HPA/HPB - Hospitality Property Fund Limited - Clarification of Hospitality`s A-3 Feb 2012
HPA   HPB
HPA                                                                             
HPA/HPB - Hospitality Property Fund Limited - Clarification of Hospitality`s A- 
Linked unit (HPA) distribution policy                                           
Hospitality Property Fund Limited                                               
(Incorporated in the Republic of South Africa)                                  
(Registration number 2005/014211/06)                                            
Share code for A-linked units: HPA                                              
ISIN for A-linked units: ZAE000076790                                           
Share code for B-linked units: HPB                                              
ISIN for B-linked units: ZAE000076808                                           
("Hospitality" or "the company")                                                
CLARIFICATION OF HOSPITALITY`S A-LINKED UNIT (HPA) DISTRIBUTION POLICY          
As a result of apparent confusion around Hospitality`s A-linked unit            
distribution profile and certain comments in the press in this regard, this SENS
announcement is being issued for clarification purposes only.                   
Unitholders are referred to Hospitality`s trust deed and supplementals for      
clarity on the distribution policy of the A-linked units.                       
The A-linked unitholders` rights are governed by the terms of the debenture     
trust deed. Specifically concerning the distribution profile, clause 5.4 of the 
first supplemental debenture trust deed provides that "In determining the       
interest distributions with reference to a prior period`s distribution, the     
prior period`s distribution shall be the determined or calculated distribution  
for the equivalent period in the prior year, whether or not such amount was paid
having regard to the availability of funds."                                    
The effect of this is that if the actual distribution to A-linked unitholders   
falls below their preferential entitlement to interest in any one distribution  
period, the distribution entitlement continues to grow at the lower of CPI and  
5% from the entitlement in the prior comparable period and not from the actual  
amount received for such period.                                                
It should further be noted that there is no clawback in subsequent periods in   
respect of any variance between preferential distribution entitlement and actual
distributions in any one period.                                                
Copies of the debenture trust deed and supplementals are available for download 
from the company`s website http://www.hpf.co.za/investor-centre/regulatory-     
documents                                                                       
Johannesburg                                                                    
3 February 2012                                                                 
Corporate advisor                                                               
Java Capital                                                                    
Sponsor                                                                         
RAND MERCHANT BANK (a division of FirstRand Bank Limited)                       
Date: 03/02/2012 15:40:01 Produced by the JSE SENS Department.                  
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