Vukile Property Fund Limited · JSE:VKE

Vukile Property Fund — Merger or Acquisition (May 2010)

17 slides from Vukile Property Fund's merger presentation, May 2010

  1. Slide 1: Property Acquisition May 2010

    PROPERTY ACQUISITION MAY 2010 0 0

  2. Slide 2: Background

    Background Vukile acquired the property asset management business of Sanlam Properties on 1 January 2010 As part of the transaction, Vukile also obtained: – a call option to acquire certain properties valued at ZAR500 million from Sanlam Life; and – Life’s a right of first refusal in respect of the

  3. Slide 3: Introduction

    Introduction g Agreement q with Sanlam Life to acquire a p portfolio of 9 p p properties for a p purchase p price of R527 million The purchase price will be funded as follows: – Cash: R100m (19%) – ( ) Debt: c.R198 million (37%) – Equity: R237m (44%) Th equity The it portion ti ill be will b raised

  4. Slide 4: Key features of the properties

    Key features of the properties Number of properties: 9 GLA: 104 460m² Valuation: Independent valuation R573.5m - 6.9% higher than the purchase price of R536.4m1 Yield ((2011 financial year y ): ) 9.5% Yield (2012 financial year): 10.5% V i Vacancies: 4 7% off GLA (4 4.7% 936 2) (4,936m Note 1: Based

  5. Slide 5: Overview of the properties

    Overview of the properties Property name Region Sector Rentable Weighted JHI Purchase area (m²) average Valuation price plus rental/m² (ZAR’000) costs (ZAR/m²) (ZAR’000) Amanzimtoti Jeffels KwaZulu- Warehouse Natal Industrial , 22,645 18.96 52,000 , 61,500 , Northern Kimberly Kim Park Cape Retail 10

  6. Slide 6: Profile of the portfolio of properties

    Profile of the portfolio of properties Geographic profile Sectoral profile (% of Gross Rentals) (% of Gross Rentals) Retail (25) Gauteng (43) KwaZulu-Natal (19) Office (43) Mpumalanga (12) I d t i l (19) Industrial Northwest (13) Mixed Use (13) Nothern Cape (13) Tenant profile (% of Gross Rentals) G

  7. Slide 7: Profile of the portfolio of properties

    Profile of the portfolio of properties Weighted average rental escalation Weighted average monthly rental per m2 Mixed Use 7.7% Mixed Use R48.40 Industrial 8.5% Industrial R25.58 Office 8.8% Office R74.76 Retail 7.2% Retail R67.01 0% 5% 10% 15% - 20 40 60 80 100 120 % R/m2 Vacancy Profile (% of GLA)

  8. Slide 8: Lease expiry profile of the properties

    Lease expiry profile of the properties % of GLA 100% 80% 60% 40% 20% 0% Vacant Mar/11 Mar/12 Mar/13 Mar/14 Mar/15 Mar/16 GLA 5% 15% 16% 21% 8% 10% 25% Cumulative 5% 20% 36% 57% 65% 75% 100% 8

  9. Slide 9: Forecasts for the properties

    Forecasts for the properties 9 months ending 31 12 months ending 31 March 2011 March 2012 R’000 R’000 Forecast revenue 60,693 92,096 Property expenditure (24,112) (35,803) Operational net income 36,581 56,293 et p Net profit o ta after te ta tax 24,702 , 0 34,620 3 ,6 0 Earnings available for distri

  10. Slide 10: The properties

    The properties Amanzimtoti Jeffels Road Kimberly Kim Park Nelspruit Sanlam Centre 10

  11. Slide 11: The properties

    The properties Pinetown Westmead Kyalami Pretoria Hatfield Sanlam Pretoria Sanwood Park Park Building 11

  12. Slide 12: The properties

    The properties Rustenburg Edgars Building Sandton St Andrews Complex Sandton Sunninghill Place 12

  13. Slide 13: Vukile's pro forma property portfolio after the property acquisition

    Vukile’s pro forma property portfolio after the property acquisition Geographical Profile Sectoral Profile (% of Gross Rentals) (% of Gross Rentals) Gauteng (48) KwaZulu-Natal (23) Namibia (8) Retail (54) Western Cape (6) Free State (4) Industrial (17) Mpumalanga (4) Limpopo (3) Offices (29) Eastern

  14. Slide 14: Vukile's pro forma property portfolio after the property acquisition

    Vukile’s pro forma property portfolio after the property acquisition Group Lease Expiry Profile (% of GLA) 100 80 60 40 20 0 Beyond Vacant Mar/11 Mar/12 Mar/13 Mar/14 Mar/15 Mar/16 Mar-16 GLA 5 32 23 18 9 9 2 2 C m lati e Cumulative 5 37 60 78 87 96 98 100 14

  15. Slide 15: Way forward

    Way forward Indicative dates 2010 Indications of interest to participate in the vendor placing received from potential Friday, 4 June participants Ci l posted Circular d to unitholders i h ld M d Monday, 5 JJuly l General meeting of Vukile unitholders to approve the property acquisition Tuesday, 27

  16. Slide 16: Vukile linked unit price performance

    Vukile linked unit price performance 6,000 1500 4,800 1200 e (cents) Volume ('000) 3,600 900 Vukkile unit price 2,400 600 1,200 300 0 0 Mar- May- Jul- Sep- Nov- Jan- Mar- May- Jul- Sep- Nov- Jan- Mar- May- Jul- Sep- Nov- Jan- Mar- 07 07 07 07 07 08 08 08 08 08 08 09 09 09 09 09 09 10 10 Property ind

  17. Slide 17: Questions

    uestions VUKILE PROPERTY FUND LIMITED

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