Johannesburg, South Africa, XX March 2018: JSE-listed diversified real estate investment trust Redefine Properties’ (JSE: RDF) strategy on solar energy is delivering cost efficiencies across the business and improving performance on key sustainability metrics. Redefine’s total installed solar photovoltaic (PV) fleet will produce approximately 35 754 600 kWh (kilowatt hour) of solar power per annum when fully operational.“This equates to an indicative saving of 32 819 tCO2 e which is roughly equal to 12 million litres of diesel combusted. If offset against Redefine’s total scope 2 carbon emissions of 46 761 tCO2 e in 2017, it is a 70% reduction, assuming a like-for-like portfolio of properties. Renewable energy is a major point in sustainability projects and besides the financial returns that accrue from these efforts, it is clean economy on the roof, says Ilse Swanepoel, Head of Utilities at Redefine Properties.Redefine’s scope 2 carbon emissions are essentially calculated as electricity consumption not recovered from tenants.Last year, 9% of electricity consumed at Alberton Mall, Boulders, 90 Grayston, 90 Rivonia, Black River Park, Observatory Business Park, Wonderboom Junction, Wembley and East Rand Mall came from renewable energy.Redefine owns and manages some of the country’s major retail, office and industrial parks including the celebrated Black River Office Park in Cape Town. Black River Office Park is the first office precinct in South Africa to receive Green Building Council of South Africa (GBCSA) certified Green Star existing building ratings for all of its eight buildings, with a combined 75,000sqm of office space.Last year, Redefine rolled out a series of rooftop solar PV projects bringing its total installed capacity to 7.8 MWp. Once the power plants come on stream over the next 18 months, its total installed capacity will grow to 22 MWp. To date 4.2MWp of additional capacity has already come on stream delivering approximately 6 373 500 kWh annually.Redefine Properties was recognised by the South African Facilities Management Association (SAFMA) at its recently concluded awards gala and received Gold for this technology implementationSome of the key assets where Redefine has already installed rooftop solar PV plants include Langeberg Mall (Mossel Bay), Boulders Shopping Centre (Midrand), Centurion Lifestyle Centre (Centurion), Stoneridge Centre (Edenvale), East Rand Mall (Boksburg), Matlosana Mall (Klerksdorp), Moreleta Plaza and Wonderboom Junction in Pretoria.“We believe in making sustainability integral to our daily operations for as much economic reasons as environmental and are proud to be the recipient of this award,” says Ms Swanepoel.The total cost savings achieved from existing plants and plants commissioned during the course of the year will be over R32 million per annum.Given the increasing significance of sustainability issues, Redefine also completed an additional 2600 smart meter installations, achieved 43 Green Star ratings for buildings across its portfolio amongst which a recently completed project certifying 20 of its existing office buildings for Green Star SA ratings.Solar energy currently represents the cheapest and most sustainable way to generate renewable electricity. Besides producing no emissions and being silent, the panels furthermore shield large amounts of roof space from direct sun, leaving it cooler and further lowering energy consumption. In addition, technologies to further sustainable smart micro-grids such as efficient and cost-effective energy storage solutions is well within our sights to further enhance the benefits of our Solar PV plants.“Solar is no longer niche and is a well-entrenched renewable energy source underpinning the achievement of green-building goals. Demand has grown in recent years, with many large blue chip tenants prioritising their own sustainability efforts, expecting the developer to dovetail and help achieve their objectives,” adds Swanepoel. Besides tenants, Redefine’s strategic intent is to make its properties attractive for both shoppers and employees by locating new projects in close proximity to public transport directly reducing the impact on environment. Rosebank Link for example has a direct, convenient and safe access to the Gautrain Station through a ground level landscaped pedestrianised thoroughfare.Redefine has been an index component of the Dow Jones Sustainability Index for over four years now. Furthermore Redefine also participates in the Global Real Estate Sustainability Benchmark (GRESB). In 2017, it received an A+ rating for disclosure, well above the global average of a C rating.GRESB asses how companies perform on environmental, social, and governance (ESG) indicators such as energy and water consumption, carbon emissions, employee satisfaction, health and safety, and the supply chain.
Johannesburg, South Africa – 14 March 2018: The first phase of Loftus Park, a new mixed-use precinct currently being developed by JSE-listed diversified Real Estate Investment Trust (REIT) Redefine Properties’ (JSE: RDF) together with Abland, one of South Africa’s top property development companies is nearing completion. Phase One includes approximately 34 000 m 2 of A-grade office space, a premium gym, open air piazza with restaurants and a convenience retail offering. A new 152 room hotel by Marriott will alsodebut at the site.Located within walking distance from the University of Pretoria and the Pretoria Boys & Girls High Schools, the newly development precinct provides an integrated work and play environment in what will be a market defining mixed use concept.The retail component will be anchored by well-known brands like Checkers and Dis-Chem amongst others while Virgin Active will open a premium level health club at Loftus Park.The precinct lies within shadow’s length of the iconic Loftus Versfeld stadium, is centrally located, enjoys good access and is in the epicentre of Pretoria’s key suburb, Arcadia. With the Gautrain bus stop adjacent to the precinct, Loftus Park connects seamlessly to Centurion, Sandton, Rosebank and OR Tambo International Airport via Hatfield. “The precinct reflects our proven track record of creating bespoke communities that focus on connectivity, walkability and green spaces. Our investment in enhancing access to the Gautrain network was the final piece of puzzle that is going to unlock the true potential of the development,” says Pieter Strydom, Commercial Asset Manager, Redefine Properties.The precinct will be accredited as a 4-Star Green Star Building.“Abland worked closely with Redefine Properties to bring this unique development to life and will set a new standard for quality mixed use precincts in the node,” says Grant Silverman, Marketing Director, Abland.Loftus Park also enjoys excellent proximity to a vast number of embassies, the Union Buildings and museums. Phase Two, which will add another 7 600 m 2 to the development will see the inclusion of a hospital on the precinct’s footprint as well as 13 000 m 2 of office space in Phase Three. “Loftus Park offers tenants a unique work and play environment, a one stop avenue from convenience shopping to schooling as well as hosting unparalleled on-site amenities. The mixed-use precinct is ideally located to ignite the greater node around it,” adds Strydom.“The proximity of the precinct to the stadium will also energise retail and restaurants on game days as well as provide additional parking.” “The precinct is a rare opportunity for tenants to acquire office space in one of Pretoria’s upcoming nodes. We are seeing robust interest given the attractive dynamics of Loftus Park and corporates can benefit from the unrivalled amenities including excellent linkages via the Gautrain feeder bus,” says Strydom in conclusion.
Johannesburg – 7 March 2018: JSE-listed diversified Real Estate Investment Trust (REIT) Redefine Properties (JSE: RDF) has bolstered its liquidity and began a process to refine its international holdings following an agreement to sell a 19.5% stake in Australia-listed Cromwell to Singapore-based ARA Asset Management Limited.“This deal ticks a number of boxes for Redefine, which supports our mission to create sustained value for stakeholders. We create capital efficiency, refine our international holdings, reduce debt and have a lot of funding capacity should another investment opportunity arise,” says Redefine CEO Andrew Konig.Operating in a constrained and costly capital environment, recycling of capital has become a prominent feature of Redefine's funding strategy to efficiently source capital and improve credit metrics.“To sustain value creation for all stakeholders Redefine seeks to optimize its allocation of capital through active asset management. The sale of the majority holding in Cromwell significantly advances these strategic objectives,” says Konig.The deal is still subject to FIRB (Foreign Investment Review Board) approval, and following the sale Redefine will retain 60m shares, or 3.09% of Cromwell securities in issue, offering it an opportunity to benefit from future pipeline deals in Australia.Brisbane-based Cromwell is a real estate fund manager listed on the Australian Securities Exchange and Konig said he only has the highest regard for the management of Cromwell in what he says “has been a fantastic partnership over the past ten years”.“All our offshore assets are actively managed to create sustained value for stakeholders and are therefore under constant review. When offers come through we critically evaluate the long-term value creation and in this case we saw an opportunity to optimise capital sourcing and the allocation of capital, while lowering debt,” says Konig.The deal forms part of the process of refining Redefine’s international holdings in various investments.Redefine has grown its offshore footprint significantly over the last six years, with one of those investments being a 23% stake in Cromwell Property Group in Australia. A R5 billion investment into Echo Polska Properties in Poland in 2016 and more recently a strategic 25% stake in a 692 million euro retail portfolio of 28 quality, established and well located assets across Poland further diversified rand hedge earnings.Konig says the Cromwell sale is “investor positive from a number of respects, most notably from a liquidity point of view and is balance sheet positive on the loan to value front”.As at 31 August 2017, the net asset value of Redefine’s total investment in Cromwell was AUD475 668 093 or R4 889 868 000. The proceeds on disposal of the sold Cromwell securities is AUD405 865 792 (AUD1.05 per share) or R3 725 847 971 and Redefine will retain 60 million Cromwell securities, which has a current market value of AUD60 600 000 or R556 308 000. For the financial year ended 31 August 2017, Redefine received dividends of R380 069 000 in respect of its investment in Cromwell. “We will sell most of the holding and for us, it is about optimising capital efficiency while still benefiting from future distributions and the redevelopment of certain quality assets in Australia,” says Konig.Included among these will be the completion of North Point, which is in the process of being redeveloped and is anticipated to be completed sometime in the first half of 2018.“Our broader strategy remains growing our local portfolio while targeting a diversified stream of revenue in offshore jurisdictions with growth potential,” concludes Konig.
Johannesburg – 6 December 2017: JSE-listed diversified Real Estate Investment Trust (REIT) Redefine Properties (JSE: RDF) continues to advance its geographic diversification strategy with a strategic 25% stake in a 1 billion euro retail portfolio of 28 quality, established and well located assets across Poland.Key locations in the portfolio stretch from Warsaw to growing regions across the country like Krakow and Zabrze. The 28 retail properties are comprised of 9 leading mid-market shopping centres anchored by Auchan Group hypermarkets, 4 smaller hypermarket anchored big-box retail centres, 12 standalone hypermarkets with small line-shop retail components and 3 standalone DIY stores. France's Auchan is one of the world's principal distribution groups with a popular presence in a growth market like Poland. A variety of international and domestic brands like MediaMarkt, TK Maxx and H&M count among the other blue chip tenants in the portfolio.Pimco and Oaktree Capital Management, each holding 37.5% of the consortium, have teamed up with Redefine to purchase the prime properties from a partnership of investors managed by Apollo-Rida, a pioneer of the real estate market in Poland. Redefine's executive chairman, Marc Wainer says the deal presents Redefine with an opportunity for above-market returns and value-add opportunities. Redefine anticipates a pre-tax return on equity in the region of 15%."I am excited about the growth potential beyond the initial investment horizon. While this asset deal transaction is accretive to our earnings over 3-5 years from both an income and trading point of view, it also ushers in long-term growth and value-add potential," he says.Value-add opportunities include the redevelopment/extension of around 56,000m? of the portfolio. The 25 Auchan leases represent approximately 35% of their total number of stores in Poland and provides a strong negotiation position for the ultimate renewal of the leases. Initially the portfolio was developed by affiliates of Metro AG and sold to a JV between Rida and Ares in 2003. Metro AG and the then purchasers concluded a triple net ?master lease' over the portfolio, which expires in April 2024, which provides a secure income stream."This is a great income play, with triple net blue chip anchor tenants, Auchan and OBI, comprising over 65% of the gross lettable area, while the rent review of the head lease is estimated at 6% in 2019," says Wainer.Redefine's equity contribution of 58 million euros will be funded from completed local asset sales, so it will not need to raise additional capital.A key feature of the deal is the onward sale of 12 earmarked properties to Echo Polska Properties in three annual tranches (once income generation is stabilised) with the first tranche to be acquired by them as part of the initial acquisition. EPP is dual listed on the Luxembourg Stock Exchange and the JSE and of which Redefine owns 39.6%.Redefine remains confident in the outlook for Poland's retail sector, which continues to be buoyed by stellar sales."There are solid fundamentals in place in this market, driven by very strong retail sales growth of 8% and inflation of about 1%. So the macro environment is very solid as employment levels are high and consumers have low levels of household debt," says Redefine CEO Andrew Konig.Redefine lifted its full year distribution 7% to 92 cents per share for the full year to end August 2017, despite challenging local conditions."Our diversified asset platform has been structured to cope in an environment of prolonged uncertainty and low growth. Quality offshore acquisitions and an astute, investor-driven strategy continue to assist us to sustain value and drive growth for all our stakeholders," concludes Konig.
Johannesburg – 6 November 2017: JSE-listed diversified Real Estate Investment Trust (REIT) Redefine Properties (JSE: RDF) has reported a solid performance for the full year to end August 2017, after lifting full year distribution 7% to 92 cents per share.Despite challenging operating conditions and general economic uncertainty, distributable income showed significant growth of 22.8% as a number of substantial quality acquisitions in recent years delivered sustained value to stakeholders."Our diversified asset platform has been structured to cope in an environment of prolonged uncertainty and low growth. Reducing leasing risk is very important in the current climate and we have also been investing strategically in what has been a busy year," says Redefine CEO Andrew Konig.Redefine, which stood out as one of the most active dealmakers in its sector during the year, has continued to grow and improve the quality of its local portfolio while targeting a diversified offshore stream of revenue.During the period Redefine continued to enhance its offshore earnings by expanding its presence in Poland and Australia."Locally, developments have been our primary focus in order to expand, protect and improve existing assets that are well located, with projects totalling R3.2 billion completed during the year," adds Konig.Tenant retention was an impressive 92.6% during the year, from 91.8% during the same period last year. Leases covering 536,310 square metres (FY16: 492 126m?) were renewed during the year at an average rental increase of 2.9% (FY16: 3.3%)."In a very competitive market tenant retention ranks supreme - high retention rates are absolutely critical in this environment," says Konig.Net arrears increased to R67.9million (FY16: 39.8 million) during the period, representing 7.5% (FY16: 6.3%) of gross monthly rental, largely due to the R13 billion Pivotal acquisition.Redefine has focused on optimising capital as the cost of debt crept upwards following South Africa's credit downgrade to sub-investment grade in April."Recycling of assets has been important to secure liquidity to fund expansion - we generated R3.5 billion in this financial period from asset disposals and deployed this into assets showing better long term growth prospects," says Konig. Notably, R5.2 billion of development is in progress and will still unfold in terms of expansion, growth and protection of existing assets. Developments in progress and recently completed include the Loftus mixed-use development (Interest: 50.0%) and the Kyalami Corner Shopping Centre which opened for trading in April 2017 (Interest: 80.0%) with a total project cost of R1.2 billion, which will add a further 89,123 m? of gross leasable area (GLA). The major land holdings acquired are two industrial sites, Atlantic Hills (Interest: 55%) and S&J Industrial (Interest: 90%).Redefine has, meanwhile, continued to build a diversified offshore footprint and income stream. The company's rand hedge earnings were bolstered by maintaining its 39.5% stake in Poland-focused Echo Polska Properties by investing R860 million in their ?150 million equity raise. It has additional exposure to the UK, Australia and the rest of Africa.Total assets increased markedly during the year with the diversified local property asset platform valued at R68.1 billion from R56.3billion a year ago. The Group's international real estate investments, valued at R16.0 billion (FY16: R16.3 billion) represented 19.0% (FY16: 22.5%) of the total property asset platform.Financial director Leon Kok says while a potential further ratings downgrade is a major risk to the economy and business confidence in general, Redefine should be able to weather the storm and has hedged 88.7% of its debt and has sufficient liquidity headroom."Our conservative hedging policy on debt and the extension of hedging on our expected foreign income provide certainty going forward from a distribution per share point of view. It implies we are able to withstand undue increases in interest rates and volatility on the currency front," says Kok.A highlight during the year included the sale of a 22.8% stake in Delta Properties to a women-led BEE consortium in a R1.5 billion vendor funded transaction. "Apart from the commercial upside, this deal drives an urgent need to strengthen women and broad-based ownership in the property sector," says Konig.Redefine added to its offshore portfolio after acquiring another attractive development site for student accommodation in Australia, following its 90% equity investment in Journal Student Accommodation Fund and Operations, which is based in Melbourne, Australia.Redefine anticipates the growth in distributable income per share for 2018 to range between 5% to 6%."Relentlessly focusing on what matters most will ensure we stay ahead of the curve," concludes Konig.
Johannesburg, South Africa – 13 October 2017: JSE-listed, internationally diversified real estate investment trust Redefine Properties (JSE: RDF) has been officially certified as a Top Employer 2018, for the third consecutive year. The Top Employers Certification Programme recognises the accomplishments of organisations that are providing the highest standards in employee conditions, the result of an independent assessment conducted globally by the Top Employers Institute.Redefine Properties which directly employs 430 people across South Africa was recognised for exceptional employee conditions, excellence in professional development programs and opportunities for career advancement."Being certified as one of the Top Employers in South Africa is a stand out achievement and very important to us. At Redefine, we work hard to foster a values driven work environment, provide growth opportunities for our staff and encourage a workplace that's open and diverse. These efforts have been the building blocks of our success," says Andrew Konig, CEO, Redefine Properties.The Top Employers Institute assessed Redefine Properties' employee development environment based on the following HR topics - talent strategy, workforce planning, on-boarding, learning & development, performance management, leadership development, career & succession management, compensation & benefits and culture.David Plink, CEO at Top Employers Institute adds, "Our comprehensive research concluded that Redefine Properties Limited provides an outstanding employment environment and offers a wide range of creative initiatives, from secondary benefits and working conditions, to performance-management programmes that are well thought out and truly aligned with the culture of their company.""Property is our commodity but people are our business - our key differentiator. As part of our broader stakeholder engagement strategy we strive to be the employer of choice in the real estate sector and be regarded as a company that lives its ethos of "we are not landlords, we are people" in all that we do. Accolades like the Top Employer encourage our leaders to lead better, inspire our teams to perform better and for the company to achieve its vision of being the best in all aspects of what we do," concludes Konig,
Johannesburg, South Africa – 27 September 2017: JSE-listed, internationally diversified real estate investment trust Redefine Properties (JSE: RDF) is set to start work on a new office development, Advocates, an exclusive address for advocates in the city's most desirable business precinct, Sandton.The R476 million new development is the result of Redefine's extensive experience in fulfilling the space and operational requirements of heavyweight advocates. The location along the intersection of Pybus and Rivonia, puts the development strategically in the middle of some of the country's biggest blue chip tenants as well as in close proximity to transport links like the Sandton Gautrain station and bus network. Work on the project commenced in early January 2017 and is scheduled for completion during April 2019.The nine storey building will cover an area of 13,500 sqm, featuring an arrival atrium with increased floor to ceiling height and pause areas. Laid out in a L-shape, the two building wings are efficiently planned to allow modularity in space planning, infrastructure and building technologies. The "wings" will be well-lit from two sides with day lightning streaming from the facade."We wanted to build on the blueprint of exacting demands of legal services, and modernise their traditional work experience. Advocates rely on billable client hours, so we created space that meets operational efficiency and client expectations," says Pieter Strydom, Commercial Asset Manager, Redefine Properties.Rich in architectural innovations, green spaces, technological and environmental features, the office development will aim to achieve a four-star GBCSA Green Star rating when completed."With superior access to transit, and world class design, firms will find that the new development complements their own values around sustainability," Strydom adds.As an increasing number of legal firms make their way to South Africa, often the gateway to the burgeoning economic opportunity on the continent, the demand for niche office space is likely to accelerate.According to Law360, Global 20 firms looking to plant a flag in a new country choose South Africa more frequently than anywhere else. SA has emerged as a crucial hub for global players looking to help clients tap into in sub-Saharan Africa. "Our vision was to create a landmark office development tailored to the business of the advocates and embodies the quality which is the hallmark of Redefine's approach to office developments," Strydom says in conclusion.
Rosebank, South Africa – 12 September 2017: JSE-listed diversified real estate investment trust Redefine Properties, better known for its retail, industrial and office holdings, have commenced on the ZAR426 million residential development Park Central. The residential project will capitalise on its excellent location on Keyes Avenue close to the Gautrain Station in Rosebank.Park Central will house 150 apartments - ranging from one bedroom suites to luxurious full floor penthouses complete with private elevators and separate butler quarters. All apartments boast of floor-to-ceiling windows and double volume ceiling in duplex units. The windows are one of the main elements that have contributed to Park Central's design and offer uninterrupted sweeping views* of the horizon and the city. At 20 storeys, it will be the tallest residential building in the suburb and is expected to be completed during July 2019.Mike Ruttell, Development Director at Redefine Properties says, "The city hasn't seen a residential development that's situated in an environment like this. This is a good example of our agility and ability to leverage opportunities that allow us to create substantial value for our shareholders.""Park Central will offer a lifestyle, not just a home.""This luxury development is a once-off investment and we remain committed to our focus on retail, commercial and industrial properties in South Africa and emerging CEE economies." Park Central underscores the demand for high end luxury accommodation and is situated in the centre of Rosebank, in close proximity to the Gautrain station, Rosebank Mall, a number of office parks and entertainment facilities."We have identified Rosebank as a vital growth node for Redefine and excited for its prospects as a fast developing transit oriented mixed use precinct. We look forward to maximising the suburb's potential," adds Ruttell. Park Central offers a chic urban green lifestyle in the heart of one of the most dynamic and rapidly expanding growth nodes in Johannesburg. The glass tower will feature huge floor to ceiling windows for natural lighting, tastefully fitted kitchens, a selection of quality finishes, concierge services etc.It also features sky gardens which are a unique signature of this iconic building, resort inspired roof top swimming pool, residents' club, gymnasium and gourmet kitchen facility.There is a pent up demand for luxury accommodation in Rosebank, so this residential development is well timed. People increasingly want to live in boutique like hotel setting with all amenities and facilities in a great location, according to Ruttell.The units priced from ZAR1.85 million to ZAR46 million have already generated an enormous amount of interest from a variety of purchasers: business commuters, single professionals, couples and families who want a primary home close to the vibrant business districts of Rosebank and Sandton.The apartments also offer an outstanding buy-to-rent investment opportunity with sound rental returns and excellent prospects for capital growth."This development is a massive vote of confidence for the Rosebank node and the luxury residential property market in Johannesburg," says Ruttell in conclusion.
We continue to build on our exceptionally diversified and quality property portfolio after acquiring another attractive development site for student accommodation in Australia. Furthermore, we have also sold our 22.8% stake in Delta Properties to a women-led BEE consortium in a R1.45 billion vendor funded transaction.While we managed to facilitate the sale of what is an illiquid Delta counter in a single transaction, locking in capital value, this transaction achieves far more, as it ties in with our own transformation initiatives to support the development of female leaders in the sector, while also boosting broader empowerment. Phumzile Langeni, a non-executive director of Redefine, is amongst the women participants in the BEE consortium.As regards our student accommodation strategy, we already have a A$139 million development underway in Melbourne catering for 804 beds, while the new site at 500 Swanston Street is very well located in relation to Melbourne University with potential for up to 700 beds.We are very excited about this development, as the market is so undersupplied. A JLL Student Accommodation report, for instance, says while total full-time students in Melbourne is just under 235,000, the existing supply of beds is around 19,200. Development is anticipated to begin in 2018. With a capital uplift potential and return on equity well ahead of offshore funding costs, the investment proposition is really compelling from a total return point of view.We indicated previously we were looking to sell our Delta holding and can now report that we sold our entire holding consisting of 162 million shares at R9 a share - which means we locked in great capital value. Delta had previously acquired 15 government tenanted offices from Redefine in 2015 through the issue of shares to Redefine.These transactions are another example of how we continue to effectively look through and be ahead of the property cycles and develop bespoke solutions to steer through them.It is through strategic approaches such as these that Redefine has managed to establish a solid business foundation and build a pipeline of exciting growth potential despite the current challenges faced by our economy.
Johannesburg, South Africa – 26 July 2017: JSE-listed diversified real estate investment trust Redefine Properties (JSE: RDF) has announced that one of its largest industrial developments to date, the 1.6 million sqm S&J Industrial Estate in Germiston, is on track, with bulk infrastructure currently being rolled out. The prime site is majority owned by Redefine Properties together with Abland.Redefine Properties has committed R154 million for the bulk infrastructure to date. The S&J Industrial Estate, once part of the larger Simmer & Jack mines, spans over 163 hectares of developable land, located along the N3 highway adjacent to the Geldenhuys interchange. To be developed in a phased manner, the initial phases will all come up neighbouring Gosforth Park. Forming part of the greater bulk services project, construction on the two main roads within the estate has started. Once complete these roads will unlock 118 hectares of developable land of which approximately 60% will be available for disposal to end users.The development rights secured can accommodate manufacturing, logistics and commercial uses and includes the opportunity for a fuel station as well as a convenience retail centre within the node.S&J will feature urban design that seeks to improve the landscape value of the estate while retaining and celebrating its heritage. Elements like the winding house dating back to the 1950s, left behind by the mine will be incorporated into the aesthetics of the estate.With a focus on logistics and light manufacturing, businesses operating from the new estate will be able to circumvent the congestion that frequently occurs at Gillooly's interchange when traveling from and to Durban Port and inland destinations."The acquisition meets Redefine's strategy of identifying quality property opportunities in desirable nodes, enabling the business to secure strong lease covenants. We have received enquiries for over 380 000sqm in industrial land sales and development. We expect market interest to increase further once the major bulk services and roads, due for completion early in 2018 are established," says Johann Nell, National Asset Manager, Redefine Properties.Located amidst the burgeoning commercial and residential areas of Germiston, Bedford View, Meadowdale and Alberton, the well-connected site once fully developed is set to create over 5000 new jobs as well generate a substantial rates and taxes injection to the Ekurhuleni metro."The project greatly improves the chances of skilled and semi-skilled workers in the immediate area of getting work in the construction as well as logistics sectors," says Jaco Strydom, Project Manager, Abland.The S&J site is registered as a Strategic Urban Development (SUD) project with the City of Ekurhuleni. Under the auspices of SUD, the City will collaborate with registered SUDs at a strategic level to facilitate development."The accessibility and location of the site makes S&J an ideal gateway to the OR Tambo Aerotropolis corridor mooted to attract strategic investments in key economic sectors, including manufacturing and centralised logistics." says Nell.
Johannesburg – 08 May 2017: JSE-listed diversified real estate investment trust Redefine Properties has delivered another solid performance after increasing its distribution by 7.5% to 44.82 cents per share for the six months to 28 February 2017.Quality acquisitions and an astute, investor-driven strategy guided the company to steer through the ebbs and tides of ever-changing macro-economic conditions. At 28 February 2017, Redefine's diversified local property portfolio was valued at R67.7 billion (FY2016: R54.7 billion) and the Group's international real estate investments, were valued at R16.4 billion (FY2016: R18.0 billion) - growing in total by R11.4 billion during the period under review."These results come against the backdrop of increased uncertainty driven mainly by political issues playing out ahead of the ANC elective conference. This result predates the recent ratings downgrades, but what they show is that we are fundamentally very well positioned to weather the coming storm," says Redefine CEO Andrew Konig..During the interim period, management's primary domestic portfolio focus was on protecting, expanding and improving existing well-located properties."What really stands out are our solid property fundamentals. We are benefiting now from a strategy adopted some six years back to upgrade the quality and efficiency, as well as extend the lease maturity profile of our local portfolio and geographically diversify into real estate markets operating in hard currency markets," says Konig..During the period, tenant retention by gross leasable area was 86% from 83% a year earlier. The overall occupancy of the portfolio was 94.5% and a further 205 213 sqm was let across the portfolio from 171 832 sqm in the comparable interim period a year ago. Improved utility management and recoveries increased the property portfolio's operating margin to 82.6%.The company is reaping the rewards of a diversified asset platform. While international investments contributed 22.7% to distributable income, international real estate investments made up 19.5% of property assets."Geographic diversification remains very important as we access stable revenue flows and broaden our funding sources at attractive interest rates. We have refinanced a significant portion of our international debt over the period at competitive rates, which has been a very big achievement and will stand us in good stead going forward in a very volatile environment," says Konig.., who expects to see the offshore asset contribution to earnings increase even further in the future to around 25%.Redefine broadened its international exposure through expansion into student accommodation in Australia and subsequent to the half year, into Poland by investing a further Euro 59 million in Echo Polska Properties.In one of the largest local property transactions of the year, Redefine acquired all of the shares in property developer and capital growth fund The Pivotal Fund Limited (Pivotal) in a share swap transaction. The acquisition of Pivotal positions Redefine even more competitively in the commercial property sector in line with its strategic intent to become the landlord of choice in sought-after nodes in South Africa."This deal further diversifies our portfolio by investing in high quality assets, while the share swap conserves the use of cash and debt by Redefine," says Konig..Thanks to this acquisition the company acquired 32 Pivotal properties valued at R10.4 billion (including developments in progress and land holdings for future development). The portfolio consists of 17 office, 10 retail and five industrial properties. In addition to this an 11.8% share in Mara Delta Property Holdings Limited dual listed JSE and listed on the Mauritian Stock Exchange and a 37.1% interest in Nigerian-based Oando Wings Development Limited was also acquired.Furthermore, Redefine acquired a 90% equity investment of R337.9 million in Journal Student Accommodation Fund which is based in Australia and has received development approval for 804 beds at a well-located site in Melbourne. It is estimated that Redefine's total investment will be AUD125 million (R1.2 billion). Development of the site is anticipated to commence during June 2017.Redevelopment projects in the existing portfolio have an approved value of R785.8 million at an average yield of 6.8% and new development projects with an approved value of R4.7 billion at an average yield of 9.4% are in progress.Redefine adheres to a conservative funding strategy. Interest-bearing debt represented 39.8% (from 38.5% at the previous year end) of the value of its property assets at 28 February 2017. The average cost of debt is 7.6% (from 7.7% the previous year) and volatility in debt costs will be mitigated by interest rates that are hedged on 83% of total debt for an average period of 2.6 years."Redefine Properties continues to build an exceptionally diversified and quality property platform. We remain focused on deliberately procuring top quality properties and opportunities across strategic geographic locations - both locally and internationally," says Konig.."While the risk of further ratings downgrades is a real concern, our diversification strategy will continue as we purposefully seek out real estate that is best poised for sustained growth within three key sectors - office, retail and industrial," he concludes. Redefine anticipates its distribution per share for the second half of the 2017 financial year to grow in line with the first half's performance.
Johannesburg, South Africa – 17 February 2017: JSE-listed diversified real estate investment trust Redefine Properties (JSE: RDF) announced today that it's Black River Park, an office precinct in Cape Town has been adjudged the winner in the Sustainable FM Operations category at the recent South African Facilities Management Association (SAFMA) Awards.Redefine beat six other nominees in the category including its own The Towers office precinct also in Cape Town.The award aims to recognise efforts by individuals, teams or corporates involved in Facilities Management, which have delivered the best sustainability initiative during the course of the year.Black River Office Park is the first office precinct in the country to receive Green Building Council of South Africa (GBCSA) certified green star existing building ratings for all of its eight buildings, with a combined 75,000sqm of office space. Amongst its many firsts, Black River Office Park is also home to the first Green Star SA Existing Building Performance (EBP) certified building and the first building to receive a 6 Star Green Star SA EBP rating."The award validates our commitment to providing tenants with work spaces that are in itself conscious of the environment in which they operate and cost effective to run. It further demonstrates to our tenants, the community and all other stakeholders that our properties are managed to the highest standard of excellence," says Ilse Swanepoel, Head of Utilities at Redefine Properties.Black River Park also acclaimed with having Africa's largest integrated rooftop photovoltaic (PV) system. The roof top installation at the office park in Observatory is rated at 1.56MW and is made up of approximately 6,000 panels spread over 9,000sqm of roof space. It ranks amongst the world's top 20 commercial roof top solar installations. The office precinct has also implemented best practices in water, waste, energy, and overall sustainability. The park has retrofitted all of its common and parking areas with Light Emitting Diodes (LEDs) as well as instituted a cost-benefit sharing agreement with tenants to further the roll out of energy saving technology. The park has also engaged with tenants to reduce their energy consumption through tenant education and active audits.Aside the potential energy savings the park has been able to ratchet, its environmental policy also extends to waste management with over 75% of waste collected being diverted from landfills. All waste from the park is sorted on site into recyclable and non-recyclable materials including correct disposal of fluorescent tubing. The park also maintains ecologically friendly gardens with water sourced from boreholes on site.Sustainability is not a nice-to-have but rather a mindset that is embedded throughout the organisation. We have not rested after improving energy efficiencies and implementing water saving at our developments, we now assess our carbon footprint every year to determine the environmental impact of the company according to Swanepoel.As a leader in the property development sector, we are fully conscious of and active in our role in protecting and enhancing the environment."The Black River Office Park is exemplary for its commitment to and achievements in sustainability and our drive towards sustainability is based on overwhelming evidence that demonstrates the impact of green buildings on productivity and wellbeing of its occupants," Swanepoel says in conclusion.
Johannesburg, South Africa – February 2017: JSE-listed diversified real estate investment trust Redefine Properties (JSE: RDF) has announced plans for Rosebank Link, a new 15 storey office tower located at 173 Oxford Road in the heart of bustling and cosmopolitan Rosebank. The building will offer tenants a unique location immediately adjacent to the Gautrain Station, The Zone and Rosebank Mall and has been planned for an estimated gross lettable area of over 19 000 sqm of office space with approximately 817sqm of retail on the ground floor. Aptly named Rosebank Link, the building will have a direct, convenient and safe access to the Gautrain Station through a ground level landscaped pedestrianised thoroughfare. The project will see the existing building transformed into an expressive steel and glass clad structure, a signature visual that will have an imposing presence on the skyline. Construction of the new building commenced with demolitions during July 2016 and is expected to be completed by the end of 2018. Once completed, the building will stand a total of 15 storeys above ground with a parking ratio of approximately four and a half bays per 100sqm. The development features two basement parking levels, five parkade levels above ground and a ground floor retail level with eight storeys of offices above the podium level."We strongly believe that the quality and location of Rosebank Link will be attractive to a wide range of potential tenants and dovetails with our strategy to become the landlord of choice for premium space in sought after nodes like Rosebank," says Andrew Konig, CEO, Redefine Properties."The future demand for Premium and A-grade office space in Rosebank is anticipated to rise significantly. We are excited about introducing this icon to Rosebank's skyline," adds Konig.Rosebank with its recent facelift from an older office node to a mixed-use precinct is attracting tenants looking to move out of their outdated and inefficient office spaces to more modern and Green Star rated properties. Rosebank Link is targeting a four-star Green Star rating, as demand for such sustainable building continues to grow. In addition to the development's focus on sustainable building, Rosebank Link is also designed to get as much daylight as possible deep into the building. At the heart is a multi-storey enclosed north facing atrium fashioned to capture sunlight.Indigenous plants on the roof are part of the overall design of the development. The green roofs will complement the installed energy and resource efficient HVAC systems. With this we have literally taken greenery to new heights, says Konig. Contributing further to Rosebank Link's green credentials include smart metering throughout, motion sensor based internal lighting, backup water and full back up on-site power generation. "The leasing velocity in Rosebank is underpinned by fundamental demand conditions of accessibility, affordability and amenities. Our continued investment in Rosebank is a testament to the strength of the node and our confidence in its future growth," says Konig in conclusion.
Johannesburg, South Africa – 09 February 2017: JSE-listed, internationally diversified real estate investment trust Redefine Properties (JSE: RDF) announced today that Bridgitte Mathews has been appointed to the Board as an Independent non-executive director. She has also been approved as a member and chairperson of the Remuneration Committee.A qualified charted accountant, Ms Mathews is the founder of Ca Vie Investments (Pty) Ltd, a specialist business process management consulting firm. A member of African Women Chartered Accountants since 2007 and the Institute of Directors since 2011, her appointment as an Independent non-executive director comes into effect from today."We are delighted to welcome Bridgitte, the first entrepreneur on our Board of Directors. We look forward to tapping into her valuable operating experience and service on other boards. Her proven track record together with her leadership and passionate approach of governance makes her an ideal addition to the Board," says Andrew Konig, CEO, Redefine Properties. The Redefine Board approved a Gender Diversity Policy in 2015 in which the company adopted a voluntary target for female representation at Board level of 25%. The aim was to achieve this over a five year period, but with the various changes announced today, the company has achieved black female representation of 30% at Board level."Representation of women on our Board is increasingly a matter of strategic competitive advantage and a driver of business success. We continue to push our agenda of achieving gender equity and advancing diversity with addition of seasoned executives like Bridgitte to progress innovation and operations excellence across our international footprint.""Bridgitte shares in our vision to deliver shareholder value while furthering our people principles. She brings with her considerable experience from a distinguished career working with both large corporations and start-ups. We look forward to her valuable independent perspective and support our ongoing efforts to build a sustainable, long-term business," Konig adds.Ms Mathews is deputy chairperson of the Board, non-executive director and member of the audit committee at ATKV; non-executive director and chairperson of the audit, risk and IT committee, member of the social, ethics and remuneration committee at Suidwes Landbou Group; non-executive director and member of the audit and risk committee at PSG Group Limited and PSG Financial Services Limited; chairperson of the Board of trustees at Redefine Empowerment Trust; and a non-executive director and member of the audit and risk committee at OneLogix Group Limited.
In one of the largest local property transactions of the year, Pivotal shareholders approved the transaction in which JSE-listed, internationally diversified real estate investment trust Redefine Properties (JSE: RDF) will acquire all of the shares in property developer and capital growth fund Pivotal.Redefine will acquire Pivotal's property portfolio worth R11.8 billion. Pivotal's investors can now participate in a REIT structure and will receive Redefine and Echo Polska Properties (EPP) shares in exchange for their Pivotal shares, offering exposure to foreign currency earnings and diversified income distributions.In terms of the scheme of arrangement, shareholders in Pivotal receive approximately 138.54 Redefine shares plus 9.38 EPP shares for every 100 Pivotal shares held. Once implemented, Pivotal will be delisted from the JSE and become a wholly owned subsidiary of Redefine, with its staff being absorbed into Redefine.Redefine CEO Andrew Konig says the deal - which is expected to be implemented in early January 2017 - "ticks all the right boxes where it matters most".Apart from creating operational efficiencies and having a significant strategic impact, the investment also allows for strong capital optimisation, the ability to engage talent and to further enhance Redefine's position in the market."This deal further diversifies our portfolio by investing in high quality assets, while the share swap limits the use of cash and debt by Redefine," says Konig.In March 2016 Redefine was involved in the largest single property portfolio transaction in Poland when it broadened its offshore footprint via an investment into EPP and its 1.2 billion euro high-yielding commercial platform. Pivotal was a co-investor with Redefine acquiring 31 million shares in EPP."Pivotal's shares in EPP will be distributed as part of transaction, which is the first step in creating liquidity for EPP," explains Konig. EPP listed on the JSE in September this year.The flagship property in the Pivotal portfolio is the 70 000sqm Alice Lane precinct in Sandton which offers exciting potential. Notable developments in the portfolio include the Loftus Park mixed use development in Pretoria and the Kyalami Corner shopping centre north of Johannesburg."This portfolio is well occupied, with quality tenants and a healthy escalation in leases. It is important we have assets that can withstand these difficult times, with efficiency, tenant traction and potential for capital appreciation. This deal transforms the health of our office portfolio," says Konig.Konig is excited about the potential of harnessing a significant development pipeline in the region of R2.4 billion.
3 November 2016 JSE-listed, internationally diversified real estate investment trust Redefine Properties (JSE: RDF) has harnessed the benefits of a diversified portfolio and operational efficiencies to deliver a solid performance for the full year to end August 2016. While South African businesses continue to be buffeted by ongoing political uncertainty and economic headwinds, Redefine's high quality property portfolio, a broad source of funding, its effective hedging strategy and the robust performance from offshore assets has enabled the company to achieve continued expansion despite the challenging conditions. "There is no doubt that in the prevailing macro-economic environment trading conditions have been difficult. For Redefine this has been a year of alignment - we have aligned our structures and refined our business processes. Our focus remains on operating efficiently, investing strategically, optimising capital, engaging talent and growing our reputation," says CEO Andrew Konig. In Rand terms, the total distributable income for the year was up 21.9% to R3.9 billion and, with a second half distribution of 44.3 cents per share (up 8%), the full year distribution per share increased by 7.5% to 86 cents. Prospects for 2017 are subject to numerous factors which remain uncertain, including volatile financial markets, the continuing possibility of a sovereign credit downgrade and the outcome of the offer to acquire Pivotal. Growth in distributable income per share for 2017 is anticipated to range between 7.5% to 8.5%. During the past year Redefine expanded its property base by R8.9 billion rand, with the bulk of the investment into a 1.2 billion Euro high-yield commercial portfolio in Poland. "International property assets total 22.6% of assets, up from 14.8% a year ago, contributing 25.9% of income in the period versus 16.7% in the previous year," says Konig. In September, Redefine successfully placed Euro 150 million exchangeable bonds due in 2021, with the proceeds to be used in part settlement of the bridge facility used to fund the investment into Poland. Redefine's loan to value ratio was 38.5% at the year end, which chief financial officer Leon Kok says is regarded as satisfactory. "Given concerns about higher interest rates, 82% of our debt is fixed, which protects us against interest rate spikes and the impact on income going forward," says Kok. Assets under management at the year end totalled R72.7 billion. Given ongoing currency volatility, Redefine adopted a policy of hedging foreign currency. Kok says the company took a strategic decision in late May that the rand was looking unusually weak and hedged exposure to the pound, the euro and the Australian dollar just ahead of Brexit. "The hedging policy certainly stands us in good stead for 2017," says Kok. "Despite the tough local trading conditions it is gratifying that we have maintained our operating margin at 80%," says Kok. Notwithstanding a low growth environment, Redefine has continued a strong focus on improving its local portfolio through development, including expansion and improvements at the Centurion, Benmore, Kenilworth and South Coast malls. "We are looking at all sectors where we have strategically located positions," says Konig. "For example, we are in the process of developing the Rosebank Link on the doorstep of Gautrain and are also harnessing the use of our industrial land in KZN, Cape Town and Johannesburg with specific expansion into the industrial logistics sector." In the new financial year, Redefine will progress on the proposed acquisition of the entire issued share capital of listed Pivotal Fund, a development focused fund with an A-grade portfolio of completed income producing properties and developments, which will add R11 billion to the local property portfolio. Redefine sees attractive opportunities in the student accommodation market. "Despite the ?fees must fall' protests, we expect the demand for quality accommodation space to intensify, as students who are able to afford it, demand quality" says Konig. By the end of 2017 Redefine intends supplying around 10,000 student beds in SA, and is also diversifying into student accommodation in Australia.
12 September 2016 REDEFINE PROPERTIES LIMITED(Incorporated in the Republic of South Africa)(Registration number 1999/018591/06)JSE share code: RDF ISIN: ZAE000190252(Approved as a REIT by the JSE)("Redefine" or the "company") THE REFERENCE PRICE, INITIAL EXCHANGE PRICE AND INITIAL EXCHANGE RATIO RELATING TO THE ISSUE BY REDEFINE OF EUR 150 MILLION SECURED BONDS EXCHANGEABLE INTO SHARES OF REDEFINE INTERNATIONAL P.L.C. Shareholders are referred to the announcement released on SENS on 6 September 2016 in which they were advised that Redefine had successfully placed secured bonds (the "Bonds") with a principal amount of EUR 150 million exchangeable into ordinary shares (the "RIPLC Shares") of Redefine International P.L.C. (the "RIPLC"). Shareholders are advised that the initial exchange price of the Bonds has been set at EUR 0.61904 per RIPLC Share and the initial exchange ratio of the Bonds has been set at 161,540.61 RIPLC Shares per Bond. The initial exchange price represents a premium of 26.25% above the reference price for the RIPLC Shares of EUR 0.49033, and was determined on the basis set out in the SENS announcement released on 6 September 2016. Settlement and delivery of the Bonds will take place on 16 September 2016.
REDEFINE PROPERTIES LIMITED(Incorporated in the Republic of South Africa)(Registration number 1999/018591/06)JSE share code: RDF ISIN: ZAE000190252(Approved as a REIT by the JSE)("Redefine" or "the company") ISSUE BY REDEFINE OF EUR 150 MILLION SECURED BONDS EXCHANGEABLE INTO SHARES OF REDEFINE INTERNATIONAL PLC Shareholders are advised that Redefine has successfully placed secured bonds (the "Bonds") with a principal amount of EUR 150 million, exchangeable into ordinary shares (the "RIPLC Shares") of Redefine International P.L.C. ("RIPLC"), the proceeds of which will be used to refinance debt raised by Redefine on its acquisition of its shareholding in Echo Polska Properties N.V. The Bonds will be issued with a coupon of 1.50%, payable semi-annually in arrear. The initial exchange price of the Bonds will be set at an exchange premium of 26.25% to a reference price (the "Reference Price") determined as the euro-equivalent of the arithmetic average of the daily volume weighted average prices of a RIPLC Share listed on the London Stock Exchange plc (the "LSE") on each of the five scheduled trading days commencing on (and including) 5 September 2016, such Reference Price being subject to a floor of EUR 0.45673 and a cap of EUR 0.51902. The Reference Price, the initial exchange price and the initial exchange ratio will be announced by Redefine on or around 9 September 2016. The Bonds will be issued at 100% of their principal amount and, unless previously exchanged, redeemed, or repurchased and cancelled, will be redeemed at par (subject to the Redefine's settlement option referred to below) on 16 September 2021. Holders of the Bonds will have the option to require an early redemption of their Bonds on the third anniversary of the issue date, at their principal amount, together with accrued interest. Upon exchange Redefine will have the flexibility to settle in cash, deliver the underlying RIPLC Shares or any combination thereof. Further details of the terms of the Bonds are contained in the press releases available on Redefine's website. 6 September 2016 SponsorJava Capital
Redefine Properties Limited ("Redefine" or the "Issuer") announces the launch of an offering of senior, secured exchangeable bonds due 2021 (the "Bonds") with a principal amount of EUR 150 million, exchangeable into ordinary shares (the "Shares") of Redefine International P.L.C. (the "Company"). The Bonds will be marketed with a coupon range of 1.25 - 1.75%, payable semi-annually in arrear. The initial exchange price of the Bonds is expected to be set within a premium range of 22.5 - 30.0% to a reference price (the "Reference Price") determined as the euro-equivalent of the arithmetic average of the daily volume weighted average prices of a Share listed on the London Stock Exchange plc (the "LSE") on each of the five scheduled trading days commencing on (and including) the date hereof, such Reference Price being subject to a floor of EUR 0.45673 and a cap of EUR 0.51902. The Bonds will be issued at 100% of their principal amount and, unless previously exchanged, redeemed, or repurchased and cancelled, will be redeemed at par (subject to the Issuer's settlement option referred to below) on 16 September 2021. Holders of the Bonds will have the option to require an early redemption of their Bonds on the third anniversary of the issue date, at their principal amount, together with accrued interest. Upon exchange the Issuer will have the flexibility to settle in cash, deliver the underlying Shares or any combination thereof. The Issuer will have the option to redeem any outstanding Bonds at their principal amount together with accrued interest under certain customary conditions, as further described in the terms and conditions of the Bonds (the "Terms and Conditions"). The Issuer will also, at maturity or upon early redemption, have the option to deliver a combination of Exchange Property, in whole or in part, and cash, subject to customary conditions described in the Terms and Conditions.The Issuer's obligations in respect of the Bonds will be secured under English law by, inter alia, a first fixed charge over the pledged property (which shall initially include such number of underlying Shares as is determined at final pricing (the "Exchange Property")) and the Stock Lending Agreements entered into by the Chargors (each as defined below), pursuant to the Security agreements between Redefine Retail (Pty) Ltd, Madison Property Fund Managers Holdings Limited, Madison Property Fund Managers Limited and Redefine Global (Pty) Ltd (the "Chargors") and the Trustee. Any adjustment to the Exchange Property, including in respect of cash dividends, shall trigger a corresponding adjustment to the pledged property. The Bonds are expected to be rated by Moody's. The Bonds will be rated after the Settlement Date.In the context of the transaction, the Issuer and its subsidiaries will be subject to a lock-up undertaking in relation to the Shares for a period ending 90 days after the Settlement Date (as defined below), subject to customary exceptions. Certain final terms of the Bonds are expected to be determined and announced today and settlement is expected on or around 16 September 2016 (the "Settlement Date"). Application will be made to admit the Bonds to trading on the Open Market (Freiverkehr) of the Frankfurt Stock Exchange by no later than 90 days following the Settlement Date. The Issuer will use the proceeds of the issuance of the Bonds to refinance debt, provided by the Sole Bookrunner and associated entities, incurred in the acquisition of a majority interest in Echo Prime Properties B.V. J.P. Morgan Securities plc is acting as Sole Bookrunner on this transaction. J.P. Morgan Securities plc, the Issuer and the Chargors will enter into stock lending agreements (the "Stock Lending Agreements") on or around the date hereof in respect of Shares representing approximately 10 per cent. of the Company's issued share capital for the purposes of facilitating investors' hedging activities. For more information, please contact:Redefine Properties Limited:Redefine Place3rd Floor2 Arnold RoadRosebankGautengSouth Africa2196 Telephone: +27 11 283 0032Attention: Leon Kok 5th September 2016 Company sponsor: Java Capital NO ACTION HAS BEEN TAKEN BY THE ISSUER, THE COMPANY, THE SOLE BOOKRUNNER OR ANY OF THEIR RESPECTIVE AFFILIATES THAT WOULD PERMIT AN OFFERING OF THE BONDS OR POSSESSION OR DISTRIBUTION OF THIS PRESS RELEASE OR ANY OFFERING OR PUBLICITY MATERIAL RELATING TO THE BONDS IN ANY JURISDICTION WHERE ACTION FOR THAT PURPOSE IS REQUIRED. PERSONS INTO WHOSE POSSESSION THIS PRESS RELEASE COMES ARE REQUIRED BY THE ISSUER, THE COMPANY AND THE SOLE BOOKRUNNER TO INFORM THEMSELVES ABOUT, AND TO OBSERVE, ANY SUCH RESTRICTIONS. THIS PRESS RELEASE IS NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY IN OR INTO THE UNITED STATES OR TO U.S. PERSONS (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT). THIS PRESS RELEASE IS NOT AN OFFER TO SELL SECURITIES OR THE SOLICITATION OF ANY OFFER TO BUY SECURITIES, NOR SHALL THERE BE ANY OFFER OF SECURITIES IN ANY JURISDICTION IN WHICH SUCH OFFER OR SALE WOULD BE UNLAWFUL. THE BONDS MAY BE DEEMED TO BE THE SECURITIES OF A "COVERED FUND" FOR THE PURPOSES OF THE VOLCKER RULE.THE ISSUER IS NOT REGISTERED UNDER THE UNITED STATES INVESTMENT COMPANY ACT OF 1940 AND INVESTORS WILL NOT HAVE THE BENEFIT OF THAT ACT. THIS PRESS RELEASE AND THE OFFERING WHEN MADE ARE ONLY ADDRESSED TO, ANDDIRECTED IN MEMBER STATES OF THE EUROPEAN ECONOMIC AREA (THE "EEA") AT PERSONS WHO ARE "QUALIFIED INVESTORS" WITHIN THE MEANING OF ARTICLE 2(1)(E) OF THE PROSPECTUS DIRECTIVE ("QUALIFIED INVESTORS"). FOR THESE PURPOSES, THE EXPRESSION "PROSPECTUS DIRECTIVE" MEANS DIRECTIVE 2003/71/EC, AS AMENDED. IN ADDITION, IN THE UNITED KINGDOM THIS PRESS RELEASE IS BEING DISTRIBUTED ONLY TO, AND IS DIRECTED ONLY AT, QUALIFIED INVESTORS (I) WHO HAVE PROFESSIONAL EXPERIENCE IN MATTERS RELATING TO INVESTMENTS FALLING WITHIN ARTICLE 19(5) OF; THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005, AS AMENDED (THE"ORDER") AND QUALIFIED INVESTORS FALLING WITHIN ARTICLE 49(2)(A) TO (D) OF THE ORDER, AND (II) TO WHOM IT MAY OTHERWISE LAWFULLY BE COMMUNICATED (ALL SUCH PERSONS TOGETHER BEING REFERRED TO AS "RELEVANT PERSONS"). THIS PRESS RELEASE MUST NOT BE ACTED ON OR RELIED ON (I) IN THE UNITED KINGDOM, BY PERSONS WHO ARE NOT RELEVANT PERSONS, AND (II) IN ANY MEMBER STATE OF THE EEA OTHER THAN THE UNITED KINGDOM, BY PERSONS WHO ARE NOT QUALIFIED INVESTORS. ANY INVESTMENT OR INVESTMENT ACTIVITY TO WHICH THIS PRESS RELEASE RELATES IS AVAILABLE ONLY TO (A) RELEVANT PERSONS IN THE UNITED KINGDOM AND WILL BE ENGAGED IN ONLY WITH RELEVANT PERSONS IN THE UNITED KINGDOM AND (B) QUALIFIED INVESTORS IN MEMBER STATES OF THE EEA (OTHER THAN THE UNITED KINGDOM). THIS DOCUMENT IS NOT AN OFFER TO SELL SECURITIES OR THE SOLICITATION OF ANY OFFER TO SUBSCRIBE FOR OR BUY SECURITIES, AND NO SECURITIES WILL BE SOLD, WITHIN SOUTH AFRICA OR TO OR BY ANY PERSON RESIDENT IN OR WITHIN SOUTH AFRICA. ANY DECISION TO PURCHASE ANY OF THE BONDS SHOULD ONLY BE MADE ON THE BASIS OF AN INDEPENDENT REVIEW BY A PROSPECTIVE INVESTOR OF THE ISSUER'S AND THECOMPANY'S PUBLICLY AVAILABLE INFORMATION. NEITHER THE SOLE BOOKRUNNER NOR ANY OF ITS AFFILIATES ACCEPT ANY LIABILITY ARISING FROM THE USE OF, OR MAKE ANYREPRESENTATION AS TO THE ACCURACY OR COMPLETENESS OF, THIS PRESS RELEASE OR THE ISSUER'S AND THE COMPANY'S PUBLICLY AVAILABLE INFORMATION. THE INFORMATION CONTAINED IN THIS PRESS RELEASE IS SUBJECT TO CHANGE IN ITS ENTIRETY WITHOUT NOTICE UP TO THE SETTLEMENT DATE. EACH PROSPECTIVE INVESTOR SHOULD PROCEED ON THE ASSUMPTION THAT IT MUST BEAR THE ECONOMIC RISK OF AN INVESTMENT IN THE BONDS OR THE SHARES TO BE ISSUED OR TRANSFERRED AND DELIVERED UPON EXCHANGE OF THE BONDS AND NOTIONALLY UNDERLYING THE BONDS (TOGETHER WITH THE BONDS, THE "SECURITIES"). NONE OF THE ISSUER, THE COMPANY OR THE SOLE BOOKRUNNER MAKE ANY REPRESENTATION AS TO (I) THE SUITABILITY OF THE SECURITIES FOR ANY PARTICULAR INVESTOR, (II) THE APPROPRIATE ACCOUNTING TREATMENT AND POTENTIAL TAX CONSEQUENCES OF INVESTING IN THE SECURITIES OR (III) THE FUTURE PERFORMANCE OF THE SECURITIES EITHER IN ABSOLUTE TERMS OR RELATIVE TO COMPETING INVESTMENTS. THE SOLE BOOKRUNNER IS ACTING ON BEHALF OF THE ISSUER AND NO ONE ELSE INCONNECTION WITH THE BONDS AND WILL NOT BE RESPONSIBLE TO ANY OTHER PERSON FOR PROVIDING THE PROTECTIONS AFFORDED TO CLIENTS OF THE SOLE BOOKRUNNER OR FOR PROVIDING ADVICE IN RELATION TO THE SECURITIES. EACH OF THE ISSUER, THE COMPANY, THE SOLE BOOKRUNNER AND THEIR RESPECTIVEAFFILIATES EXPRESSLY DISCLAIM ANY OBLIGATION OR UNDERTAKING TO UPDATE, REVIEW OR REVISE ANY STATEMENT CONTAINED IN THIS PRESS RELEASE WHETHER AS A RESULT OF NEW INFORMATION, FUTURE DEVELOPMENTS OR OTHERWISE.
Johannesburg, South Africa — JSE-listed diversified real estate investment trust Redefine Properties (JSE: RDF) has announced its intention to acquire the entire issued share capital of The Pivotal Fund (JSE: PIV). Pivotal, a development focused investment fund, has an A-grade portfolio of completed income producing properties and developments. Under the terms of the transaction, valued at R6 billion, shareholders in Pivotal will receive from Redefine 460 million new Redefine Properties shares plus 31 million shares in Echo Polska Properties (EPP), effectively placing Pivotal shareholders in the commercial position they would have been in had Pivotal unbundled its EPP shares to its shareholders. The Redefine shares will be issued ex-dividend, anticipated to be at the end of November 2016 and the EPP share will be delivered during January 2017. Redefine Properties' strategic investment in EPP will remain intact. The deal, which is subject to the usual regulatory processes for a transaction of this nature, will be implemented through a scheme of arrangement which requires 75% approval at a general meeting of Pivotal shareholders. Redefine Properties will delist Pivotal once the deal has been concluded which is expected before the end of the year. Andrew Konig, CEO, Redefine Properties says, "An irrevocable buy-in from a significant number of Pivotal shareholders has been received. Our intention is not to be a shareholder as we can only achieve the full potential for synergies with complete ownership." "Development funds like Pivotal are seeing twin challenges of increasing cost of capital as well as the macro environment putting pressure on development returns," adds Konig. The acquisition of the Pivotal portfolio enables Redefine to continue with its investment philosophy to recycle its capital through disposing assets no longer aligned to its long term investment strategy and replacing them with prime (Pivotal) assets. ?'We believe we bring compelling value to shareholders of both companies with Pivotal shareholders receiving a long-term upside potential of an investment in Redefine, increasingly recognised for its performance in a difficult and competitive market." The deal will see Redefine Properties which already co-owns S&J Industrial Estate in Germiston and Rosebank Galleria with Pivotal, gain significant reach in Sandton and consolidate its position in Rosebank. "The acquisition demonstrates Redefine's strategic intent to become the landlord of choice in A-grade office space in sought after areas in South Africa. Redefine has shifted its strategy in recent years to become a more urban focused landlord by acquiring modern properties in better performing nodes," says Konig. Pivotal's property portfolio is valued at R12.9 billion and its income producing assets comprise 8 retail properties, 10 offices and 3 industrial sites, a number of development properties with 4 active developments. Pivotal's African assets in markets like Mauritius, Mozambique, Nigeria, Morocco, Kenya and Zambia will be sold post implementation. Once the deal has been finalised, Redefine will operate approximately 350 properties totalling nearly 5.7 million square metres across the country. According to Konig, the deal provides Redefine with "a unique opportunity" in the current environment to acquire a portfolio of well leased modern properties in a single transaction. The acquisition further cements our position as one of the top landlords in Sandton, a node where we have grown to almost 30% of our office portfolio from almost no exposure five years or so back and allows us to make meaningful expansion into Bryanston and Centurion. In Sandton, Redefine will add crown jewels like Alice Lane with tenants like Sanlam, Santam, Standard Bank, and Virgin Active South Africa. Part of the development at Alice Lane also includes an office building likely for completion during April 2017 to house legal heavy weight Bowman Gilfillan. Besides this acquisition, Redefine Properties significantly broadened its offshore footprint earlier in the year via a ?260 million equity investment into EPP which has a ?1.2 billion high-yielding commercial platform comprising 18 properties in the rapidly-expanding and exciting Polish market. To continue on its growth trajectory, EPP plans to broaden its shareholder base by listing on the JSE during the first half of September this year.