TEXTON PROPERTY FUND LIMITED - Sale of UK B&Q Property

Sale of UK B&Q Property

TEXTON PROPERTY FUND LIMITED
Granted REIT status by the JSE
(Incorporated in the Republic of South Africa)
(Registration number 2005/019302/06)
JSE share code: TEX ISIN: ZAE000190542
(“Texton” or the “Company”)


SALE OF UK B&Q PROPERTY


1. INTRODUCTION
  The board of directors of Texton (the “Board”) is pleased to advise shareholders that the Company has
  completed an agreement with RI UK SA 1 LIMITED, an SPV of Realty Income Corporation (the
  “Purchaser”), whereby Texton has disposed of its entire freehold interest in the UK property held in a
  100% subsidiary, Forbesdale Investments Holdings Limited, know as B&Q (the “Property” or the “Sale”)
  to the Purchaser, for a sale price of £8.96 million (the “Sale Proceeds”).

2. RATIONALE

  The current depth of demand for DIY property in the United Kingdom, has provided Texton with an
  opportunity to sell the Property at a premium to its most recent reported book value of £7.77m. The Sale
  allows Texton to secure an attractive and profitable exit from the Property, for which Texton will utilize the
  Sale Proceeds to re-invest into properties with strong value add potential through active asset
  management and deploy defensive capital expenditure to improve the value of the existing portfolio. The
  Sale further reduces Texton’s exposure to UK retail property and improves the weighted average lease
  expiry and income profile of the remaining UK portfolio.

3. TERMS OF THE SALE

  The Sale, which was subject to simultaneous exchange and completion, completed on 20 August 2021.

4. FINANCIAL AND PROPERTY SPECIFIC INFORMATION

  Details of the Property are as follows:


   Location                    Sector       GLA (m2)     Weighted      Net rental         Book            Sale
                                                           average       income          value       Proceeds
                                                             rental           (£)    (£ million)    (£ million)
                                                         (£/m2) p.a
   Trevenson Road,              Retail         4,465        £141.4     £315,9691           7.772        8.963,4
   Camborne,
   Cornwall United
   Kingdom

  Notes:
  1. Unaudited net rental income attributable to the Property for the six months ended 31 December 2020
     was £315 969.
  2. Unaudited book value as at the interim period ended 31 December 2020.
   3. The Sale Proceeds in respect of the Property is considered its fair market value, as determined by the
      Board. The Board is not independent and are not registered as professional valuers or as professional
      associate valuers in terms of the Property Valuers Profession Act, No. 47 of 2000.
   4. Costs of c.£120,000 will be incurred on associated legal and agent fees.
   5. The financial information contained in this announcement has not been reviewed or reported on by a
      reporting accountant.

5. CATEGORISATION OF THE SALE
   The Sale is a category 2 transaction in terms of the JSE Listings Requirements and accordingly does not
   require approval by shareholders.


SANDTON
23 August 2021


CORPORATE ADVISER AND SPONSOR TO TEXTON
Investec Bank Limited

Date: 23-08-2021 03:10:00
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