23 Sep - 4 min read
Disposal of Letting Enterprise
Disposal of Letting Enterprise PUTPROP LIMITED Incorporated in the Republic of South Africa (Registration number 1998/001085/06) Share code: PPR ISIN: ZAE0000072310 (“Putprop” or “the Company”) DISPOSAL OF LETTING ENTERPRISE 1. INTRODUCTION Shareholders are advised that Putprop has entered into a sale of letting enterprise agreement (“Sale Agreement”) with Brits Hardware Close Corporation (“Purchaser”) on 22 September 2021 (“Signature Date”) for the disposal of the letting enterprise conducted by the Company as described below (“the Letting Enterprise”), for a purchase price of R17 million (“the Disposal”). The Letting Enterprise comprises: o the “Property”, being the immovable properties, including buildings, situated at 1 to 25 Piet Rautenbach Street, Brits Extension 13, known as Erf 1770 and Erf 1771, Brits Extension 13; o the “Lease Agreement(s)” entered into between Putprop and the tenants / lessees of the Property; and o certain fixtures, fittings, furniture, equipment and assets at the Property (“Movable Assets”). 2. THE DISPOSAL 2.1 Details of the Property The Property means Erf 1770 and Erf 1771, Brits Extension 13, district Brits Province of North West, used in connection with the operating of the letting enterprise conducted by the Company. The gross lettable area of the Property is 13 001m2 and the weighted average net rental per square metre is currently R7.6. 2.2 Rationale for the Disposal The Property has been identified as a non-core property due to its location and age. Management believes the funds released by the sale of the Property can be better utilised elsewhere. The proceeds of the Disposal will be utilised by Putprop to acquire income producing properties. 2.3 Suspensive condition and effective date 2.3.1 The Disposal is conditional on the fulfilment of the following suspensive condition within 45 calendar days from Signature Date: 22.214.171.124 the Purchaser obtains approval for a loan with a bank or other financial institution for the “Loan Amount”, being the purchase price of R17 million (“Consideration”), less an amount of R1.7 million (“Deposit”), upon the security of a first mortgage bond to be registered over the Property. 2.3.2 Should the suspensive condition not be fulfilled or waived timeously, the Sale Agreement will no longer be of any force and effect. Putprop and the Purchaser will be restored, as closely and as may be reasonably and practically possible, to the position in which they were prior to the Signature Date. 2.3.3 The effective date of the Disposal will be the date of fulfilment of the aforementioned suspensive condition (“Effective Date”). 2.4 Consideration 2.4.1 The Consideration payable by the Purchaser to the Company for the Letting Enterprise is payable in cash as follows: 126.96.36.199 within seven calendar days of the Effective Date, the Deposit is paid into the conveyancer’s trust account; and 188.8.131.52 the balance of the Consideration is paid on the date of registration of transfer of the Property in the name of the Purchaser. The Sale Agreement contains warranties and undertakings which are standard for a disposal of this nature. 2.5 Details pertaining to the Purchaser Brits Hardware Close Corporation, represented by Mohamad Shafi Anwar Bataviya, is the Purchaser. The Purchaser is not a related party to Putprop. 3. FINANCIAL INFORMATION The value of the net assets attributable to the Disposal was R14.9 million as at 30 June 2021 (audited). The audited loss after tax attributable to the net assets for the year ended 30 June 2021 was R0.267 million. The financial statements were prepared in accordance with International Financial Reporting Standards and the Companies Act, 2008 (Act 71 of 2008), as amended. 4. INDEPENDENT VALUATION OF THE DISPOSAL A valuation of the Property was performed on 30 June 2021 by Shawn Crous MRICS representing JLL South Africa who is independent and is registered as a professional valuer in terms of the Property Valuers Profession Act, 2000 (Act 47 of 2000) (“Act”). The Property was valued at an amount of R14.9 million. This independent valuation is supported by the Board. The members of the Board are not independent valuers and are not registered as professional valuers or as professional associate valuers in terms of the Act. 5. CATEGORISATION OF THE DISPOSAL The Disposal is classified as a Category 2 transaction in terms of the Listings Requirements of JSE Limited. 23 September 2021 Sponsor Merchantec Capital Date: 23-09-2021 04:30:00 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.