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Acquisition of Offshore Property Portfolio
Collins Property Group Limited
(Registration number: 1970/009054/06)
Incorporated in the Republic of South Africa
JSE Share code: CPP ISIN: ZAE000152658
(Approved as a REIT by the JSE)
("Collins" or "the Company" or "the Collins Group")
ACQUISITION OF OFFSHORE PROPERTY PORTFOLIO
1. INTRODUCTION
1.1 Shareholders are advised that the Collins Group has concluded a series of inter-conditional
agreements ("the Acquisition Agreements") to acquire the property letting enterprises in respect
of 8 Do It Yourself ("DIY") stores in the Netherlands, including the associated properties ("the
Property Portfolio"), for an aggregate cash consideration of c. EUR 31,500,000 (adjusted as
described in paragraph 3.3 below to an aggregate cash consideration not exceeding
EUR 32,789,429) from Budé Beheer B.V. ("Budé" or "the Seller") ("the Acquisition").
1.2 Budé owns and operates a number of Gamma and Karwei franchise stores in the DIY retail sector
in the Netherlands, which it is currently disposing of to a strategic buyer ("the New Tenant") ("the
Retail Transaction"). The Property Portfolio will continue to be tenanted by these franchise stores
in terms of the triple net leases that were put in place with effect from 01 April 2025 ("the New
Leases").
2. RATIONALE FOR THE ACQUISITION
2.1 The Collins Group has been growing its European portfolio since 2021. It owns a portfolio of six
leased properties in Austria and an interest in four properties in the Netherlands.
2.2 The primary reason for Collins investing abroad is to achieve currency and market diversification.
Collins wishes to invest into established markets with steadier growth prospects and less volatility
in order to provide domestic investors an opportunity to spread risks and exposure to international
markets. Diversifying geographically will provide domestic investors in Collins with exposure to a
European economy and currency.
2.3 The Acquisition is consistent with Collins' investment strategy of acquiring high quality, single-
tenanted commercial properties with long dated leases.
2.4 From a strategic viewpoint, the Acquisition will provide foreign currency earnings from a developed
market with inflation-linked indexation. The diversification is expected to benefit Collins by providing
more sustainable and stable earnings, and reduced business risk.
3. TERMS OF THE ACQUISITION
3.1 In order to give effect to the Acquisition, 5 wholly owned subsidiaries of Collins NED Holdings B.V.
(a 100% subsidiary within the Collins Group) will acquire the entire share capital and, in certain
instances, the shareholder loan accounts of Budé Onroerend Goed Brunssum B.V., Budé
Onroerend Goed Kerkrade B.V., Budé Onroerend Goed Maastricht Oost B.V., Budé Onroerend
Goed Maastricht West B.V., Budé Onroerend Goed Landgraaf B.V., Budé Onroerend Goed
Meersen B.V. and Budé Onroerend Goed Elsloo-Stein B.V., as well as the property and letting
enterprise owned by Budé Onroerend Goed Maastricht Zuid B.V. (each a "Property Portfolio
Company") (collectively, "the Sale Assets"), being the entities that collectively own the Property
Portfolio and operate the associated letting enterprises under triple net lease agreements.
3.2 The Collins Group will acquire the Sale Assets from the Seller with effect from the date of transfer
thereof to the Collins Group and payment by the Collins Group of the estimated purchase
consideration as defined in paragraph 3.3 below ("Completion Date").
3.3 The purchase consideration for the Acquisition will comprise the value ascribed to the Property
Portfolio, plus cash at Completion Date, less debt at Completion Date plus (or minus) working
capital at Completion Date ("the Purchase Consideration"). It is anticipated that the Purchase
Consideration shall be c. EUR 31,500,000, which figure may be adjusted up or down in accordance
with the final completion accounts for the Acquisition but which will not exceed EUR 32,789,429.
3.4 The Acquisition is subject to the condition precedent that the Retail Transaction is completed and
the New Tenant assumes the obligations of the Budé group under the New Leases.
3.5 The Acquisition Agreements contain terms, warranties and indemnities that are standard for a
transaction of this nature.
4. THE PROPERTY PORTFOLIO
Company of Geographical Sector Portion of the Gross Weighted
ownership Location in Purchase Lettable Area Average
the Consideration (GLA) (m2) (EUR/m2)
Netherlands attributable to
each Property
(EUR)
Gamma Brunssum Brunssum Retail 5,151,000 4,805 75.0
Gamma Kerkrade Kerkrade Retail 4,054,000 4,439 70.5
Gamma Maastricht Maastricht Retail 4,206,000 4,060 78.7
Belvédère
Gamma Maastricht Maastricht Retail 4,186,000 3,935 80.9
Oost
Gamma Meerssen Meerssen Retail 3,097,000 3,165 83.2
Karwei Maastricht Gronsveld Retail 4,422,000 4,242 79.2
Zuid
Karwei Elsloo-Stein Elsloo-Stein Retail 3,554,000 3,424 78.9
Karwei Landgraaf Landgraaf Retail 2,830,000 2,544 84.5
TOTAL 31,500,000 30,614
The portion of the Purchase Consideration ascribed to the Property Portfolio as set out in the table above
is considered to be the fair market value thereof, as determined by the board of directors of Collins ("the
Board"). The members of the Board are not registered as professional advisors or as professional
associate advisors in terms of the Property Valuers Profession Act, No 47 of 2000.
5. FINANCIAL INFORMATION
The value of the Sale Assets as recorded in the unaudited management accounts of the Seller at December
2024 is EUR 9.5 million. It should be noted that, in terms of the Seller's accounting policies, investment
property is not recorded at fair value but is rather recorded at historical cost. The Board is of the view that
the Purchase Consideration is a better reflection of the fair value of the Sale Assets.
Up to 31 December 2024, the Property Portfolio was occupied by companies within the Seller's group on
terms that were not arms-length, commercial terms. Furthermore, in line with prevailing income tax
legislation, taxation was calculated on a group basis. Accordingly, the historical profit after tax associated
with the Sale Assets bears no relation to the terms of the New Leases. Based on the terms of the New
Leases, the profits after taxes attributable to the Sale Assets for the 12-month period ending 31 December
2025 is expected to be EUR1.055 million.
This financial information has not been reviewed or reported on by a reporting accountant in terms of section
8 of the JSE Listings Requirements and is the responsibility of the Board
6. CATEGORISATION
The Acquisition is classified as a category 2 transaction in terms of the JSE Listings Requirements and,
accordingly, is not subject to approval by Collins shareholders.
Cape Town
6 August 2025
JSE Sponsor to Collins
Questco Corporate Advisory Proprietary Limited
Date: 06-08-2025 04:50:00
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