Planned sale of UK Browne Jacobson Property

Planned sale of UK Browne Jacobson 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")


PLANNED SALE OF UK BROWNE JACOBSON PROPERTY


1. INTRODUCTION
    The board of directors of Texton (the "Board") is pleased to advise shareholders that the Company is
    negotiating an agreement for the sale for its UK property located at Mowbray House, Nottingham, let to
    the law firm Browne Jacobson (the "Property" or the "Sale") to the University of Nottingham (the
    "Purchaser"). The sale is not yet contractually committed and remains subject to contract, final approvals
    and completion of due diligence. The transaction is expected to complete in October, whereby Texton will
    dispose of property to the Purchaser, for a price of £9.375 million (the "Offer Level").

2. RATIONALE

    The location is very attractive to the University, allowing future expansion of their city Centre presence and
    enhanced links with regional businesses. The Sale allows Texton to secure an attractive exit from the
    Property. The sale is in line with Texton's strategy to reduce its office exposure. Mowbray House is the
    last wholly owned UK Office property and the disposal will improve the weighted average lease expiry and
    income profile of the remaining UK portfolio.

3. TERMS OF THE SALE

    The Sale is expected to complete by the end of the October 2021. The Sale is subject to contract, final
    approvals, and completion of due diligence. Texton will inform the market once all remaining conditions
    have been met.

4. FINANCIAL AND PROPERTY SPECIFIC INFORMATION

    Details of the Property are as follows:


     Location                    Sector       GLA (m2)     Weighted      Net rental         Book          Offer
                                                             average       income          value        Level (£
                                                               rental        (£) PA    (£ million)      million)
                                                           (£/m2) p.a
     Mowbray House,               Office         5,385          £65.2    £257,3891          9.1252       9.3753,4
     Castle Meadow
     Road, Nottingham,
     NG2 1AB

    Notes:
    1. Audited net rental income attributable to the Property for the twelve months ended 30 June 2021 was
       £257 389. The net rental income steps up to £868,875 per annum from 1 December 2021 and the
       purchaser will receive a rental top up from the date of transfer to 1 December 2021.
    2. Audited book value as at the year ended 30 June 2021.
    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.£160,000 will be incurred on associated legal, vendor survey 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
15 September 2021


CORPORATE ADVISER AND SPONSOR TO TEXTON
Investec Bank Limited

Date: 15-09-2021 01:10:00
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