Following the merger effective May 2003, Growthpoint Properties, managed by Investec Property Group, has become South African's largest listed property investment company and has grown its assets to in excess of R6 billion.

"We are delighted to have been selected as one of the top 10 deals by DealMakers," said Norbert Sasse of Growthpoint Properties. The winning DealMakers Deal of the Year will be announced on 2 March.

The merger of equals between, Growthpoint and Primegro Properties, occurred in a context where the investor market, particularly institutional investors, had indicated a preference for high quality property funds, combined with conservative policies relating to gearing and loan to value ratios.

The opportune timing and positive market reaction to the merger is reflected in Growthpoint Properties' share price which has increased 15% since the effective date of the merger, from R5,30 to over R6,00. In addition the deal contributed to a re-rating of the share, relative to the rest of the shares listed in the property sector.

"Strategically, the objective of this merger was to provide shareholders with the benefit of a large market capitalisation (currently around R3,7 billion), increased liquidity and tradability and improved sectoral diversification," said Sasse.

Of benefit to shareholders is the increase in tradability of Growthpoint linked units. Growthpoint's increased liquidity is reflected in the average post-merger monthly trade of issued share capital equating to R98 million (2.59%), as compared to R11 million (0.75%) pre-merger.

In addition the combining of the two complementary property portfolios has positioned Growthpoint ahead of the market in terms of the positive performance experienced in the retail sector.

The new merged Growthpoint portfolio has resulted in improved sectoral diversification with a 50% exposure to the retail property sector. Growthpoint's retail portfolio far exceeds that of other funds in both value and size, reflecting an expansive 700 000m2 of lettable space valued in excess of R3 billion.

In addition, the merger has given Growthpoint the critical mass to subsequently conclude deals to the value of R1.2 billion post-merger. Included in this is the acquisition of regionally dominant Waterfall Mall in Rustenburg and the purchase of Investec's head offices in Cape Town and Sandton.

Flowing from the merger, is also the improved ability of Growthpoint to access more advantageous borrowing rates and other major deals. With its increased bulk Growthpoint is ideally positioned to take advantage of future acquisition opportunities arising within the property sector. "Growthpoint is on track to becoming a point of reference for investors, and especially institutions, seeking exposure to the South African property market," said Sasse.

Norbert Sasse

Investec Property Group

011 286 7306

Cell: 083 632 1599

or

Marketing Concepts

Sandy Davey

Tel. 011 880 2213

083 453 6668