Avior Capital Markets - Arrowhead Properties (186P) ... Arrowhead Properties | Indluplace, Gemgrow and Arrowhead: Pre-close luncheon notes

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Avior Capital Markets

Daniel King

Arrowhead Properties | Indluplace, Gemgrow and Arrowhead: Pre-close luncheon notes

We hosted the management teams from Indluplace (ILU), Gemgrow (GPA/GPB) and Arrowhead (AWA) for a pre-close luncheon on 20 and 21 September. This report is a summary of the important points made during the management presentations and Q&A sessions on both days.

27/09/2018 7 EN

Underlyings

Arrowhead Properties

Arrowhead Properties Limited is a real estate investment trust. The Company operates through three segments: Gauteng, Western Cape and Other. It owns a portfolio of retail, office and industrial properties throughout South Africa, and holds an interest in Indluplace, as well as minority interests in Dipula and Rebosis, which own commercial property portfolios. Its retail properties include Access Park, Cleary Park, Cape Town Westgate Mall, Midtown Mall, Transforum Centre, Montclair Mall, King Williams Town Market Square, Taung Forum, Terminus Shopping Centre and Impala Centre. Its office properties include Sasol Rosebank, Jhb Rosebank 158, Durban Receiver Of Revenue, Urban Brew, Sasol Oil Randburg, Crownwood Office Park, Bridge On Bond, Selby Building, 25 Owl Street and Lakeview Terrace. Its industrial properties include Beka Olifantsfontein, MCG, Kwela Logistics, Access City, Simgold, Waterworld, Kit Group, Kolbenco, McCarthy Centre-Turffontein and Virgin Active Benoni.

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ZAE000203105 South Africa

Gemgrow Properties Ltd A

Gemgrow Properties Limited, formerly Synergy Income Fund Limited, is a real estate investment trust. The Company is a property investment company. It is a specialized retail property fund with a focus on medium-sized community and small regional shopping centers. Its property portfolio consists of over 10 shopping centers. The Company's properties include Gugulethu Square; Phuthaditjhaba Setsing Crescent; Atlantis City Shopping Centre; Ulundi King Senzangakhona Shopping Centre; Emalahleni Highland Mews; Hammanskraal Renbro Shopping Centre; Hillcrest Richdens Shopping Centre; Hartbeespoort Sediba Shopping Centre; Roodepoort Ruimsig Shopping Centre; KwaMashu Shopping Centre; Elim Hubyeni Shopping Centre; Welgedacht Van Riebeeckshof Shopping Centre; Newcastle Taxi City Shopping Centre; Makhado Nzhelele Valley Shopping Centre, and Ermelo Game Centre. Its property portfolio consists of retail properties, and is situated throughout South Africa in Gauteng, Mpumalanga and the Free State.

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ZAE000223269 South Africa

Gemgrow Properties Ltd B

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ZAE000223277 South Africa

Indluplace Properties Ltd

Indluplace Properties Limited is a residential focused real estate investment trust (REIT). The primary business of the Company is focused on owning and growing a residential property portfolio. The company owns a portfolio of over 90 residential properties located in Gauteng and Mpumalanga in South Africa. The Company operates through two segments: Gauteng and Mpumalanga. Its property portfolio comprises approximately 3,690 residential units and over 130 retail spaces with a gross leasable area of approximately 9,469 square meters. Its services provided include letting, collections, building management and prepaid electricity. The Company also provides the asset management of the portfolio internally. The Company's property portfolio includes Highveld View in Mpumalanga, and Protea Glen, Redwood, Balnagask, Golden Views, Bree Street block, Amberfield, Wonderpark and Rosewood in Gauteng.

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ZAE000201125 Johannesburg Stock Exchange South Africa

Provider

Avior Capital Markets

Avior is a globally recognised capital markets research and trading firm, with the broadest research coverage within the region, with 100+ SA and 20+ SSA companies under coverage. Avior services clients from offices in London, Cape Town and Johannesburg.

Our research quality is consistently recognised in local and global surveys, with 18 analysts currently rated in their respective sectors (FM 2017). Value add through in-depth, innovative, high quality and consistent research with comprehensive underlying fundamental modelling supported by regular analyst and roadshow interactions.

Avior has proven that by working closely with our clients we can mutually develop dominant positions in certain sectors, going from strength to strength. Avior has a dedicated ESG team, having been ranked #1 in Corporate Governance research since 2008.

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Analysts

Daniel King

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Arrowhead Properties | Indluplace, Gemgrow and Arrowhead: Pre-close luncheon notes

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