520 Notes: 1. The Fairvest property portfolio consists of 43 properties, with 250 896 m2 of lettable area and valued at R3.44 billion. At 30 June 2021, 9 228 m2 or 3.7% of the gross lettable area was vacant. Average annualised property yield was 9.8%. 2. The individual property valuations as at 30 June 2021 were obtained from Fairvest management. 3. # Means single tenanted properties. The weighted average rent per m2 for all single tenanted properties is R155.61 at 30 June 2021. 4. 35.8% (2020: 39.8%) of the value of the above Fairvest investment property portfolio was valued by DDP Valuers, De Leeuw Valuers and Broll Valuation and Advisory Services (who are independent from Fairvest and are registered as professional valuers in terms of the Property Valuers Profession Act, No. 47 of 2000) at 30 June 2021, and all have experience in the valuation of similar investment properties. The remainder of the income-producing investment properties were valued by Fairvest management. The valuations were based on open market values for existing use for each individual investment property. For the current and prior year, the valuation of the properties was performed using the discounted cash flow method. 5. 100% of the Fairvest property portfolio will be valued for purposes of the circular and accompanying revised listing particulars to be issued to Arrowhead shareholders in relation to the Transaction. 4. Responsibility statement The board of directors of Arrowhead (Arrowhead Board) accepts responsibility for the information contained in this announcement insofar as it relates to Arrowhead. To the best of the Arrowhead Board's knowledge and belief, the information contained in this announcement is true and the announcement does not omit anything likely to affect the importance of the information. 27 September 2021 Strategic transaction advisor Ferryman Capital Partners Joint corporate advisor and transaction sponsor Nedbank Corporate and Investment Banking, a division of Nedbank Limited Legal advisor Cliffe Dekker Hofmeyr Incorporated Date: 27-09-2021 02:02:00 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. 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