Accelerate Property Fund : Posting Of Circular Relating To The Dividend Re-Investment

ACCELERATE PROPERTY FUND LIMITED Incorporated in the Republic of South Africa Registration number 2005/015057/06 Share code: APF ISIN: ZAE000185815 ("Accelerate" or "the Company")

(Approved as a REIT by the JSE)

POSTING OF CIRCULAR RELATING TO THE DIVIDEND RE-INVESTMENT

Accelerate's results for the 12-month financial period ended 31 March 2022 were released on SENS on 27 June 2022. Accelerate shareholders ("Shareholders") were advised in these results that the directors of Accelerate have declared a cash dividend of 21.98051 cents per Share for the 12 months ended 31 March 2022 ("Cash Dividend"). Shareholders have been provided with the election to reinvest the Cash Dividend in return for Shares ("Share Re-InvestmentAlternative").

By electing to receive Shares, Shareholders will be able to increase their shareholding in Accelerate without incurring dealing costs and uncertificated securities tax. In turn, Accelerate will benefit from an increase in the amount of Shareholders' funds available to support continued growth.

The circular to shareholders which includes the details of the Dividend and the Share Re-Investment Alternative (and the election form) will be posted to Shareholders today, 5 July 2022.

Shareholders will be entitled, in respect of all or part of their shareholding, to elect to participate in the Share Re-Investment Alternative, failing which they will receive the Cash Dividend of 21.98051 cents per Share, which will be paid to those Shareholders not electing to participate in the Share ReInvestment Alternative.

The dividend accrued over the 12 months ended 31 March 2022. The number of Shares to which Shareholders are entitled will be determined by the board of directors with reference to the ratio that 70 cents per Share bears to the ratio price. The price will be announced on the Finalisation Date, which will be no later than 11:00 on Tuesday, 12 July 2022.

The salient dates and times of the Dividend and Share Re-Investment Alternative are set out below.

Notes:

1. Shareholders electing the Share Re-investment Alternative are requested to note that new Shares will be listed on LDT + 3 and that these new Shares can only be traded on LDT + 3, as settlement of the Shares will be three days after record date, which differs from the conventional one day after record date settlement process.
2. Shares may not be dematerialised or rematerialised between commencement of trade on Wednesday, 20 July 2022 and the close of trade on Friday, 22 July 2022, both days inclusive.
3. The above dates and times are subject to change. Any changes will be released on SENS and published in the press.
4. The Circular will also be made available on the Company's website at https://www.acceleratepf.co.za/pdf/Accelerate31March2022DRIPcircular.pdf

Johannesburg

5 July 2022

Sponsor:

The Standard Bank of South Africa Limited

TAX IMPLICATIONS

In accordance with Accelerate's status as a Real Estate investment Trust ("REIT") with effect from 12 December 2013, Shareholders are advised that the dividend meets the requirements of a "qualifying distribution" for the purposes of section 25BB of the Income Tax Act, No 58 of 1962 ("Income Tax Act"). The dividends on the Shares will be deemed to be dividends for South African tax purposes in terms of section 25BB of the Income Tax Act.

Tax implications for South African resident Shareholders Dividends received by or accrued to South African tax residents must be included in the gross income of such Shareholders and will not be exempt from income tax in terms of the exclusion to the general dividend exemption contained in section 10 (1)(k)(i)(aa) of the Income Tax Act because they are dividends distributed by a REIT. These dividends are however exempt from dividend withholding tax ("Dividend Tax") in the hands of South African resident Shareholders provided that the South African resident Shareholders have provided to the CSDP or broker, as the case may be, in respect of uncertificated Shares, or the Company, in respect of certificated Shares, a DTD (EX) (Dividend Tax: Declaration and undertaking to be made by the beneficial owner of a dividend) form to prove their status as South African residents.

If resident Shareholders have not submitted the abovementioned documentation to confirm their status as South African residents, they are advised to contact their CSDP, or broker, as the case may be, to arrange for the documents to be submitted prior to the payment of the dividend.

Tax implications for non-resident Shareholders

Dividends received by non-resident Shareholders from a REIT will not be taxable as income and instead will be treated as ordinary dividends which are exempt from income tax in terms of the general dividend exemption in section 10(1)(k)(i) of the Income Tax Act. It should be noted that up to 31 December 2013 dividends received by non-residents from a REIT were not subject to Dividend Tax. With effect from 1 January 2014, any dividend received by a non-resident from a REIT was subject to Dividend Tax at 20%, unless the rate is reduced in terms of any applicable agreement for the avoidance of double taxation ("DTA") between South Africa and the country of residence of the non-resident Shareholder. Assuming Dividend Tax will be withheld at a rate of 20%, the net dividend amount due to non-resident Shareholders is 17 58441 cents per Share. A reduced dividend withholding rate in terms of the applicable DTA may only be relied on if the non-resident Shareholder has provided the following forms to their CSDP or broker, as the case may be, in respect of uncertificated Shares, or the Company, in respect of certificated Shares:

• A declaration that the dividend is subject to a reduced rate as a result of the application of a DTA; and
• A written undertaking to inform the CSDP, broker or the Company, as the case may be, should the circumstances affecting the reduced rate change or the beneficial owner cease to be the beneficial owner, both in the form prescribed by the Commissioner for the South African Revenue Service.

If applicable, non-resident Shareholders are advised to contact the CSDP, broker or the Company, as the case may be, to arrange for the abovementioned documents to be submitted prior to payment of the dividend if such documents have not already been submitted.

A worked example illustrating the impact for resident and non-resident Shareholders will be announced as part of the finalisation information on SENS on the Finalisation Date.