In light of prevailing market conditions, and to ensure that the Company is no longer required to raise equity to fund the Purchase Consideration, Texton has renegotiated the terms of the Blend Acquisitions

Texton has agreed terms to acquire 4 of the original 9 properties contained in the Initial Announcement. Two of the Revised Portfolio properties are located in the UK (collectively the “UK Revised Portfolio”) and 2 of the Revised Portfolio properties are located in South Africa.

The sale agreements in relation to the remainder of the properties per the Initial Announcement have been terminated, except for the Chatham Building in the UK, where Texton has secured an option to acquire it for a period of 12 months following the acquisition date of the UK Revised Portfolio.  

1. Converted at the spot exchange rate as at 17:00, 16 August 2016 of £1:R17.2970  

SA Revised Portfolio:  18 Skeen Boulevard 16 Skeen Boulevard Total Purchase consideration  R51.03 million R47.66 million R98.69 million  

The portfolios now represent a yield of 9.3% in SA (previously 9.6%) and 7.3% in the UK (previously 6.9%).  

The effective date for the acquisition of the UK Revised Portfolio is 17 August 2016, and the SA Revised Portfolio will be on or about 23 August 2016.  

2. PROPOSED FUNDING OF THE REVISED PORTFOLIO 

The total purchase consideration of the Revised Portfolio of R378.04 million, is R88.34 million lower than the initial purchase consideration of the properties contained in the Revised Portfolio due to favourable currency movements since the Initial Announcement date. 

The Purchase Consideration is payable in cash and will be funded through a combination of new debt facilities and cash proceeds generated from the sale of non-core properties.  

The full purchase consideration of the UK Revised Portfolio has been funded using 5-year term funding fixed at an all-in rate of 2.49%.  

Shareholders are hereby advised that Texton will no longer consider raising equity to fund any of the Purchase Consideration.  

All conditions precedent relating to the acquisition of the Revised Portfolio have been fulfilled and the Blend Acquisition is unconditional.