ACCELERATE PROPERTY FUND LIMITED - Update On The Disposal By Accelerate Of Cherrylane Shopping Centre

Update On The Disposal By Accelerate Of Cherrylane Shopping Centre

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
("the Company" or "APF")
(Approved as a REIT by the JSE)

UPDATE ON THE DISPOSAL BY ACCELERATE OF CHERRYLANE SHOPPING CENTRE

A. PREVIOULSY ANNOUNCED TRANSACTION NOT PROCEEDING

Shareholders are referred to the announcement released on SENS on Wednesday, 27 March 2024
wherein shareholders were advised that APF has entered into a Sale of Letting Enterprise Agreement
to dispose of Cherry Lane Shopping Centre, Erf 437 Nieuw Muckleneuk Township, Pretoria ("Cherry
Lane" or the "Property").

Shareholders are hereby advised that the disposal of the Property to Cadastral Assets (Pty) Limited will
no longer be proceeding and the agreement has been terminated. The Company has however entered
into a new disposal agreement relating to the Property, as detailed below.

B. NEW DISPOSAL AGREEMENT ENTERED INTO

1.    INTRODUCTION
      Shareholders and noteholders are advised that Accelerate ("Seller") has entered into a sale of
      letting enterprise agreement (the "Agreement") with QSPACE (Pty) Limited (the "Purchaser") on
      Monday, 10 June 2024 to dispose of Cherry Lane (the "Transaction").

      The ultimate beneficial shareholder of the Purchaser is Herman Zolty who is not a related party
      to Accelerate as defined in the Listings Requirements of the JSE Limited ("JSE").

2.   THE PROPERTY
     The Property, a retail building located at 471 Fehrson Street, Nieuw Muckleneuk Township,
     Pretoria forms part of Accelerate's retail portfolio and was acquired by Accelerate on or about
     11 December 2013.

     As at 30 September 2023, the Property was valued at R 65,000,000 and is being sold for a cash
     consideration of R57,000,000.00 (Fifty Seven million Rand). The indicative valuation of the
     Property for the 31 March 2024 year end results is R 60,000,000.

3.   APPLICATION OF THE SALE PROCEEDS
     It is the intention of Accelerate to apply the full proceeds to the reduction of debt and capital
     reinvestment into its core property portfolio.

4.   RATIONALE FOR THE TRANSACTION
     This decision was made as part of Accelerate's ongoing efforts to review it's assets and ensure
     that they align with the Company's current business strategy and growth plans.

5.   KEY TRANSACTION TERMS
     The Transaction is subject to Agents commission of R 1 140 000 (plus VAT), payable to Platinum
     Hill Property Advisors.

6.   CONDITIONS PRECEDENT
     A 25 calendar days due diligence period from the date of signature of the Agreement.


7.   INFORMATION RELATING TO THE PROPERTY
     The details of the Property including location, gross lettable area ("GLA"), net rent, remaining
     lease term and independent valuation are as follows:
     Description                             For the year to              For the six months to
                                             31 March 2023                30 September 2023
     GLA (m²):                               11,429m²                     11,429m²

     Weighted average rent per m²:           R68,92/m²                    R56,42/m²
     Vacancy:                                32.3%                        47.8%
     Net property income:                    R4,48 million                R2,10 million
     Weighted average lease expiry:          0,54 years                   0,55 years
          •    The figures above do not take into a account a new 10-year lease signed with Builders
               Warehouse, to take up 2 700m2 of vacant space commencing Q3 2024.


          •    Directors' valuation as at 31 March 2023 (which the Company is satisfied with) was based
               on cash flows and forward net income achieved by the Property at valuation date.


8.    WARRANTIES
      The Seller has provided warranties and indemnities to the Purchaser that are standard for a
      transaction of this nature.


9.    CATEGORISATION OF THE TRANSACTION
      In terms of the Listings Requirements of the JSE, the Transaction is classified as a Category 2
      transaction for Accelerate and does not require shareholder approval.


Johannesburg
11 June 2024

Equity sponsor
The Standard Bank of South Africa Limited

Debt sponsor
Rand Merchant Bank (a division of FirstRand Bank Limited)

Date: 11-06-2024 10:40:00
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