SAREIT

Redefine – Annual results to be released on Monday 30 November 2020

The COVID-19 pandemic continues to wreak havoc everywhere – and South Africa is no exception. At Redefine we are continuing to adapt to the “new normal” and are ensuring our business is on track and functioning well.

We will provide more information on our plans and strategic initiatives during our upcoming annual results presentation in November.

Please be aware, however, that in order to accommodate the external auditors’ requirement for added audit emphasis, particularly around asset valuations as a result of the impact of the COVID-19 pandemic, the finalisation of Redefine’s financial results for the year ended 31 August 2020 (“financial results”) may be delayed. Accordingly, the announcement of our annual results has been postponed from Monday 9 November, to Monday 30 November 2020.

Details of our results webcast and presentation will be communicated closer to the time.

Growthpoint acquires seven-unit industrial park in Gosforth Park, Germiston

Growthpoint Properties has acquired the newly developed, income-producing Grand Prix Park in Gosforth Park, Germiston, for R140m.

Early in the industrial park’s development process Growthpoint recognised the potential of the 18,000sqm property and agreed to acquire it from the developer on completion, on condition that the final product was of a suitably high standard and at least 75% let.

The development was completed in late 2019 and two years after discussions began, the property transferred to Growthpoint in June 2020.

The park’s seven different units vary in size, with most ranging between 2,000sqm and 2,800sqm. Each unit is self-contained and has its own entrance, secure yard, parking and landscaping. All units include an office component and feature sprinkler fire protection.

Grand Prix Park’s tenants include Allied Mineral Products SA, which is the park’s biggest tenant across two units, as well as Simmons SA and Consumer Package Goods (a division of Imperial Logistics). Its largest unit, occupied by Gunnebo, is freestanding and measures 3,800sqm.

Errol Taylor, Head of Asset Management: Industrial at Growthpoint Properties, remarks, “We felt that this property was well located in a good industrial node with easy access to superior arterial links connecting with the N17, N12 and N3 highways. Its size and location make it especially well-suited for secondary logistics and light industrial users. Growthpoint is highly selective when considering properties to grow our industrial portfolio. We are confident that Grand Prix Park is a good match for our strategy and an asset that will enhance our portfolio.”

Besides the quality of the development and its excellent location, an appealing factor for Growthpoint was the wide range of businesses for which the facilities would be well suited because they are industry-agnostic and flexible. The size of the units makes them stand out in the market, being bigger than standard maxi-units yet less expansive than highly-specialised, massive distribution centres.

Growthpoint Properties is significantly invested in industrial property in Germiston and Ekurhuleni. Earlier this year, Growthpoint and Serra Services achieved Gauteng’s first Green Star Existing Building Performance (EBP) rating for an industrial building, with a 5-Star certification for a 7,400sqm facility in Meadowbrook, Germiston. Serra’s premises are directly adjacent to Growthpoint’s award-winning 5-Star Office Design v1 certified Grundfos development.

Growthpoint creates space to thrive with innovative and sustainable property solutions. It is South Africa’s largest primary JSE-listed REIT and is invested in real estate and communities across Africa, Australia, the UK and Eastern Europe.

Redefine restructures Mall of the South put arrangement

Rosebank, South Africa, 06 October 2020: JSE listed diversified real estate investment trust Redefine Properties is pleased to announce that it has reached a mutually beneficial and alternative arrangement relating to the conclusion of the sale of the Mall of the South (MOTS). As part of the agreement, the 73 111sqm regional shopping centre in Aspen Hills, south of Johannesburg will be acquired by a limited liability special purpose vehicle (SPV) for R1.76 billion in cash. RMB Investments and Advisory Proprietary Limited will hold an 80% equity interest in the SPV and Redefine 20%.

The deal will be funded through a loan agreement with RMB.

The transaction is expected to close before 1 November 2020 once all conditions are met, including approval by the Competition Commission and other usual approvals.

Construction of MOTS began during 2013, and at that time the property was considered to be an attractive asset to complement Redefine’s retail property portfolio. In order to secure participation in the development, Redefine entered into a structured financing transaction with Zenprop and RMB, which would allow or require Redefine to purchase MOTS upon the occurrence of certain events.

“Given that circumstances had changed dramatically, clearly unforeseen at the time of entering the put agreements, all the parties agreed to engage constructively to restructure the put arrangements,” says Andrew Konig, CEO, Redefine Properties.

“The restructure allows additional time for MOTS to recalibrate to the post COVID-19 retail real estate environment and provides Redefine with the opportunity to either acquire or dispose MOTS over a three-year period. We do not anticipate the restructured arrangement to have a significant adverse impact on our loan-to-value ratio.”

Konig reiterated his views expressed at the pre-close briefing for the year ending 31 August 2020 that “property fundamentals are going to be challenged for the rest of 2020 and beyond” due to unprecedented and evolving market conditions.

The coronavirus pandemic has dealt a blow to retail tenants and landlords already struggling with declining disposable incomes and a sluggish economy. The public health crisis temporarily closed malls nationwide at the end of March, when the Government enforced a strict lockdown, the hardest the world has seen.

The transaction constitutes a category 2 transaction in terms of the JSE Listings Requirements and is not subject to approval by Redefine shareholders.

Vukile Property Fund – Declaration of the final dividend

VUKILE PROPERTY FUND LIMITED (Incorporated in the Republic of South Africa) (Registration number 2002/027194/06)

JSE share code: VKE   NSX share code: VKN

ISIN: ZAE000180865 Debt company code: VKEI (Granted REIT status with the JSE) (“Vukile”)

Vukile Property Fund logo

DECLARATION OF THE FINAL DIVIDEND

Shareholders are referred to:
  • Vukile’s trading statement released on SENS on 14 August 2020 wherein shareholders were informed that, in the absence of any amendments or rulings applicable to the REIT sector, Vukile intended to pay out a final dividend for the year ended 31 March 2020 of 48.18672 cents per share (the “final dividend”) in order to meet the minimum distribution requirement imposed on REITs in terms of paragraph 13.47 of the JSE
Listings Requirements (the “minimum distribution requirements”); and
  • Vukile’s distribution update released on SENS on 28 August 2020 wherein Vukile shareholders were advised that Vukile had deferred the declaration of its final dividend until no later than 29 September 2020;
  • the JSE’s announcement released on SENS yesterday 22 September 2020 in which the JSE informed the market that the Financial Services Conduct Authority had advised the JSE that it is not in a position to consent to the SA REIT Association’s request to the JSE to provide REITs with certain temporary exemptions regarding the minimum distribution requirements.
Accordingly, the Vukile board has now declared the final dividend. Following the payment of the final dividend, Vukile will retain its strong solvency and liquidity position, with cash balances of approximately R920 million and available but undrawn debt facilities in excess of R1.8 billion. In addition, Vukile has approximately R7.9 billion of unencumbered assets. In accordance with Vukile’s status as a REIT, shareholders are advised that the final dividend of 48.18672 cents per share meets the requirements of a “qualifying distribution” for the purposes of section 25BB of the Income Tax Act, No. 58 of 1962 (the “Income Tax Act”) with the result that:
  • dividends received by South African resident Vukile shareholders must be included in the gross income of such shareholders (as a non-exempt dividend in terms of section 10(1)(k)(i)(aa) of the Income Tax Act), with the effect that the dividends are taxable as income in the hands of the Vukile shareholder. These dividends are, however, exempt from dividends withholding tax, provided that the South African resident shareholders provided the following forms to their Central Securities Depository Participant (“CSDP”) or broker, as the case may be, in respect of uncertificated shares, or the company, in respect of certificated shares:
  • a declaration that the distribution is exempt from dividends tax; and
  • a written undertaking to inform the CSDP, broker or the company, as the case may be, should the circumstances affecting the exemption change or the beneficial owner cease to be the beneficial owner;
both in the form prescribed by the Commissioner for the South African Revenue Service. Shareholders are advised to contact their CSDP, broker or the Company, as the case may be, to arrange for the abovementioned documents to be submitted prior to payment of the distribution, if such documents have not already been submitted.
  • dividends received by non-resident Vukile shareholders will not be taxable as income and instead will be treated as ordinary dividends but which are exempt in terms of the usual dividend exemptions per section 10(1)(k) of the Income Tax Act. It should be noted that dividends received by non-residents are subject to dividends withholding tax at a rate of 20% unless the rate is reduced in terms of any applicable agreement for
the avoidance of double taxation (“DTA”) between South Africa and the country of residence of the shareholder. Assuming dividends withholding tax will be withheld at a rate of 20%, the net distribution amount due to non-resident shareholders is 38.54938 cents per share. A reduced dividend withholding rate in terms of the applicable DTA, may only be relied upon if the non-resident holder has provided the following forms to their CSDP or broker, as the case may be, in respect of uncertificated shares, or the Company, in respect of certificated shares:
  • a declaration that the dividend is subject to a reduced rate as a result of the application of a DTA; and
  • a written undertaking to inform their CSDP, broker or the company, as the case may be, should the circumstances affecting the reduced rate change or the beneficial owner cease to be the beneficial owner;
both in the form prescribed by the Commissioner for the South African Revenue Service. Non-resident holders are advised to contact their CSDP, broker or the company, as the case may be, to arrange for the abovementioned documents to be submitted prior to payment of the distribution if such documents have not already been submitted, if applicable. Shareholders are further advised that:
  • the issued capital of Vukile at the date of declaration of the final dividend is 956 226 628 shares of no par value; and
  • Vukile’s tax reference number is 9331/617/14/3.
The salient dates relating to the final dividend are as follows:
2020
Last day to trade cum dividend Tuesday, 13 October
Shares trade ex dividend Wednesday, 14 October
Record date Friday, 16 October
Payment date Monday, 19 October
Share certificates may not be dematerialised or rematerialised between Wednesday, 14 October 2020 and Friday, 16 October 2020, both days inclusive. 23 September 2020
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VUKILE PROPERTY FUND LIMITED – Declaration of the final dividend [download]

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