Pangbourne Properties, a listed loan stock company, has reached agreement with black empowerment investment company Yard Capital to acquire an effective 6.15% interest in Pangbourne.

This transaction is the first stage of Pangbourne’s transformation strategy and is, in all elements, working towards achieving the objectives of the draft property charter, including the development of black industry players.

The transaction has been structured to ensure that it will not dilute distributions to existing combined unit holders. Capital raised from the transaction will be utilised to purchase the R125 million Paramount portfolio. The transfer of this portfolio is expected to take place by no later than the end of October which approximately coincides with the issue of the Pangbourne combined units.

“Pangbourne’s commitment to deliver increase in distributions to unitholders on a sustainable basis will be enhanced through its partnership with Yard, who will further contribute towards this vision. The relationship with Yard, established over an 18 month period, is based on bilateral benefits resulting from transfer of skills from Pangbourne to Yard and through dedicated time being committed by Yard executives to increase Pangbourne’s property portfolio,” said Craig Hutchison, CEO of Pangbourne Properties Limited.

“Yard is strategically focused on the property industry and Pangbourne is its key investment,” said Leslie Maasdorp, non-executive chairman of Yard. He emphasised that Yard has a hands on approach and lately has been exploring innovative property solutions, especially to the challenges confronting the public sector. Furthermore, one of the areas that Pangbourne and Yard will be focusing on is commercial property opportunities in previously underserviced black areas, in line with one of the key objectives of the property charter.

The transaction is conditional upon the registration of a bond in favour of Absa over certain properties owned by Pangbourne and the approval by Pangbourne shareholders and debenture holders.

“Yard Capital’s commitment to Pangbourne’s transformation process is reflected in the lead role that it will take in the further development of Pangbourne’s transformation strategy. We look forward to playing an active role in providing sustainable transformation in the property industry with our new partners.” said Hutchison.

Ends…

Issued on behalf of Pangbourne Properties Limited
Contact:        Craig Hutchison
  Chief Executive Officer
  Tel (011) 889 8500 or 083 630 8683

For further information, please contact Corporate Communications Consultants:
Contact:   Rosemary Renton/Anne Vicente
  Tel:  (011) 783 8926
  11 October 2005

About Pangbourne

Pangbourne was the first loan stock company to be listed on the JSE in 1987 with income earning assets of R146 million. It continued to set the pace by taking its property management in-house and also became the first to take over another listed loan stock, RMS Properties. This was followed by the takeover of Grove Properties, Pioneer Properties and CBD Properties. Assets currently under management are in excess of R4 billion.

Pangbourne’s vision is to create a property company that can produce sustainable growth in distributions to investors over the long term. This will be achieved in part by capitalising on the management expertise and experience gained over the years and by expanding its property management activities.

Pangbourne’s market capitalisation has increased from R250 million in 1998 to the current level of R2,0 billion.  Total return to unitholders of 19% per annum over the past 10 years is well ahead of the JSE ALSI.  Core to these achievements was the decision to change to own management of the properties, which effectively aligns management’s objectives with those of unitholders.

About Yard Capital

Yard Capital is a black empowerment investment company incorporated in September 2002. The directors and principal shareholders are Leslie Maasdorp (non-executive chairman), Irene Charnley and Lumkile Mondi (non-executive directors), Yogesh Narsing and Lizwi Mtumtum (executive directors).

Yard Capital is an active investor and works pro-actively with the management of companies in which it invests to enhance its ability to generate above average returns for shareholders.

Current investments include a 30% interest in Fujitsu Services (Proprietary) Limited (an IT services company and a subsidiary of Fujitsu Services Plc, the third largest global IT services company) and a 6.75% interest in Sani-tech (Proprietary) Limited (a provider of portable toilet hire and hygiene sanitation services with a dominant share of the market).