ACCELERATE PROPERTY FUND LIMITED - Disposal by Accelerate of its proportionate ownership in the Portside Office Tower

Disposal by Accelerate of its proportionate ownership in the Portside Office Tower

ACCELERATE PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
Registration Number: 2005/015057/06
Share Code: APF ISIN: ZAE000185815
Bond code: APFE
LEI: 378900D514788C447E45
(Approved as a REIT by the JSE)
("the Company" or "APF" or "Accelerate")


DISPOSAL BY ACCELERATE OF ITS PROPORTIONATE OWNERSHIP IN THE PORTSIDE OFFICE TOWER


1.    INTRODUCTION

      Shareholders and noteholders are advised that Accelerate has entered into a sale of letting
      enterprise agreement (the "Agreement") with Penalten Investments (Pty) Ltd being a subsidiary
      of Cavaleros Group Holdings ("Penalten") (the ultimate beneficial holders of which are Penny
      Cavaleros, Alexi Cavaleros and Stamateena Halamandaris) to dispose of its proportionate
      ownership in the Portside office tower in Cape Town, being ground floor retail, office floors 9-
      18, 623 parking bays and related common areas (the "Property"), for an aggregate consideration
      of R580 000 000 (the "Transaction").

      The Transaction forms part of Accelerate's ongoing strategic repositioning and restructuring
      programme. Accelerate intends to apply the proceeds of the disposal to the reduction of debt.

2.    TRANSACTION TERMS

      The effective date of the Transaction will be the date of registration of the Property into the
      name of the Penalten. The purchase consideration will be paid in cash against registration of
      transfer of the Property.

      The Transaction remains subject to Accelerate Shareholder approval as well as unconditional
      Competition Authority approval.

      There is no sales commission payable on the Transaction by the Seller.

      The Agreement contains undertakings, warranties and indemnities which are normal for a
      transaction of this nature.

3.    PROPERTY SPECIFIC INFORMATION

      The details of the Property are as follows:

       Property name:                               Portside Office Tower
       Location:                                    Cape Town, Western Cape
       Sector:                                      Office
       Weighted Average Gross Rental (R/m2):        168
       Gross lettable area (GLA) (m2):              25 253
       Valuation (R):                               608 850 000
     
      The Directors' valuation of the Property as at 30 September 2024 (which the Company is satisfied
      with) was based on cash flows and forward net income achieved by the Property at valuation
      date. The Directors of Accelerate are not registered as professional advisors or as professional
      associate advisors in terms of the Property Valuers Profession Act, No 47 of 2000.

4.    FINANCIAL INFORMATION

      The net expected cash proceeds from the Transaction are approximately R580 000 000. The net
      operating income (excluding straight-lining rental income adjustments) of the Property, based
      on the unaudited financial statements of Accelerate (prepared in terms of IFRS) for the six
      months ended 30 September 2024, is c.R22.7 million

5.    CATEGORISATION OF THE TRANSACTION

      The Transaction is classified as a Category 1 transaction for Accelerate in terms of the JSE Listings
      Requirements and requires shareholder approval. A further announcement outlining the salient
      dates for the posting of the Category 1 transaction circular and the schedule for the general
      meeting of Accelerate shareholders to approve the Transaction will be provided in due course.

Fourways
2 April 2025

Equity and Debt Sponsor
Questco Corporate Advisory

Date: 02-04-2025 02:00:00
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