Equites International Limited ("Equites International"), has concluded an agreement with Barlow Property II LLP ("the seller"), in terms of which Equites International will acquire a new, 24 340 square meter distribution centre situated in Glasshoughton, England ("the property") from the seller for a purchase consideration of £30 675 000 (equivalent to approximately ZAR559 818 750) (the "purchase consideration") which is payable in cash ("the transaction"). The transaction is consistent with Equites' stated growth and investment strategy of: diversification into the United Kingdom ("UK") in order to mitigate the risks of its emerging market focus and access the advanced know-how and technology in respect of logistics facilities in the UK; focusing on premium "big-box" distribution centres, let to investment grade tenants on long-dated "triple net leases", in proven logistics nodes and built to institutional specifications; and building a high-quality logistics portfolio, consisting of properties with predictable rental growth profiles, that promotes capital growth and increasing income returns over the medium to long term. Equites views the property as evidencing the following sound investment fundamentals: The property, which meets modern logistics requirements, is in Glasshoughton (near Leeds) which is an established industrial and distribution market owing to its strategic location at the intersection of the A1(M), M1 and M62 motorways.

It also benefits from excellent road, rail, air and sea connectivity. The property, 24 340 square metres in extent on a 5.3 hectare site which translates into a low coverage of 45%, provides the tenant with a steel portal framed warehouse, a two storey high quality office area, dock level and level access doors, extensive 50 metre yards and clear height to eaves of 15 metres. The seller and Puma United Kingdom Limited ("Puma") have concluded an agreement of lease for a 15-year period as from 1 August 2019, with an option in favour of the tenant to break after 10 years.

The tenant forms part of the German based Puma SE Group, the third largest sportwear company in the world, with Puma SE being listed on the Frankfurt Stock Exchange. The group employs 13 000 people and its products are distributed in more than 120 countries. Puma SE, which had a global turnover of 6.54 billion (approximately ZAR110 billion) in 2018 will act as guarantor in respect of all the obligations of the tenant in terms of the lease.

The Puma lease will be on a fully repairing and insuring basis with rent reviews at the end of years 5 & 10 where the rent will be reviewed to the higher of open market rental value or RPI uplifts compounded annually with a cap of 3% and a collar of 1%. Independent expert advice has been that the current estimated rental value for the property is higher than the base rent of £5.75 per square foot as per the Puma lease, which confirms the rental growth profile of the property. The company provided earnings guidance for the nine months ending February 29, 2020 and February 28, 2021.

For the period, the company expects rental revenue of ZAR 14,996,000, net property income/net operating profit of ZAR 14,904,000, and Profit after tax of ZAR 11,087,000. For the year ending February 28, 2021, the company expects rental revenue of ZAR 29,226,000, net property income/net operating profit of ZAR 29,129,000, and Profit after tax of ZAR 21 690,000.