This announcement sets out information pertaining to the purchase by Real Estate Investments Zambia Plc of a commercial property known as Southview Park situated on Subdivision “G” of Farm No 4300, Kafue Road, Lusaka, Zambia (“the Property”), subject to terms and conditions of a Sale and Purchase Agreement (“Agreement”) executed on 28 December 2017. The Property is currently 100% owned by Southview Properties Limited (Zambia) (“the Vendor”).
In line with the Listing Requirements of the Lusaka Securities Exchange for a Category 2 Transaction, this announcement sets out salient features of the Acquisition, as follows:
|Asset:||Southview Park situated on Subdivision “G” of Farm No 4300, Kafue Road, Lusaka, Zambia|
|Purchaser:||Real Estate Investments Zambia Plc (“Purchaser”)|
|Effective Date:||28 December 2017|
|Conditions Precedent:||The purchase of the Property is subject to and conditional on each of the following conditions being satisfied:
1.1 Competition and Consumer Protection Commission (CCPC) approval of the transaction, and
1.2 State’s consent to assign title to Real Estate Investments Zambia Plc (REIZ).
|Other terms significant to agreement:||1. Each Party shall use its reasonable endeavors to procure (so far as it is reasonable to procure) that each of the conditions precedent is satisfied on or before the expiry of six weeks from the date of the Sale and Purchase Agreement.
2. If the Conditions precedent have not been fulfilled within the time frame stipulated in item 1 above or such other time as is agreed between the parties none of the parties shall have any further rights or obligations under the Agreement and the Parties agree to execute such transfers and/or documents as may be necessary to reverse the transaction contemplated herein and reimburse the Purchasers for all amounts paid to the Vendor (if any).
3. The Conditions precedent are for the benefit of the Vendor and the Purchaser and may only be waived by written agreement.
|Description of property:||The Property is currently developed with 22 high cost 2-4-bedroom units measuring 168 m2 – 200m2 with development potential to build out another 82 houses, office suites 1000m2 and small neighbourhood retail complex of 2400m2. Total Land size is 11.4752 Hectares (28.3552 acres).|
|Consideration:||Five Million and Two Hundred Thousand United States of America dollars (US$5,200,000) net of all taxes|
|Pro forma effect on Net Assets and profit forecasts:||Before||After|
|Net Asset Value per Share (ZMW)||14.49||15.46|
|Diluted EPS (ZMW)||0.60||0.64|
|Headline EPS (ZMW)||0.83||0.88|
|Rationale:||This acquisition is in line with the REIZ Plc Group strategic focus meant to grow the group’s total GLA and sectorial diversification of the investment properties portfolio whilst at the same time enhancing shareholder value.|
|Source of funding for the acquisition:||The purchaser will fund the acquisition 100% using own retained earnings resources.|
Lusaka, Zambia – 02 January 2018
LUSAKA STOCK EXCHANGE SPONSORING BROKER
STOCKBROKERS ZAMBIA LIMITED
[MEMBER OF THE LuSE and REGULATED BY THE SECURITIES AND EXCHANGE COMMISSION OF ZAMBIA]
First Issued 02 January 2018
Download the original SENS Announcement