to download part c of the business plan

63

PROPERTY VALUATION: ANFAPLACE SHOPPING CENTRE, CASABLANCA

1111

VALUATION REPORT

Anfaplace shopping center Anfaplace living resort Boulevard de l’Ocean Atlantique, Casablanca, Morocco

Freedom Fund

Valuation Date: 29th August 2014

FREEDOM FUND - ANFAPLACE SHOPPING CENTER – CASABLANCA

TABLE OF CONTENTS 1. EXECUTIVE SUMMARY 3

1.1 EXECUTIVE SUMMARY 4

2. VALUATION REPORT 6

1.2 VALUATION REPORT 7

1.3 SCOPE OF WORK & SOURCES OF

INFORMATION 11

1.4 STANDARD VALUATION ASSUMPTIONS 13

3. PROPERTY REPORT 16

1.5 PROPERTY DETAILS 17

LEGAL CONSIDERATIONS 44

MARKET COMMENTARY 45

1.6 VALUATION CONSIDERATIONS 55

1.7 VALUATION METHODOLOGY 56

1.8 REINSTATEMENT COST 59

1.9 OPINION OF VALUE 60

4. APPENDIX 61


1 EXECUTIVE

SUMMARY


1.1 EXECUTIVE SUMMARY

1.1.1 Property

Interior View Main Entrance

Source: CBRE

1.1.2 Location Map

Source: Google Earth - CBRE


1.1.3 The Property

The property comprises a shopping center (22,411 sq m GLA) and 31 high street units (6,159.3 sqm

GLA) representing a total gross leasable area (GLA) of 28,571 sq m located in Anfaplace living

resort. This project includes residences, offices, and a hotel (under construction).

The property, inaugurated on February 2013, is located on the northern area of Casablanca, in

Boulevard De la Corniche; one of the most prestigious avenues in the economic capital.

1.1.4 Tenure

The Property is held freehold under 32 title deeds

High street units : 31 Title deeds -1 Shopping center : 1 title deed.

1.1.5 Market Value

We estimate that the Market Value of the Property is as follows:

1,024,000,000 MAD

(ONE BILLION TWENTY FOUR MILLION DIRHAMS)

Excluding taxes and acquisition costs

92,200,000 ¤

(NINETY-TWO MILLION TWO HUNDRED THOUSAND EUROS)*


1.1.6 Reinstatement Cost

We estimate that the reinstatement cost of the Property is as follows:

363,500,000 MAD

(THREE HUNDRED SIXTY THREE MILLION FIVE HUNDRED THOUSAND DIRHAMS)

Excluding VAT

32,700,000 ¤

(THIRTY-TWO MILLION SEVEN HUNDRED THOUSAND EUROS)*

Excluding VAT

* 1 EUR = 11.1014 MAD (Source Xe.com 16/09/2014).


2 VALUATION REPORT


1.2 VALUATION REPORT

CBRE

97 Boulevard Massira Al Khadra

1er Etage 20 100 Casablanca

Maroc

Standard: +212 (0) 5 22 77 89 80 Fax : + 212 (0) 5 22 98 75 17

Valuation report Report Date September 16th 2014

Addressee Freedom Fund Delta Property Fund Silver Stream Office Park, 10 Muswell Road South,

Bryanston, Sandton, Johannesburg, South Africa

The Property The property comprises a shopping center and 31 high

street units located in Anfaplace Living Resort, on

Boulevard de l’Ocean Atlantique, Casablanca,

Morocco.

Property Description The property is located on the northern area of

Casablanca called Ain Diab; an upscale zone in the

city, within the Anfaplace living resort.

The property comprises a shopping center and 31 high

street units totalizing 28,571 sq m GLA.

Ownership Purpose Exclusive owner occupation.

Instruction In accordance with your instruction dated August 29th

2014, we have inspected the aforementioned property,

and where possible, made all the appropriate enquiries

in order to advise you as to an opinion of the Market

Value at the inspection date.

Valuation Date August 29th 2014.

Capacity of Valuer External.

Purpose Internal use only.


Market Value We estimate that the Market Value of the Property is as

follows:

1,024,000,000 MAD



92,200,000 ¤

(NINETY-TWO MILLION TWO HUNDRED THOUSAND

EUROS)*



Our opinion of Market Value is based upon the Scope

of Work and Valuation Assumptions attached.

Compliance with Valuation Standards

The valuation has been prepared in accordance with

The RICS Valuation - Professional Standards 2014. The

property details on which each valuation is based are

as set out in this report.

We confirm that we have sufficient current local and

national knowledge of the particular property market

involved, and have the skills and understanding to

undertake the valuation competently.

Special Assumptions None.

Assumptions We have made various assumptions as to tenure,

letting, town planning, and the condition and repair of

buildings and sites – including ground and groundwater

contamination – as set out below.

If any of the information or assumptions on which the

valuation is based are subsequently found to be

incorrect, the valuation figures may also be incorrect

and should be reconsidered.

Variation from Standard Assumptions

Town Planning:

We have not been provided with the zoning ordinance

(note de renseignements) of the title deeds. We have

assumed that the property has all the relevant

permissions and licenses.


Authorisations:

We have not been provided with the building licence

and we have therefore assumed that the constructions

comply with the legislation in force.

Verification

We recommend that before any financial transaction is

entered into based upon these valuations, you obtain

verification of the information contained within our

report and the validity of the assumptions we have

adopted.

We would advise you that whilst we have valued the

Properties reflecting current market conditions, there are

certain risks which may be, or may become,

uninsurable. Before undertaking any financial

transaction based upon this valuation, you should

satisfy yourselves as to the current insurance cover and

the risks that may be involved should an uninsured loss

occur.

Valuer The Property has been valued by a valuer who is

qualified for the purpose of the valuation in accordance

with the RICS Valuation Standards.

Independence The total fees, including the fee for this assignment,

earned by CBRE Morocco from the Addressee (or other

companies forming part of the same group of

companies) are less than 5.0% of CBRE Morocco’s total

revenues.

Conflict of Interest We can confirm that there is no conflict of interest.

Reliance This report is for the use only of the party to whom it is

addressed for the specific purpose set out herein and

no responsibility is accepted to any third party for the

whole or any part of its contents.


Publication Neither the whole nor any part of our report nor any

references thereto may be included in any published

document, circular or statement nor published in any

way without our prior written approval of the form and

context in which it will appear.

Yours faithfully,

Michaelangelo Zasy, MRICS

Imane Kabbaj

Director

CBRE Valuation Maroc

Managing Director

CBRE Maroc

T: +212 5 22 77 89 80

F: +212 5 22 98 75 17

T: +212 5 22 77 89 80

F: +212 5 22 98 75 17

E: [email protected]

W: www.cbre.com

Project Reference: VAC-14-010

E: [email protected]

W: www.cbre.com

http://www.cbre.com/

http://www.cbre.com/


1.3 SCOPE OF WORK & SOURCES OF

INFORMATION

Sources of Information

We have carried out our work based upon limited

information supplied by Freedom Fund, which we have

assumed to be correct and comprehensive. In the case

of such information proving to be incorrect or any

additional information being supplied to us

subsequently, the accuracy of the valuation could be

affected and in such circumstances we reserve the right

to amend our report accordingly.

In preparing this valuation we have relied upon the

following sources of information:

Anfaplace budget 2014 (Excel File)

Management accounts 2014 (Excel file)

Floor plans (Pdf file)

Tenancy Schedule (Excel File)

Rent Roll (Excel file)

Non Recoverable Expenses 2014 (Excel File)

Gross Floor areas (Excel File)

2013 Mall Income and turnover rent figures (Excel

file)

Various copies of lease contract (Pdf file)

Various copies of service charges for 2013 sent to

the tenants (Pdf file)

Updated Rent Roll and mall income sent on August

29th 2014 (excel file)

The Property Our report contains a brief summary of the property

details on which our valuation has been based.


Inspection The Property was inspected both internally and

externally on August 29th 2014 by Michaelangelo Zasy

and Anas Ababou of CBRE Morocco, except:

Storage area

Areas We have not undertaken check measurements of the

property and we have relied on the information

supplied by the client. Should these prove to be

incorrect we would reconsider our market values.

Environmental Matters

We have not carried out any investigation into the past

or present uses of the Property, nor of any neighbouring

land, in order to establish whether there is any potential

for contamination and have therefore assumed that

none exists.

Repair and Condition We have not carried out building surveys, tested

services, made independent site investigations,

inspected woodwork, exposed parts of the structure

which were covered, unexposed or inaccessible, nor

arranged for any investigations to be carried out to

determine whether or not any deleterious or hazardous

materials or techniques have been used, or are present,

in any part of the Property. We are unable, therefore,

to give any assurance that the Property is free from

defect.

Town Planning We assume that the Property is in accordance with the

current planning legislation and that it has all the

relevant permissions and licenses. We have assumed

that the property is for commercial use.

Titles, Tenures and Lettings

We have not generally examined nor had access to all

the leases or other documents relating thereto. Where

information from leases or other documents is recorded

in this report, it represents our understanding of the

relevant documents. We should emphasise, however,

that the interpretation of the documents of title

(including relevant deeds, leases and planning

consents) is the responsibility of your legal adviser.


1.4 STANDARD VALUATION ASSUMPTIONS

Market Value The valuation has been prepared on the basis of

“Market Value” which is defined as:

“The estimated amount for which a property should

exchange on the date of valuation between a willing

buyer and a willing seller in an arm's-length transaction

after proper marketing wherein the parties had each

acted knowledgeably, prudently and without

compulsion".

No allowances have been made for any expenses of

realisation nor for taxation which might arise in the

event of a disposal. Acquisition costs have not been

included in our valuation.

No account has been taken of any inter-company

leases or arrangements, nor of any mortgages,

debentures or other charges.

No account has been taken of the availability or

otherwise of capital based Government or European

Community grants.

The Property Where appropriate we have regarded the shop fronts of

retail and showroom accommodation as forming an

integral part of the building.

Landlord’s fixtures such as lifts, escalators, central

heating and other normal service installations have

been treated as an integral part of the building and are

included within our valuations.

Process plant and machinery, tenants’ fixtures and

specialist trade fittings have been excluded from our

valuations.

All measurements, areas and ages quoted in our report

are approximate.

Environmental Matters

In the absence of any information to the contrary, we

have assumed that:

(a) the Property is not contaminated and is not adversely

affected by any existing or proposed environmental law;


(b) any processes which are carried out on the Property

which are regulated by environmental legislation are

properly licensed by the appropriate authorities.

Repair and Condition In the absence of any information to the contrary, we

have assumed that:

(a) there are no abnormal ground conditions, nor

archaeological remains, present which might adversely

affect the current or future occupation, development or

value of the property;

(b) The Property is free from rot, infestation, structural or

latent defect;

(c) no currently known deleterious or hazardous

materials or suspect techniques, including but not

limited to Composite Panelling, have been used in the

construction of, or subsequent alterations or additions

to, the Property;

(d) the services, and any associated controls or

software, are in working order and free from defect.

We have otherwise had regard to the age and apparent

general condition of the Property. Comments made in

the property details do not purport to express an

opinion about or advice upon, the condition of

uninspected parts and should not be taken as making

an implied representation or statement about such

parts.


Title, Tenure, Planning and Lettings

Unless stated otherwise within this report, and in the

absence of any information to the contrary, we have

assumed that:

(a) the Property possesses a good and marketable title

free from any onerous or hampering restrictions or

conditions;

(b) all buildings have been erected either prior to

planning control, or in accordance with planning

permissions, and have the benefit of permanent

planning consents or existing use rights for their current

use;

(c) the Property is not adversely affected by town

planning or road proposals;

(d) all buildings comply with all statutory and local

authority requirements including building, fire and

health and safety regulations;


3 PROPERTY REPORT


1.5 PROPERTY DETAILS

Location

The subject property is located in the city of Casablanca, the economic capital of Morocco. This city is

located on the Atlantic coast around 90 km south of Rabat and around 370 km south of Tangier.

The site subject to valuation is located in the north of the city, 3 km from the historical downtown of the

city.

Situation


The City of Casablanca

Casablanca is located in the north of Morocco, half way between Marrakech and Tangier. The city lies

on the Atlantic coast and is located 95 km south of the capital Rabat. According to data from the latest

population census carried out by the H.C.P (Moroccan Statistics Office) in 2010, Casablanca is the

largest city in Morocco with a population of around 3,786,000 million inhabitants. The city is also the

economic hub of Morocco and is considered to be the financial capital of Morocco.

The map below illustrates the geographical location of Casablanca:*

Communications

Air

Casablanca is home to the largest airport in the country: Mohamed V Airport, which is located

30 kilometres to the southeast of the city center. Mohamed V airport has the highest number of annual

passengers and airfreight of all the airports in Morocco. The airport accounts for the majority of

national and international air passenger traffic and goods and is regularly serviced by 45 airline

companies, which fly to 70 different destinations.

According to the National Airports Service (Office National Des Aéroports), 7,290,314 passengers were

registered at the Mohamed V airport in 2011, which represents 46% of the total figure for Morocco.

The passenger numbers include both national and international flights.

The construction of terminal 2 in September 2007 increased the airport’s capacity to 6 million

additional passengers per year, which relates to an annual overall capacity of the airport of 11.4

million passengers, which is a 90% increase.

AlgérieMar

oc

Mauritanie

Espagne

Casablanca


Maritime Network

The Greater Casablanca region comprises two main ports; the port of Casablanca and the port of

Mohammedia. The port of Casablanca is the largest in the country. According to the Office

d’Exploitation des Ports (ODEP), the port of Casablanca covers 180 hectares and is equipped to receive

both goods and hydrocarbons.

Another main activity of the port is the export of phosphate and import of metal products, hydrocarbons

and wood. The second port of Greater Casablanca is the Mohammedia port, which is solely dedicated

to oil products. In total, both ports account for 52% of the total national sea transport figure.

Nevertheless, the development of the Tangier-Med port, which has been operational since 2008, is also

becoming one of the most important ports in the country.

It is important to mention that the part of the commercial port which houses the plots of land subject to

valuation, will relocate to the eastern side of the port.

Car

The city of Casablanca is connected to Morocco’s other main cities via a national motorway network,

which is illustrated in the map below:

Casablanca is well served by the highways that cross the region which are:

Casablanca – Rabat: 95 km (currently being widened to three lanes),

Casablanca – Tangier: 370 km,

Casablanca – Fez: 290 km,

Existing Motorways

Motorways under construction


Casablanca – Marrakech: 240 km,

Casablanca – El Jadida: 100 km,

Casablanca - Oujda (recently opened): 610 km,

Casablanca – Agadir (opened in 2010): 452 km.

Train

The city of Casablanca has two main railway stations (Casa Port and Casa Voyageurs), which are

located close to the city center. There are also other stations of lesser importance including Oasis and

Aïn Sebaâ. There is a direct and regular connection between Casablanca (mainly Casa Port) and Rabat

and these trains normally run every 30 min. There are other regular connections with the country’s main

cities (Tangier, Marrakech, El Jadida, Fez, Oujda). The first phase of the national High Speed Train

programme was opened by King Mohamed VI and the French president Nicolas Sarkozy in September

2011. The first line will connect Tangier-Kenitra-Rabat and Casablanca and this line is expected to be

operational in 2015.

The entire High Speed Train (TGV) programme is expected to be fully operational by 2030, and will link

the following cities:

Tangier to Agadir via Kenitra, Rabat, Casablanca, Marrakech and Essaouira in less than 4 hours

(Atlantic Line),

Casablanca to Oujda through Rabat, Meknes and Fez in less than 3 hours (Maghreb Line).

The following table shows an estimation of the future journey times by High Speed Train between the

major Moroccan cities:

Journey Current TGV Gain

Casablanca – Tangier 4h45 1h30 3h15

Rabat – Tangier 3h45 1h 2h45

Casablanca – Marrakech 3h15 1h05 2h10

Rabat – Marrakech 4h15 1h40 2h35

Rabat – Fez 2h30 1h 1h30

Casablanca – Agadir - 2h35 -

Tangier – Fez 4h40 1h40 3h00

Fez – Oujda 5h30 1h20 4h10

Bus

The main modes of transport within Casablanca are private bus and private taxi hire. Both of these are

easily accessible across the whole city.

Tramway

The first Casablanca tram opened in December 2012. This first line links the neighbourhood of Sidi

Moumen to the university area and Hay Hassani via the city center (30 km).


Macroeconomic description of Morocco

Politics

Despite uprisings and instability across Northern Africa and some countries in the Middle East, Morocco

has emerged as one of the most politically stable and thus attractive markets for investors in the region.

Faced with the pressure for political change, in contrast to some of the country’s neighbours, Morocco’s

King proposed a new constitution. He called a national referendum, where millions of citizens took part

across the nation’s main cities.

The Moroccan constitutional reform, which was approved by a wide majority, represents the wishes of a

large cross section of Moroccan society; from the private sector, universities, religious organisations and

civil society. The proposed constitution changes Morocco's governance system, providing increased

power to elected government (including the Prime Minister) and the improvement of civil liberties.

Within a context marked by constitutional reform, the newly elected Moroccan government, led by the

moderate Islamist Justice and Development Party, has drawn up a strategy to implement a political,

economic and social reform programme to meet the challenges of good governance and respond to

social and economic expectations. In order to perpetuate the initiative, the “2012 finance bill” was

recently adopted and introduced a number of changes to comply with international standards on

transparency, promote sustainable growth and support social development.

The Moroccan government has introduced many reforms over the past decade in order to promote

sustainable development projects across a wide variety of fields, and strengthen some key sectors of the

Moroccan economy. These reforms include:

Infrastructure: The government has invested in various infrastructure upgrades (new highways, high

speed trains, new airports, etc.)

Social conditions: This relates mainly to education, health and security. The Moroccan government

aims to address these issues through a new national human development initiative called “INDH”.

The National Initiative for Human Development was launched in Morocco in 2005, with the aim of

mobilising the country’s institutional and financial resources to improve living conditions amongst the

population and improve national social indicators.

Economic modernisation: These reforms support the modernisation of the private sector, the

improvement of vocational training, the modernisation of industry (adopting more profitable

industries), agriculture and fisheries, transport, energy and, creating an improved environment for

investment and competition in the framework of an open market economy. The Emergence Program

(Plan Emergence), which was created in late 2005, is aimed at both improving competitiveness in

traditional industry sectors (textiles, food processing and fisheries) and supporting the emergence of

newer sectors (offshoring, automotive parts, electronic components and aeronautics). Another

example of the Moroccan government’s initiative to develop strategic sectors is the “Plan Maroc

Vert”, which is aimed at improving productivity in the agriculture sector.

It is expected to lead to the creation of one million agricultural enterprises through the

implementation of 1,000 to 1,500 projects throughout the country.

Tourism: Via the Vision 2010 initiative, the Moroccan government aims to increase the number of

tourists to the country, in order to turn it in to one of the world’s top tourist destinations. The initiative

was launched in the early 2000s and aims to boost visitor numbers from 2 million to 10 million a


year (7 million of whom will be international visitors) by granting certain areas of the kingdom a

special status. The “Plan Azur” areas were established on stretches of the coastline that were

recognised for their outstanding natural beauty and untapped tourist potential. Each area has been

given a designated theme such as culture, sustainability, or sport to act as a coherent strategy for

development. Furthermore, Vision 2020 recently launched an initiative to make Morocco one of the

world’s top twenty tourist destinations and a model of sustainability in the Mediterranean region by

2020.

Economics

GDP

GDP Growth

Source: Haut-Commissariat au Plan (National Statistics Agency)

The financial crisis across the world does not appear to have had a significant effect on the growth of the

Moroccan economy (GDP grows stood at +5% in 2011).

0

100 000

200 000

300 000

400 000

500 000

600 000

700 000

800 000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012e

M MAD

Annual average growth

rate : + 6,4%


GDP Per Sector in 2010

Source: Haut Commissariat au Plan (National Statistics Agency)

The GDP is heavily dependent on the commercial sector (55% in 2010); the secondary and primary

sectors represent 30% and 15% respectively.

INFLATION

Inflation Rate Growth from 2000 to 2011

Source: Haut Commissariat au Plan (National Statistics Agency)

There was a considerable increase in 2006 due to the increase in the prices of petroleum products and

other raw materials in international markets. In 2008, the global economy entered a period of recession,

ending the growth cycle that started in 2004. The financial crisis that originated in the USA propagated in

various financial markets (emerging countries included) reducing opportunities for investment. At that

time, the developed economies were affected by a significant decrease in production, a considerable

increase in unemployment and a reduction in revenues. Inflation was excessive for the Moroccan

economy at that time and without the intervention of the government, prices would have reached

unsustainable levels.

Secondary

sector

30%

Tertiary

sector

55%

Primary

sector

15%

1.5

2.8

1.6

0.91.0

3.7

2.5

3.3

1.9

0.6

1.0

1.2

0

1

2

3

4

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Commercial


The inflation rate was controlled by:

A healthy stock market with primarily local investors and a restricted amount of capital: as the

economy had not reached the critical stage of integration into the international financial markets, the

Moroccan financial markets remain relatively small, with limited foreign exchanges;

Controlling the Budget deficit.

Inflation Rate in 2010

Source: CFG Research

In 2010, Morocco recorded the lowest inflation rate in the MENA region, at 0.9%.

FDI

The Moroccan economy has seen macroeconomic stability, with generally low inflation and sustained,

moderate-high growth rates over recent years.

As a result of an FDI, the national economy has grown considerably since 2005, which came about

thanks to the constructive measures that were put in place by the government, in order to attract foreign

investors.

0 2 4 6 8 10 12

Bahrein

Algeria

Tunisia

Saudi Arabia

Kuwait

Lebanon

Egypt

Morocco

Jordan

Syria

Yemen

Iran

Turkey

0.9%


The effects of democratic upheavals and current transitions are apparent in the FDI figures and

partnerships set up in the south of the Mediterranean Region in the first half of 2011. The number of

projects announced in Tunisia, Egypt, Libya, Syria, Lebanon and Jordan declined considerably, which

went back down to levels last seen in the first half of 2009, back at the vert start of the global economic

crisis. FDI remains stable in Algeria, whilst activities picked up again in Morocco. Turkey and Israel

increased the gap with other countries in the region.

Benchmark of the Number of FDI Projects in 2010 – 2011

Source: AMDI – FDI Markets

Morocco differs from the other Maghreb (Western) and Mashreq (Eastern) countries in that it was the only country in the region that recorded a significant rise in the number of FDI projects announced in 2011 (+67%), putting the country just behind Turkey.

313

232

150

5575

48 47

301

249

151

92

5140

31

0

50

100

150

200

250

300

350

Poland Romania Turkey Morocco Egypt Tunisia Jordan

2010 2011


Evolution of FDI inflows and outstanding operations (in billions of MAD)

Source: AMDI (Invest in Morocco)

Despite an increase in the number of projects, revenues from FDI in Morocco at the end of 2011 declined (-31.6%) compared to 2010. This decrease was mainly due to the lack of significant transactions in 2011 compared to 2010. The historical peak in 2007 was due to a significant increase in real estate and tourism investment projects that year. The continued increase in FDI between 2008 and 2010 was mainly lead by the industrial sector.

23.3 11.1 6.54 2.3

3

2.2

3.6 3

3

2.2

7

5,9

9,5

26,1 25,224,0

35,1

28,0

38,0

26,723,3

32,5

0

5

10

15

20

25

30

35

40

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

in b

illions

of M

AD


FDI by country of origin to end-September 2011 (in millions of MAD and %)

Source: AMDI - Foreign Exchange Office

By region, Western Europe has the greatest impact on Morocco, and Casablanca received the highest amount of investment. France remains the largest investor, despite a decrease of 53% (- 4.99 billions of MAD compared to the same period last year) and it is specialised in the insurance, telecommunications, transportation and banking sectors.

Arab FDI continues to come back in to the country; UAE and Saudi Arabia are the 2nd and 3rd largest investors in Morocco with 2 and 1.3 billion MAD respectively (an increase of 2.3% and 262%). The UAE primarily invests in the energy, mining, tourism and holding sectors.

FDI by sector to end-September 2011 (in millions of MAD and %)

Source: AMDI - Foreign Exchange Office

France

4 471

29%

Germany

608

4%

USA

878

6%

Belgium

996

6%

Spain

1 090

7%

Saudi Arabia

1 385

9%

UAE

2 086

13%

Other

coutries

2 295

15%

Switzerland

973

6%

Kuwait

835

5%

Real Estate

6 542

42%

Trade

664

4%

Banking

147

1%

Industry

3 577

23%

Transportation

133

1%

Tourism

2 135

14%

Major works

458

3%Holding

990

6%

Other sectors

972

6%


As at the end-September 2011, real estate remains the highest achieving industry sector with 42% of total FDI (an increase of 24.2% over the same period of 2010). Industry is in 2nd position on the list of FDI sectors with 23% of total FDI. Tourism attracted 14% of FDI in the first three quarters of 2011.

FDI evolution by country of origin in the real estate sector (in millions of MAD)

2004 - 2010

Source: AMDI (Invest in Morocco)

In the first 9 months of 2011, the real estate sector recorded a total of 6.5 billion MAD of FDI. Foreign investments in real estate activities came primarily from France, which comprised 36% of the accumulated FDI between 2004 – 2010. The data shows a significant decrease from the two main contributing countries (France and Spain) in 2007 and 2008. However, overall FDI in the sector has trended upwards since 2004, and UAE investments started to return in 2010.

Rating

Standard & Poor’s rating

2004 2005 20102006 2007 2008 2009

3,500

3,000

2,500

2,000

1,500

1,000

500

France

Spain

UAE

Switzerland

UK


In 2010, and for the first time in history, the Kingdom achieved the rating of “Investment grade” from the credit rating Agency Standard & Poor‘s. This rating was maintained compared to other countries in the MENA region, which did not maintain their position and the Kingdom continues to benefit from “solid” fundamentals compared to other neighbouring countries.


Casablanca local economy indicators

Economic indicators

In 2007, the Greater Casablanca region’s GDP accounted for 21.3% of the overall Moroccan GDP. It is therefore the richest region in Morocco after Rabat, which is the country’s capital city.

The following graph shows the GDP performance of the Moroccan regions in 2007 (MAD):

Source: HCP (National Statistics Agency)

Per Capita Expenditure

In 2009, the population of the Greater Casablanca region represented 16% of Morocco’s total population. In 2007, the region was ranked first in the country in terms of the population’s expenditure, accounting for 19% of the national expenditure figure.

The Performance of the Moroccan regions in 2007

0

5

10

15

20

25

Grand C

asab

lanca

Rabat S

alé Zem

mour Z

aërs

Merrak

esh Tan

sift A

lHao

uz

Tangier

Tetoua

n

Souss

Mas

sa D

araâ

Doukala

Abda

Mekné

s Tafi

lelt

Orienta

l

Chaouia

Ouard

igha

Fez Bou

lemane

Gharb

Chrarda B

éniHss

enSou

th

Taza A

lhouc

eima Tao

unate

Tadla Azila

l

GD

PR

/GD

P %

-5,00010,00015,00020,00025,00030,00035,00040,000

GD

P p

er

Inh

ab

itan

t

GDPR/GDP % GDP per inhabitant (MAD)


Source: HCP 2009 (National Statistics Agency).

In 2007, per capita expenditure in the Greater Casablanca Region was MAD 35,300, which was the highest figure in Morocco. The following graph gives an overview of the per capita expenditure by region in Morocco:

Source: HCP 2009 (National Statistics Agency).

Final consumption expenditure by region in Morocco (2007)

17,90921,921 22,619

17,11019,637

15,69112,763

16,30213,228

55,186

39,940

35,78940,346

31,568

0

10,000

20,000

30,000

40,000

50,000

60,000

Grand C

asabla

nca

Rabat S

alé Zemmou

r Zaë

rs

Merrak

esh Tan

sift A

lHaouz

Tangier T

etoua

n

Souss

Mass

a Dara

â

Douka

la Abd

a

Meknés

Tafilel

t

Oriental

Chaouia

Oua

rdigha

Fez Boule

mane

Gharb C

hrarda B

éniHss

enSou

th

Taza A

lhouce

ima Tao

unate

Tadla A

zilal

Millio

n M

AD

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Consumption Expenditure (2007)

% of the total consumption expenditure of each region Vs Morocco

Final consumption expenditure per capita by Region in Morocco (2007)

35,300

20,934

15,158

19,433

14,70916,214

24,000

10,19111,02212,558

17,03718,21317,175

33,439

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Grand Casa

blanc

a

Rabat S

alé Zemmou

r Zaë

rs

Merrak

esh Tan

sift AlHaou

z

Tangier T

etoua

n

Souss

Massa Dara

â

Douka

la Abd

a

Meknés

Tafilelt

Oriental

Chaouia

Oua

rdigha

Fez Boule

mane

Gharb Chra

rda Bén

iHssen

South

Taza Alho

uceima Tao

unate

Tadla Azila

l

MA

D

Consumption expenditure per capita (2007)


Description

Location

The property subject to valuation is located on the upscale area of Ain Diab area, on Boulevard de

l’Ocean Atlantique, close to Boulevard de la Corniche one of the most renowned avenues in

Casablanca that hosts many villas, hotels, restaurants and nightclubs.

The property is located 4 km east of Morocco mall; a 190,000 sqm GLA shopping center with 3 floors

that was inaugurated in December 2011, and 3 km west of Hassan II mosque; the 7th largest mosque in

the world.

Location map

Source: Google Earth - CBRE

The immediate surrounding area of the property is mainly comprised of hotels, private clubs, swimming

pools, restaurants and high-end villas.

The property is located within Anfaplace living resort that is located on the seafront. It is bordered:

- To the north by the Atlantic Ocean,

- To the south by Boulevard de l’Ocean Atlantique and villas,

- To the east by McDonald’s Ain Diab,

- To the west by Club Paradise; a private club with swimming pools and fitness center, and by

Cinema Megarama Casablanca.


COMMUNICATIONS

Car

The property is directly accessible from Boulevard de l’Ocean Atlantique which borders the coastal area of Casablanca from The Hassan II mosque (east) to the Val d’Anfa Hotel (west).

Public transport

The area where the property is located is well served by public transport: Taxis, the bus line 9, and the streetcar whose termini is located 1,5 km from the property, at Boulevard De La Grande Ceinture.

By air

The Mohammed V international airport is located 32 km away from the subject site. It is the busiest

airport in Morocco in terms of passenger arrivals.

By train

The closest train station is the Casa Port railway station; located 7 km away from the property. It is the busiest railway station in Casablanca with 7,000,000 travellers in 2012.

By Tramway

Sidi Abderrahman tramway station is located 2 km away from the property.

CONCLUSION

The site is well located and afforded good road access and average visibility from roadway frontage.


ANFAPLACE

Anfaplace Living Center is a new tourist and leisure project in Casablanca located along Boulevard de

l’Ocean Atlantique.

Achieved in 2013, the project has been constructed on a 93,000 sqm plot of land. At the valuation date,

the 5* hotel was under construction. This resort is being developed by the Spanish developer InverAvante

and combines tourist, residential, offices, a private club, as well as retail components. The project has

been designed by Foster and Partners.

The Map below presents Anfaplace project:

Source: CBRE

The following table summarises the main components of the project :

Component Main Characteristics

Shopping Center 22,411.57 sqm GLA

Street Retail 6,159 sqm GLA (31 units)

Residential 260 apartments

Offices 16,000 sqm GLA

Hotel managed by Four Seasons (under construction) 189 rooms

Hotel (Tourist apartments) managed by Pestana 104 apartments


ANFAPLACE SHOPPING CENTER

Description

Anfaplace Shopping Center opened to the public in February 2013 and is anchored by Gifi, Virgin Megastore, Carrefour Market, Marks&Spencer, Go Sport and many other famous brands.

The shopping center is developed on 3 levels, with car parking on 2 basements.

Main entrance of the shopping center is located on the second level (Food court) along Bd de l’Ocean Atlantique. The ground level benefits also from a secondary access that leads to the beach and the high street units.

The maps below detail Anfaplace Shopping Center organisation:

Second level (Food Court)

First level

Mood’s

ADL


Ground level

High street units – Ground Level


High street units – Ground Level (seaside)


Foundation/Floor Structure

The foundation and floor structure are assumed to be adequate.

Exterior Walls

The exterior wall structure is composed of concrete blocks. Retail storefronts and Food court level are plate glass set in aluminium frames.

Roof

The building has a flat built-up roof.

Interior finishes

The typical interior finish of the shopping is summarized as follows:

Floor Coverings: Marble

Walls: Painted and metallic panels

Ceilings: Suspended Blades

Lighting: Spot lights

Summary: The interior areas benefits from very high quality materials.

Terrace/Patio Areas

Terrace spaces are included within the net rentable area calculations.

Elevator/Stair System

The subject benefits from 3 elevators and 3 escalators area with one dedicated to car parking.

HVAC

The HVAC system is new and assumed to be in good working order and adequate for the building.

Electrical

The electrical system is assumed to be new and in good working order and adequate for the building.

Plumbing

The plumbing system is assumed to be new and in good working order and adequate for the building.

Public restrooms

The restrooms are adequate and are assumed built to local code.


Fire Protection

It is assumed the property has adequate fire alarm systems, fire exits, fire extinguishers, fire escapes and/or other fire protection measures to meet local fire authority requirements. CBRE Morocco is not qualified to determine adequate levels of safety & fire protection, whereby it is recommended that the client/reader review available permits, etc. prior to making a business decision.

Security

The security system is assumed to be new and in good working order and adequate for the building.

Parking and drives

The property features 584 parking spaces, including reserved handicapped spaces. All parking spaces and vehicle drives are considered to be in average condition. The number of parking spaces is legally conforming for the existing use and is typical of the market.

Access

The subject is along the Boulevard de l’Ocean Atlantique.

Landscaping

Landscaping is considered to be in excellent condition and well maintained.

Functional Utility

The overall layouts of the property are considered functional in utility and provide adequate accessibility and visibility to the individual retail spaces.

The shopping center is served by a car park at basement levels providing 584 parking spaces dedicated to the shopping center.

A selection of photographs is attached at appendix.

Accommodation

We have not measured the property, but as instructed, we have relied upon floor areas provided to us by

the client.

The table below details the surface areas of Anfaplace Shopping Center:

Component Level Main Use Area (Lettable sq m)

Shopping Center Ground Level Supermarket

& Diversified

1,700 s qm

Shopping Center First Level Fashion 7,000 s qm

Shopping Center Second Level Food Court 13,800 s qm

High Street Ground level Restaurant 6,150 s qm


The following graphic presents the merchandising mix of Anfaplace Shopping Center


Occupational Tenancies and Income

Letting status

At the date of the valuation, the Shopping center is let at 97,5% and the high street units are let at 60.36%.

Lease terms

From the documentation provided we understand the following:

69 of the lease agreements in place still benefits from stepped rents. The stabilization situation will be reached in 2015,

The duration of the lease contracts varies from unit to unit, ranging from 9 to 15 years (optional break the third year),

Leases contracts contemplate a 10% indexation every three yearly period.

We have assumed that all the information contained in the tenancy schedule provided is correct and that all leases are legally valid.

Property Lease

We have been provided with a copy of a standard lease contract and understand that the lease contracts have been drawn up on the same basis. However, each contract may contain specific clauses which differ from those contained in the contracts we examined.

Standard Lease contract

Landlord Freedom Fund

Duration 9 years

Break Option Break option after 36 months with 6 months notice

Indexation Rent will be increased by 10% every 3 years

Stepped Rent No stepped rents

Maintenance Tenant will be responsible for the ordinary and most extraordinary maintenance

Service charges Tenant will pay a pro-rata share of all running and maintenance costs relating to the common areas and marketing fees.

Tenancy schedule is attached on Appendix

Other Income

Based on the information transmitted, we understand that there are additional incomes coming from:

-Mall Income: 2.376.125 MAD/year

-Car parking: 2.000.000 MAD (CBRE Estimation for 2014).


Management, Service charges

Property Management

We have been informed that CBRE Property Management Morocco manages the property and benefits from offices located on site.

Services charges and recovery

All items of standard expenditure (security, cleaning, maintenance, management costs) are recoverable from the tenants.

According to the information provided, the total annual services charges budgeted for 2014 for Anfaplace Shopping Center amount to 22,122,425 MAD.

Of these, 18,969,046 MAD will be invoiced to the tenants (3,153,379 MAD not invoiced)

corresponding to 52 MAD/sqm/month of the total GLA of the shopping center which seems appropriate.

Environmental Considerations

We have been instructed not to make any investigations in relation to the presence or potential presence

of contamination in land or buildings or the potential presence of other environmental risk factors and to

assume that if investigations were made to an appropriate extent then nothing would be discovered

sufficient to affect value.

We have not carried out any investigations into past uses, either of the properties or of any adjacent plots

of lands, to establish whether there is any potential for contamination from such uses or sites, or other

environmental risk factors and have therefore assumed that none exists.

Town Planning

We have been not provided with the zoning regulation of Anfaplace project.


TAXES

VAT

All rents and capital values stated in this report are exclusive of VAT.

ACQUISITION COSTS

The taxes relative to land acquisition are as listed below:

Acquisition costs

Notary Fees 0.50% - 1% *

Land Registry 1.00%

Registration fees 4 %

Total 5.5% - 6%

* 10% VAT is applicable for the notary fees.

Our valuation is exclusive of acquisition costs, which are estimated to be between 5.5 and 6%. *

LEGAL CONSIDERATIONS

Tenure

We have not been provided with the title deeds.

We will take the assumption that the property is free from any charges.


MARKET COMMENTARY

Casablanca Retail Market

INTRODUCTION

Historically driven by the informal sector and by small independent retailers, the retail sector in Morocco

evolved in three main phases:

1. The construction of hypermarkets on the outskirts of large cities;

2. The expansion of high street retail activity, thanks to the development of international and

national franchise networks, as illustrated in the following graph:

3. The development of malls in major cities such as: Mega Mall (Rabat), Almazar (Marrakech),

Morocco Mall (Casablanca) or Anfaplace Shopping Center (Casablanca).

The retail market has been stimulated by improvements in household incomes. Demand has significantly

increased over recent years due to:

The existence of a wealthy Moroccan elite,

The emergence of a middle class with high purchasing power, looking to purchase quality

imported goods,

Reduction in prices due to a decrease in duty on foreign goods.

MAIN RETAIL AREAS OF THE CITY


Over the last few years, Casablanca has seen the launch of a number of retail galleries and shopping

centers such as Twin Center and Ghandi Mall. Morocco Mall, the biggest shopping mall in the country

opened in December 2011. The high street retail activity within the city is mainly located in the following

areas:

Old Downtown,

New Downtown:

o Racine,

o Racine Extension,

o Maârif,

o Bourgogne / Gauthier.

Each of these locations has a large amount of high street retail activity, as well as a large population.

The map below illustrates the location of each of these areas, as well as the location of the existing

shopping centers (Morocco Mall, Ghandi Mall, Twin Center) as well as future shopping centers

(Casablanca Marina):

Casablanca - main retail areas

Source: CBRE


A. Old Downtown

The Old Downtown is one of the oldest neighbourhoods in Casablanca. It includes many shops which

are mainly located along Med V and FAR Avenues, as well as the pedestrianised Prince Moulay Abdellah

street. This area is more orientated toward traditional retail activities carried out by individuals rather than

franchises (Celio, City Sport, as well as international fast food chains such as Mc Donald’s, Pizza Hut,

TGI Friday’s).

The area is also dominated by independent retailers in large traditional shopping galleries, which are not

subject to any kind of management since shops are mostly owned by individuals and no internal rules or

technical guides have been implemented.

B. New downtown

We have divided the new downtown into four specific areas depending on:

The main retail activity,

The grade of the shops and the quality of the products they offer,

The concentration of retail activities.

We came out with four distinctive sub-areas, which are Racine, Racine Extension, Maârif and

Bourgogne/Gauthier. These represent the names of the major neighbourhoods in the area that have a

significant amount of retail activity.

The map below illustrates these four main areas:

Racine

The retail activity within this neighbourhood is concentrated around the northern part of the prestigious Al

Massira Al khadra Boulevard. The latter comprises various internationally renowned franchises such as

Zara, Mango, Lacoste, Massimo Dutti or Bershka. The presence of these franchises in Racine has a

significant draw effect on customers and thereby on the remaining franchise holders who aim to benefit

from the significant footfall in this area.

Racine has become the main fashion-shopping destination in Casablanca. Internationally renowned and


attractive brand names locating here, has triggered various complementary activities such as Cafes and

Restaurants to locate here too and has contributed to the improvement of the retail environment in this

area.

The retail real estate supply in Racine is sales oriented. The sales prices range between 30,000

MAD/sqm and 120,000 MAD/sqm for small prime retail units. These prices vary depending on the

location of the shops (higher prices on the main boulevards), as well as the characteristics of the retail

units (façade, size, etc).

Racine extension

Racine Extension is known for housing a large number of household related shops (shops selling

furniture, household linen, household appliances, culinary products, etc). These shops are located mainly

on Abdellatif Benkadour Boulevard, Phare Avenue and the streets surrounding Phare Avenue.

This neighbourhood is also famous for luxury jewellery shops such as Cartier, Chopard, Chaumet and

Bulgari. These have all gathered on one single street: Ain Harrouda.

There are also a high number of fashion stores in this area. Nevertheless, this type of retail activity does

not have the same number of shops, in comparison to other neighbourhoods such as Racine or Maârif.

The retail real estate market is aimed more at the sales market than the lettings market. Sales prices vary

between 45,000 MAD/sqm and 100,000 MAD/sqm.

Maârif

Maârif has a large number of retail units. Most of the shops in this area are independently run businesses

owned by private operators. Nevertheless some franchises are located in this area such as Jules, Rip

Curl, Bigdil, Jeff de Bruges, Absorba and Fashion Victim.

The main characteristic of this area remains its proximity to the Twin Center and the aforementioned

Racine retail area. This strategic position enables Maârif to benefit from the high footfall that is generated

by the Racine area and the Twin Center.

The retail real estate market is aimed more at the sales market than the lettings market. Sales prices vary

between 25,000 MAD/sqm and 50,000 MAD/sqm.

The main retail activity in this area is for shops selling clothes, shoes and accessories. Our market study

has revealed that important synergies exist between the Maârif and Racine retail areas, taking into

consideration that both tend to focus on the the same retail activities (clothing and household related

products). The geographical proximity between Racine and Maârif offers customers a wide array of

products, which are sold at different prices (inexpensive products in Maârif and products of famous brand

names in Racine).

Focus on Twin Center Shopping Center

The Twin Center is exceptionally well located in Casablanca. It is located in the heart of the city at the

crossroads of two very important boulevards (Boulevard Zerktouni and Boulevard Al Massira Al Khadra).

The Twin Center is comprised of two 28 storey towers. One of the towers houses a 5 star hotel (Kenzi)

while the other one is mainly used for office space and has a five storey shopping center (including

ground and underground floors).

The Twin Center has a total retail area of 13,500 sqm and has a supermarket and a food-court on the

underground floor, whilst the remaining four floors house retail stores. It is worth mentioning that only


three out of the five floors are still in use in the Twin Center.

The retail section of the twin center offers a wide diversity of products. Still, it should be pointed out that

most of the retail units are located on the ground floor. The other floors have high vacancy rates due to

the poor distribution of activities and the inadequate internal architecture of the center.

Roughly one third of all the units are vacant. Fashion, clothing and accessory stores represent more than

60% of all retail units. Other activities (hair salons, phone operators or snack bars) represent 6% of all

the units. Some factors that might explain the high vacancy rate are:

The retail units were sold (multiple retail unit owners have made the overall management of the

shopping center very difficult)

The lack of natural and artificial lighting inside the shopping center

The presence of only one snack bar in the food court

The poor conception of the building (some units are isolated in very secluded areas of the center

and lack exposure)

The lack of a loading and unloading area for the supermarket

The lack of internal management

The lack of marketing campaigns

Many floors

Mediocrity of the brands in the center (very few franchisees)

Incoherent retail mix

Bourgogne/Gauthier

This area houses various offices along two other important boulevards in the city, namely Boulevard

Moulay Youssef and Boulevard d’Anfa. This has triggered various fast food franchises (mainly in

Bourgogne) and themed restaurants (mainly in Gauthier) to locate in this area.

The Bourgogne/Gauthier area has risen in value since the Boulevard d’Anfa was renovated. Various

cafés (Starbuck’s, Segafredo, Diwan, etc.) have set up stores on this boulevard to benefit primarily from

the advantages of the renovation and secondly from the massive presence of offices and schools that are

settled on this boulevard.

C. Sidi Maârouf

The Sidi Maârouf area is the newest office area in Casablanca and it houses the headquarters of many

national and international companies (DHL, Samsung, Nokia, Johnson and Johnson or Meditel). The

region is also home to Casanearshore, an integrated tertiary park developed by MedZ (CDG Group) that

is specialised in offshoring activities - mainly software development, infrastructure management, back

offices for banks and insurance and Customer Relationship Management companies. Casanearshore

offers a full range of ancillary services such as a nursery, hotels, restaurants and banks. Once the park is

finished it will have a total of 270,000 sqm of office space. Major companies such as Dell, BNP, Cap

Geminini, or Atos Origin are already located in the park.

The presence of various offices within Sidi Maârouf has attracted some restaurant chains aiming to

increase their market share. In fact, Luigi and La Grillardière have opened stores in Sidi Maârouf, in

order to benefit from the high number of office workers.


The other types of retail businesses that are loacted in Sidi Maârouf are primarily gymnasiums such as

Lady Fitness and large retail stores (ex: Mr. Bricolage, Kitea Géant, and Deco Center).

The main retail activity in Sidi Maârouf is still comprised of the big retail warehouses, such as Marjane,

Metro, Kitea Geant and Mr. Bricolage. These have located in this area because outlets require large

sales areas and they need to provide a large amount of parking (easily found on the outskirts of the city).

Furthermore, the roads crossing Sidi Maârouf are very busy, as they link Casablanca to Marrakech and

Casablanca to Mohammed V airport, which encourages retailers to locate their businesses in this busy

area of the suburbs.

D. La Corniche

The Corniche has always been the main destination for leisure activities in Casablanca. This area

comprises various restaurants, pubs and nightclubs, in addition to a Megarama cinema complex and

various sport clubs.

The area has also seen the opening of the Morocco Mall shopping center, the biggest shopping center in

Morocco with 200,000 built sqm of retail and leisure.

The Corniche area has a large amount of parking which makes it easier to park at the various leisure

activities and sport clubs in the region. Nevertheless, these parking spaces do not cover all of the needs

the summer months when the number of people going to the Corniche area increases considerably.

Focus on Morocco Mall

Morocco Mall is one of the most important shopping malls in Africa and opened in December 2011. The

project site covers a total surface area of around 200,000 sqm and is located by the beach, at the far

end of La Corniche. The project was developed by Aksal and Nesk, two of the main franchise operators,

for a total investment of approximately 2 billion MAD.

Components

Food court, coffee shops, restaurants,

3-D cinema (IMAX),

Aquarium,

70,000 GLA sqm of retail space,

200 Brands (Zara, Massimo Dutti, Aldo, Stradivarius, Mango, etc.)

It is worth emphasising that the investors (Aksal and Nesk) hold the master franchises of important brand

names in Morocco:

Aksal: Zara, Zara Home, Massimo Dutti, Espacia and La Senza,

Nesk: Stradivarius, Okaïdi, Promod, Aldo, Mango and La Vie en Rose.


Morocco Mall

E. Ghandi

The Ghandi area is another important retail area in the city of Casablanca, which is mainly specialised in

home appliances and furniture. The area suffers from significant traffic problems, as well as a lack of

parking. The retail activity mainly consists of retail units located on the ground floor of residential

buildings. The area is also home to some international fast food chains such as KFC and Pizza Hut.

FUTURE SUPPY

Casablanca Marina

Casablanca Marina is a new multifunctional center in Casablanca, as previously mentioned in this report.

The retail offering makes up a large part of the project since it represents approximately 20% of the total built surface area. The retail offering is composed of street retail, as well as a shopping center that will be developed by Marjane Holding and Foncière Chellah. The shopping center will offer 45,000 sqm GLA and 1,600 parking spaces.

The project is in the final stages of study and is expected to be delivered in 2015.


Casablanca Marina

Casablanca Anfa

The Casablanca Anfa project is a new neighbourhood located on the old Anfa airport, which is

strategically located in the heart of the city. The total site area is some 400 hectares and will comprise a

total of 4.7 million sqm of buildable area (all use types included). The project master plan has been

designed by Reichen and Robert and the project is being developed by AUDA (Agence d’Urbanisation et

de Développement d’Anfa) which is a subsidiary of the CDG group.

The project master plan is detailed below:

Casa Anfa Master plan

Source: AUDA

The first phase of the Casablanca Anfa project is set over a surface area of 100 hectares. The expected

buildable area of this first phase is 1,160,000 sqm, of which 700,000 sqm will be residential housing,

360,000 sqm will be office space and 100,000 sqm will be for retail, hotels and facilities uses.

Urbanisation works for the first phase of the project are currently underway and the delivery of the first


developments is expected for 2016.

Seven plots of land of the first phase are currently being marketed through a call to bid process. Four

plots of land will be for residential developments (149,880 sqm), one will be dedicated to tertiary activity

(57,850 sqm) and two plots will house both residential and tertiary properties (91,180 sqm). All these

projected developments comprise retail on the ground floor with a total surface area that varies between

9,000 to 20,000 buildable sqm.

Zenata

Zenata is an area located in the East of the city of Casablanca between Casablanca and the city of

Mohammedia. This area will be home to the new city of Zenata that will be constructed over a total

surface area of 1,830 hectares. The city has been designed in order to take some of the demographic

pressure off Casablanca and make Zenata a new residential, industrial and retail hub. The city aims to

create 100,000 job opportunities spread across all activities and services and to house 80,000 homes

(300,000 inhabitants). The city will have all types of facilities (schools, hospitals and universities) and will

benefit from over 400 hectares of green spaces. The project is being developed by SAZ (Société

d’Aménagement de Zenata), another subsidiary of the CDG Group. The whole project is expected to be

completed by 2022.

The following graph illustrates the location of the new Zenata city:

Location of Zenata

Source: CBRE

The first phase of the 400 ha project comprises the exhibition park, the shopping center, hotels and

residential components. In fact, a significant regional shopping center is planned (120,000 sqm).

A call to bid was recently launched by SAZ in order to identify the investor / operator of the city’s

shopping center. The bid was successful and the negotiations are currently in process to select the mall

investor.

The following table illustrates the breakdown of future retail supply in the city majoring terms of the

largest projects:


Project Surface area Delivery date Status

Casablanca Anfa 9,000 – 20,000 sqm

(Part 1 of phase 1 only)

2016 Plots of land are being sold - Under study

Casablanca Marina 45,000 sqm shopping center only

(Total buildable area of the project =91,300)

2015 Land acquired by the developer - Under final study

Zenata 85,000 phase 1 only (total of 120,000 )

2016 phase 1

2020 phase 2

Selection of investors

Casa Train Station 4,000 2015 Under construction

Casa City Center project NA 2017 - 2018 Building permit obtained

Total 143,000 – 154,000 2015-2018 -

Source: CBRE


1.6 VALUATION CONSIDERATIONS

Key Valuation Factors

STRENGTHS

Good access from the main roads in the area,

Located within Anfaplace mixed-use project next to Casablanca Corniche,

One of very few sites in Casablanca that has a seafront view and which is close to the city center,

Shopping center opened in February 2013 and let at 97.5%,

International brands represent approximately 80% of the total brands in the Shopping Center,

Shopping center is anchored by attractive brands.

WEAKNESSES

Average visibility of the shopping center from the road,

The high street units are let at 63% due to the lack of visibility of those located close to the business

center and the hotel,

Break option every 3 year.

OPPORTUNITIES

Potential increase of incomes with the remaining units to be let,

THREATS

In direct competition with other shopping center projects in the city that are either under construction

or in the final stages of preparation.


1.7 VALUATION METHODOLOGY

INCOME CAPITALIZATION APPROACH

The income capitalization approach reflects the subject’s income-producing capabilities. This approach is

based on the assumption that value is created by the expectation of benefits to be derived in the future.

Specifically estimated is the amount an investor would be willing to pay to receive an income stream plus

reversion value from a property over a period of time. The two common valuation techniques associated

with the income capitalization approach are direct capitalization and the discounted cash flow (DCF)

analysis.

GENERAL ASSUMPTIONS

The DCF analysis utilizes a 5-year projection period.

CBRE Valuation Morocco has not conducted credit enquires into the financial status of the tenants but assume that each tenant is capable of meeting its leasehold obligations and that there are no undisclosed breaches of covenant.

MARKET RENT ESTIMATE

In our assessment of the market rent, we have considered the rental values achieved by the leases

already in place in Anfaplace shopping center.

These rents vary depending on the location, visibility, layout, length of the lease and size of the units.

VACANCY

At the date of valuation, 10% of Anfaplace shopping center is vacant, we have considered that all vacant units will be leased in December 2014. The table below shows the evolution of the structural vacancy :

Year 2015 2016 2017 2018 2019

Vacant surface area

5% 3% 3% 3% 3%

BROKER FEES

12% of the annual rent.


Year 2014 2015 2016 2017 2018 2019

INCOME 75 275 024 89 537 379 99 108 217 101 414 055 102 592 199 109 952 338

Rental revenues 75 934 442 87 590 794 95 366 589 97 176 488 97 774 389 104 691 555

Rental Loss -4 598 200,72 -4 379 539,68 -2 860 997,68 -2 915 294,65 -2 933 231,68 -3 140 746,66

Mall income 1 938 783 2 376 125 2 376 125 2 630 507 2 912 121 3 223 885

Parking revenues 2 000 000 3 950 000 4 226 500 4 522 355 4 838 920 5 177 644

INCOME

According to the elements provided, the estimated Mall income for the coming years is as follow:

EXPENSE REIMBURSEMENTS

The subject’s leases are typically based on a triple net structure whereby the tenant reimburses the owner

for a pro rata share of various expenses. Those expenses considered to be eligible for reimbursement are

as follows:

Real Estate Taxes Property Insurance Common Area Maintenance


NOREIMBURSABLE EXPENSE

According to the information provided, the total annual services charges budgeted for 2014 for Anfaplace Shopping Center amount to 22,122,425 MAD.

Of these 3,153,379 MAD will not be invoiced in 2014. We estimated that this amount will decrease by

50% per year until 2016.

RESERVES FOR REPLACEMENT

Reserves for replacement have been estimated based on maintenance budget provided. Starting from

2016, we retained 10% of the total maintenance budget provided for 2014, corresponding to 250,000

MAD per year for reserves.

TERMINAL CAPITALIZATION RATE

Our recent surveys indicate that capitalization rate range from 8 to 10% for prime office buildings in

Casablanca.

Typically, for office properties, terminal capitalization rates are 50 to 100 basis points higher than going-

in capitalization rates. This is a result of the uncertainty of future economic condition and future supply.

Because of the subject’s age, condition, location and tenancy/lease terms and typology, the property can

be considered as a prime shopping center. For the subject, we have concluded a load factor of 100

basis points to be appropriate. A terminal capitalization rate of 9.25% is considered appropriate for the

subject property.

DISCOUNT RATE

The annual income streams and future rents are discounted to their present values at a discount rate of

11.98%. In our opinion this rate is accurate due to the following factors:

Shopping center newly built (2013)

Excellent location of the property,

Very good anchors,

This rate reflects the risk related to the returns for the investment object of this valuation.


1.8 REINSTATEMENT COST

We have been asked to provide an indication of the current reinstatement cost of the building.

A formal estimate can only be given by a quantity surveyor or other person with sufficient current

experience of replacement costs.

The cost estimate is only an approximate estimate.

The reinstatement cost value of a building comprises the cost for the re-construction of the building itself,

including demolition and clearance costs and professional fees, but excluding the land value.

The value has been calculated on the basis of the gross area of the properties provided. Our estimate of

average building costs is based on our expertise with regard to the construction of shopping centres.

On the basis of the above assumptions, we are the opinion that the reinstatement cost for the subject

building is in the order of 363.500.000 MAD.


1.9 OPINION OF VALUE

Market Value

We estimate that the Market Value of the Property is as follows:

1,024,000,000 MAD



92,200,000 ¤

(NINETY-TWO MILLION TWO HUNDRED THOUSAND EUROS)*



Reinstatement Cost

We estimate that the reinstatement cost of the Property is as follows:

363,500,000 MAD

(THREE HUNDRED SIXTY THREE MILLION FIVE HUNDRED THOUSAND DIRHAMS)

Excluding VAT

32,700,000 ¤

(THIRTY-TWO MILLION SEVEN HUNDRED THOUSAND EUROS)*

Excluding VAT



4 APPENDIX


VAC 14 -10

Provided CBRE CBRE CBRE CBRE CBRE

Year 2014 2015 2016 2017 2018 2019

INCOME 75 275 024 89 537 379 99 108 217 101 414 055 102 592 199 109 952 338

Rental revenues 75 934 442 87 590 794 95 366 589 97 176 488 97 774 389 104 691 555

Rental Loss -4 598 200,72 -4 379 539,68 -2 860 997,68 -2 915 294,65 -2 933 231,68 -3 140 746,66

Mall income 1 938 783 2 376 125 2 376 125 2 630 507 2 912 121 3 223 885

Parking revenues 2 000 000 3 950 000 4 226 500 4 522 355 4 838 920 5 177 644

-4 258 479 -3 693 521 -1 590 895 -802 550 -802 550 -802 550

Non-recoverable charges 3 153 379 1 576 690 788 345 0 0 0

Letting fees 0 945 916 0 0 0 0

Service charges on vacant units 1 105 100 920 916 552 550 552 550 552 550 552 550

Reserve for replacement 0 250 000 250 000 250 000 250 000 250 000

71 016 545 85 843 857 97 517 322 100 611 505 101 789 649 109 149 788

Exit Value 1 179 997 711

71 016 545 85 843 857 97 517 322 100 611 505 1 281 787 360 109 149 788

Discount rate 11,98%

Period 0,25 1,25 2,25 3,25 4,25 5,25

Discount factor 0,97 0,87 0,78 0,69 0,62 0,55

69 036 116 74 523 507 75 601 964 69 657 231 792 504 601 60 266 498

1 081 323 419 MAD

1 023 980 510 MAD

ANFAPLACE SHOPPING CENTER - DCF VALUATION - 09-14

EXPENDITURES

NET CASH FLOWS

TOTAL NET CASH FLOWS

DISCOUNTED CASH FLOW

GROSS PRESENT VALUE

NET PRESENT VALUE

CALCULATION


MARKET STUDY OF LAND TRANSACTIONS

We have been asked by the client to estimate the value of the land.

We have carried out a market study in order to provide comparable land transactions in the immediate

surrounding area of the subject site. We have identified only one comparable market transaction located

in the Casablanca Marina mixed-use project.

The table below summarises the results of our market study:

# Location Plot Size

(sqm) Estimated FAR

Project Use

Price

(million MAD)

Land Price/ sq m

Estimated Price/

buildable sq m

(SHON)

Date of Transaction

1 Casablanca

Marina 31,136 2.42

Shopping centre and

offices

525 16,800 6,900 Q3 - 2010

The comparable is the transaction of the plot of land that will house the shopping centre and office

buildings in the Casablanca Marina project. The transaction was for a 31,136 sq m plot of land, which

was sold in July 2010 for a total price of approximately 16,800 MAD/sq m, resulting in an estimated

price of 6,900 MAD/buildable sq m. The transaction was carried out by the Al Manar Development

Company (seller) and a consortium comprised of Marjane Holding, as well as Foncière Chellah, which is

another subsidiary of the CDG Group.

We have also identified three plots of land for sale located next to the property subject to valuation. The

details are presented in the table below:

# Location Plot Size (sqm) Price

(million MAD)

Land Price/ sq m

1 Ain Diab area 6,000 270 45,000

2 Ain Diab area 4,000 260 65,000

3 Ain Diab area 6,600 264 40,000

The first property comprises a 6,000 sqm bare plot of land intended to house a touristic project. It is

located in the Ain Diab area. The plot is on sale for a price of 270 million MAD (45,000 MAD/sqm).

The second property comprises a 4,000 sqm bare plot of land located in the coastal area of Ain Diab

next to La Corniche Place. As at the date of valuation the property is on sale for a price 260 million MAD

(65,000 MAD/sqm).

The third property comprises a 6,600 sqm plot of land located in Ain Diab area and intended to house a

residential or commercial touristic project. The property is on sale for a price of 264 million MAD

(40,000 MAD/sqm)

It should be noted that the offers for sale concern properties that have lower surfaces than the property

subject to valuation.


Hence we have applied a price of 15,000 MAD/sqm (plot use : shopping center) to the surface area of

the plot housing the shopping centre (that is estimated at approximately 13,850 sqm), which is equivalent

to a rounded total price of 207 million MAD.


PHOTOGRAPHS

Photograph 1

Photograph 2


Photograph 3

Photograph 4


Photograph 5

Photograph 6


Photograph 7

Photograph 8

Photograph 9


Photograph 10

64

PROPERTY VALUATION: HOLLARD BUILDING, MAPUTO

Cost Centre Number 20722

4710/2

0481/14Job Number

Open Market Value

Replacement Value

Date of Valuation

Forced Sale Value

Property Finance - Africa

Usage

(011) - 721 - 8378

Valuer

Registration Category

Registration Number

[email protected]

Professional Valuer

(011) - 721 - 6248

Johan Terblanche

$14,500,000.00

$10,200,000.00

Offices

$8,800,000.00

27 April 2014

CONDITIONS OF VALUATION

Standard Bank of South Africa Limited must be supplied with the following documentation: Copies of all lease

agreements as stated in this report.

Wicus BadenhorstPrepared For

Email

Tel Number

Applicant Name Delta Property Fund

E-mail

Mr. Stuart Hulley-Miller

[email protected]

Valuation requested by

Contact Person

Insert Your company logo

Tel Number

HOLLARD INSURANCE BUILDING, AVENIDA SOCIEDADE DE GEOGRAFIA

NO 269 CORNER AVENIDA DO PRESIDENTE CARMONA, MAPUTO,

MOZAMBIQUE

OPEN MARKET VALUATION

Date Inspected

26 April 2014

27 April 2014

Date Instructed

1

mailto:[email protected]


STANDARD BANK: CORPORATE AND INVESTMENT BANKING

Commercial Valuation Centre: Gauteng

30 Baker Street

Rosebank

2199

Tel: (011) 721 6248

1. INSTRUCTIONS

2. PURPOSE OF VALUATION

3. DEFINITION OF VALUE

4. PHOTOS AND ADDRESS

The definition of ‘Market Value’ as laid down by the International Valuation Standards Committee is:

“The estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arms-

length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion".

A summary of the features of the ‘willing’ buyer and seller are:

They should be in a position to enter into a contract (financially and legally);

They negotiate on equal terms;

They are both well informed about the property and all it’s potentialities, as well as about the market for such properties (i.e. they are as well

informed as the person who has taken all reasonable steps to obtain this information.

They are not under pressure (i.e. they are not forced to buy or sell a property within a limited time); and

They negotiate the transaction rationally.

When we analyse these features, it becomes clear that a ‘real’ person could seldom comply with all of them. The Valuer must therefore distance

himself from the personalities concerned and imagine a hypothetical transaction in which both the buyer and the seller have the understanding

and motivations that are typical of the market for the property or interests being valued [Minister of Water Affairs v Mostert 1966 4 SA 690 (A)

722c]. This definition of value holds true in the case of the subject property.

LOCATION MAP

HOLLARD INSURANCE BUILDING, AVENIDA SOCIEDADE DE GEOGRAFIA NO

269 CORNER AVENIDA DO PRESIDENTE CARMONA, MAPUTO,

MOZAMBIQUE

Physical Address of Subject Property:

We have been instructed by Wicus Badenhorst, of Property Finance - Africa, to visit and inspect the subject property known as Erf 266 Aterro da

Maxaquene, Maputo, Mozambique situated at HOLLARD INSURANCE BUILDING, AVENIDA SOCIEDADE DE GEOGRAFIA NO 269 CORNER

AVENIDA DO PRESIDENTE CARMONA, MAPUTO, MOZAMBIQUE, for the purpose of advising you of our opinion of the Open Market Value as

at 27-April-2014.

To determine the market value of the subject property for Secured Lending Purposes.

AERIAL PHOTO

2

5. DATE OF INSPECTION

6. VALUATION METHOD

7.

8. SPECIAL ASSUMPTIONS

YES NO

Based on all the above, it is our opinion that the highest and best use of the property is achieved by the office development.

(d) that the seller had imposed a time limit for disposal that was inadequate for proper marketing

(c) that a specified occupancy level had been reached by the valuation date

(a) that a proposed building had been completed at the valuation date

27 April 2014

27 April 2014

When valuing real estate, the Valuer must concern himself with placing a value on the rights attaching to the property and the benefits of

occupation and/or ownership thereof. In the valuation process, cognisance must be taken of the purpose for which the property is capable of

being used and the future income or amenities, which it is likely to produce. At the same time, however, the property must be compared with

available substitutes and/or alternative investment opportunities. The object of the valuation process, therefore, is to arrive at a figure which will

reflect the point of equilibrium between supply and effective demand at the time of valuing the property.

The valuation of land as if vacant, or of land and improvements to or on the land, is an economic concept. Whether vacant or improved, land is

also referred to as real estate.

Real estate’s utility or capacity to satisfy the needs and wants of humans creates value. Contributing to value are real estate's general

uniqueness, durability, fixity of location, relatively limited supply, and the specific utility of a given site.

Effective date of valuation

Legally Permissible - We have assumed that the subject property’s current land usage as offices have been approved by the local authority. The

office development is in keeping with the immediate area which has seen numerous new office developments taking place over the past few

years.

Maximum Profitability - We have assumed that theoffice development on the site is the most feasible based on the above mentioned

assumptions.

In a commercial income-producing property this approach capitalises a market related income stream into perpetuity. This is done using a

capitalisation rate applied to the first year’s Net Operating Income. The Net Operating Income (NOI) is the gross market potential income (GPI),

less a vacancy allowance, less operating expenses (but excluding debt service, income taxes, and/or depreciation charges normally applied by

accountants).

HIGHEST AND BEST USE

According to the International Valuation Standards, the Highest and Best Use can be defined as follows:

“The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported,

financially feasible, and that results in the highest value.”

The four requirements that the highest and best use must achieve within a property are that it is legally permissible, physical possible,

economically feasible and maximum profitability. These criteria also reflect the recognition of the contribution of that specific use to the community

environment or to community development goals in addition to wealth maximisation of an individual property owner.

The four requirements are as follows:

Valuations for secured lending are often required on the special assumption that there has been a change in the state or the condition of the

property. To comply with the requirement to state any assumption, any special assumptions that are necessary shall be included in the scope of

work. Examples off special assumptions that are commonly made in secured lending valuation include:

(b) that a proposed lease of the property had been entered into / completed at the valuation date

In determining the market value of the office development, we have utilised the traditional and internationally recognised Discounted Cashflow

Method of Valuation to establish a value for the subject property. to reach our opinion of value. This approach is generally considered the most

applicable valuation technique for income-producing properties where the achieved rentals are less than our opinion of market rentals and also

where sufficient market data exists to supply the necessary inputs and parameters for this approach.

There are various methods commonly used for determining the market value of real estate. These methods of valuation comprise:

Physically Possible - The site location, size and access to utilities are in accordance with the requirements of any type of development. The area

of the subject site allows for the office development.

Economically Feasible - The office development can generate significant revenues if the accommodation was to be leased to individual tenants.

Direct Comparable Sales Approach

Cost Approach

Income Approach

The subject property was physically inspected on

3

X

:

9.

7,513.97 m2 0.751397

10.

Purchaser:

Purchase Date:

Purchase Price: (Excluding Vat)

Rate/m²

Rate/m²

Yield 8.15% )

The legal description of the subject property to be confirmed.

Comments

Type of Buyer Listed Fund

Details of Sale No other details were provided

Delta Property Fund

To be confirmed

$14,050,000

The 1997 Land Law reasserts the state’s ownership of land and provides that individuals,

communities and entities can obtain long-term or perpetual rights to use and benefit from land.

The 2006 Urban Land Regulations apply to existing areas of towns and villages and to areas

subject to an urbanization plan. The regulations govern the preparation of land use plans,

access to urban land, rights and obligations of owners of buildings and DUAT holders, and

transfer and registration of rights.

Registered Owner:

53,513 page 104 Book 173

TITLE DEED INFORMATION

Hectares

To be confirmed.

This valuation is based on the assumption that there are no servitudes or conditions registered

against the subject property that may adversely affect the property or its value.

Servitudes

Special Assumptions

Mozambique

Maputo

We had sight of the relevant registration certificate which indicate that the property is held as follows:

Endorsement

Property Description Erf 266 Aterro da Maxaquene, Maputo, Mozambique

Erf Extent

Title Number

Commotor - Comercializacao De Veiculos Motorizados Limitada

12.803

Standard Bank of South Africa Limited must be supplied with the following documentation: Copies of all

lease agreements as stated in this report.

Country

Local Authority

Any investment made on the land, as opposed to the land itself, is private property, and can be

bought, sold or mortgaged. Urban tenements (defined as the structures and land that serve

them in cases where the source of income depends principally on the structure rather than the

land) can be freely transferred. When the structures or improvements on land are transferred to

a buyer, the rights in the land (DUAT) also transfer to the buyer. Rural tenements (defined as a

demarcated portion of land and structures where the source of income depends principally on

the land) require state authorization for transfer of the DUAT .

$1,869.85 (Based on Erf Extent)

$3,408.13 (Based on Gross Lettable Area)

Comments on Purchase Price:

(Based on Net Annual Income of $1,144,744

Irrespective of the property rights enshrined in the constitution, ownership of land remains the

exclusive right of the state (Lei de Terras, 19/1997). The government grants land-use

concessions for periods of up to 50 years, with options to renew, called Direitos de Uso e

Aproveitamento de Terra (DUAT).

Article 109 of Mozambique’s 2004 Constitution states that all ownership of land vests in the

state and all Mozambicans shall have the right to use and enjoy land as a means for the

creation of wealth and social well-being. The Constitution further provides that the state shall

recognize and protect land rights acquired through inheritance or by occupation, unless there is

a legal reservation or the land has been lawfully granted to another person or entity. Land use

rights are obtained by inheritance, occupation, state grant, purchase or lease. In urban

Mozambique, most residents access land through the land market (62%), either obtaining land

on the formal market by buying or leasing use-rights held by DUAT-holders or, more commonly,

obtaining use-rights on the informal market. The Land Law recognizes a use right to land,

Town

PURCHASE PRICE

Were any special assumptions made in this valuation that can have an affect on the value of the property:

Certificate Number:

MAPUTO MUNICIPALITY

4

11.

11.1

21.96% or

0.64 or

11.2

Comments:

12.

12.1

:

:

:

:

:

:

:

:

:

:

:

:

Annual Amount

Payable

(converted to US$)

Monthly

(converted to US$)

$2,083.33

$2,083

1.00 MZN = 0.0319796 USD

Is Purchase Price Market Related The price is considered below market parameters for offices in this node, taking into consideration that the

achieved rental is below our opinion of market rentals.

Comments We have not had sight of the Deed of Sale.

We have been informed that local municipal taxes are based on 1.20% of the property’s municipal value. We have

however not had sight of the Rates and Taxes account and have thus estimated the monthly amount payable.

1650

5 Storeys with 4 levels of structured parking below

m2

This valuation is based on the assumption that the property comply with building line requirements.

Sufficient parking provided

PROPERTY DESCRIPTION

Parking Requirements

MUNICIPAL VALUATION

TOWN PLANNING CONDITIONS

MUNICIPAL INFORMATION

MAPUTO MUNICIPALITYLocal Authority:

Zoning / Usage

Coverage:

Office Block

Structure Concrete Frame

IMPROVEMENTS

Plastered and Painted Brick

Storey's 4 Storeys with 1 level of parking below

Roof Flat Concrete roof

External Walls

Component Estimated

Patrimonial Value

(converted to US$)

$1,250,000 $25,000

Total $1,250,000 $25,000

FAR/Bulk:

Height

Building Lines

Comments This valuation is based on the assumption that the subject property may be used for office purposes.

ACTUAL (Excluding existing old office block)

Offices

m2

Internal Walls Plastered and Painted Brick and Demountable Partitioning

Floors Ceramic Tiles, wood and carpets

Ceilings Suspended Board ceilings

Lighting Boxed Fluorescent Lights

4803

Glazing Aluminium Framed Windows

Air conditioners Central Air-conditioning fitted

Condition Very Good

Accommodation The improvements comprise a 4 storey office block with 1 level of structured parking below. The

accommodation comprise reception areas, open plan offices, individual offices, boardrooms, male and

female WC's and kitchens on the ground and three floors above. The accommodation on the 4th floor

comprise two residential units. A banking hall is located at ground floor level and a restaurant at first floor

level. This valuation is based on the assumption that the building was constructed according to approved

building plans.

5

Open Plan Offices (Hollard) Open Plan Offices (BP)

PHOTO PHOTO

PHOTO

Front Elevation Side View

PHOTO

Reception Area (KPMG)

PHOTO

Photos

Main Entrance to Offices Reception Area (BP)

PHOTO PHOTO

Reception Area (British Council)

PHOTO

6

12.2

12.3

PHOTO PHOTO

Restaurant Basement Parking

PHOTO PHOTO

Lettable Area/Bays Common Areas Gross Building Area

Ground Floor

Office building grades defined by quality of finishes and facilities:

Other Residential properties which have been converted to offices

Grade P

GRADE

GRADING

Top quality, modern space which is generally a pace-setter in establishing rentals and which

includes the latest or a recent generation of building services, ample parking, a prestige lobby

finish and good views, or a good environment.

Grade A Generally not older than fifteen years or which has had a major renovation; high quality modern

finishes; air conditioning; adequate on-site parking, market rental near the top of the range in

the metropolitan area in which the building is located. (The following should also be taken into

account in determining whether the building is A-grade or not: Consider whether the building

has a good quality lobby finish, quality access to/from an attractive street environment and other

similar factors, such as safety and security.)

Grade B

Buildings with older style finishes, services and building systems. It may or may not be air-

conditioned or have on-site parking.

ACCOMMODATION AND AREAS

Accommodation & areas

Surrounding Works

Grade C

DEFINITION

X

SUBJECT

PROPERTY

The internal roads and parking areas are brick paved. A guard house is located at the entrance to the property. Main municipal services are

connected to the border of the property including water, electricity and drainage.

OFFICE GRADES

Generally older buildings , but accommodation and finishes close to modern standards as a

result of refurbishments and renovation from time to time, air-conditioned; on-site parking,

unless special circumstance pertain.

7

693.93 m² 5.75 m² 700 m2

1143.43 m² 89.86 m² 1233 m²

1054.79 m² 0 m² 1055 m²

1080.45 m² 0 m² 1055 m²

567.19 m² 0 m² 567 m²

154.81 155 m²

108.06 108 m²

4802.66 m² 96 m² 4873 m²

66 1650 m2

22 550 m2

19

1650

12.4

YES NONOT

SURE

X

X

X

13.

Residential Flat

m²

m²

Covered Parking

Bays

m2

- Contaminated water which may be static or migrating on to or off the site, as groundwater or surface water

- Airborne contamination as particles or gases emanating from the ground or groundwater

Structural

CONTAMINATED LAND

Contaminated land is regarded any form of negative impact on the natural or built environment that may have legal or financial consequences

caused by the release of hazardous substances as products or wastes. This may include adverse impacts on soils, groundwater, surface water

and air quality associated with the present or past activities on the site or adjacent properties.

Are any structural cracks visible?

First Floor

Second Floor

Third Floor

Fourth Floor

Offices

Offices

Open Parking Bays

Bays

Would you recommend a Structural Engineer to inspect the property and provide the

Bank with a report?.

STRUCTURAL DEFECTS

Total

Properties where water resources form part of the assets of the property or are reliant on boreholes or surface water as a sole source of water

supply are sensitive to contamination issues.

There are three broad ways in which land may be affected by contaminants:

- Contaminants attached to or contained within the ground itself

Structured Parking

Residential Flat

We have not had sight of the approved building plans. The areas stated above were obtained off a building area schedule as supplied by the

owner. This valuation is based on the assumption that the improvements were constructed according to approved building plans. We reserve the

right to alter or amend this valuation if the approved building plans materially differ from the areas stated above.

Structural defect" means any defect in a structural element of a building that is attributable to defective or faulty design, workmanship and

materials or adverse soil conditions (or any combination of these) and that:

(a) results in, or is likely to result in, the building or any part of the building being required to be closed or prohibited from being used, or

(b) prevents, or is likely to prevent, the continued practical use of the building or any part of the building, or

(c) results in, or is likely to result in:

(I) the destruction of the building or any part of the building, or

(ii) physical damage to the building or any part of the building, or

(d) results in, or is likely to result in, a threat of imminent collapse that may reasonably be considered to cause destruction of the building or

physical damage to the building or any part of the building.

Is the subject property located in an area where adverse soil conditions exists?

- Or a combination of the above.

Activity or Industry Offices

‘Contaminated' means the presence in or under any land, site buildings or structures of a substance or microorganism above the concentration

which is normally present in or under that land, and which substances directly or indirectly affect or may affect the quality of soil or the

environment adversely.

Offices

Coverage

Offices

Commercial office properties tend to be simpler to assess and the risk of soil contamination tends to be lower than industrial properties.

Fifth Floor

Parking

Offices

8

HIGH /

YES

MEDIUM LOW / NO

Low

No

No

No

No

14.

YES NO

No

15.

SCALE

9

8

7

6

5

4

3

2

1

SCALE

9

8

7

6

5

4

3

2

1

X X

CURRENT DEMAND

Very poor

Good

LOCALITY

Poor

Is contamination of the land

visible

HISTORIC DEMAND

Should a appropriately skilled

remediation consultant be

appointed to establish the level of

contamination?

Below average

Please state what types of asbestos products

are present e.g. asbestos roof sheeting,

ceiling boards etc.

None

Is the asbestos well maintained and in a good

state of repair?Not Applicable

PRESENCE OF ASBESTOS

X

Is the costs to cure the

contamination known? State

amount or estimated amount

Are there any visible signs of the presence of

asbestos on the subject property?

LOCALITYRATING SALEABILITY

Unlettable

Excellent

Very Good

Average

SALEABILITY

Good

Above average

Poor

X

NOT APPLICABLE

Not Applicable

Not Applicable

Level of Contamination

Environmental Impact of Activity

X

LETTABILITY

RATINGS

X

Excellent

Very Good

Average

NOT SURE

NOT APPLICABLE

Unlettable

“asbestos” means any of the following minerals:

(a) Amosite

(b) Chrysotile

(c) Crocidolite

(d) Fibrous actinolite

(e) Fibrous anthophyllite; and

(f) Fibrous tremolite,

or any mixture containing any of these minerals;

“asbestos dust” means airborne or settled dust, which contains or is likely to contain regulated asbestos fibres;

R 0

In your opinion can the source of

contamination be successfully,

economically and entirely

eliminated

LETTABILITY

Very poor

Is contamination of the air visible

RATING

Above average

Below average

Not Applicable

Is contamination of the water

sources visible

9

SCALE

9

8

7

6

5

4

3

2

1

16.

STRONG AVERAGE POOR

X

17.

18.

18.1

We have not had sight of the lease agreements. The subject property is multi tenanted. We have used the tenancy schedule as provided by the

applicant. Refer valuation calculations for a summary of the tenants.

LETTABILITY LOCALITYSALEABILITY

X X

Very poor

Below average

Unlettable

MARKET RESEARCH AND APPLICATION

Mozambique has a total area of 799,380 km² from North to South, while to the East it has a coastline of approximately 2,515 kilometres with the

Indian Ocean. The total area includes water of approximately 13,000m². The country is irregular shaped. Towards the south, the terrain becomes

narrower, while it’s widest point being the Central Northern region, between the Coast and the point where the Zambezi and Aruángua rivers

meet.

Poor

MACRO AND MICRO LOCALITY

LEASE SUMMARY

This valuation is subject to signed copies of the leases being supplied to the Bank which should not materially differ from the information stated in

this report.

Despite the overwhelming majority attained by the Front for the Liberation of Mozambique (Frente de Libertação de Moçambique, FRELIMO) in

the last elections, the RENAMO leader demanded the formation of a government of national unity, the integration of his party’s former combatants

(most of them already of retirement age) into the ranks of the Mozambican Defence Forces, a delinkage of party and state, and the further

politicization of the National Electoral Commission (CNE) by eliminating the representatives of civil society currently serving as members. This

came at a time when the parliament just had passed a new electoral law package, which also established a new structure for Mozambique’s

electoral commission. Under these new rules, the CNE will have eight members drawn from political parties and five from civil society.

High economic growth rates over the last 20 years (approximately 7.2% for the last decade) have not managed to create a more inclusive society.

To the contrary, the cleavage between the majority of the population living in rural areas (65% – 70%) and the developing urban-middle-class

strata has widened. Mozambique’s economic performance is thus marked by extremes, largely due to the ongoing megaprojects on the one hand

and the structure of an underdeveloped, mainly agrarian economy on the other. The country remains one of the poorest in the world, ranked by

the UNDP’s 2011 Human Development Index at 184th place out of 187 countries, below so-called failed states such as Haiti (158), Afghanistan

(172) and the Central African Republic (179).

In 2012, Mozambique celebrated the 20th anniversary of the Rome Peace Accords that brought an end to the country’s civil war. Over the last two

decades, the ruling party has been able to extend and consolidate its dominant position in Mozambique’s political system. The main opposition

party, Mozambique National Resistance (Resistência Nacional Moçambicana, RENAMO), has become progressively weaker from election to

election, with its leader Afonso Dhlakama engaging in belligerent rhetoric. In 2012, Dhlakama withdrew with hundreds of ex-RENAMO fighters to

the forests in Gorongosa National Park with the aim of pressuring the Mozambican government into negotiations.

Excellent

Mozambique, officially known as República de Moçambique (the Republic of Mozambique), is a country on the South - East Coast of Africa. The

country is bordered by the Indian Ocean to the East; Malawi, Zambia and Tanzania to the North; Zimbabwe to the West and Swaziland to the

South. South Africa also borders Mozambique to the South and Western boundaries.

Mozambique has been divided into 10 provinces (províncias) with Maputo as its capital city, which was formerly known as Lourenço Marques.

The city of Maputo is surrounded by Maputo Province, but as the capital, it is administered as its own “province”.

The subject property is situated in the city of Maputo, which is the capital and largest city of Mozambique. The property comprises a rectangular

shaped plot (stand) extending to an area of approximately 7,513m², which is located at the corner of Avenida Sociedade De Geografia No 269

and Avenida Do Presidente Carmona within the central business district of Maputo. The plot has been improved with a four storey office building

with structured parking below. The immediate surrounding properties comprise a mixture of offices and commercial builings.

ECONOMY

The country's economy is based largely on agriculture but with the food and beverages, chemical manufacturing, and aluminium and petroleum

industries growing fast. The country's tourism sector is also growing. Since 2001, Mozambique is one of the world's top ten for annual average

GDP (Gross Domestic Product) growth. South Africa is Mozambique's main trading partner and source of foreign direct investment, while China

and Portugal are also among the country's most important partners. According to several publications, Mozambique is one of the most poverty

stricken and underdeveloped countries in the World.

Average

RATING

Above average

Tenant/s Rating

XVery Good

Good

ANTICIPATED FUTURE DEMAND

10

18.2

19.

19.1

Property description

Comparable 1

The major risks to political stability are that spikes in consumer price inflation could lead to violent disorder, as witnessed in September 2010, and

that the legitimacy of the polls due in 2014 is contested.

Avenida 25 de

Setembro, Maputo

Photograph

COMPARABLE PROPERTIES: FOR SALE / TO LET

Mozambique’s economic performance continues to be very strong. Despite severe floods in early 2013, GDP growth is estimated at 7 percent in

2013 and is likely to accelerate to over 8 percent in 2014. This reflects bustling activity in mining, construction, transport and communications,

and financial services. Risks to this outlook remain moderate, mainly relating to international commodity prices and policy uncertainty in an

election year. Average inflation was 4.2 percent in 2013 and is likely to stay anchored by the authorities’ medium-term target of 5-6 percent.

Inflation seems well-contained, but there are risks associated with inflationary pressures in neighbouring countries (especially in South Africa),

and a highly expansionary budget. The external current account deficit is projected to reach [43] percent of GDP in 2014 due to imports for large

investment projects financed by foreign direct investment (FDI).

Annual inflation, which was 4.2% in 2013, was likely to increase in 2014 but would still be in line with the central bank’s target of 5.6%

The average price per square metre for office space sales in Maputo ranges from US$2,000 and US$3,200, according to a study from the

consultancy Prime Yield Moçambique (PYM), which expects prices to stabilise over the next five years.

Bairro Central C (US$2,500) and Polana A (US$2,200) are in the middle-ground of the consultancy’s study which is “the result of field work, along

with information from properties evaluated by PYM.”

Over the last five years the price of renting office space has risen due to high demand, particularly from large companies (megaprojects) and the

arrival of foreigners,” PYM consultant Daniela Costa told Macauhub.

According to Costa, in the next five years, the price of rentals should stabilise as new facilities are built, increasing the availability of office space

in Maputo, which now stands at a total of “approximately 337,000 square metres

In the rental market the respective costs per square meter vary between US$22 in Bairro Central B and Polana Cimento B, US$25 in Polana

Cimento A, US$28 in Sommerschield and US$30 in Bairro Central C.

COMPARABLE PROPERTIES / GUIDELINE

The following are office blocks are let / to let in the greater Maputo area:

The ruling party, Frente de Libertação de Moçambique (Frelimo), is set to win the presidential and parliamentary polls, although there is a small

risk that the presidential succession battle will cause the party to splinter.

Fiscal revenue is expected to rise briskly up to 16 on the back of strong economic increase and increasing royalties from the mining sector. The

deficit should narrow as a proportion of GDP from 5.2% in 2011 to 0.3% in 2016.

Economic increase is expected to remain brisk, averaging around 8% a year, largely on the back of the minerals boom. However, turbulent

external economic conditions could mean investment inflows disappoint.

Given the expected pick-up in agricultural output and the outlook for declining world food prices (and broadly flat oil prices),WE expect inflation to

average 6.5% a year in the outlook period.

The current-account deficit should continue to widen in US dollar terms to around US$1.7bn in 2016, but will shrink as a proportion of GDP to

6.3% in that year.

ECONOMIC OUTLOOK UP TO 2016

11




$110

2 - 3%

$12,000

"A" Grade

Type of accommodation

Minimum Rate/m2 Gross

Maximum Rate/m2 Gross

Operating costs/m2

Comparable 2

Comments

Parking Bay

Annual Lease Escalation

Varies

30 - 1300m2

$3

$25

Parking Bay

Grading


"A" Grade

Avenida Vladimir

Lenine, Maputo



This comparable comprises A grade offices, which is home to some of the better office

accommodation available in Maputo. There are several buildings which make up this complex,

each with its own unique entrance. Research has revealed that that the last known concluded

lease agreement negotiated in the building was in September 2011, when approximately 180m²

of offices was leased at a gross rental of $35/m² and one parking bay at $150/bay. No further

lease details were available. This comparable accommodation is considered marginally inferior

to the subject property. Hence, a lower rental range is advised for the subject accommodation.

$35

$3

Offices

$25

Operating costs/m2 $3

Parking Bay

Comments

Comparable 4

Martires Da Machava

Ave, Maputo

Photograph

Type of accommodation Offices

Grading B+ grade

Areas in m2 400

Asking Rent Rate/m2 Gross

Photograph

Offices

Grading

Areas in m2

$150

$32

Photograph

Offices

A- to B+ grade


Varies

Minimum Rate/m2 Gross $20


Grading

$110

This comparable, which was developed in 2003, comprises approximately 13,500m² of "B+" to

"A" grade offices. This building is situated opposite the JAT Office Complex and currently has

no vacancies. Current rentals achieved range between $20/m² and $25/m². This comparable

accommodation is considered inferior to the subject property in terms of location and the quality

of accommodation (prime offices) to be provided. Hence a higher rental being advised for the

subject accommodation.

This comparable comprises lower end A grade offices, which is home to some of the biggest

companies in Mozambique. Research has revealed that that three lease agreements have

recently been negotiated with sizes varying between 100m² and 700m². The rentals achieved

range between $28/m² and $30/m². This comparable accommodation is considered inferior to

the subject property in terms of location and the quality of accommodation (prime offices) to be

provided.

Avenida 25 de

Setembro, Maputo

$32

2 - 3%

2 - 3%

Comments

Comparable 3

Areas in m2


Photograph

Operating costs/m2


Areas in m2

12

20.

20.1

20.2

Rate/m2 Gross $30

Photograph

Numerous A-Grade office developments are currently taking place in the Maputo central business district with a number of new developments in

the pipeline. These new developments will provide further office space in the downtown area of the city and along the beachfront.

Comments Residential house converted to offices. The accommodation comprise 10 individual offices and

storage space. The subject property is superior in all aspects and will command higher rentals.

The downtown central business district is a relatively fast developing mix-use suburb. These buildings are similar in age, size and stature, with the

quality of accommodation on offer being rated as good to brand new. Our research confirms that rentals for prime A-grade office accommodation

in the greater node are currently in the region of US $30 to US $35 per square metre.

In our valuation calculations, we have estimated an provision for building maintenance, lift maintenance, air-conditioning maintenance, electricity

and water expenses not recovered, security as well as for management.

$38.00 $20.00

Description

Offices

Capitalisation Rates

9-10%

During our comparative market research, the following were evident:

The Aecom, Africa Property & Construction Handbook 2013, indicate gross rentals for office buildings at $420/m2

per annum, or $35/m2

per

month.

VALUATION MOTIVATION

INCOME

Gross Rentals/m2

applied to subject

property

Gross Market Rentals

(Lowest)

$200.00


(Highest)

In assessing the value of the subject property we have used rentals as stated above in our calculations. The above rentals are considered in line

with rental indicators obtained in the local market place. We are however of the opinion that the achieved rentals for the subject property is slightly

below market taking the quality and location of the property into consideration. We are of the opinion that market related rentals for the subject

property should be between $25 and $30/m2.

Basement Parking $100.00

EXPENSES

Gross Asking Rental is defined as being the full rental being asked including operating costs and municipal costs excluding parking, VAT,

electricity/water consumption and internal cleaning. In terms of a gross lease, the tenant in a stand-alone building typically pays only for his refuse

removal, water and electricity, as well as internal maintenance and increases in rates and taxes. He provides and pays for his own security. All

other expenses are for the account of the landlord. In a park the tenant pays, in addition to his gross rental, his pro rata share of security costs,

security lighting and landscaping.

$30.00

$100.00

13

18.0% or $4.37

20.3

HIGH AVERAGE LOW

X

1.00%

20.4

*

*

*

9.50%

21.

22.

22.1

Rental income being derived at present

Despite current interest rates and economic uncertainty, demand for investment properties remains good. The capitalisation rate is dependent on

a number of factors, such as location, the condition of the improvements, current market conditions, the lease covenant and the risk inherent in

the property.

Current market conditions are fairly stagnant, with transactions of properties comparable to the subject property being scarce.

INCOME CAPITALISATION METHOD - EXISTING

Based on our market research, we have concluded that yields are in the region of 9.00% to 10.00% for prime properties within the immediate

market. Considering the type, size, and location of the subject property, we are of the opinion that capitalisation rates as stated below would be

market related for the subject property. We are satisfied that our rate assumption produced a value which adequately reflects the investment risks

associated with the subject property.

Capitalisation Rate Applied

Vacancy Rate Applied

Expense Ratio's

Based on the above market research we have applied a capitalisation rate to the subject property of :

VALUATION CALCULATION

Where applicable, Property brokers/agents, Own Data Base, Internet

SOURCE OF INFORMATION

CAPITALISATION RATES

No office vacancies were noted along the sea front in Avenida 10 de Novembro. However some vacancies were evident in the Millennium

Building in the central CBD. Local property experts are of the opinion that it might remain difficult to find smaller areas to let of good quality office

space because of the scale of the stock on offer and the general tendency to market space to buy rather than let.

The assessed expenditure at

In addition, the urban regeneration project of the former industrial fair grounds (FACIM) will provide 380,000m² of mixed use accommodation

comprising retail, hotel, office and residential accommodation, as well as a marina. This site is situated close to the subject property.

Condition of the building

VACANCIES

Vacancies in Area

The subject property is a multi tenanted office development. After careful consideration taking factors like locality, demand, the historic vacancy of

the node and the surrounding demographic profiles into account, we have assumed a permanent vacancy factor of 1.00% into perpetuity.

is considered market related for the subject property.

The capitalisation rate is best determined by referring to market transactions of comparable properties as it is based on information derived from

market analysis. The risk inherent in income producing properties is the degree of certainty that the income stream will be realised despite the

uncertainty of the future, and therefore the higher the risk factor, the better return the investor will require.

We have used the net income capitalisation method of valuation to determine the value of this property. This method determines the net

normalised annual income of the property, assuming the property is fully let at market related rentals, and market escalations, with an allowance

made for vacancies (where applicable). Market related operating expenses are incurred, resulting in a net annual income which is then capitalised

at a market related rate. The capitalisation rate is determined from the market (i.e. the rate at which similar assets have traded recently), and is

influenced in general by: rates of return of similar properties, risk, obsolescence, inflation, market rental growth rates, rates of return on other

investments, as well as mortgage rates. In determining the rate of capitalisation we have taken the following into account:

Demand experienced in this particular node

The vacancy we have applied to the subject property is

The capitalisation rates applied in this valuation have been derived after analysis of comparable sales where available and following discussions

with property practitioners, analysts and Valuers operating in or familiar with the surrounding area. There is no department within the local

municipality or local government that can provide a list of property sales for members of the public.

14

Lettable

area in m²

/ unit

Rate/m2

1569 $17.50

35 $55.14

1097 $27.39

32 $77.50

460 $27.35

10 $105.00

560 $17.50

10 $38.00

432 $19.00

6 $63.33

252 $25.25

2 $50.00

160 $27.35

5 $83.00

127 $24.34

3 $71.00

155 $24.19

1 $109.00

108 $29.34

1 $109.00

25 $28.60

4123 $22.15

559 $20.21

263 $26.31

105 $68.25

5.0% of gross rental income

0.200% of replacement value

0.180%


Less: Expenditure

Other Municipal Expenses

x 12 months

1.00%

$91,325.66

x 12 months

Water ( Non Recovered)

Cleaning Staff

$200.00

Less Vacancy

Generator Maintenance

Pest Control

CCTV Maintenance Contract $0.00 x 12 months

$50.00

x 12 months$2,000.00

$100.00

$29,958.40

$151,813.29

$12,684.00

$118,188.00

$4,582.80

28/02/2018 $8,214.08

Sub Total

28/02/2018 $331,137.45

Annual RentalMonthly Gross Rental

(Including Operating

Costs Recoveries)

$27,457.50Office

$23,275.80

Apartment 1

Apartment 2

Apartment 2

$362,965.71

$2,400.00

$24,000.00

Electricity (Non Recovered) x 12 months

$1,396,497

$251,753

x 12 months

Gross Annual Income

$1,410,603

Garden Maintenance

$200.00

$2,400.00

$25,000.00

$2,400.00

Property Rates & Taxes

$0.00

$2,000.00

x 12 months

x 12 months

$0.00 x 12 months

x 12 months

$0.00

$0.00

$600.00

$2,083.33

$200.00

$14,106

$0.00 x 12 months $0.00

$60,000.00

Cleaning Consumables

$24,000.00

$1,200.00

Security

Aircon Maintenance

$0.00 x 12 months

Lift / Escalator Maintenance $150.00 x 12 months

x 12 months

$0.00

$5,000.00

x 12 months$0.00

$17,680.02

$69,824.83Management fee

Insurance

Audit Fee

$1,396,496.62

$8,840,008.02

$8,840,008.02

Advertising / Marketing

Repairs and maintenance

of gross replacement

value

$1,800.00

Sundries

$15,912.01

$3,491.24$1,396,496.62

Accommodation Tenant Lease Expiry

KPMG

Parking KPMG 28/02/2018 $1,930.00

Office

Office

Parking

Office

Parking

Office

Parking

Parking

Office

28/02/2018 $30,046.83

28/02/2018 $2,480.00

28/02/2023 $12,567.33

28/02/2023 $1,050.00

28/02/2018 $9,800.00

28/02/2018 $380.00

Parking

BP

BP

Hollard

Hollard

British Council

British Council

Barclays

Barclays

ABB

ABB

Hollard (Vida/Life)

Hollard (Vida/Life)

Café Aleg

Café Aleg

Parking

Retail

Parking

Residential Flat

Parking

Retail / Banking Hall $99,061.80

Apartment 1

14/07/2015 $6,363.00 $78,646.68

14/07/2015 $100.00 $1,236.00

$380.0028/02/2018 $4,582.80

31/03/2015 $3,090.88 $37,214.20

31/03/2015 $213.00 $2,564.52

28/02/2023 $4,376.00 $52,862.08

28/02/2023 $415.00

Parking

$109.00 $1,316.72

28/02/2018 $3,744.00 $45,227.52

28/02/2018 $109.00 $1,316.72

Residential Flat

Office VDE 28/02/2023 $715.00 $8,637.20

$11,304.96

Through Rental - Residential $6,916.00

Through Rental - Parking $7,166.00

103,063R Through Rental - Offices

Through Rental - Retail 16,780R

6,916R

10,500R

$5,013.20

28/02/2018 $3,172.00 $38,317.76

28/02/2018

15

18.0%

9.50%

0 m2 at $0.00 /m

2

0 m2 at $0.00 /m

2

Total

The Income Capitalisation Method of Valuation produced a value of:

The Discounted Cashflow Method of Valuation produced a value of:

23.

Rate/m² based on OMV (GLA)



$12,050,000.00

$14,500,000

$2,123.82

Rate/m² based on OMV (Erf Extent) $1,357.47

Total Replacement Value $8,840,008.02

Rate/m² based on Replacement Cost (GBA) $1,814.22

$2,925.46


Open Market Value $14,500,000.00

$3,019.16


Forced Sale Value $10,200,000.00

Valuer Johan Terblanche

Offices

GLA m² 4,803

GBA m² 4,873

Gross Annual Income $1,410,603

Net Annual Income

Valuation Date 27 April 2014

Erf Description Erf 266 Aterro da Maxaquene, Maputo, Mozambique

Erf Extent m² 7,514

Physical Address HOLLARD INSURANCE BUILDING, AVENIDA SOCIEDADE DE GEOGRAFIA NO 269

CORNER AVENIDA DO PRESIDENTE CARMONA, MAPUTO, MOZAMBIQUE

Zoning Offices

$1,144,744

Annual Expenditure $251,753

Operating Costs / Month ($/m²) $4.37

SUMMARY

OPEN MARKET VALUE ROUNDED

Annual Expenditure as a % 18.0%

Capitalisation Rate 9.50%

Vacancy Rate 1.00%

Purchase Price To be confirmed $14,050,000.00

Usage

$12,050,000.00

$0.00

$12,049,935.75

$1,144,744

Value

Income/Expenditure Ratio


Less: Amount to cure Contamination

Less: Refurbishment Costs $0.00

Net Annual Income

$12,049,935.75

Add: Residual Land (Surface Rate)

$0.00

We are of the opinion that the discounted cashflow method of valuation represents a fair value for the subject property.

16

24.

ADDRESS:

Date of Signature

I, Johan Terblanche, declare that I have inspected the above property, that I have verified the particulars set out in this valuation, and that I value

the herein described property for the purposes of this valuation to the best of my knowledge and skills as at 27-April-2014 at:


VALUATION

We emphasise that we have not carried out a structural survey of the improvements, nor have we examined them for signs of timber infestation,

and accordingly cannot be held responsible for possible defects.

4710/2

Professional Valuer

Where actual income and expenditure data has been made available to us, such data has been adjusted for anomalies and used on the

understanding that it is correct as a basis for assessing capitalised values; in the absence of such data, we have made what we consider to be

plausible assumptions.

STANDARD BANK: CORPORATE AND INVESTMENT

BANKING

The signatories to this document hereby confirms that they have no present or contemplated interest in this or any other properties or any other

interests, which would affect the statements or values contained in this valuation report. The valuation enclosed herewith was therefore

undertaken on a completely independent basis.

Kindly note that neither the whole nor any part of this report, nor any reference thereto may be included in any published document, circular or

statement, nor published in any way without our prior written approval of the Valuer as to the form or context in which it may appear.

This valuation has been prepared on the understanding that no onerous easements, rights of way or encroachments exist by or on the subject

property, other than those in favor of statutory bodies, applicable to all such properties, or which could be regarded as customary.

This valuation report has been compiled for the exclusive use of Standard Bank / Delta Property Fund and shall not be divulged to any other

party, as it is confidential.

$14,500,000

27 April 2014

The market value and any other values referred to in this report exclude Value Added Tax (VAT) and transfer costs.

The Insurance Value is a MINIMUM recommended value, subject to the qualifications set out above, and should be verified by Standard Bank to

avoid the average clause being applied in the event of a claim. The Valuer should be advised of all alterations and additions to the property,

subsequent to the date hereof.

All plans included within the Valuation Report are supplied for the purpose of identification only and are not necessarily to scale.

Caveats

………………………………………………………..

30 Baker Street

Johan Terblanche

Fourteen Million Five Hundred Thousand Dollar only

We have assumed that the property and its value are unaffected by any statutory notice or condition of Title where Title Deeds have not been

inspected, and that neither the property nor its condition, nor its use, nor its intended use, is or will be unlawful.

Rosebank

17

Client:

KPMG Office 1,569 $17.50 28 February 2018 11 3.00%

KPMG Parking 35 $55.14 28 February 2018 11 3.00%

BP Office 1,097 $27.39 28 February 2018 11 4.00%

BP Parking 32 $77.50 28 February 2018 11 4.00%

Hollard Office 460 $27.35 28 February 2023 11 4.00%

Hollard Parking 10 $105.00 28 February 2023 11 4.00%

British Council Office 560 $17.50 28 February 2018 11 3.00%

British Council Parking 10 $38.00 28 February 2018 11 3.00%

Barclays Retail / Banking Hall 432 $19.00 28 February 2018 11 3.00%

Barclays Parking 6 $63.33 28 February 2018 11 3.00%

ABB Office 252 $25.25 14 July 2015 4 4.00%

ABB Parking 2 $50.00 14 July 2015 4 4.00%

Hollard (Vida/Life) Office 160 $27.35 28 February 2023 11 4.00%

Hollard (Vida/Life) Parking 5 $83.00 28 February 2023 11 4.00%

Café Aleg Retail 127 $24.34 31 March 2015 12 4.00%

Café Aleg Parking 3 $71.00 31 March 2015 12 4.00%

Apartment 1 Residential Flat 155 $24.19 28 February 2018 11 4.00%

Apartment 1 Parking 1 $109.00 28 February 2018 11 4.00%

Apartment 2 Residential Flat 108 $29.34 28 February 2018 11 4.00%

Apartment 2 Parking 1 $109.00 28 February 2018 11 4.00%

VDE Office 25 $28.60 28 February 2023 11 4.00%

0 0 0 $0.00 0 January 1900

4,123

EXPENDITURE 12 5.00%

$251,753

Total area as per valuation report

Lettable area /

units

Rental rate

/m²

Escal.

month

Escal.

rate

CASH FLOW

Lease expiry dateTenant Accommodation

Delta Property Fund

GROSS ANNUAL INCOME $1,410,603

GROSS ANNUAL EXPENDITURE

Year 1

Months

1 2 3 4 5 6 7 8 9Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14

$27,457.50 $27,457.50 $27,457.50 $27,457.50 $27,457.50 $27,457.50 $27,457.50 $27,457.50 $27,457.50

$1,930.00 $1,930.00 $1,930.00 $1,930.00 $1,930.00 $1,930.00 $1,930.00 $1,930.00 $1,930.00

$30,046.83 $30,046.83 $30,046.83 $30,046.83 $30,046.83 $30,046.83 $30,046.83 $30,046.83 $30,046.83

$2,480.00 $2,480.00 $2,480.00 $2,480.00 $2,480.00 $2,480.00 $2,480.00 $2,480.00 $2,480.00

$12,567.33 $12,567.33 $12,567.33 $12,567.33 $12,567.33 $12,567.33 $12,567.33 $12,567.33 $12,567.33

$1,050.00 $1,050.00 $1,050.00 $1,050.00 $1,050.00 $1,050.00 $1,050.00 $1,050.00 $1,050.00

$9,800.00 $9,800.00 $9,800.00 $9,800.00 $9,800.00 $9,800.00 $9,800.00 $9,800.00 $9,800.00

$380.00 $380.00 $380.00 $380.00 $380.00 $380.00 $380.00 $380.00 $380.00

$8,214.08 $8,214.08 $8,214.08 $8,214.08 $8,214.08 $8,214.08 $8,214.08 $8,214.08 $8,214.08

$380.00 $380.00 $380.00 $380.00 $380.00 $380.00 $380.00 $380.00 $380.00

$6,363.00 $6,363.00 $6,363.00 $6,617.52 $6,617.52 $6,617.52 $6,617.52 $6,617.52 $6,617.52

$100.00 $100.00 $100.00 $104.00 $104.00 $104.00 $104.00 $104.00 $104.00

$4,376.00 $4,376.00 $4,376.00 $4,376.00 $4,376.00 $4,376.00 $4,376.00 $4,376.00 $4,376.00

$415.00 $415.00 $415.00 $415.00 $415.00 $415.00 $415.00 $415.00 $415.00

$3,090.88 $3,090.88 $3,090.88 $3,090.88 $3,090.88 $3,090.88 $3,090.88 $3,090.88 $3,090.88

$213.00 $213.00 $213.00 $213.00 $213.00 $213.00 $213.00 $213.00 $213.00

$3,744.00 $3,744.00 $3,744.00 $3,744.00 $3,744.00 $3,744.00 $3,744.00 $3,744.00 $3,744.00

$109.00 $109.00 $109.00 $109.00 $109.00 $109.00 $109.00 $109.00 $109.00

$3,172.00 $3,172.00 $3,172.00 $3,172.00 $3,172.00 $3,172.00 $3,172.00 $3,172.00 $3,172.00

$109.00 $109.00 $109.00 $109.00 $109.00 $109.00 $109.00 $109.00 $109.00

$715.00 $715.00 $715.00 $715.00 $715.00 $715.00 $715.00 $715.00 $715.00

$20,892.34 $20,892.34 $20,892.34 $20,892.34 $20,892.34 $20,892.34 $20,892.34 $20,892.34 $20,892.34

10 11 12Jan-15 Feb-15 Mar-15

$27,457.50 $28,281.23 $28,281.23 $331,137.45

$1,930.00 $1,987.90 $1,987.90 $23,275.80

$30,046.83 $31,248.70 $31,248.70 $362,965.71

$2,480.00 $2,579.20 $2,579.20 $29,958.40

$12,567.33 $13,070.02 $13,070.02 $151,813.29

$1,050.00 $1,092.00 $1,092.00 $12,684.00

$9,800.00 $10,094.00 $10,094.00 $118,188.00

$380.00 $391.40 $391.40 $4,582.80

$8,214.08 $8,460.50 $8,460.50 $99,061.80

$380.00 $391.40 $391.40 $4,582.80

$6,617.52 $6,617.52 $6,617.52 $78,646.68

$104.00 $104.00 $104.00 $1,236.00

$4,376.00 $4,551.04 $4,551.04 $52,862.08

$415.00 $431.60 $431.60 $5,013.20

$3,090.88 $3,090.88 $3,214.52 $37,214.20

$213.00 $213.00 $221.52 $2,564.52

$3,744.00 $3,893.76 $3,893.76 $45,227.52

$109.00 $113.36 $113.36 $1,316.72

$3,172.00 $3,298.88 $3,298.88 $38,317.76

$109.00 $113.36 $113.36 $1,316.72

$715.00 $743.60 $743.60 $8,637.20

$0.00

$1,410,602.64

$20,892.34 $20,892.34 $21,936.96 $251,752.72

Total



30 Baker Street

Rosebank

Tel: (011) 721 6248

Applicant Name :

Property Description :

Property Address :

Description Storeys Walls Roof Flooring ConditionArea in

m²

Replacement

costs in m²

Total

replacement

cost

Office Block

4 Storeys

with 1 level

of parking

below

Plastered

and Painted

Brick

Flat Concrete

roof

Ceramic

Tiles, wood

and carpets

Very Good 4873 $1,300.00 $6,334,393.00

Structured Parking Four Levels Concrete Concrete Concrete Very Good 1650 $800.00 $1,320,000.00

TOTALS 6523 $7,654,393.00

Site Improvements

All Improvements Say $100,000

$7,754,393

3.00% $232,632

2.00% $155,088

9.00% $697,895

$8,840,008

Total replacement costs (Exc VAT) $8,840,008

Remarks:

DATE VALUER:27 April 2014

Demolition @

Local authority & statutory fees @

Add: Professional fees @

Sub Total

Construction Date : 5 Years +

Rates are based on projected 1 July 2013 costs and provide an indicator for the expected building cost rates over 2013.

Rates include the cost of appropriate building services, e.g. air-conditioning, electrical, etc., but exclude costs of site infrastructure

development, parking, any future escalation, loss of interest, professional fees and VAT.

Sub Total

Delta Property Fund

HOLLARD INSURANCE BUILDING, AVENIDA

HOLLARD INSURANCE BUILDING, AVENIDA

Breakdown of Replacement Costs

DISCOUNTED CASHFLOW - HOLLARD BUILDING MAPUTONotes

Date of Valuation 27-Apr-14

Market rentals escalate at 4% P.A

Discount Rate 13.00%

Discount Rate/Month 1.08%

Capitalisation Rate at Reversion is 9.50%

KPMG 1,569.00 $27,457.50 $17.50

KPMG 35.00 $1,930.00 $55.14

BP 1,097.00 $30,046.83 $27.39

BP 32.00 $2,480.00 $77.50

Hollard 459.50 $12,567.33 $27.35

Hollard 10.00 $1,050.00 $105.00

British Council 560.00 $9,800.00 $17.50

British Council 10.00 $380.00 $38.00

Barclays 432.32 $8,214.08 $19.00

Barclays 6.00 $380.00 $63.33

ABB 252.00 $6,363.00 $25.25

ABB 2.00 $100.00 $50.00

Hollard (Vida/Life) 160.00 $4,376.00 $27.35

Hollard (Vida/Life) 5.00 $415.00 $83.00

Café Aleg 127.00 $3,090.88 $24.34

Café Aleg 3.00 $213.00 $71.00

Apartment 1 154.80 $3,744.00 $24.19

Apartment 1 1.00 $109.00 $109.00

Apartment 2 108.10 $3,172.00 $29.34

Apartment 2 1.00 $109.00 $109.00

VDE 25.00 $715.00 $28.60

Gross Income Per Annum 4,944.72 $116,712.62

Less Vacancy of 1.00%

Less Monthly Expenses

Description Percentage

All operating expenses - Say 18.00%

Total Expenses

Net Income

Value based on 1st years net income $12,001,165.72

First years yield based on value 7.86%

Net Present Value Factor

Net present Value of Monthly Income Stream

Net Present Value $14,476,761

Say $14,500,000

Tennant Area m2/Bays Gross Rental Rate $/m2

DISCOUNTED CASHFLOW - HOLLARD BUILDING MAPUTO

Apr-14 May-14

1 2

1 2

$30.00 $47,070.00 28-Feb-18 11 3% $27,457.50 $27,457.50

$100.00 $3,500.00 28-Feb-18 11 3% $1,930.00 $1,930.00

$30.00 $32,910.00 28-Feb-18 11 4% $30,046.83 $30,046.83

$100.00 $3,200.00 28-Feb-18 11 4% $2,480.00 $2,480.00

$30.00 $13,785.00 28-Feb-23 11 4% $12,567.33 $12,567.33

$100.00 $1,000.00 28-Feb-23 11 4% $1,050.00 $1,050.00

$30.00 $16,800.00 28-Feb-18 11 3% $9,800.00 $9,800.00

$100.00 $1,000.00 28-Feb-18 11 3% $380.00 $380.00

$30.00 $12,969.60 28-Feb-18 11 3% $8,214.08 $8,214.08

$100.00 $600.00 28-Feb-18 11 3% $380.00 $380.00

$30.00 $7,560.00 14-Jul-15 4 4% $6,363.00 $6,363.00

$100.00 $200.00 14-Jul-15 4 4% $100.00 $100.00

$30.00 $4,800.00 28-Feb-23 11 4% $4,376.00 $4,376.00

$100.00 $500.00 28-Feb-23 11 4% $415.00 $415.00

$30.00 $3,810.00 31-Mar-15 12 4% $3,090.88 $3,090.88

$100.00 $300.00 31-Mar-15 12 4% $213.00 $213.00

$30.00 $4,644.00 28-Feb-18 11 4% $3,744.00 $3,744.00

$100.00 $100.00 28-Feb-18 11 4% $109.00 $109.00

$30.00 $30.00 28-Feb-18 11 4% $3,172.00 $3,172.00

$100.00 $100.00 28-Feb-18 11 4% $109.00 $109.00

$30.00 $30.00 28-Feb-23 11 4% $715.00 $715.00

$154,908.60 $116,714.62 $116,716.62

1,167.15R 1,167.17R

$21,008.63 $21,008.99

$21,008.63 $21,008.99

$94,538.84 $94,540.46

0.98928277 0.978680399

$93,525.64 $92,524.89

Escalation

Gross Market

Rent $/m2

Market Rent per

Month Lease Expire

Escalation

Month

Jun-14 Jul-14 Aug-14 Sep-14 Oct-14

3 4 5 6 7

3 4 5 6 7

$27,457.50 $27,457.50 $27,457.50 $27,457.50 $27,457.50

$1,930.00 $1,930.00 $1,930.00 $1,930.00 $1,930.00

$30,046.83 $30,046.83 $30,046.83 $30,046.83 $30,046.83

$2,480.00 $2,480.00 $2,480.00 $2,480.00 $2,480.00

$12,567.33 $12,567.33 $12,567.33 $12,567.33 $12,567.33

$1,050.00 $1,050.00 $1,050.00 $1,050.00 $1,050.00

$9,800.00 $9,800.00 $9,800.00 $9,800.00 $9,800.00

$380.00 $380.00 $380.00 $380.00 $380.00

$8,214.08 $8,214.08 $8,214.08 $8,214.08 $8,214.08

$380.00 $380.00 $380.00 $380.00 $380.00

$6,363.00 $6,617.52 $6,617.52 $6,617.52 $6,617.52

$100.00 $104.00 $104.00 $104.00 $104.00

$4,376.00 $4,376.00 $4,376.00 $4,376.00 $4,376.00

$415.00 $415.00 $415.00 $415.00 $415.00

$3,090.88 $3,090.88 $3,090.88 $3,090.88 $3,090.88

$213.00 $213.00 $213.00 $213.00 $213.00

$3,744.00 $3,744.00 $3,744.00 $3,744.00 $3,744.00

$109.00 $109.00 $109.00 $109.00 $109.00

$3,172.00 $3,172.00 $3,172.00 $3,172.00 $3,172.00

$109.00 $109.00 $109.00 $109.00 $109.00

$715.00 $715.00 $715.00 $715.00 $715.00

$116,718.62 $116,979.14 $116,981.14 $116,983.14 $116,985.14

1,167.19R 1,169.79R 1,169.81R 1,169.83R 1,169.85R

$21,009.35 $21,056.24 $21,056.60 $21,056.96 $21,057.32

$21,009.35 $21,056.24 $21,056.60 $21,056.96 $21,057.32

$94,542.08 $94,753.10 $94,754.72 $94,756.34 $94,757.96

0.968191656 0.957815323 0.947550196 0.937395083 0.927348804

$91,534.85 $90,755.97 $89,784.85 $88,824.13 $87,873.68

Nov-14 Dec-14 Jan-15 Feb-15 Mar-15

8 9 10 11 12

8 9 10 11 12

$27,457.50 $27,457.50 $27,457.50 $28,281.23 $28,281.23

$1,930.00 $1,930.00 $1,930.00 $1,987.90 $1,987.90

$30,046.83 $30,046.83 $30,046.83 $31,248.70 $31,248.70

$2,480.00 $2,480.00 $2,480.00 $2,579.20 $2,579.20

$12,567.33 $12,567.33 $12,567.33 $13,070.02 $13,070.02

$1,050.00 $1,050.00 $1,050.00 $1,092.00 $1,092.00

$9,800.00 $9,800.00 $9,800.00 $10,094.00 $10,094.00

$380.00 $380.00 $380.00 $391.40 $391.40

$8,214.08 $8,214.08 $8,214.08 $8,460.50 $8,460.50

$380.00 $380.00 $380.00 $391.40 $391.40

$6,617.52 $6,617.52 $6,617.52 $6,617.52 $6,617.52

$104.00 $104.00 $104.00 $104.00 $104.00

$4,376.00 $4,376.00 $4,376.00 $4,551.04 $4,551.04

$415.00 $415.00 $415.00 $431.60 $431.60

$3,090.88 $3,090.88 $3,090.88 $3,090.88 $0.00

$213.00 $213.00 $213.00 $213.00 $221.52

$3,744.00 $3,744.00 $3,744.00 $3,893.76 $3,893.76

$109.00 $109.00 $109.00 $113.36 $113.36

$3,172.00 $3,172.00 $3,172.00 $3,298.88 $3,298.88

$109.00 $109.00 $109.00 $113.36 $113.36

$715.00 $715.00 $715.00 $743.60 $743.60

$116,987.14 $116,989.14 $116,991.14 $120,789.35 $117,708.99

1,169.87R 1,169.89R 1,169.91R 1,207.89R 1,177.09R

$21,057.68 $21,058.04 $21,058.40 $21,742.08 $21,187.62

$21,057.68 $21,058.04 $21,058.40 $21,742.08 $21,187.62

$94,759.58 $94,761.20 $94,762.82 $97,839.37 $95,344.28

0.917410194 0.907578098 0.897851374 0.888228895 0.878709541

$86,933.40 $86,003.19 $85,082.93 $86,903.76 $83,779.93

Apr-15 May-15 Jun-15 Jul-15 Aug-15

1 2 3 4 5

13 14 15 16 17

$28,281.23 $28,281.23 $28,281.23 $28,281.23 $28,281.23

$1,987.90 $1,987.90 $1,987.90 $1,987.90 $1,987.90

$31,248.70 $31,248.70 $31,248.70 $31,248.70 $31,248.70

$2,579.20 $2,579.20 $2,579.20 $2,579.20 $2,579.20

$13,070.02 $13,070.02 $13,070.02 $13,070.02 $13,070.02

$1,092.00 $1,092.00 $1,092.00 $1,092.00 $1,092.00

$10,094.00 $10,094.00 $10,094.00 $10,094.00 $10,094.00

$391.40 $391.40 $391.40 $391.40 $391.40

$8,460.50 $8,460.50 $8,460.50 $8,460.50 $8,460.50

$391.40 $391.40 $391.40 $391.40 $391.40

$6,617.52 $6,617.52 $6,617.52 $6,882.22 $0.00

$104.00 $104.00 $104.00 $108.16 $108.16

$4,551.04 $4,551.04 $4,551.04 $4,551.04 $4,551.04

$431.60 $431.60 $431.60 $431.60 $431.60

$0.00 $0.00 $0.00 $3,962.40 $3,962.40

$0.00 $0.00 $0.00 $312.00 $312.00

$3,893.76 $3,893.76 $3,893.76 $3,893.76 $3,893.76

$113.36 $113.36 $113.36 $113.36 $113.36

$3,298.88 $3,298.88 $3,298.88 $3,298.88 $3,298.88

$113.36 $113.36 $113.36 $113.36 $113.36

$743.60 $743.60 $743.60 $743.60 $743.60

$117,477.47 $117,479.47 $117,481.47 $122,026.73 $115,146.51

1,174.77R 1,174.79R 1,174.81R 1,220.27R 1,151.47R

$21,145.94 $21,146.30 $21,146.66 $21,964.81 $20,726.37

$21,145.94 $21,146.30 $21,146.66 $21,964.81 $20,726.37

$95,156.75 $95,158.37 $95,159.99 $98,841.65 $93,268.67

0.869292209 0.859975805 0.850759246 0.841641464 0.832621398

$82,719.02 $81,833.90 $80,958.24 $83,189.23 $77,657.49

Sep-15 Oct-15 Nov-15 Dec-15 Jan-16

6 7 8 9 10

18 19 20 21 22

$28,281.23 $28,281.23 $28,281.23 $28,281.23 $28,281.23

$1,987.90 $1,987.90 $1,987.90 $1,987.90 $1,987.90

$31,248.70 $31,248.70 $31,248.70 $31,248.70 $31,248.70

$2,579.20 $2,579.20 $2,579.20 $2,579.20 $2,579.20

$13,070.02 $13,070.02 $13,070.02 $13,070.02 $13,070.02

$1,092.00 $1,092.00 $1,092.00 $1,092.00 $1,092.00

$10,094.00 $10,094.00 $10,094.00 $10,094.00 $10,094.00

$391.40 $391.40 $391.40 $391.40 $391.40

$8,460.50 $8,460.50 $8,460.50 $8,460.50 $8,460.50

$391.40 $391.40 $391.40 $391.40 $391.40

$0.00 $0.00 $0.00 $8,164.80 $8,164.80

$0.00 $0.00 $0.00 $216.00 $216.00

$4,551.04 $4,551.04 $4,551.04 $4,551.04 $4,551.04

$431.60 $431.60 $431.60 $431.60 $431.60

$3,962.40 $3,962.40 $3,962.40 $3,962.40 $3,962.40

$312.00 $312.00 $312.00 $312.00 $312.00

$3,893.76 $3,893.76 $3,893.76 $3,893.76 $3,893.76

$113.36 $113.36 $113.36 $113.36 $113.36

$3,298.88 $3,298.88 $3,298.88 $3,298.88 $3,298.88

$113.36 $113.36 $113.36 $113.36 $113.36

$743.60 $743.60 $743.60 $743.60 $743.60

$115,040.35 $115,042.35 $115,044.35 $123,427.15 $123,429.15

1,150.40R 1,150.42R 1,150.44R 1,234.27R 1,234.29R

$20,707.26 $20,707.62 $20,707.98 $22,216.89 $22,217.25

$20,707.26 $20,707.62 $20,707.98 $22,216.89 $22,217.25

$93,182.68 $93,184.30 $93,185.92 $99,975.99 $99,977.61

0.823698003 0.814870242 0.806137091 0.797497534 0.788950569

$76,754.39 $75,933.12 $75,120.63 $79,730.61 $78,877.39

Feb-16 Mar-16 Apr-16 May-16 Jun-16

11 12 1 2 3

23 24 25 26 27

$29,129.66 $29,129.66 $29,129.66 $29,129.66 $29,129.66

$2,047.54 $2,047.54 $2,047.54 $2,047.54 $2,047.54

$32,498.65 $32,498.65 $32,498.65 $32,498.65 $32,498.65

$2,682.37 $2,682.37 $2,682.37 $2,682.37 $2,682.37

$13,592.82 $13,592.82 $13,592.82 $13,592.82 $13,592.82

$1,135.68 $1,135.68 $1,135.68 $1,135.68 $1,135.68

$10,396.82 $10,396.82 $10,396.82 $10,396.82 $10,396.82

$403.14 $403.14 $403.14 $403.14 $403.14

$8,714.32 $8,714.32 $8,714.32 $8,714.32 $8,714.32

$403.14 $403.14 $403.14 $403.14 $403.14

$8,164.80 $8,164.80 $8,164.80 $8,164.80 $8,164.80

$216.00 $216.00 $216.00 $216.00 $216.00

$4,733.08 $4,733.08 $4,733.08 $4,733.08 $4,733.08

$448.86 $448.86 $448.86 $448.86 $448.86

$3,962.40 $4,120.90 $4,120.90 $4,120.90 $4,120.90

$312.00 $324.48 $324.48 $324.48 $324.48

$4,049.51 $4,049.51 $4,049.51 $4,049.51 $4,049.51

$117.89 $117.89 $117.89 $117.89 $117.89

$3,430.84 $3,430.84 $3,430.84 $3,430.84 $3,430.84

$117.89 $117.89 $117.89 $117.89 $117.89

$773.34 $773.34 $773.34 $773.34 $773.34

$127,364.76 $127,537.74 $127,527.74 $127,529.74 $127,531.74

1,273.65R 1,275.38R 1,275.28R 1,275.30R 1,275.32R

$22,925.66 $22,956.79 $22,954.99 $22,955.35 $22,955.71

$22,925.66 $22,956.79 $22,954.99 $22,955.35 $22,955.71

$103,165.46 $103,305.57 $103,297.47 $103,299.09 $103,300.71

0.780495205 0.772130458 0.763855358 0.755668945 0.747570267

$80,520.14 $79,765.38 $78,904.32 $78,059.91 $77,224.54

Jul-16 Aug-16 Sep-16 Oct-16 Nov-16

4 5 6 7 8

28 29 30 31 32

$29,129.66 $29,129.66 $29,129.66 $29,129.66 $29,129.66

$2,047.54 $2,047.54 $2,047.54 $2,047.54 $2,047.54

$32,498.65 $32,498.65 $32,498.65 $32,498.65 $32,498.65

$2,682.37 $2,682.37 $2,682.37 $2,682.37 $2,682.37

$13,592.82 $13,592.82 $13,592.82 $13,592.82 $13,592.82

$1,135.68 $1,135.68 $1,135.68 $1,135.68 $1,135.68

$10,396.82 $10,396.82 $10,396.82 $10,396.82 $10,396.82

$403.14 $403.14 $403.14 $403.14 $403.14

$8,714.32 $8,714.32 $8,714.32 $8,714.32 $8,714.32

$403.14 $403.14 $403.14 $403.14 $403.14

$8,164.80 $8,164.80 $8,164.80 $8,164.80 $8,491.39

$216.00 $216.00 $216.00 $216.00 $224.64

$4,733.08 $4,733.08 $4,733.08 $4,733.08 $4,733.08

$448.86 $448.86 $448.86 $448.86 $448.86

$4,120.90 $4,120.90 $4,120.90 $4,120.90 $4,120.90

$324.48 $324.48 $324.48 $324.48 $324.48

$4,049.51 $4,049.51 $4,049.51 $4,049.51 $4,049.51

$117.89 $117.89 $117.89 $117.89 $117.89

$3,430.84 $3,430.84 $3,430.84 $3,430.84 $3,430.84

$117.89 $117.89 $117.89 $117.89 $117.89

$773.34 $773.34 $773.34 $773.34 $773.34

$127,533.74 $127,535.74 $127,537.74 $127,539.74 $127,876.97

1,275.34R 1,275.36R 1,275.38R 1,275.40R 1,278.77R

$22,956.07 $22,956.43 $22,956.79 $22,957.15 $23,017.85

$22,956.07 $22,956.43 $22,956.79 $22,957.15 $23,017.85

$103,302.33 $103,303.95 $103,305.57 $103,307.19 $103,580.35

0.739558384 0.731632367 0.723791295 0.716034257 0.708360353

$76,398.10 $75,580.51 $74,771.67 $73,971.49 $73,372.21

Dec-16 Jan-17 Feb-17 Mar-17 Apr-17

9 10 11 12 1

33 34 35 36 37

$29,129.66 $29,129.66 $30,003.55 $30,003.55 $30,003.55

$2,047.54 $2,047.54 $2,108.96 $2,108.96 $2,108.96

$32,498.65 $32,498.65 $33,798.60 $33,798.60 $33,798.60

$2,682.37 $2,682.37 $2,789.66 $2,789.66 $2,789.66

$13,592.82 $13,592.82 $14,136.53 $14,136.53 $14,136.53

$1,135.68 $1,135.68 $1,181.11 $1,181.11 $1,181.11

$10,396.82 $10,396.82 $10,708.72 $10,708.72 $10,708.72

$403.14 $403.14 $415.24 $415.24 $415.24

$8,714.32 $8,714.32 $8,975.75 $8,975.75 $8,975.75

$403.14 $403.14 $415.24 $415.24 $415.24

$8,491.39 $8,491.39 $8,491.39 $8,491.39 $8,491.39

$224.64 $224.64 $224.64 $224.64 $224.64

$4,733.08 $4,733.08 $4,922.40 $4,922.40 $4,922.40

$448.86 $448.86 $466.82 $466.82 $466.82

$4,120.90 $4,120.90 $4,120.90 $4,285.73 $4,285.73

$324.48 $324.48 $324.48 $337.46 $337.46

$4,049.51 $4,049.51 $4,211.49 $4,211.49 $4,211.49

$117.89 $117.89 $122.61 $122.61 $122.61

$3,430.84 $3,430.84 $3,568.07 $3,568.07 $3,568.07

$117.89 $117.89 $122.61 $122.61 $122.61

$773.34 $773.34 $804.28 $804.28 $804.28

$127,878.97 $127,880.97 $131,959.05 $132,138.86 $132,128.86

1,278.79R 1,278.81R 1,319.59R 1,321.39R 1,321.29R

$23,018.21 $23,018.57 $23,752.63 $23,785.00 $23,783.20

$23,018.21 $23,018.57 $23,752.63 $23,785.00 $23,783.20

$103,581.97 $103,583.59 $106,886.83 $107,032.48 $107,024.38

0.700768692 0.693258393 0.685828583 0.678478401 0.671206992

$72,587.00 $71,810.19 $73,306.04 $72,619.22 $71,835.51

May-17 Jun-17 Jul-17 Aug-17 Sep-17

2 3 4 5 6

38 39 40 41 42

$30,003.55 $30,003.55 $30,003.55 $30,003.55 $30,003.55

$2,108.96 $2,108.96 $2,108.96 $2,108.96 $2,108.96

$33,798.60 $33,798.60 $33,798.60 $33,798.60 $33,798.60

$2,789.66 $2,789.66 $2,789.66 $2,789.66 $2,789.66

$14,136.53 $14,136.53 $14,136.53 $14,136.53 $14,136.53

$1,181.11 $1,181.11 $1,181.11 $1,181.11 $1,181.11

$10,708.72 $10,708.72 $10,708.72 $10,708.72 $10,708.72

$415.24 $415.24 $415.24 $415.24 $415.24

$8,975.75 $8,975.75 $8,975.75 $8,975.75 $8,975.75

$415.24 $415.24 $415.24 $415.24 $415.24

$8,491.39 $8,491.39 $8,491.39 $8,491.39 $8,491.39

$224.64 $224.64 $224.64 $224.64 $224.64

$4,922.40 $4,922.40 $4,922.40 $4,922.40 $4,922.40

$466.82 $466.82 $466.82 $466.82 $466.82

$4,285.73 $4,285.73 $4,285.73 $4,285.73 $4,285.73

$337.46 $337.46 $337.46 $337.46 $337.46

$4,211.49 $4,211.49 $4,211.49 $4,211.49 $4,211.49

$122.61 $122.61 $122.61 $122.61 $122.61

$3,568.07 $3,568.07 $3,568.07 $3,568.07 $3,568.07

$122.61 $122.61 $122.61 $122.61 $122.61

$804.28 $804.28 $804.28 $804.28 $804.28

$132,130.86 $132,132.86 $132,134.86 $132,136.86 $132,138.86

1,321.31R 1,321.33R 1,321.35R 1,321.37R 1,321.39R

$23,783.56 $23,783.92 $23,784.28 $23,784.64 $23,785.00

$23,783.56 $23,783.92 $23,784.28 $23,784.64 $23,785.00

$107,026.00 $107,027.62 $107,029.24 $107,030.86 $107,032.48

0.664013512 0.656897126 0.649857009 0.642892342 0.636002317

$71,066.71 $70,306.13 $69,553.70 $68,809.32 $68,072.90

Oct-17 Nov-17 Dec-17 Jan-18 Feb-18

7 8 9 10 11

43 44 45 46 47

$30,003.55 $30,003.55 $30,003.55 $30,003.55 $30,903.66

$2,108.96 $2,108.96 $2,108.96 $2,108.96 $2,172.23

$33,798.60 $33,798.60 $33,798.60 $33,798.60 $35,150.54

$2,789.66 $2,789.66 $2,789.66 $2,789.66 $2,901.25

$14,136.53 $14,136.53 $14,136.53 $14,136.53 $14,701.99

$1,181.11 $1,181.11 $1,181.11 $1,181.11 $1,228.35

$10,708.72 $10,708.72 $10,708.72 $10,708.72 $11,029.99

$415.24 $415.24 $415.24 $415.24 $427.69

$8,975.75 $8,975.75 $8,975.75 $8,975.75 $9,245.02

$415.24 $415.24 $415.24 $415.24 $427.69

$8,831.05 $8,831.05 $8,831.05 $8,831.05 $8,831.05

$233.63 $233.63 $233.63 $233.63 $233.63

$4,922.40 $4,922.40 $4,922.40 $4,922.40 $5,119.30

$466.82 $466.82 $466.82 $466.82 $485.49

$4,285.73 $4,285.73 $4,285.73 $4,285.73 $4,285.73

$337.46 $337.46 $337.46 $337.46 $337.46

$4,211.49 $4,211.49 $4,211.49 $4,211.49 $4,379.95

$122.61 $122.61 $122.61 $122.61 $127.51

$3,568.07 $3,568.07 $3,568.07 $3,568.07 $3,710.79

$122.61 $122.61 $122.61 $122.61 $127.51

$804.28 $804.28 $804.28 $804.28 $836.45

$132,489.50 $132,491.50 $132,493.50 $132,495.50 $136,721.29

1,324.90R 1,324.92R 1,324.94R 1,324.96R 1,367.21R

$23,848.11 $23,848.47 $23,848.83 $23,849.19 $24,609.83

$23,848.11 $23,848.47 $23,848.83 $23,849.19 $24,609.83

$107,316.50 $107,318.12 $107,319.74 $107,321.36 $110,744.25

0.629186134 0.622443001 0.615772136 0.609172765 0.60264412

$67,522.05 $66,799.41 $66,084.50 $65,377.25 $66,739.37

Mar-18 Apr-18 May-18 Jun-18 Jul-18

12 1 2 3 4

48 49 50 51 52

$0.00 $0.00 $0.00 $54,601.20 $54,601.20

$0.00 $0.00 $0.00 $4,060.00 $4,060.00

$0.00 $0.00 $0.00 $38,175.60 $38,175.60

$0.00 $0.00 $0.00 $3,712.00 $3,712.00

$14,701.99 $14,701.99 $14,701.99 $14,701.99 $14,701.99

$1,228.35 $1,228.35 $1,228.35 $1,228.35 $1,228.35

$0.00 $0.00 $0.00 $19,488.00 $19,488.00

$0.00 $0.00 $0.00 $1,160.00 $1,160.00

$0.00 $0.00 $0.00 $15,044.74 $15,044.74

$0.00 $0.00 $0.00 $696.00 $696.00

$8,831.05 $8,831.05 $8,831.05 $8,831.05 $8,831.05

$233.63 $233.63 $233.63 $233.63 $242.97

$5,119.30 $5,119.30 $5,119.30 $5,119.30 $5,119.30

$485.49 $485.49 $485.49 $485.49 $485.49

$4,457.16 $4,457.16 $4,457.16 $4,457.16 $4,457.16

$350.96 $350.96 $350.96 $350.96 $350.96

$0.00 $0.00 $0.00 $5,387.04 $5,387.04

$0.00 $0.00 $0.00 $116.00 $116.00

$0.00 $0.00 $0.00 $34.80 $34.80

$0.00 $0.00 $0.00 $116.00 $116.00

$836.45 $836.45 $836.45 $836.45 $836.45

$36,304.38 $36,294.38 $36,296.38 $178,889.75 $178,901.10

363.04R 362.94R 362.96R 1,788.90R 1,789.01R

$6,534.79 $6,532.99 $6,533.35 $32,200.16 $32,202.20

$6,534.79 $6,532.99 $6,533.35 $32,200.16 $32,202.20

$29,406.55 $29,398.45 $29,400.07 $144,900.70 $144,909.89

0.596185444 0.589795988 0.583475009 0.577221773 0.571035554

$17,531.75 $17,339.09 $17,154.20 $83,639.84 $82,748.70

Aug-18 Sep-18 Oct-18 Nov-18 Dec-18

5 6 7 8 9

53 54 55 56 57

$54,601.20 $54,601.20 $54,601.20 $54,601.20 $54,601.20

$4,060.00 $4,060.00 $4,060.00 $4,060.00 $4,060.00

$38,175.60 $38,175.60 $38,175.60 $38,175.60 $38,175.60

$3,712.00 $3,712.00 $3,712.00 $3,712.00 $3,712.00

$14,701.99 $14,701.99 $14,701.99 $14,701.99 $14,701.99

$1,228.35 $1,228.35 $1,228.35 $1,228.35 $1,228.35

$19,488.00 $19,488.00 $19,488.00 $19,488.00 $19,488.00

$1,160.00 $1,160.00 $1,160.00 $1,160.00 $1,160.00

$15,044.74 $15,044.74 $15,044.74 $15,044.74 $15,044.74

$696.00 $696.00 $696.00 $696.00 $696.00

$8,831.05 $9,184.29 $9,184.29 $9,184.29 $9,184.29

$242.97 $252.69 $252.69 $252.69 $252.69

$5,119.30 $5,119.30 $5,119.30 $5,119.30 $5,119.30

$485.49 $485.49 $485.49 $485.49 $485.49

$4,457.16 $4,457.16 $4,457.16 $4,457.16 $4,457.16

$350.96 $350.96 $350.96 $350.96 $350.96

$5,387.04 $5,387.04 $5,387.04 $5,387.04 $5,387.04

$116.00 $116.00 $116.00 $116.00 $116.00

$34.80 $34.80 $34.80 $34.80 $34.80

$116.00 $116.00 $116.00 $116.00 $116.00

$836.45 $836.45 $836.45 $836.45 $836.45

$178,903.10 $179,268.06 $179,270.06 $179,272.06 $179,274.06

1,789.03R 1,792.68R 1,792.70R 1,792.72R 1,792.74R

$32,202.56 $32,268.25 $32,268.61 $32,268.97 $32,269.33

$32,202.56 $32,268.25 $32,268.61 $32,268.97 $32,269.33

$144,911.51 $145,207.13 $145,208.75 $145,210.37 $145,211.99

0.564915635 0.558861304 0.552871859 0.546946604 0.541084851

$81,862.78 $81,150.64 $80,281.83 $79,422.32 $78,572.01

Jan-19 Feb-19 Mar-19 May-19 Jun-19

10 11 12 1 2

58 59 60 61 62

$54,601.20 $54,601.20 $54,601.20 $54,601.20 $54,601.20

$4,060.00 $4,060.00 $4,060.00 $4,060.00 $4,060.00

$38,175.60 $38,175.60 $38,175.60 $38,175.60 $38,175.60

$3,712.00 $3,712.00 $3,712.00 $3,712.00 $3,712.00

$14,701.99 $15,290.07 $15,290.07 $15,290.07 $15,290.07

$1,228.35 $1,277.49 $1,277.49 $1,277.49 $1,277.49

$19,488.00 $19,488.00 $19,488.00 $19,488.00 $19,488.00

$1,160.00 $1,194.80 $1,194.80 $1,194.80 $1,194.80

$15,044.74 $15,496.08 $15,496.08 $15,496.08 $15,496.08

$696.00 $716.88 $716.88 $716.88 $716.88

$9,184.29 $9,184.29 $9,184.29 $9,184.29 $9,184.29

$252.69 $252.69 $252.69 $252.69 $252.69

$5,119.30 $5,324.07 $5,324.07 $5,324.07 $5,324.07

$485.49 $504.91 $504.91 $504.91 $504.91

$4,457.16 $4,457.16 $4,635.45 $4,635.45 $4,635.45

$350.96 $350.96 $365.00 $365.00 $365.00

$5,387.04 $5,602.52 $5,602.52 $5,602.52 $5,602.52

$116.00 $120.64 $120.64 $120.64 $120.64

$34.80 $36.19 $36.19 $36.19 $36.19

$116.00 $120.64 $120.64 $120.64 $120.64

$836.45 $869.91 $869.91 $869.91 $869.91

$179,276.06 $180,906.10 $181,100.42 $181,090.42 $181,092.42

1,792.76R 1,809.06R 1,811.00R 1,810.90R 1,810.92R

$32,269.69 $32,563.10 $32,598.08 $32,596.28 $32,596.64

$32,269.69 $32,563.10 $32,598.08 $32,596.28 $32,596.64

$145,213.61 $146,533.94 $146,691.34 $146,683.24 $146,684.86

0.535285921 0.529549138 0.523873838 0.518259362 0.512705057

$77,730.80 $77,596.92 $76,847.76 $76,019.96 $75,206.07


3 4 5 6 7

63 64 65 66 67

$56,785.25 $56,785.25 $56,785.25 $56,785.25 $56,785.25

$4,222.40 $4,222.40 $4,222.40 $4,222.40 $4,222.40

$39,702.62 $39,702.62 $39,702.62 $39,702.62 $39,702.62

$3,860.48 $3,860.48 $3,860.48 $3,860.48 $3,860.48

$15,290.07 $15,290.07 $15,290.07 $15,290.07 $15,290.07

$1,277.49 $1,277.49 $1,277.49 $1,277.49 $1,277.49

$20,267.52 $20,267.52 $20,267.52 $20,267.52 $20,267.52

$1,242.59 $1,242.59 $1,242.59 $1,242.59 $1,242.59

$16,115.92 $16,115.92 $16,115.92 $16,115.92 $16,115.92

$745.56 $745.56 $745.56 $745.56 $745.56

$9,184.29 $9,184.29 $9,551.66 $9,551.66 $9,551.66

$252.69 $252.69 $262.80 $262.80 $262.80

$5,324.07 $5,324.07 $5,324.07 $5,324.07 $5,324.07

$504.91 $504.91 $504.91 $504.91 $504.91

$4,635.45 $4,635.45 $4,635.45 $4,635.45 $4,635.45

$365.00 $365.00 $365.00 $365.00 $365.00

$5,602.52 $5,602.52 $5,602.52 $5,602.52 $5,602.52

$120.64 $120.64 $120.64 $120.64 $120.64

$36.19 $36.19 $36.19 $36.19 $36.19

$120.64 $120.64 $120.64 $120.64 $120.64

$869.91 $869.91 $869.91 $869.91 $869.91

$186,592.21 $186,594.21 $186,973.68 $186,975.68 $186,977.68

1,865.92R 1,865.94R 1,869.74R 1,869.76R 1,869.78R

$33,586.60 $33,586.96 $33,655.26 $33,655.62 $33,655.98

$33,586.60 $33,586.96 $33,655.26 $33,655.62 $33,655.98

$151,139.69 $151,141.31 $151,448.68 $151,450.30 $151,451.92

0.507210279 0.50177439 0.496396758 0.49107676 0.485813778

$76,659.60 $75,838.84 $75,178.64 $74,373.72 $73,577.43


8 9 10 11 12

68 69 70 71 72

$56,785.25 $56,785.25 $56,785.25 $56,785.25 $56,785.25

$4,222.40 $4,222.40 $4,222.40 $4,222.40 $4,222.40

$39,702.62 $39,702.62 $39,702.62 $39,702.62 $39,702.62

$3,860.48 $3,860.48 $3,860.48 $3,860.48 $3,860.48

$15,290.07 $15,290.07 $15,290.07 $15,901.68 $15,901.68

$1,277.49 $1,277.49 $1,277.49 $1,328.58 $1,328.58

$20,267.52 $20,267.52 $20,267.52 $20,267.52 $20,267.52

$1,242.59 $1,242.59 $1,242.59 $1,279.87 $1,279.87

$16,115.92 $16,115.92 $16,115.92 $16,599.40 $16,599.40

$745.56 $745.56 $745.56 $767.92 $767.92

$9,551.66 $9,551.66 $9,551.66 $9,551.66 $9,551.66

$262.80 $262.80 $262.80 $262.80 $262.80

$5,324.07 $5,324.07 $5,324.07 $5,537.04 $5,537.04

$504.91 $504.91 $504.91 $525.11 $525.11

$4,635.45 $4,635.45 $4,635.45 $4,635.45 $4,820.87

$365.00 $365.00 $365.00 $365.00 $379.60

$5,602.52 $5,602.52 $5,602.52 $5,826.62 $5,826.62

$120.64 $120.64 $120.64 $125.47 $125.47

$36.19 $36.19 $36.19 $37.64 $37.64

$120.64 $120.64 $120.64 $125.47 $125.47

$869.91 $869.91 $869.91 $904.70 $904.70

$186,979.68 $186,981.68 $186,983.68 $188,694.66 $188,896.68

1,869.80R 1,869.82R 1,869.84R 1,886.95R 1,888.97R

$33,656.34 $33,656.70 $33,657.06 $33,965.04 $34,001.40

$33,656.34 $33,656.70 $33,657.06 $33,965.04 $34,001.40

$151,453.54 $151,455.16 $151,456.78 $152,842.68 $153,006.31

0.4806072 0.475456422 0.470360846 0.46531988 0.46033294

$72,789.66 $72,010.33 $71,239.34 $71,120.74 $70,433.85


1 2 3 4 5

73 74 75 76 77

$56,785.25 $59,056.66 $59,056.66 $59,056.66 $59,056.66

$4,222.40 $4,391.30 $4,391.30 $4,391.30 $4,391.30

$39,702.62 $41,290.73 $41,290.73 $41,290.73 $41,290.73

$3,860.48 $4,014.90 $4,014.90 $4,014.90 $4,014.90

$15,901.68 $15,901.68 $15,901.68 $15,901.68 $15,901.68

$1,328.58 $1,328.58 $1,328.58 $1,328.58 $1,328.58

$20,267.52 $21,078.22 $21,078.22 $21,078.22 $21,078.22

$1,279.87 $1,331.06 $1,331.06 $1,331.06 $1,331.06

$16,599.40 $17,263.37 $17,263.37 $17,263.37 $17,263.37

$767.92 $798.64 $798.64 $798.64 $798.64

$9,551.66 $9,551.66 $9,551.66 $9,933.73 $9,933.73

$262.80 $262.80 $262.80 $273.31 $273.31

$5,537.04 $5,537.04 $5,537.04 $5,537.04 $5,537.04

$525.11 $525.11 $525.11 $525.11 $525.11

$4,820.87 $4,820.87 $4,820.87 $4,820.87 $4,820.87

$379.60 $379.60 $379.60 $379.60 $379.60

$5,826.62 $5,826.62 $5,826.62 $5,826.62 $5,826.62

$125.47 $125.47 $125.47 $125.47 $125.47

$37.64 $37.64 $37.64 $37.64 $37.64

$125.47 $125.47 $125.47 $125.47 $125.47

$904.70 $904.70 $904.70 $904.70 $904.70

$188,886.68 $194,628.10 $194,630.10 $195,024.68 $195,026.68

1,888.87R 1,946.28R 1,946.30R 1,950.25R 1,950.27R

$33,999.60 $35,033.06 $35,033.42 $35,104.44 $35,104.80

$33,999.60 $35,033.06 $35,033.42 $35,104.44 $35,104.80

$152,998.21 $157,648.76 $157,650.38 $157,969.99 $157,971.61

0.455399446 0.450518826 0.445690512 0.440913944 0.436188568

$69,675.30 $71,023.73 $70,263.28 $69,651.17 $68,905.41


6 7 8 9 10

78 79 80 81 82

$59,056.66 $59,056.66 $59,056.66 $59,056.66 $59,056.66

$4,391.30 $4,391.30 $4,391.30 $4,391.30 $4,391.30

$41,290.73 $41,290.73 $41,290.73 $41,290.73 $41,290.73

$4,014.90 $4,014.90 $4,014.90 $4,014.90 $4,014.90

$15,901.68 $15,901.68 $15,901.68 $15,901.68 $15,901.68

$1,328.58 $1,328.58 $1,328.58 $1,328.58 $1,328.58

$21,078.22 $21,078.22 $21,078.22 $21,078.22 $21,078.22

$1,331.06 $1,331.06 $1,331.06 $1,331.06 $1,331.06

$17,263.37 $17,263.37 $17,263.37 $17,263.37 $17,263.37

$798.64 $798.64 $798.64 $798.64 $798.64

$9,933.73 $9,933.73 $9,933.73 $9,933.73 $9,933.73

$273.31 $273.31 $273.31 $273.31 $273.31

$5,537.04 $5,537.04 $5,537.04 $5,537.04 $5,537.04

$525.11 $525.11 $525.11 $525.11 $525.11

$4,820.87 $4,820.87 $4,820.87 $4,820.87 $4,820.87

$379.60 $379.60 $379.60 $379.60 $379.60

$5,826.62 $5,826.62 $5,826.62 $5,826.62 $5,826.62

$125.47 $125.47 $125.47 $125.47 $125.47

$37.64 $37.64 $37.64 $37.64 $37.64

$125.47 $125.47 $125.47 $125.47 $125.47

$904.70 $904.70 $904.70 $904.70 $904.70

$195,028.68 $195,030.68 $195,032.68 $195,034.68 $195,036.68

1,950.29R 1,950.31R 1,950.33R 1,950.35R 1,950.37R

$35,105.16 $35,105.52 $35,105.88 $35,106.24 $35,106.60

$35,105.16 $35,105.52 $35,105.88 $35,106.24 $35,106.60

$157,973.23 $157,974.85 $157,976.47 $157,978.09 $157,979.71

0.431513835 0.426889202 0.422314132 0.417788094 0.413310563

$68,167.63 $67,437.76 $66,715.70 $66,001.37 $65,294.68


11 12 1 2 3

83 84 85 86 87

$59,056.66 $59,056.66 $61,418.92 $61,418.92 $61,418.92

$4,391.30 $4,391.30 $4,566.95 $4,566.95 $4,566.95

$41,290.73 $41,290.73 $42,942.36 $42,942.36 $42,942.36

$4,014.90 $4,014.90 $4,175.50 $4,175.50 $4,175.50

$16,537.74 $16,537.74 $16,537.74 $16,537.74 $16,537.74

$1,381.73 $1,381.73 $1,381.73 $1,381.73 $1,381.73

$21,078.22 $21,078.22 $21,078.22 $21,921.35 $22,798.20

$1,371.00 $1,371.00 $1,371.00 $1,371.00 $1,425.84

$17,781.28 $17,781.28 $17,781.28 $17,781.28 $18,492.53

$822.60 $822.60 $822.60 $822.60 $855.50

$9,933.73 $9,933.73 $9,933.73 $9,933.73 $9,933.73

$273.31 $273.31 $273.31 $273.31 $273.31

$5,758.52 $5,758.52 $5,758.52 $5,758.52 $5,758.52

$546.11 $546.11 $546.11 $546.11 $546.11

$4,820.87 $5,013.70 $5,013.70 $5,013.70 $5,013.70

$379.60 $394.78 $394.78 $394.78 $394.78

$6,059.69 $6,059.69 $6,059.69 $6,059.69 $6,059.69

$130.48 $130.48 $130.48 $130.48 $130.48

$39.15 $39.15 $39.15 $39.15 $39.15

$130.48 $130.48 $130.48 $130.48 $130.48

$940.89 $940.89 $940.89 $940.89 $940.89

$196,832.96 $197,042.98 $201,383.12 $202,228.25 $203,906.10

1,968.33R 1,970.43R 2,013.83R 2,022.28R 2,039.06R

$35,429.93 $35,467.74 $36,248.96 $36,401.09 $36,703.10

$35,429.93 $35,467.74 $36,248.96 $36,401.09 $36,703.10

$159,434.70 $159,604.82 $163,120.33 $163,804.89 $165,163.94

0.408881019 0.404498947 0.400163839 0.395875191 0.391632505

$65,189.82 $64,559.98 $65,274.86 $64,846.29 $64,683.57


4 5 6 7 8

88 89 90 91 92

$61,418.92 $61,418.92 $61,418.92 $61,418.92 $61,418.92

$4,566.95 $4,566.95 $4,566.95 $4,566.95 $4,566.95

$42,942.36 $42,942.36 $42,942.36 $42,942.36 $42,942.36

$4,175.50 $4,175.50 $4,175.50 $4,175.50 $4,175.50

$16,537.74 $16,537.74 $16,537.74 $16,537.74 $16,537.74

$1,381.73 $1,381.73 $1,381.73 $1,381.73 $1,381.73

$22,798.20 $22,798.20 $22,798.20 $22,798.20 $22,798.20

$1,425.84 $1,425.84 $1,425.84 $1,425.84 $1,425.84

$18,492.53 $18,492.53 $18,492.53 $18,492.53 $18,492.53

$855.50 $855.50 $855.50 $855.50 $855.50

$10,331.08 $10,331.08 $10,331.08 $10,331.08 $10,331.08

$284.24 $284.24 $284.24 $284.24 $284.24

$5,758.52 $5,758.52 $5,758.52 $5,758.52 $5,758.52

$546.11 $546.11 $546.11 $546.11 $546.11

$5,013.70 $5,013.70 $5,013.70 $5,013.70 $5,013.70

$394.78 $394.78 $394.78 $394.78 $394.78

$6,059.69 $6,059.69 $6,059.69 $6,059.69 $6,059.69

$130.48 $130.48 $130.48 $130.48 $130.48

$39.15 $39.15 $39.15 $39.15 $39.15

$130.48 $130.48 $130.48 $130.48 $130.48

$940.89 $940.89 $940.89 $940.89 $940.89

$204,316.38 $204,318.38 $204,320.38 $204,322.38 $204,324.38

2,043.16R 2,043.18R 2,043.20R 2,043.22R 2,043.24R

$36,776.95 $36,777.31 $36,777.67 $36,778.03 $36,778.39

$36,776.95 $36,777.31 $36,777.67 $36,778.03 $36,778.39

$165,496.27 $165,497.89 $165,499.51 $165,501.13 $165,502.75

0.38743529 0.383283056 0.379175324 0.375111615 0.371091457

$64,119.10 $63,432.54 $62,753.33 $62,081.40 $61,416.66

Jan-22 Feb-22 Mar-22 Apr-22 May-22

9 10 11 12 1

93 94 95 96 97

$61,418.92 $61,418.92 $61,418.92 $63,875.68 $63,875.68

$4,566.95 $4,566.95 $4,566.95 $4,749.63 $4,749.63

$42,942.36 $42,942.36 $42,942.36 $44,660.05 $44,660.05

$4,175.50 $4,175.50 $4,175.50 $4,342.51 $4,342.51

$16,537.74 $16,537.74 $17,199.25 $17,199.25 $17,199.25

$1,381.73 $1,381.73 $1,437.00 $1,437.00 $1,437.00

$22,798.20 $22,798.20 $22,798.20 $22,798.20 $22,798.20

$1,425.84 $1,425.84 $1,468.61 $1,468.61 $1,468.61

$18,492.53 $18,492.53 $19,047.30 $19,047.30 $19,047.30

$855.50 $855.50 $881.17 $881.17 $881.17

$10,331.08 $10,331.08 $10,331.08 $10,331.08 $10,331.08

$284.24 $284.24 $284.24 $284.24 $284.24

$5,758.52 $5,758.52 $5,988.86 $5,988.86 $5,988.86

$546.11 $546.11 $567.96 $567.96 $567.96

$5,013.70 $5,013.70 $5,013.70 $5,214.25 $5,214.25

$394.78 $394.78 $394.78 $410.57 $410.57

$6,059.69 $6,059.69 $6,302.07 $6,302.07 $6,302.07

$130.48 $130.48 $135.70 $135.70 $135.70

$39.15 $39.15 $40.71 $40.71 $40.71

$130.48 $130.48 $135.70 $135.70 $135.70

$940.89 $940.89 $978.53 $978.53 $978.53

$204,326.38 $204,328.38 $206,214.59 $210,957.08 $210,947.08

2,043.26R 2,043.28R 2,062.15R 2,109.57R 2,109.47R

$36,778.75 $36,779.11 $37,118.63 $37,972.27 $37,970.47

$36,778.75 $36,779.11 $37,118.63 $37,972.27 $37,970.47

$165,504.37 $165,505.99 $167,033.82 $170,875.23 $170,867.13

0.367114385 0.363179935 0.359287652 0.355437084 0.351627783

$60,759.04 $60,108.46 $60,013.19 $60,735.40 $60,081.63


2 3 4 5 6

98 99 100 101 102

$63,875.68 $63,875.68 $63,875.68 $63,875.68 $63,875.68

$4,749.63 $4,749.63 $4,749.63 $4,749.63 $4,749.63

$44,660.05 $44,660.05 $44,660.05 $44,660.05 $44,660.05

$4,342.51 $4,342.51 $4,342.51 $4,342.51 $4,342.51

$17,199.25 $17,199.25 $17,199.25 $17,199.25 $17,199.25

$1,437.00 $1,437.00 $1,437.00 $1,437.00 $1,437.00

$23,710.13 $23,710.13 $23,710.13 $23,710.13 $23,710.13

$1,527.36 $1,527.36 $1,527.36 $1,527.36 $1,527.36

$19,809.20 $19,809.20 $19,809.20 $19,809.20 $19,809.20

$916.41 $916.41 $916.41 $916.41 $916.41

$10,331.08 $10,331.08 $10,744.32 $10,744.32 $10,744.32

$284.24 $284.24 $295.61 $295.61 $295.61

$5,988.86 $5,988.86 $5,988.86 $5,988.86 $5,988.86

$567.96 $567.96 $567.96 $567.96 $567.96

$5,214.25 $5,214.25 $5,214.25 $5,214.25 $5,214.25

$410.57 $410.57 $410.57 $410.57 $410.57

$6,302.07 $6,302.07 $6,302.07 $6,302.07 $6,302.07

$135.70 $135.70 $135.70 $135.70 $135.70

$40.71 $40.71 $40.71 $40.71 $40.71

$135.70 $135.70 $135.70 $135.70 $135.70

$978.53 $978.53 $978.53 $978.53 $978.53

$212,716.89 $212,718.89 $213,145.50 $213,147.50 $213,149.50

2,127.17R 2,127.19R 2,131.46R 2,131.48R 2,131.50R

$38,289.04 $38,289.40 $38,366.19 $38,366.55 $38,366.91

$38,289.04 $38,289.40 $38,366.19 $38,366.55 $38,366.91

$172,300.68 $172,302.30 $172,647.86 $172,649.48 $172,651.10

0.347859307 0.344131219 0.340443086 0.336794479 0.333184975

$59,936.40 $59,294.60 $58,776.77 $58,147.39 $57,524.75


7 8 9 10 11

103 104 105 106 107

$63,875.68 $63,875.68 $63,875.68 $63,875.68 $63,875.68

$4,749.63 $4,749.63 $4,749.63 $4,749.63 $4,749.63

$44,660.05 $44,660.05 $44,660.05 $44,660.05 $44,660.05

$4,342.51 $4,342.51 $4,342.51 $4,342.51 $4,342.51

$17,199.25 $17,199.25 $17,199.25 $17,199.25 $18,196.20

$1,437.00 $1,437.00 $1,437.00 $1,437.00 $1,320.00

$23,710.13 $23,710.13 $23,710.13 $23,710.13 $23,710.13

$1,527.36 $1,527.36 $1,527.36 $1,527.36 $1,527.36

$19,809.20 $19,809.20 $19,809.20 $19,809.20 $19,809.20

$916.41 $916.41 $916.41 $916.41 $916.41

$10,744.32 $10,744.32 $10,744.32 $10,744.32 $10,744.32

$295.61 $295.61 $295.61 $295.61 $295.61

$5,988.86 $5,988.86 $5,988.86 $5,988.86 $6,228.41

$567.96 $567.96 $567.96 $567.96 $590.67

$5,214.25 $5,214.25 $5,214.25 $5,214.25 $5,214.25

$410.57 $410.57 $410.57 $410.57 $410.57

$6,302.07 $6,302.07 $6,302.07 $6,302.07 $6,554.16

$135.70 $135.70 $135.70 $135.70 $141.13

$40.71 $40.71 $40.71 $40.71 $42.34

$135.70 $135.70 $135.70 $135.70 $141.13

$978.53 $978.53 $978.53 $978.53 $1,017.67

$213,151.50 $213,153.50 $213,155.50 $213,157.50 $214,605.44

2,131.52R 2,131.54R 2,131.56R 2,131.58R 2,146.05R

$38,367.27 $38,367.63 $38,367.99 $38,368.35 $38,628.98

$38,367.27 $38,367.63 $38,367.99 $38,368.35 $38,628.98

$172,652.72 $172,654.34 $172,655.96 $172,657.58 $173,830.40

Reversion $2,085,965

Capped @ 9.5% $21,957,525

0.329614155 0.326081604 0.322586913 0.319129674 0.315709488

$56,908.78 $56,299.40 $55,696.55 $55,100.16 $6,932,198.85

65

PROPERTY VALUATION: VODACOM BUILDING, MAPUTO

Cost Centre Number 20722

4710/2

Date Instructed

Mr. Andre Janari

Insert Your company logo

Tel Number

VODACOM BUILDING, AVENIDA DO PRESIDENTE CARMONA, BAIXA DE

CITADE DE MAPUTO

OPEN MARKET VALUATION

Date Inspected

19 May 2014

21 May 2014

[email protected]

$45,000,000.00

$31,500,000.00

Offices

$23,600,000.00

21 May 2014

CONDITIONS OF VALUATION

Standard Bank of South Africa Limited must be supplied with the following documentation: None

Ruan ByePrepared For

Email

Tel Number

Applicant Name Delta Property Fund

Usage

(011) - 721 - 7396

Valuer

Registration Category

Registration Number

0696/14Job Number

Open Market Value

Replacement Value

Date of Valuation

Forced Sale Value

Property Finance - Africa

Professional Valuer

(011) - 721 - 6248

Johan Terblanche

E-mail

076 612 6456

Valuation requested by

Contact Person

1




30 Baker Street

Rosebank

2199

Tel: (011) 721 6248

1. INSTRUCTIONS

2. PURPOSE OF VALUATION

3. DEFINITION OF VALUE

4.

To determine the market value of the subject property for Secured Lending Purposes.

Physical Address of Subject Property:

We have been instructed by Ruan Bye, of Property Finance - Africa, to visit and inspect the subject property known as Stand 12A1 situated at

VODACOM BUILDING, AVENIDA DO PRESIDENTE CARMONA, BAIXA DE CITADE DE MAPUTO, for the purpose of advising you of our

opinion of the Open Market Value as at 21-May-2014.

PHOTOS AND ADDRESS

The definition of ‘Market Value’ as laid down by the International Valuation Standards Committee is:

“The estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arms-

length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion".

A summary of the features of the ‘willing’ buyer and seller are:

They should be in a position to enter into a contract (financially and legally);

They negotiate on equal terms;

They are both well informed about the property and all it’s potentialities, as well as about the market for such properties (i.e. they are as well

informed as the person who has taken all reasonable steps to obtain this information.

They are not under pressure (i.e. they are not forced to buy or sell a property within a limited time); and

They negotiate the transaction rationally.

When we analyse these features, it becomes clear that a ‘real’ person could seldom comply with all of them. The Valuer must therefore distance

himself from the personalities concerned and imagine a hypothetical transaction in which both the buyer and the seller have the understanding

and motivations that are typical of the market for the property or interests being valued [Minister of Water Affairs v Mostert 1966 4 SA 690 (A)

722c]. This definition of value holds true in the case of the subject property.

LOCATION MAP

VODACOM BUILDING, AVENIDA DO PRESIDENTE CARMONA, BAIXA DE

CITADE DE MAPUTO

Subject Property

AERIAL PHOTO

2

5. DATE OF INSPECTION

6. VALUATION METHOD

7.

Physically Possible - The site location, size and access to utilities are in accordance with the requirements of any type of development. The area

of the subject site allows for the office development.

Economically Feasible - The office development can generate significant revenues if the accommodation was to be leased to individual tenants.

Direct Comparable Sales Approach

Cost Approach

Income Approach

The subject property was physically inspected on

Based on all the above, it is our opinion that the highest and best use of the property is achieved by the office development.

“The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately

supported, financially feasible, and that results in the highest value.”

The four requirements that the highest and best use must achieve within a property are that it is legally permissible, physical possible,

economically feasible and maximum profitability. These criteria also reflect the recognition of the contribution of that specific use to the community

environment or to community development goals in addition to wealth maximisation of an individual property owner.

The four requirements are as follows:

In determining the market value of the office development, we have utilised the traditional and internationally recognised Discounted Cashflow

Method of Valuation to establish a value for the subject property. to reach our opinion of value. This approach is generally considered the most

applicable valuation technique for income-producing properties where the achieved rentals are less than our opinion of market rentals and also

where sufficient market data exists to supply the necessary inputs and parameters for this approach.

In a commercial income-producing property this approach capitalises a market related income stream into perpetuity. This is done using a

capitalisation rate applied to the first year’s Net Operating Income. The Net Operating Income (NOI) is the gross market potential income (GPI),

less a vacancy allowance, less operating expenses (but excluding debt service, income taxes, and/or depreciation charges normally applied by

accountants).

Maximum Profitability - We have assumed that the office development on the site is the most feasible based on the above mentioned

assumptions.

Effective date of valuation

Legally Permissible - We have assumed that the subject property’s current land usage as offices have been approved by the local authority. The

office development is in keeping with the immediate area which has seen numerous new office developments taking place over the past few

years.

21 May 2014

21 May 2014

When valuing real estate, the Valuer must concern himself with placing a value on the rights attaching to the property and the benefits of

occupation and/or ownership thereof. In the valuation process, cognisance must be taken of the purpose for which the property is capable of

being used and the future income or amenities, which it is likely to produce. At the same time, however, the property must be compared with

available substitutes and/or alternative investment opportunities. The object of the valuation process, therefore, is to arrive at a figure which will

reflect the point of equilibrium between supply and effective demand at the time of valuing the property.

The valuation of land as if vacant, or of land and improvements to or on the land, is an economic concept. Whether vacant or improved, land is

also referred to as real estate.

Real estate’s utility or capacity to satisfy the needs and wants of humans creates value. Contributing to value are real estate's general

uniqueness, durability, fixity of location, relatively limited supply, and the specific utility of a given site.

HIGHEST AND BEST USE

According to the International Valuation Standards, the Highest and Best Use can be defined as follows:

There are various methods commonly used for determining the market value of real estate. These methods of valuation comprise:

3

8. SPECIAL ASSUMPTIONS

YES NO

X

:

9.

3,905.00 m2 0.390500

10.

Purchaser:

Purchase Date:

Purchase Price: (Excluding Vat)

Rate/m²

Rate/m²

Yield 7.48% )

Irrespective of the property rights enshrined in the constitution, ownership of land remains the

exclusive right of the state (Lei de Terras, 19/1997). The government grants land-use

concessions for periods of up to 50 years, with options to renew, called Direitos de Uso e

Aproveitamento de Terra (DUAT).

Article 109 of Mozambique’s 2004 Constitution states that all ownership of land vests in the

state and all Mozambicans shall have the right to use and enjoy land as a means for the

creation of wealth and social well-being. The Constitution further provides that the state shall

recognize and protect land rights acquired through inheritance or by occupation, unless there is

a legal reservation or the land has been lawfully granted to another person or entity. Land use

rights are obtained by inheritance, occupation, state grant, purchase or lease. In urban

Mozambique, most residents access land through the land market (62%), either obtaining land

on the formal market by buying or leasing use-rights held by DUAT-holders or, more commonly,

obtaining use-rights on the informal market. The Land Law recognizes a use right to land,

Town

PURCHASE PRICE

Were any special assumptions made in this valuation that can have an affect on the value of the property:

Certificate Number:

MAPUTO MUNICIPALITY

Valuations for secured lending are often required on the special assumption that there has been a change in the state or the condition of the

property. To comply with the requirement to state any assumption, any special assumptions that are necessary shall be included in the scope of

work. Examples off special assumptions that are commonly made in secured lending valuation include:

(b) that a proposed lease of the property had been entered into / completed at the valuation date

$3,365,728

Sociedade Construcoes Catembe

To be confimed

Standard Bank of South Africa Limited must be supplied with the following documentation: None

Country

Local Authority

Title Number

The subject property is bonded to Bim Banco Internacional De Mocambique for $23,943,420

(Loan amount $19,952,850)

This valuation is based on the assumption that there are no servitudes or conditions registered

against the subject property that may adversely affect the property or its value.

Servitudes

$11,523.69 (Based on Erf Extent)

$4,445.79 (Based on Gross Lettable Area)

Comments on Purchase Price:

(Based on Net Annual Income of

(a) that a proposed building had been completed at the valuation date

Special Assumptions

Mozambique

Maputo

We had sight of the relevant registration certificate which indicate that the property is held as follows:

Endorsement

Property Description Stand 12A1

Erf Extent

(d) that the seller had imposed a time limit for disposal that was inadequate for proper marketing

Registered Owner:

58,605 page 38 Book B

TITLE DEED INFORMATION

(c) that a specified occupancy level had been reached by the valuation date

Hectares

The legal description of the subject property to be confirmed.

Comments

The 1997 Land Law reasserts the state’s ownership of land and provides that individuals,

communities and entities can obtain long-term or perpetual rights to use and benefit from land.

The 2006 Urban Land Regulations apply to existing areas of towns and villages and to areas

subject to an urbanization plan. The regulations govern the preparation of land use plans,

access to urban land, rights and obligations of owners of buildings and DUAT holders, and

transfer and registration of rights.

Any investment made on the land, as opposed to the land itself, is private property, and can be

bought, sold or mortgaged. Urban tenements (defined as the structures and land that serve

them in cases where the source of income depends principally on the structure rather than the

land) can be freely transferred. When the structures or improvements on land are transferred to

a buyer, the rights in the land (DUAT) also transfer to the buyer. Rural tenements (defined as a

demarcated portion of land and structures where the source of income depends principally on

the land) require state authorization for transfer of the DUAT .

Type of Buyer Listed Fund

Details of Sale No other details were provided

Is Purchase Price Market Related The price is considered within market parameters for offices in this node, taking the quality of the tenant as

well as the building and lease terms into consideration.

Delta Property Fund

To be confirmed

$45,000,000

4

11.

11.1

63.99% or

2.59 or

11.2

Comments:

MZM 820,497Municipal Tax on Main

Building

Monthly

(converted to US$)

$904.18

$2,150.38

$3,055

10122FAR/Bulk:

Height

Building Lines

Comments

We had sight of "Licenca De Utilizacao No 107/DHI-DVL/2010" occupancy certificate, issued by the Municipality

of Maputo on 26 November 2010. This valuation is based on the assumption that the subject property may be

used for office purposes.

ACTUAL

Offices

m2

MUNICIPAL VALUATION

TOWN PLANNING CONDITIONS

MUNICIPAL INFORMATION

MAPUTO MUNICIPALITYLocal Authority:

Parking Requirements

Zoning / Usage

Coverage:

14 Storeys with attached 5 levels of structured parking

m2

This valuation is based on the assumption that the property comply with building line requirements.

$25,804.53

We have been informed that local municipal taxes are based on 1.20% of the property’s municipal value. We have

however not had sight of the Rates and Taxes account.

Sufficient parking provided

2499

Annual Amount

Payable

(MZM)

Component

Municipal Tax of Car

Parking Bloc

MZM 345,000

Total MZM 1,165,497

Annual

(converted to US$)

$10,850.22

$10,850

Comments We have not had sight of the Deed of Sale.

1.00 MZN = 0.0314499 USD

5

12.

12.1

:

:

:

:

:

:

:

:

:

:

:

:

:

Reception Area

PHOTO PHOTO

Storey's

View from Parking Deck

Plastered and Painted Brick

Air conditioners

PROPERTY DESCRIPTION

Internal Walls Plastered and Painted Brick and Demountable Partitioning

Floors Ceramic Tiles, wood and carpets

Ceilings Suspended Board ceilings

Lighting

Photos

Boxed Fluorescent Lights

Glazing Aluminium Framed Windows

Office Block

Structure Concrete Frame

IMPROVEMENTS

Central Air-conditioning fitted

Condition Very Good

Accommodation The improvements comprise a 14 storey office block with attached 5 levels of structured parking above

ground. The accommodation comprise reception area, open plan offices, individual offices, boardrooms,

male and female WC's, a gymnasium and a staff canteen area at roof top level. This valuation is based on

the assumption that the building was constructed according to approved building plans.

Lifts

PHOTO

Multi Storey

Roof Flat Concrete roof

External Walls

Front Elevation Side View

PHOTO

Two Schindler 1000kg or 13 persons service the ground and 13 floors of offices above.

6

12.2

OFFICE GRADES

The internal roads and parking areas are brick paved. A guard house is located at the entrance to the property. Main municipal services are

connected to the property including water, electricity and drainage. The building is fitted with CCTV cameras, a fire warning system as well as

back up generators.

Open Plan Office

Grade C

SUBJECT

PROPERTY

Gymnasium

PHOTO

DEFINITION

X

PHOTO

Surrounding Works

Boardroom Roof Top Canteen Area

PHOTO PHOTO

Generator Structured Parking

Buildings with older style finishes, services and building systems. It may or may not be air-

conditioned or have on-site parking.

Other Residential properties which have been converted to offices

Grade P

GRADE

GRADING

Top quality, modern space which is generally a pace-setter in establishing rentals and which

includes the latest or a recent generation of building services, ample parking, a prestige lobby

finish and good views, or a good environment.

Grade A Generally not older than fifteen years or which has had a major renovation; high quality modern

finishes; air conditioning; adequate on-site parking, market rental near the top of the range in

the metropolitan area in which the building is located. (The following should also be taken into

account in determining whether the building is A-grade or not: Consider whether the building

has a good quality lobby finish, quality access to/from an attractive street environment and

other similar factors, such as safety and security.)

Grade B Generally older buildings , but accommodation and finishes close to modern standards as a

result of refurbishments and renovation from time to time, air-conditioned; on-site parking,

unless special circumstance pertain.

Office building grades defined by quality of finishes and facilities:

PHOTO PHOTO

7

12.3

10121.94 m² 537.27 m² 10659.21 m2

10121.94 m² 10659 m²

336 8400 m2

2499

12.4

YES NONOT

SURE

X

X

X

Accommodation &

areas

Would you recommend a Structural Engineer to inspect the property and provide the

Bank with a report?.

ACCOMMODATION AND AREAS

Coverage

Offices

Parking

Approximate

Lettable Area/Bays

Technical Areas

Structural

Are any structural cracks visible?

Approximate Gross

Building Area

Total

Structured Parking

Is the subject property located in an area where adverse soil conditions exists?

STRUCTURAL DEFECTS

We have not had sight of the approved building plans. The areas stated above were obtained off the lease agreement. This valuation is based on

the assumption that the improvements were constructed according to approved building plans. We reserve the right to alter or amend this

valuation if the approved building plans materially differ from the areas stated above.

Structural defect" means any defect in a structural element of a building that is attributable to defective or faulty design, workmanship and

materials or adverse soil conditions (or any combination of these) and that:

(a) results in, or is likely to result in, the building or any part of the building being required to be closed or prohibited from being used, or

(b) prevents, or is likely to prevent, the continued practical use of the building or any part of the building, or

(c) results in, or is likely to result in:

(I) the destruction of the building or any part of the building, or

(ii) physical damage to the building or any part of the building, or

(d) results in, or is likely to result in, a threat of imminent collapse that may reasonably be considered to cause destruction of the building or

physical damage to the building or any part of the building.

Bays

m2

8

13.

HIGH /

YES

MEDIUM LOW / NO

Low

No

No

No

No

14.

YES NO

No

Is contamination of the water

sources visible

“asbestos” means any of the following minerals:

(a) Amosite

(b) Chrysotile

(c) Crocidolite

(d) Fibrous actinolite

(e) Fibrous anthophyllite; and

(f) Fibrous tremolite,

or any mixture containing any of these minerals;

“asbestos dust” means airborne or settled dust, which contains or is likely to contain regulated asbestos fibres;

Commercial office properties tend to be simpler to assess and the risk of soil contamination tends to be lower than industrial properties.

R 0

In your opinion can the source of

contamination be successfully,

economically and entirely

eliminated

NOT APPLICABLE

Is contamination of the air visible

Not Applicable

Is the costs to cure the

contamination known? State

amount or estimated amount

Are there any visible signs of the presence of

asbestos on the subject property?

Activity or Industry Offices

- Contaminated water which may be static or migrating on to or off the site, as groundwater or surface water

- Airborne contamination as particles or gases emanating from the ground or groundwater

Is contamination of the land

visible

CONTAMINATED LAND

Contaminated land is regarded any form of negative impact on the natural or built environment that may have legal or financial consequences

caused by the release of hazardous substances as products or wastes. This may include adverse impacts on soils, groundwater, surface water

and air quality associated with the present or past activities on the site or adjacent properties.

NOT SURE

NOT APPLICABLE

‘Contaminated' means the presence in or under any land, site buildings or structures of a substance or microorganism above the concentration

which is normally present in or under that land, and which substances directly or indirectly affect or may affect the quality of soil or the

environment adversely.

Properties where water resources form part of the assets of the property or are reliant on boreholes or surface water as a sole source of water

supply are sensitive to contamination issues.

There are three broad ways in which land may be affected by contaminants:

- Contaminants attached to or contained within the ground itself

Environmental Impact of Activity

- Or a combination of the above.

Not Applicable

Not Applicable

Level of Contamination

Please state what types of asbestos

products are present e.g. asbestos roof

sheeting, ceiling boards etc.

None

Is the asbestos well maintained and in a

good state of repair?Not Applicable

PRESENCE OF ASBESTOS

Should a appropriately skilled

remediation consultant be

appointed to establish the level of

contamination?

9

15.

SCALE

9

8

7

6

5

4

3

2

1

SCALE

9

8

7

6

5

4

3

2

1

SCALE

9

8

7

6

5

4

3

2

1

16.

$25.33

$125.08

$13.34

STRONG AVERAGE POOR

X

Above average

Electricity, Water, Refuse Removal, Lift Maintenance

LETTABILITY

Lessee

Lease Period

Sociedade De Construcoes Catembe, LDA

VM, SA

10 Years

$19.85

Rental Parking $/Bay at Inception $98.00

Rental Technical Area $/m2 as per

Addendum dated 01/03/2012

$12.10

Rental Offices $/m2 current

Rental Parking $/Bay current

Unlettable

XVery Good

Good

Landlord

Unlettable

X

Option Period 2 Periods of 5 years each

Lease Commencement Date

Annual Escalation

Payable by Lessee

Payable by Landlord

Tenant/s Rating

14 April 2009

5%

Rental Offices $/m2 at Inception

Rates and Taxes

Rental Technical Area $/m2 current

Very poor

Average

Poor

Very poor

Poor

Below average

Poor

LOCALITYRATING

Above average

Below average

ANTICIPATED FUTURE DEMAND

Excellent

X

X

LOCALITY

HISTORIC DEMAND

RATINGS

X

RATING

Very Good

Average

RATING SALEABILITY

Unlettable

Excellent

Very Good

Average

SALEABILITY

Good

Above average

X

Excellent

LETTABILITY

LEASE SUMMARY

CURRENT DEMAND

Very poor

Good

Below average

X X

We had sight of the lease agreement. The subject property is fully let to Vodacom. A summary of the lease is as follow:

LETTABILITY LOCALITYSALEABILITY

X

10

17.

18.

18.1 ECONOMY

Mozambique, officially known as República de Moçambique (the Republic of Mozambique), is a country on the South - East Coast of Africa. The

country is bordered by the Indian Ocean to the East; Malawi, Zambia and Tanzania to the North; Zimbabwe to the West and Swaziland to the

South. South Africa also borders Mozambique to the South and Western boundaries.

Mozambique has been divided into 10 provinces (províncias) with Maputo as its capital city, which was formerly known as Lourenço Marques.

The city of Maputo is surrounded by Maputo Province, but as the capital, it is administered as its own “province”.

The subject property is situated in the city of Maputo, which is the capital and largest city of Mozambique. The property comprises a rectangular

shaped plot (stand) extending to an area of approximately 3,905m², which is located in Avenida Do Presidente Carmona within the central

business district of Maputo. The plot has been improved with a multi storey office building with attached structured parking. The immediate

surrounding properties comprise a mixture of offices and commercial buildings.

The country's economy is based largely on agriculture but with the food and beverages, chemical manufacturing, and aluminium and petroleum

industries growing fast. The country's tourism sector is also growing. Since 2001, Mozambique is one of the world's top ten for annual average

GDP (Gross Domestic Product) growth. South Africa is Mozambique's main trading partner and source of foreign direct investment, while China

and Portugal are also among the country's most important partners. According to several publications, Mozambique is one of the most poverty

stricken and underdeveloped countries in the World.

MACRO AND MICRO LOCALITY

Mozambique’s economic performance continues to be very strong. Despite severe floods in early 2013, GDP growth is estimated at 7 percent in

2013 and is likely to accelerate to over 8 percent in 2014. This reflects bustling activity in mining, construction, transport and communications,

and financial services. Risks to this outlook remain moderate, mainly relating to international commodity prices and policy uncertainty in an

election year. Average inflation was 4.2 percent in 2013 and is likely to stay anchored by the authorities’ medium-term target of 5-6 percent.

Inflation seems well-contained, but there are risks associated with inflationary pressures in neighbouring countries (especially in South Africa),

and a highly expansionary budget. The external current account deficit is projected to reach [43] percent of GDP in 2014 due to imports for large

investment projects financed by foreign direct investment (FDI).

Annual inflation, which was 4.2% in 2013, was likely to increase in 2014 but would still be in line with the central bank’s target of 5.6%

Despite the overwhelming majority attained by the Front for the Liberation of Mozambique (Frente de Libertação de Moçambique, FRELIMO) in

the last elections, the RENAMO leader demanded the formation of a government of national unity, the integration of his party’s former combatants

(most of them already of retirement age) into the ranks of the Mozambican Defence Forces, a delinkage of party and state, and the further

politicization of the National Electoral Commission (CNE) by eliminating the representatives of civil society currently serving as members. This

came at a time when the parliament just had passed a new electoral law package, which also established a new structure for Mozambique’s

electoral commission. Under these new rules, the CNE will have eight members drawn from political parties and five from civil society.

High economic growth rates over the last 20 years (approximately 7.2% for the last decade) have not managed to create a more inclusive

society. To the contrary, the cleavage between the majority of the population living in rural areas (65% – 70%) and the developing urban-middle-

class strata has widened. Mozambique’s economic performance is thus marked by extremes, largely due to the ongoing megaprojects on the one

hand and the structure of an underdeveloped, mainly agrarian economy on the other. The country remains one of the poorest in the world, ranked

by the UNDP’s 2011 Human Development Index at 184th place out of 187 countries, below so-called failed states such as Haiti (158),

Afghanistan (172) and the Central African Republic (179).

In 2012, Mozambique celebrated the 20th anniversary of the Rome Peace Accords that brought an end to the country’s civil war. Over the last

two decades, the ruling party has been able to extend and consolidate its dominant position in Mozambique’s political system. The main

opposition party, Mozambique National Resistance (Resistência Nacional Moçambicana, RENAMO), has become progressively weaker from

election to election, with its leader Afonso Dhlakama engaging in belligerent rhetoric. In 2012, Dhlakama withdrew with hundreds of ex-RENAMO

fighters to the forests in Gorongosa National Park with the aim of pressuring the Mozambican government into negotiations.

Mozambique has a total area of 799,380 km² from North to South, while to the East it has a coastline of approximately 2,515 kilometres with the

Indian Ocean. The total area includes water of approximately 13,000m². The country is irregular shaped. Towards the south, the terrain becomes

narrower, while it’s widest point being the Central Northern region, between the Coast and the point where the Zambezi and Aruángua rivers

meet.

MARKET RESEARCH AND APPLICATION

11

18.2

19.

19.1


7514 m2

4944 m2

$22.15 R/m2

$20.21 R/m2

$26.31 R/m2

$68.25 R/Bay

$1,870 R/m2

$2,842 R/m2

Photograph


Erf Extent (m2)

GLA (m2)

Estimated Gross Monthly Income $1,410,603

Operating Expenses per Month $20,979

Estimated Nett annualised income $1,144,744

Purchase Price $14,050,000

Purchase Date During 2014

Gross Rental Retail ($/m2)

Gross Rental Residential ($/m2)

Purchase Price based on GLA

(R/m2)

Gross Rental Parking ($/Bay)

Purchase Price based on Erf Extent

($/m2)

Comments This property is located close to the subject property. The improvements comprise a 4 storey

office block with retail at ground level, residential flats at 4th floor level and 1 level of structured

parking (105 Bays) below. We are of the opinion that the rentals are below market for the area.

The subject property is superior taking the accommodation into consideration.

The following is a sale of a comparable property which have sold in the vicinity of the subject property:

Comparable 1

Hollard insurance

Building, Maputo

ECONOMIC OUTLOOK UP TO 2016

Yield 8.15%

COMPARABLE PROPERTIES / GUIDELINE

Given the expected pick-up in agricultural output and the outlook for declining world food prices (and broadly flat oil prices),WE expect inflation to

average 6.5% a year in the outlook period.

Gross Rental Offices ($/m2)

The ruling party, Frente de Libertação de Moçambique (Frelimo), is set to win the presidential and parliamentary polls, although there is a small

risk that the presidential succession battle will cause the party to splinter.

Fiscal revenue is expected to rise briskly up to 16 on the back of strong economic increase and increasing royalties from the mining sector. The

deficit should narrow as a proportion of GDP from 5.2% in 2011 to 0.3% in 2016.

Economic increase is expected to remain brisk, averaging around 8% a year, largely on the back of the minerals boom. However, turbulent

external economic conditions could mean investment inflows disappoint.

COMPARABLE PROPERTIES: FOR SALE / TO LET

The average price per square metre for office space sales in Maputo ranges from US$2,000 and US$3,200, according to a study from the

consultancy Prime Yield Moçambique (PYM), which expects prices to stabilise over the next five years.

Bairro Central C (US$2,500) and Polana A (US$2,200) are in the middle-ground of the consultancy’s study which is “the result of field work, along

with information from properties evaluated by PYM.”

Over the last five years the price of renting office space has risen due to high demand, particularly from large companies (megaprojects) and the

arrival of foreigners,” PYM consultant Daniela Costa told Macauhub.

According to Costa, in the next five years, the price of rentals should stabilise as new facilities are built, increasing the availability of office space

in Maputo, which now stands at a total of “approximately 337,000 square metres

In the rental market the respective costs per square meter vary between US$22 in Bairro Central B and Polana Cimento B, US$25 in Polana

Cimento A, US$28 in Sommerschield and US$30 in Bairro Central C.

The major risks to political stability are that spikes in consumer price inflation could lead to violent disorder, as witnessed in September 2010, and

that the legitimacy of the polls due in 2014 is contested.

The current-account deficit should continue to widen in US dollar terms to around US$1.7bn in 2016, but will shrink as a proportion of GDP to

6.3% in that year.

12





Varies

Minimum Rate/m2 Gross $20



2 - 3%

The following are office blocks are let / to let in the greater Maputo area:

2 - 3%

Comments

Comparable 3

Avenida 25 de

Setembro, Maputo

$32

"A" Grade

This comparable comprises lower end A grade offices, which is home to some of the biggest

companies in Mozambique. Research has revealed that that three lease agreements have

recently been negotiated with sizes varying between 100m² and 700m². The rentals achieved

range between $28/m² and $30/m². This comparable accommodation is considered inferior to

the subject property in terms of location and the quality of accommodation (prime offices) to be

provided.

Photograph

Offices

A- to B+ gradeGrading

$110

Areas in m2

Avenida 25 de

Setembro, Maputo

Photograph

Offices

Grading

Areas in m2



Operating costs/m2

Parking Bay


Varies

$3

Parking Bay

Comments This comparable, which was developed in 2003, comprises approximately 13,500m² of "B+" to

"A" grade offices. This building is situated opposite the JAT Office Complex and currently has

no vacancies. Current rentals achieved range between $20/m² and $25/m². This comparable

accommodation is considered inferior to the subject property in terms of location and the quality

of accommodation (prime offices) to be provided. Hence a higher rental being advised for the

subject accommodation.

This comparable comprises A grade offices, which is home to some of the better office

accommodation available in Maputo. There are several buildings which make up this complex,

each with its own unique entrance. Research has revealed that that the last known concluded

lease agreement negotiated in the building was in September 2011, when approximately 180m²

of offices was leased at a gross rental of $35/m² and one parking bay at $150/bay. No further

lease details were available. This comparable accommodation is considered marginally inferior

to the subject property. Hence, a lower rental range is advised for the subject accommodation.

$35

$3

Comparable 1

Offices

$25

Operating costs/m2


30 - 1300m2

Parking Bay

Operating costs/m2

Areas in m2

Comparable 2

Comments


Photograph

$3

$25

"A" Grade

Avenida Vladimir

Lenine, Maputo



$150

$32

Grading


$110

2 - 3%

13


20.

20.1

Rentals as per Lease

Comments

In assessing the value of the subject property we have used rentals as stated above in our calculations. The above rentals are considered in line

with rental indicators obtained in the local market place. We are however of the opinion that the achieved rentals for the subject property is

slightly below market taking the quality and location of the property into consideration. We are of the opinion that market related rentals for the

subject property should be between $25 and $30/m2.

Basement Parking $100.00

$20.00

Description

During our comparative market research, the following were evident:

The Aecom, Africa Property & Construction Handbook 2013, indicate gross rentals for office buildings at $420/m2

per annum, or $35/m2

per

month.

VALUATION MOTIVATION

7-10%

Gross Asking Rental is defined as being the full rental being asked including operating costs and municipal costs excluding parking, VAT,

electricity/water consumption and internal cleaning. In terms of a gross lease, the tenant in a stand-alone building typically pays only for his refuse

removal, water and electricity, as well as internal maintenance and increases in rates and taxes. He provides and pays for his own security. All

other expenses are for the account of the landlord. In a park the tenant pays, in addition to his gross rental, his pro rata share of security costs,

security lighting and landscaping.


(Highest)

$38.00

Numerous A-Grade office developments are currently taking place in the Maputo central business district with a number of new developments in

the pipeline. These new developments will provide further office space in the downtown area of the city and along the beachfront.

Residential house converted to offices. The accommodation comprise 10 individual offices and

storage space. The subject property is superior in all aspects and will command higher rentals.

The downtown central business district is a relatively fast developing mix-use suburb. These buildings are similar in age, size and stature, with

the quality of accommodation on offer being rated as good to brand new. Our research confirms that rentals for prime A-grade office

accommodation in the greater node are currently in the region of US $30 to US $35 per square metre.

Offices

INCOME

Gross Rentals/m2

applied to subject

property


(Lowest)

$200.00

Comparable 4

Martires Da Machava

Ave, Maputo

Photograph


Grading B+ grade

Areas in m2 400

Asking Rent Rate/m2 Gross $12,000

Rate/m2 Gross $30

Capitalisation Rates

14

20.2

7.7% or $2.30

20.3

HIGH AVERAGE LOW

X

1.00%

20.4

*

*

*

*

7.50%

21.

This is a significant sale for Maputo as we don’t believe an asset of this quality has traded hands in the market before.

Vacancy Rate Applied

Demand experienced in this particular node

The capitalisation rates applied in this valuation have been derived after analysis of comparable sales where available and following discussions

with property practitioners, analysts and Valuers operating in or familiar with the surrounding area. There is no department within the local

municipality or local government that can provide a list of property sales for members of the public.

We have used the net income capitalisation method of valuation to determine the value of this property. This method determines the net

normalised annual income of the property, assuming the property is fully let at market related rentals, and market escalations, with an allowance

made for vacancies (where applicable). Market related operating expenses are incurred, resulting in a net annual income which is then

capitalised at a market related rate. The capitalisation rate is determined from the market (i.e. the rate at which similar assets have traded

recently), and is influenced in general by: rates of return of similar properties, risk, obsolescence, inflation, market rental growth rates, rates of

return on other investments, as well as mortgage rates. In determining the rate of capitalisation we have taken the following into account:

The vacancy we have applied to the subject property is

EXPENSES

is considered market related for the subject property.

The capitalisation rate is best determined by referring to market transactions of comparable properties as it is based on information derived from

market analysis. The risk inherent in income producing properties is the degree of certainty that the income stream will be realised despite the

uncertainty of the future, and therefore the higher the risk factor, the better return the investor will require.

The assessed expenditure at

CAPITALISATION RATES

In our valuation calculations, we have estimated an provision for building maintenance, air-conditioning maintenance as well as for management.

In addition, the urban regeneration project of the former industrial fair grounds (FACIM) will provide 380,000m² of mixed use accommodation

comprising retail, hotel, office and residential accommodation, as well as a marina. This site is situated close to the subject property.

Expense Ratio's

No office vacancies were noted along the sea front in Avenida 10 de Novembro. However some vacancies were evident in the Millennium

Building in the central CBD. Local property experts are of the opinion that it might remain difficult to find smaller areas to let of good quality office

space because of the scale of the stock on offer and the general tendency to market space to buy rather than let.

Condition of the building

Despite current interest rates and economic uncertainty, demand for investment properties remains good. The capitalisation rate is dependent on

a number of factors, such as location, the condition of the improvements, current market conditions, the lease covenant and the risk inherent in

the property.

Current market conditions are fairly stagnant, with transactions of properties comparable to the subject property being scarce.

Based on our market research, we have concluded that yields are in the region of 7.5% to 10.00% for prime properties within the immediate

market. Considering the type, size, and location of the subject property, we are of the opinion that capitalisation rates as stated below would be

market related for the subject property. We are satisfied that our rate assumption produced a value which adequately reflects the investment risks

associated with the subject property.


Based on the above market research we have applied a capitalisation rate to the subject property of :

Where applicable, Property brokers/agents, Own Data Base, Internet

SOURCE OF INFORMATION

VACANCIES

Vacancies in Area

The subject property is a multi tenanted office development. After careful consideration taking factors like locality, demand, the historic vacancy of

the node and the surrounding demographic profiles into account, we have assumed a permanent vacancy factor of 1.00% into perpetuity.

Rental income being derived at present

Quality of the tenant

15

22.

22.1

Lettable

area in m²

/ unit

Rate/m2

10122 $25.33

537 $13.34

336 $125.08


0.200% of replacement value

0.120%


7.7%

7.50%

0 m2 at $0.00 /m

2

0 m2 at $0.00 /m

2

Total

The Income Capitalisation Method of Valuation produced a value of:

The Discounted Cashflow Method of Valuation produced a value of:

23.




Technical Areas Vodacom 13/04/2019

Accommodation Tenant

$7,167.18 $506,423.90

Paid by Tenant

$44,876,371.88

Add: Residual Land (Surface Rate)

$0.00

$45,000,000

Valuation Date

Income/Expenditure Ratio


$28,286.10

$9,113.63

Less: Amount to cure Contamination

Less: Refurbishment Costs $0.00

$3,645,450.04

Net Annual Income

$47,143.50

$109,363.50

Advertising / Marketing

SUMMARY

Offices

GLA m² 10,122

GBA m² 10,659


Net Annual Income

We are of the opinion that the discounted Cashflow method of valuation represents a fair value for the subject property.

Management fee

Insurance

Audit Fee

$3,645,450.04

$23,571,749.22

$23,571,749.22

$3,000.00

Purchase Price

1.00%

To be confirmed $45,000,000.00

x 12 months

x 12 months$2,000.00

x 12 months

$0.00x 12 months

Lift / Escalator Maintenance $649.17 x 12 months

$45,000,000.00

$0.00

$44,876,371.88

Repairs and maintenance

of gross replacement

value

$3,365,728

Sundries

Value

$0.00

Vodacom 13/04/2019

OPEN MARKET VALUE ROUNDED

$36,000.00

Cleaning Consumables

Paid by Tenant

$12,000.00

Security

Aircon Maintenance

$0.00 x 12 months

Annual Expenditure as a % 7.7%

Capitalisation Rate 7.50%

Vacancy Rate

Paid by Tenant

$36,654.75

Paid by Tenant

Property Rates & Taxes $3,054.56

$200.00

Electricity (Non Recovered) x 12 months


Paid by Tenant

$2,000.00

x 12 months

x 12 months

$0.00 x 12 months

x 12 months

Paid by Tenant

Paid by Tenant

Paid by Tenant

Paid by Tenant

Paid by Tenant

$279,722

x 12 months

$36,823

$0.00 x 12 months Paid by Tenant

$42,026.88

Lease Expiry

$200.00

Parking

Cleaning Staff

$200.00

Less Vacancy

Generator Maintenance

x 12 months

Water ( Non Recovered)

Pest Control

CCTV Maintenance Contract $0.00

Sub Total

13/04/2019 $3,089,484.32

Annual RentalMonthly Gross

Rental

(Including Operating

Costs Recoveries)

$256,388.74Offices

VALUATION CALCULATION

$506,423.90

$3,682,273

Vodacom

$50.00

Garden Maintenance

INCOME CAPITALISATION METHOD - EXISTING

$3,365,728

Annual Expenditure $279,722

Operating Costs / Month ($/m²) $2.30

$4,445.79


Open Market Value $45,000,000.00

Valuer

21 May 2014

Erf Description Stand 12A1

Erf Extent m² 3,905

Physical Address VODACOM BUILDING, AVENIDA DO PRESIDENTE CARMONA, BAIXA DE CITADE DE

MAPUTO

Zoning Offices

Usage

$3,112.05


Total Replacement Value $23,571,749.22

Rate/m² based on Replacement Cost (GBA) $2,211.40

$4,445.79


Forced Sale Value $31,500,000.00

$1,000.00

Less: Expenditure

Other Municipal Expenses

x 12 months

1.00%

Johan Terblanche

$45,000,000

16

24.

ADDRESS:

Date of Signature

The signatories to this document hereby confirms that they have no present or contemplated interest in this or any other properties or any other

interests, which would affect the statements or values contained in this valuation report. The valuation enclosed herewith was therefore

undertaken on a completely independent basis.

Rosebank

Kindly note that neither the whole nor any part of this report, nor any reference thereto may be included in any published document, circular or

statement, nor published in any way without our prior written approval of the Valuer as to the form or context in which it may appear.

This valuation has been prepared on the understanding that no onerous easements, rights of way or encroachments exist by or on the subject

property, other than those in favor of statutory bodies, applicable to all such properties, or which could be regarded as customary.

This valuation report has been compiled for the exclusive use of Standard Bank / Delta Property Fund and shall not be divulged to any other

party, as it is confidential.

$45,000,000

21 May 2014

The market value and any other values referred to in this report exclude Value Added Tax (VAT) and transfer costs.

The Insurance Value is a MINIMUM recommended value, subject to the qualifications set out above, and should be verified by Standard Bank to

avoid the average clause being applied in the event of a claim. The Valuer should be advised of all alterations and additions to the property,

subsequent to the date hereof.

All plans included within the Valuation Report are supplied for the purpose of identification only and are not necessarily to scale.

Caveats

………………………………………………………..

30 Baker Street

Johan Terblanche

Forty Five Million Dollar only

We have assumed that the property and its value are unaffected by any statutory notice or condition of Title where Title Deeds have not been

inspected, and that neither the property nor its condition, nor its use, nor its intended use, is or will be unlawful.

We emphasise that we have not carried out a structural survey of the improvements, nor have we examined them for signs of timber infestation,

and accordingly cannot be held responsible for possible defects.

4710/2

Where actual income and expenditure data has been made available to us, such data has been adjusted for anomalies and used on the

understanding that it is correct as a basis for assessing capitalised values; in the absence of such data, we have made what we consider to be

plausible assumptions.

STANDARD BANK: CORPORATE AND INVESTMENT

BANKING

I, Johan Terblanche, declare that I have inspected the above property, that I have verified the particulars set out in this valuation, and that I value

the herein described property for the purposes of this valuation to the best of my knowledge and skills as at 21-May-2014 at:


Professional Valuer

VALUATION

17

Client:

Vodacom Offices 10,122 $25.33 13 April 2019 12 5.00%

Vodacom Technical Areas 537 $13.34 13 April 2019 12 5.00%

Vodacom Parking 336 $125.08 13 April 2019 12 5.00%

0 0 0 $0.00 0 January 1900

10,659

EXPENDITURE 12 5.00%

CASH FLOW

Lease expiry dateTenant Accommodation

Delta Property Fund

GROSS ANNUAL INCOME $3,682,273

GROSS ANNUAL EXPENDITURE $279,722

Total area as per valuation report

Lettable area /

units

Rental rate

/m²

Escal.

month

Escal.

rate

Year 1

Months

1 2 3 4 5 6 7 8 9May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15

$256,388.74 $256,388.74 $256,388.74 $256,388.74 $256,388.74 $256,388.74 $256,388.74 $256,388.74 $256,388.74

$7,167.18 $7,167.18 $7,167.18 $7,167.18 $7,167.18 $7,167.18 $7,167.18 $7,167.18 $7,167.18

$42,026.88 $42,026.88 $42,026.88 $42,026.88 $42,026.88 $42,026.88 $42,026.88 $42,026.88 $42,026.88

$23,213.46 $23,213.46 $23,213.46 $23,213.46 $23,213.46 $23,213.46 $23,213.46 $23,213.46 $23,213.46

10 11 12Feb-15 Feb-15 Mar-15

$256,388.74 $256,388.74 $269,208.18 $3,089,484.32

$7,167.18 $7,167.18 $7,525.54 $86,364.54

$42,026.88 $42,026.88 $44,128.22 $506,423.90

$0.00

$3,682,272.76

$23,213.46 $23,213.46 $24,374.13 $279,722.15

Total



30 Baker Street

Rosebank

Tel: (011) 721 6248

Applicant Name :

Property Description :

Property Address :

Description Storeys Walls Roof Flooring ConditionArea in

m²

Replacement

costs in m²

Total

replacement

cost

Office Block Multi Storey

Plastered

and Painted

Brick

Flat Concrete

roof

Ceramic

Tiles, wood

and carpets

Very Good 10659 $1,300.00 $13,856,973.00

Structured Parking Four Levels Concrete Concrete Concrete Very Good 8400 $800.00 $6,720,000.00

TOTALS 19059 $20,576,973.00

Site Improvements

All Improvements Say $100,000

$20,676,973

3.00% $620,309

2.00% $413,539

9.00% $1,860,928

$23,571,749

Total replacement costs (Exc VAT) $23,571,749

Remarks:

DATE VALUER:

Sub Total

Delta Property Fund

VODACOM BUILDING, AVENIDA DO PRESIDENTE

VODACOM BUILDING, AVENIDA DO PRESIDENTE

Breakdown of Replacement Costs

21 May 2014

Demolition @

Local authority & statutory fees @

Add: Professional fees @

Sub Total

Construction Date : 2008

Rates are based on projected 1 July 2013 costs and provide an indicator for the expected building cost rates over 2013.

Rates include the cost of appropriate building services, e.g. air-conditioning, electrical, etc., but exclude costs of site infrastructure

development, parking, any future escalation, loss of interest, professional fees and VAT.

DISCOUNTED CASHFLOW - VODACOM BUILDING MAPUTONotes

Date of Valuation 21-May-14

Market rentals escalate at 5% P.A

Expenses escalate at 8% P.A

Lease Expiry Date 30-Mar-19

Discount Rate 12.00%

Discount Rate/Month 1.00%

Capitalisation Rate at Reversion is 7.50%

Vodacom 10,121.94 $256,388.74 $25.33

Vodacom 336.00 $42,026.88 $125.08

Gross Income Per Annum 10,121.94 $298,415.62

Less Vacancy of 1.00%

Less Monthly Expenses

Description Percentage

All operating expenses - Say 7.67%

Total Expenses

Net Income

Value based on 1st years net income $43,959,165.07

First years yield based on value 7.33%

Net Present Value Factor

Net present Value of Monthly Income Stream

Net Present Value $44,600,956

Say $45,000,000

Tennant Area m2/Bays Gross Rental Rate $/m2

DISCOUNTED CASHFLOW - VODACOM BUILDING MAPUTO

May-14 Jun-14

1 2

1 2

$30.00 $303,658.20 13-Apr-19 12 5% $256,388.74 $256,388.74

$125.00 $42,000.00 13-Apr-19 12 5% $42,026.88 $42,026.88

$345,658.20 $298,417.62 $298,419.62

2,984.18R 2,984.20R

$21,784.49 $21,784.63

$21,784.49 $21,784.63

$273,648.96 $273,650.79

0.99009901 0.980296049

$270,939.56 $268,258.79

Escalation

Gross Market

Rent $/m2

Market Rent per

Month Lease Expire

Escalation

Month


3 4 5 6 7

3 4 5 6 7

$256,388.74 $256,388.74 $256,388.74 $256,388.74 $256,388.74

$42,026.88 $42,026.88 $42,026.88 $42,026.88 $42,026.88

$298,421.62 $298,423.62 $298,425.62 $298,427.62 $298,429.62

2,984.22R 2,984.24R 2,984.26R 2,984.28R 2,984.30R

$21,784.78 $21,784.92 $21,785.07 $21,785.22 $21,785.36

$21,784.78 $21,784.92 $21,785.07 $21,785.22 $21,785.36

$273,652.63 $273,654.46 $273,656.29 $273,658.13 $273,659.96

0.970590148 0.960980344 0.951465688 0.942045235 0.932718055

$265,604.54 $262,976.56 $260,374.57 $257,798.34 $255,247.59


8 9 10 11 12

8 9 10 11 12

$256,388.74 $256,388.74 $256,388.74 $256,388.74 $269,208.18

$42,026.88 $42,026.88 $42,026.88 $42,026.88 $44,128.22

$298,431.62 $298,433.62 $298,435.62 $298,437.62 $313,360.40

2,984.32R 2,984.34R 2,984.36R 2,984.38R 3,133.60R

$21,785.51 $21,785.65 $21,785.80 $21,785.95 $23,528.82

$21,785.51 $21,785.65 $21,785.80 $21,785.95 $23,528.82

$273,661.80 $273,663.63 $273,665.46 $273,667.30 $286,697.98

0.923483222 0.914339824 0.905286955 0.896323718 0.887449225

$252,722.08 $250,221.56 $247,745.77 $245,294.49 $254,429.90


1 2 3 4 5

13 14 15 16 17

$269,208.18 $269,208.18 $269,208.18 $269,208.18 $269,208.18

$44,128.22 $44,128.22 $44,128.22 $44,128.22 $44,128.22

$313,350.40 $313,352.40 $313,354.40 $313,356.40 $313,358.40

3,133.50R 3,133.52R 3,133.54R 3,133.56R 3,133.58R

$23,528.82 $23,528.82 $23,528.82 $23,528.82 $23,528.82

$23,528.82 $23,528.82 $23,528.82 $23,528.82 $23,528.82

$286,688.08 $286,690.06 $286,692.04 $286,694.02 $286,696.00

0.878662599 0.86996297 0.861349475 0.852821262 0.844377487

$251,902.09 $249,409.73 $246,942.03 $244,498.75 $242,079.64


6 7 8 9 10

18 19 20 21 22

$269,208.18 $269,208.18 $269,208.18 $269,208.18 $269,208.18

$44,128.22 $44,128.22 $44,128.22 $44,128.22 $44,128.22

$313,360.40 $313,362.40 $313,364.40 $313,366.40 $313,368.40

3,133.60R 3,133.62R 3,133.64R 3,133.66R 3,133.68R

$23,528.82 $23,528.82 $23,528.82 $23,528.82 $23,528.82

$23,528.82 $23,528.82 $23,528.82 $23,528.82 $23,528.82

$286,697.98 $286,699.96 $286,701.94 $286,703.92 $286,705.90

0.836017314 0.827739915 0.81954447 0.811430169 0.803396207

$239,684.47 $237,313.00 $234,964.99 $232,640.21 $230,338.43


11 12 1 2 3

23 24 25 26 27

$269,208.18 $282,668.59 $282,668.59 $282,668.59 $282,668.59

$44,128.22 $46,334.64 $46,334.64 $46,334.64 $46,334.64

$313,370.40 $329,039.22 $329,029.22 $329,031.22 $329,033.22

3,133.70R 3,290.39R 3,290.29R 3,290.31R 3,290.33R

$23,528.82 $23,528.82 $25,411.13 $25,411.13 $25,411.13

$23,528.82 $23,528.82 $25,411.13 $25,411.13 $25,411.13

$286,707.88 $302,220.01 $300,327.80 $300,329.78 $300,331.76

0.795441789 0.787566127 0.779768443 0.772047963 0.764403924

$228,059.43 $238,018.24 $234,186.14 $231,869.00 $229,574.78


4 5 6 7 8

28 29 30 31 32

$282,668.59 $282,668.59 $282,668.59 $282,668.59 $282,668.59

$46,334.64 $46,334.64 $46,334.64 $46,334.64 $46,334.64

$329,035.22 $329,037.22 $329,039.22 $329,041.22 $329,043.22

3,290.35R 3,290.37R 3,290.39R 3,290.41R 3,290.43R

$25,411.13 $25,411.13 $25,411.13 $25,411.13 $25,411.13

$25,411.13 $25,411.13 $25,411.13 $25,411.13 $25,411.13

$300,333.74 $300,335.72 $300,337.70 $300,339.68 $300,341.66

0.756835568 0.749342147 0.741922918 0.734577146 0.727304105

$227,303.26 $225,054.21 $222,827.42 $220,622.67 $218,439.72

Jan-17 Feb-17 Mar-17 Apr-17 May-17

9 10 11 12 1

33 34 35 36 37

$282,668.59 $282,668.59 $282,668.59 $296,802.02 $296,802.02

$46,334.64 $46,334.64 $46,334.64 $48,651.37 $48,651.37

$329,045.22 $329,047.22 $329,049.22 $345,501.38 $345,491.38

3,290.45R 3,290.47R 3,290.49R 3,455.01R 3,454.91R

$25,411.13 $25,411.13 $25,411.13 $25,411.13 $27,444.02

$25,411.13 $25,411.13 $25,411.13 $25,411.13 $27,444.02

$300,343.64 $300,345.62 $300,347.60 $316,635.24 $314,592.45

0.720103075 0.712973341 0.705914199 0.69892495 0.692004901

$216,278.38 $214,138.42 $212,019.64 $221,304.27 $217,699.52


2 3 4 5 6

38 39 40 41 42

$296,802.02 $296,802.02 $296,802.02 $296,802.02 $296,802.02

$48,651.37 $48,651.37 $48,651.37 $48,651.37 $48,651.37

$345,493.38 $345,495.38 $345,497.38 $345,499.38 $345,501.38

3,454.93R 3,454.95R 3,454.97R 3,454.99R 3,455.01R

$27,444.02 $27,444.02 $27,444.02 $27,444.02 $27,444.02

$27,444.02 $27,444.02 $27,444.02 $27,444.02 $27,444.02

$314,594.43 $314,596.41 $314,598.39 $314,600.37 $314,602.35

0.685153367 0.67836967 0.671653139 0.665003108 0.658418919

$215,545.43 $213,412.66 $211,301.00 $209,210.22 $207,140.14


7 8 9 10 11

43 44 45 46 47

$296,802.02 $296,802.02 $296,802.02 $296,802.02 $296,802.02

$48,651.37 $48,651.37 $48,651.37 $48,651.37 $48,651.37

$345,503.38 $345,505.38 $345,507.38 $345,509.38 $345,511.38

3,455.03R 3,455.05R 3,455.07R 3,455.09R 3,455.11R

$27,444.02 $27,444.02 $27,444.02 $27,444.02 $27,444.02

$27,444.02 $27,444.02 $27,444.02 $27,444.02 $27,444.02

$314,604.33 $314,606.31 $314,608.29 $314,610.27 $314,612.25

0.651899919 0.645445465 0.639054916 0.632727639 0.626463009

$205,090.54 $203,061.22 $201,051.97 $199,062.61 $197,092.94

Apr-18 May-18 Jun-18 Jul-18 Aug-18

12 1 2 3 4

48 49 50 51 52

$311,642.12 $311,642.12 $311,642.12 $311,642.12 $311,642.12

$51,083.94 $51,083.94 $51,083.94 $51,083.94 $51,083.94

$362,786.05 $362,776.05 $362,778.05 $362,780.05 $362,782.05

3,627.86R 3,627.76R 3,627.78R 3,627.80R 3,627.82R

$27,444.02 $29,639.54 $29,639.54 $29,639.54 $29,639.54

$27,444.02 $29,639.54 $29,639.54 $29,639.54 $29,639.54

$331,714.17 $329,508.75 $329,510.73 $329,512.71 $329,514.69

0.620260405 0.614119213 0.608038825 0.602018638 0.596058058

$205,749.17 $202,357.66 $200,355.32 $198,372.79 $196,409.89

Sep-18 Oct-18 Nov-18 Dec-18 Jan-19

5 6 7 8 9

53 54 55 56 57

$311,642.12 $311,642.12 $311,642.12 $311,642.12 $311,642.12

$51,083.94 $51,083.94 $51,083.94 $51,083.94 $51,083.94

$362,784.05 $362,786.05 $362,788.05 $362,790.05 $362,792.05

3,627.84R 3,627.86R 3,627.88R 3,627.90R 3,627.92R

$29,639.54 $29,639.54 $29,639.54 $29,639.54 $29,639.54

$29,639.54 $29,639.54 $29,639.54 $29,639.54 $29,639.54

$329,516.67 $329,518.65 $329,520.63 $329,522.61 $329,524.59

0.590156493 0.584313359 0.578528078 0.572800078 0.56712879

$194,466.40 $192,542.15 $190,636.94 $188,750.58 $186,882.88

Feb-19 Mar-19 Apr-19 May-19

10 11 12 1

58 59 60 61

$311,642.12 $311,642.12 $327,224.22 $387,553.36

$51,083.94 $51,083.94 $53,638.13 $53,603.83

$362,794.05 $362,796.05 $380,934.35 $441,219.19

3,627.94R 3,627.96R 3,809.34R 4,412.19R

$29,639.54 $29,639.54 $29,639.54 $79,419.45

$29,639.54 $29,639.54 $29,639.54 $79,419.45

$329,526.57 $329,528.55 $347,485.47 $357,387.54

Reversion 4,288,651R

Capitalised Value 57,182,007R

0.561513653 0.555954112 0.550449616 0.54499962

$185,033.67 $183,202.75 $191,273.24 $31,164,171.91

66

PROPERTY VALUATION: ZIMPETO SQUARE, MALHAZINE

This is a summary only. It must not be

Valuation Report ZIMPETO SQUARE Stand 1a Avenida de Mozambique Mozambique Valuation Date: 31st December 2014 Client Name: Delta International Limited

Critical Assumptions, Conditions and Limitations

In addition to any other assumptions, conditions and limitations contained within this report, our valuation is based on the following:

The valuation is current as at the date of valuation only, being 31st December 2014. The value assessed herein may change significantly and unexpectedly over a relatively short period (including as a result of general market movements or factors specific to the particular property).

We do not accept liability for losses arising from such subsequent changes in value. Without limiting this statement, we do not accept any liability where this valuation is relied upon more than three months after the date of valuation, or earlier if you become aware of any factors that may have any effect on the valuation.

This report is relevant at the date of valuation and to the circumstances prevailing at that time. However, within a changing economic environment experiencing fluctuations in interest rates, inflation levels, rents and global economic circumstances, acceptable returns on investment may, as a consequence, be susceptible to future variation. We therefore strongly recommend that before any action is taken involving an acquisition, disposal, shareholding restructure or other transaction more than three months after the date of this report, you consult the Valuer.

Our valuation assumes the information provided by property management is correct and we reserve the right to amend our calculations, if deemed necessary, if that information is incorrect.

No detailed soil studies covering the subject property were available for this valuation. It is therefore assumed that soil conditions are adequate to support standard construction consistent with highest and best use.

No opinion as to title is rendered. Data relating to ownership and legal description was obtained from the client or public records and is considered reliable. Title is assumed to be marketable and free and clear of all liens, encumbrances, easements, and restrictions except those specifically discussed in the report. The property is valued assuming it to be under responsible ownership and competent management and available for its highest and best use.

We have assumed no responsibility for hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for arranging for engineering studies that may be required to discover them.

The property is valued assuming it to be in full compliance with all applicable state and local environmental regulations and laws, unless otherwise stated.

The property is valued assuming that all applicable zoning and use regulations and restrictions have been complied with, unless otherwise stated.

All areas quoted within the Valuation Report have been measured on site and have been arrived at using the SAPOA Code of Measuring practice for commercial buildings.

We have had regard to the apparent state and condition of the buildings but have not carried out a structural survey, nor inspected those areas which were covered, unexposed or inaccessible, neither have we arranged for the testing of electrical, heating or other services, nor conducted soil tests. The valuation assumes that the services and structures are in a satisfactory state of repair and condition, unless otherwise stated in this Report. The improvements have been erected in accordance with the relevant Building and Town Planning Regulations.

We have not inspected woodwork or other parts of the structure which are covered unexposed or inaccessible and we are therefore unable to report that such parts of the property are free of rot, beetle or other defects.

We have not reflected in our valuation any element of "synergistic value" or "special purchaser value" which could possibly be realised by a merger of the freehold and leasehold interests or by a sale to an owner or occupier of an adjoining property.

No engineering survey has been made by the valuers. Except if specifically stated, data relative to size and area was taken from sources considered reliable and no encroachment of real property improvements is considered to exist.

No opinion is expressed as to the value of any subsurface oil, gas or mineral rights that might exist or whether the property is subject to surface entry for the exploration or removal of such materials except as is expressly stated.

Maps and exhibits included in this report are for illustration only as an aid in visualizing matters discussed within the report. They should not be considered as surveys or relied upon for any other purpose, nor should they be removed from, reproduced or used apart from the report.

No opinion is intended to be expressed for matters which require legal expertise or specialised investigation or knowledge beyond that customarily employed by property valuers.

Possession of this report or copy of it does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the valuers and in any event only with written qualification and only in its entirety.

Testimony or attendance in court or at any other hearing is not required by reason of rendering this valuation report, unless such arrangements are made at a reasonable time in advance.

The valuers have personally inspected the subject property and find no obvious evidence of structural deficiencies, except as may be stated in this report.

Unless otherwise noted, no consideration has been given in this valuation to the value of the property located on the premises which is considered to be personal property, only the real immovable property has been considered.

Information obtained for use in this valuation is believed to be true and correct to the best of our ability; however, no responsibility is assumed for errors or omissions, or for information not disclosed which might otherwise affect the valuation estimate.

Unless otherwise stated in this report, the valuers signing this report have no knowledge concerning the presence or absence of toxic materials in the improvements and/or hazardous waste on the land. No responsibility is assumed for any such conditions or for any expertise or engineering to discover them.

The property has been valued as if wholly owned with no account being taken of any outstanding monies due in respect of mortgage bonds, loans or any other third party claims.

Table of Contents 1 Executive Summary 1

1.1 Instruction & Purpose of Valuation 1

1.2 Valuation and Inspection Dates 1

1.3 Basis and Standards of Valuation 1

1.4 Sources of Information & Assumptions 1

1.5 Lack of Market Transparency 1

1.6 Liability 2

1.7 Fair / Market Valuation 2

2 Property Description 3 2.1 Location 3

2.2 Certificate of Use (Licenca De Utilizacao) 5

2.3 Licence To Build (Licenca De Construcao) 5

2.4 Land Registration 5

2.5 Environmental Issues 5

2.6 Services 5

2.7 Highest and Best Use 5

2.8 Asbestos 5

3 Description of Improvements 6 3.1 Retail Mall (Rentable Area 4,764m²) 6

3.2 Parking (125 cars) 7

3.3 Condition 7

3.4 Layout Plans 7

3.5 Rentable Areas 8

4 Market Commentary 9 4.1 Mozambique: General Overview 9

4.2 Mozambique: Macro Economic Overview 10

4.3 Oil and Gas 11

4.4 Real Estate Market 14

4.5 Maputo Prime Rents and Yields 15

4.6 Maputo Offices 15

4.7 Land Tenure in Mozambique 16

5 Property Income and Expenditure 17 5.1 Lease Overview 17

5.2 Lease Expiry Profiles 17

5.3 Non-Recoverable Expenses 18

5.4 Tenancy Schedule 18

6 Valuation Method & Rationale 19 6.1 Valuation Overview 19

6.2 SWOT Analysis 19

6.3 Market Rentals 19

6.4 Discounted Cash Flow 19

6.5 Capitalisation Rate 20

6.6 Discount Rate 20

6.7 Reversionary Rate 20

6.8 Vacancy Periods 20

6.9 Summary of Parameters 21

6.10 Additional Bulk 21

6.11 CAPEX 21

6.12 Valuation Reconciliation 21

7 Valuation 22 7.1 Market Value 22

Annexures A. Land Registration Certificate B. Floor Plans C. Tenancy Schedule D. Discounted Cash Flow Valuation

Valuation Report: Zimpeto Square, Maputo, Mozambique – Page 1 31st December 2014

1 Executive Summary

1.1 Instruction & Purpose of Valuation We refer to written instructions received from Delta International Limited authorising us to provide you with an independent, professional opinion as to the market value of the office building situated on Stand 1A Avenida De Mozambique, Mozambique (“the Property”).

We have valued the property, subject to a Right of Use of the land.

We understand that the valuation is to be relied upon for shareholder reporting purposes for the year ending 31st December 2014 only and for no other purpose.

1.2 Valuation and Inspection Dates We advise that we have been instructed to value the Property as at the 31st December 2014, which is our date of valuation.

The Property was inspected on 29th January 2015. We have valued the property subject to the existing lease.

1.3 Basis and Standards of Valuation This valuation has been prepared in accordance with the guidelines laid down by the Royal Institution of Chartered Surveyors for Regulated valuation firms in accordance with the latest edition of the RICS Valuation – Professional Standards January 2014, and also the latest IVSC International Valuation Standards. In addition, as the valuation is intended for inclusion in financial statements only, it complies with VPGA1 Valuations for Inclusion in Financial Statements.

The basis of our valuation is ‘Market Value’ and ‘Fair Value’ and this is defined by the RICS, SAIV and IVSC as:

‘The estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion.’

Jones Lang LaSalle is an external valuer with no interest in the subject property.

1.4 Sources of Information & Assumptions Our valuation is based on information provided by the Client, including but not limited to, operating cost budgets, title, leases, and site documents. We have relied upon the accuracy, sufficiency and consistency of the information supplied to us. Jones Lang LaSalle accepts no liability for any inaccuracies contained in the information disclosed by the Client or other parties, or for conclusions which are drawn either wholly or partially from that information. Should inaccuracies be subsequently discovered, we reserve the right to amend our valuation assessment.

We have independently made enquiries in relation to market conditions, outlook and pricing, using a variety of sources including brokers and agents, as well as reputable publications and data providers.

1.5 Lack of Market Transparency We have attempted to analyse and interpret the market by talking to local property practitioners. However Mozambique does not have any form of publicly available information with regard to property sales. In the absence of any sort of transparency or freely available information in this market, we have relied on word of mouth, newspaper and internet articles etc.


1.6 Liability Our liability will be limited to our Client only, and not to any third party, and in any event will be limited to the amount of our fees and shall exclude consequential and indirect damages. None of our employees, partners or consultants shall be personally liable for any claims or damages whatsoever.

1.7 Fair / Market Valuation We are of the professional independent opinion that the Fair / Market Value of the land and buildings on Stand 1A Avenida De Mozambique, Mozambique, as at the 31st December 2014 and assuming the Property is free of encumbrances, restrictions or other impediments of an onerous nature which would affect value, is:

Market Value

$10,500,000

(Ten Million Five Hundred Thousand United States Dollars)

Our opinion of value excludes any Taxes which the vendor may have to charge in addition to the sale price.

Our report is confidential to the party or parties to which it is addressed, for the specific purpose to which it refers. No responsibility is accepted to any third parties. Neither the whole of the report or any part of it or any reference to it, may be published in any document, statement or circular or in any communication with third parties without our prior written approval of the form and context in which it will appear.

This valuation is current at the date of valuation only. The value assessed herein may change significantly and unexpectedly over a relatively short period of time (including as a result of general market movements or factors specific to the particular property). Liability for losses arising from such subsequent changes in value is excluded as is liability where the valuation is relied upon after the date of the valuation. We recommend that market value assessments be reviewed regularly.


2 Property Description

2.1 Location

Mozambique: Location Plans

Source: CIA – The World Fact Book

Maputo Location Plans:

The Property is located 5kms to the north west of Maputo’s International Airport and 10kms due north of Maputo CBD. It is surrounded by low income residential settlements.

Location Plan:


Subject Property

Maputo CBD

Airport

Harbour Area

Aerial View:

Subject Property


2.2 Certificate of Use (Licenca De Utilizacao) A Certificate of Use was granted to the previous land owner, Valy Mahumed, as follows:

LICENSOR: Conselho Municipal De Maputo

LICENSEE: Juli Dos Santos Tembisse

LEGAL DESCRIPTION: Plot 851 Avenida de Mozambique

ADDRESS: No. 1 Avenida de Mozambique, George Dimitrov

USE: Commercial

Please see Annexure A for a copy of the Certificate of Use.

2.3 Licence To Build (Licenca De Construcao) We have not been provided with a copy of this certificate.

2.4 Land Registration We have not been provided with a copy of this certificate:

2.5 Environmental Issues During the course of our inspection we did not notice any evidence of land or building contamination. Importantly, however, we are not experts in the detection or quantification of environmental problems and we have not seen an Environmental Audit. Our valuation has been made assuming an audit would be available which would satisfy all relevant environmental and occupational health & safety legislation. If the Property’s current status needs to be clarified, an Environmental Audit should be undertaken and should any subsequent investigation show that the site is contaminated, this valuation may require revision. Our valuation excludes the cost to rectify and make good the Property, which may have become contaminated as a result of past and present uses.

2.6 Services Mains electricity, water and sewerage are supplied to the property.

2.7 Highest and Best Use This valuation has been undertaken adopting the Property’s Highest and Best Use, as defined by the IVSC as:

“The most probable use of a property which is physically possible, appropriately justified, legally permissible, financially feasible, and which results in the highest value of the property being valued.”

Taking into consideration the Property’s land size, Right of Use, and built improvement, we believe that the Highest and Best Use for the Property, as at the date of valuation, is its current use.

2.8 Asbestos We have not undertaken any formal searches regarding the existence of asbestos in or on the Property. We are not experts in this area and therefore, in the absence of an environmental consultant’s report concerning the presence of any asbestos fibre within the Property, our valuation is made on the assumption that there are no health risks from asbestos. If any asbestos related health risk is found to exist on the Property, we reserve the right to review our valuation.


3 Description of Improvements

The stand has been improved with a two storey retail mall and open air parking.

3.1 Retail Mall (Rentable Area 4,764m²) The two storey mall is constructed with a concrete frame and clad in concrete walling under a PVC barrel-vault roof. Internally the mall offers acceptable retail accommodation with ceramic floor tiles, anodised aluminium shopfronts and central plant air conditioning.

Two storey Mall, concrete frame, PVC Barrel Vault Roofs

Internal mall with ceramic floor tiles and anodised

aluminium shopfronts

PEP Stores

Vodacom

Edgars is an Anchor tenant

Jet


Millenium Bank of Mozambique

Anchor tenant Extra Supermarket

3.2 Parking (125 cars) Open air parking is provided at the ratio of 2.6 bays per 100m². Many customers use taxi services to visit the centre..

Open Air Parking for 125 cars

Interlocking concrete bricks

3.3 Condition A visual inspection revealed that the improvements at the Property appear to be in a reasonable condition. Our valuation has had regard to the apparent state of repair and condition of the Property; however, we were not instructed to carry out a structural survey or to test any of the services available to the Property. We are therefore unable to report that the Property is free from further defect and we have assumed that no deleterious material was used in the construction.

We have assumed the Property complies with all relevant statutory requirements in respect of matters such as health, building, and fire safety regulations.

3.4 Layout Plans Please see Annexure B for the Site Plan


3.5 Rentable Areas Zimpeto Square’s total rentable area is split over two floors, as detailed below:

Tenant Ground m² First m² Total m²

Extra Supermarket 1,780 Millennium Bank 230 Vodacom 137 Mimmos Restaurant 198 Fashion World 177 Intermoda 108 FNB 142 Pep Stores 373 Farmacia Sorriso 83 Maputo Optica 88 Edgars & Jet 1,170 Mimmos Outside Seating 265 FNB ATMs 6 Five Senses Mall Kiosk 6

Total Rentable Area 3,594 1,170 4,764


4 Market Commentary

4.1 Mozambique: General Overview Mozambique, officially the Republic of Mozambique is a country in Southeast Africa bordered by the Indian Ocean to the east, Tanzania to the north, Malawi and Zambia to the northwest, Zimbabwe to the west and Swaziland and South Africa to the southwest. The capital and largest city is Maputo.

Mozambique is endowed with rich and extensive natural resources. The country's economy is based largely on agriculture, but with industry, mainly food and beverages, chemical manufacturing, aluminium and petroleum production, is growing. The country's tourism sector is also growing. South Africa is Mozambique's main trading partner and source of foreign direct investment. Portugal, Brazil, Spain and Belgium are also among the country's most important economic partners. Since 2001, Mozambique's annual average GDP growth has been among the worlds highest. However, the country ranks among the lowest in GDP per capita, human development, measures of inequality, and average life expectancy.

The devastating floods of early 2000 slowed GDP growth to 2.1% but a full recovery was achieved in 2001 with growth of 14.8%. Rapid expansion in the future hinged on several major foreign investment projects, continued economic reform, and the revival of the agriculture, transportation, and tourism sectors. In 2013 about 80% of the population was employed in agriculture, the majority of whom were engaged in small-scale subsistence farming which still suffered from inadequate infrastructure, commercial networks, and investment. However, in 2012, more than 90% of Mozambique's arable land was still uncultivated. In 2013, a BBC article reported that, starting in 2009, Portuguese had been returning to Mozambique because of the growing economy in Mozambique and the poor economic situation in Portugal.

Maputo, known as Lourenço Marques before independence, is the capital and largest city of Mozambique. It is known as the City of Acacias in reference to acacia trees commonly found along its avenues and the Pearl of the Indian Ocean. It was famous for the inscription "This is Portugal" on the walkway of its municipal building. Today, it is a port city on the Indian Ocean, with its economy centered around the harbour. According to the 2007 census, the population is 1,766,184. Cotton, sugar, chromite, sisal, copra, and hardwood are the chief exports. The city manufactures cement, pottery, furniture, shoes, and rubber. The city is surrounded by Maputo Province, but is administered as its own province.

At independence in 1975, Mozambique was one of the world's poorest countries. Socialist mismanagement and a brutal civil war from 1977-92 exacerbated the situation. In 1987, the government embarked on a series of macroeconomic reforms designed to stabilize the economy. These steps, combined with donor assistance and with political stability since the multi-party elections in 1994, have led to dramatic improvements in the country's growth rate. Fiscal reforms, including the introduction of a value-added tax and reform of the customs service, have improved the government's revenue collection abilities. In spite of these gains, Mozambique remained dependent upon foreign assistance for 40% of its 2012 annual budget and over half the population remained below the poverty line. Subsistence agriculture continues to employ the vast majority of the country's work force and smallholder agricultural productivity and productivity growth is weak. A substantial trade imbalance persists although aluminium production from the Mozal smelter has significantly boosted export earnings in recent years.

In 2012, The Mozambican government took over Portugal's last remaining share in the Cahora Bassa Hydroelectricity Company (HCB), a significant contributor to the Southern African Power Pool. The government has plans to expand the Cahora Bassa Dam and build additional dams to increase its electricity exports and fulfil the needs of its burgeoning domestic industries. Mozambique's once substantial foreign debt has been reduced through forgiveness and rescheduling under the IMF's Heavily Indebted Poor Countries (HIPC) and Enhanced HIPC initiatives, and is now at a manageable level. In July 2007, the US government's Millennium Challenge Corporation (MCC) signed a $506.9 million Compact with Mozambique. Compact projects will end in September 2013 and are focusing on improving sanitation, roads, agriculture, and the business regulation environment in an effort to spur economic growth in the four northern provinces of the country. Citizens rioted in September 2010, after fuel, water, electricity, and bread price increases were announced. In an attempt to lessen the negative impact on people, the government implemented subsidies, decreased taxes and tariffs, and instituted other fiscal measures. Mozambique grew at an average annual rate of 6%-8% in the decade up to 2012, one of Africa's strongest performances. Mozambique's ability to attract large investment projects in natural resources is expected to fuel continued high growth in coming years. Revenues from these vast resources, including natural gas, coal, titanium and hydroelectric capacity, could overtake donor assistance within five years.


4.2 Mozambique: Macro Economic Overview According to Trading economics, ‘The Gross Domestic Product (GDP) in Mozambique was worth 15.32 billion US dollars in 2013. The GDP value of Mozambique represents 0.02 percent of the world economy. GDP in Mozambique averaged 5.27 USD Billion from 1980 until 2013, reaching an all time high of 15.32 USD Billion in 2013 and a record low of 1.97 USD Billion in 1992.’ GDP has grown by between 7.3% and 7.5% pa over vthe last three years.

Real GDP Growth:

Inflation:

The inflation rate in Mozambique was recorded at 1.93 percent in December of 2014. Inflation Rate in Mozambique averaged 6.36 percent from 2009 until 2014, reaching an all time high of 17.44 percent in December of 2010 and a record low of 1.05 percent in November of 2009.


Interest Rate:

The benchmark interest rate in Mozambique was last recorded at 7.50 percent. Interest Rate in Mozambique averaged 11.76 percent from 2009 until 2016, reaching an all time high of 16.50 percent in February of 2011 and a record low of 7.50 percent in November of 2014.

Tax Rates:

Corporate Tax: 32%

Personal Income Tax: Up to 32%

VAT: 17%

4.3 Oil and Gas According to a report by PWC entitled “On the brink of a boom: Africa Oil and Gas Review” 2014

Reserves and Production

Africa’s share of global oil production has dropped slightly since 2013, moving it from 12% to 10% of the world’s total. Untapped proven oil reserves on the continent are estimated to be around 8% of the global total, and these reserves continue to increase as appraisal on new discoveries continues. In 2013 alone, six of the top 10 global discoveries by size were made in Africa. From proven oil reserve totalling 130 billion barrels, Africa produced nearly nine million barrels of crude oil per day in 2013.

Africa has proven natural gas reserves of 502 trillion cubic feet with 90% of the continent’s annual natural gas production of 6.5Tcf coming from Nigeria, Libya, Algeria and Egypt. Africa as a continent has nearly 70 years of natural gas production available given current production rates. What’s even more exciting is that the East African gas reserves have not yet been fully appraised and will likely add a significant amount to the proven reserves total for the region.

Overall, the industry has continued to prosper in all African regions, though some discoveries are so recent that adequate appraisal has yet to be completed. This suggests that we will soon see a surge in proven reserves figures for many emerging players.

Africa continues to grow, and new hydrocarbon provinces are developing at an incredible pace. Significant gas finds in Mozambique and Tanzania have caused the world to take note of East Africa as an emerging player in the global industry.


Mozambique alone has some of the largest reserves discovered in the last decade, and liquefied natural gas (LNG) exports are expected to begin by 2020. When this occurs, they will be competing with other new entrants such as Australia, the United States and Papua New Guinea in selling gas into the Asian markets. This could have significant economic benefits for the East Africa region, but the governments will need to enact favourable legislation to ensure that projects do not experience unnecessary delays to first cargo.

Mozambique: Historical and Emerging Oil and Gas Developments

Mozambique has emerged as the second largest gas resource holder in Sub-Saharan Africa as a result of a series of major offshore gas discoveries recorded. International oil companies (IOCs) began hydrocarbon exploration in Mozambique in 1948. Currently, the country has four proved gas fields, all located onshore in the Mozambique basin: Pande, Buzi, Temane, and Inhassoro, according to the Petroleum Institute of Mozambique. Mozambique does not have proved crude oil reserves.

Since 2009 a series of major gas discoveries have been made in Mozambique’s offshore Rovuma Basin. It is estimated that recoverable gas from these discoveries are up 100 TCF, although some sources put this figure even higher. These offshore gas discoveries have rekindled interest in expanding the use of natural gas to address the continent’s power shortages.

Although these discoveries have frequently been reported as proved reserves, these volumes rightfully belong in the contingent resource category until commercial and field development plans are in place. Mozambique’s proved reserves today are limited to the Sasol-operated Pande and Temane fields, currently producing roughly 350 MMCFD, mostly for export via the Mozambique–South Africa pipeline.

The recent 180 trillion cubic feet of gas which was found in the Rovuma Basin has been one of the largest discoveries in the country to date. It is estimated that this would be enough to supply gas to Germany, Britain, France and Italy for 18 years. In 2014 Mozambique's parliament passed an amended petroleum law that will allow the government to issue new gas and oil exploration licences but it also requires investors to partner with the state oil firm. Under the new legislation, foreign operators who win licences to explore for oil and gas must do so in partnership with state oil company ENH. The law also says that 25 percent of all LNG produced should go to the domestic market. Furthermore, the revised law also stipulates that in-country oil and gas firms have to be listed on the nascent Maputo stock exchange. The objective is to strengthen their economies against foreign currencies and to get companies to raise capital in local markets.

Major Role Players

U.S. oil major Anadarko Petroleum Corp and Italy's Eni are currently developing multi-billion-dollar liquified natural gas (LNG) export projects in Mozambique's northern offshore Rovuma basin. The legislation approved by parliament also included authorisation for the government to create "a special regime" for the LNG processing chain in Rovuma Basin Areas 1 and 4 where Anadarko and Eni are operating. This included the construction and operation of LNG facilities and related activities.

Effect on the Economy

The southern African state, which still bears the scars of a devastating 1975-1992 civil war, is hoping revenues from its large natural gas deposits will help it emerge from years of poverty and dependence on foreign donors. The recent discovery of huge reserves of minerals resources, such as natural, gas and coal, combined with ongoing reforms and subsequent improvement of the business climate in Mozambique, provide good opportunities for the transformation of Mozambican into a Middle income economy in the years to come.

It is estimated that the development of the natural gas reserves and of the coal reserves (over 23 billion tons) should take Mozambique close to Angola or Qatar in terms of GDP, in a very near future.

Mozambique has recently set up a public company, Portos de Cabo Delgado, bringing together the state rail operator, CFM, and the national oil company to develop the strategic onshore infrastructure in the north required for LNG exports. The state venture was seeking partners to expand the northern ports of Pemba and Palma for the LNG industry. The International Monetary Fund, which sees Mozambique's economy growing 8 percent annually in the medium term - one of the highest rates in Africa -, has said the country can expect "substantial revenues" from LNG by 2022. But it says Mozambique faces risks from climate disasters, commodity price shocks and variations in global demand for its coal and gas, as well as "financing risks for megaprojects".


A huge obstacle to growth in Mozambique is the cost of the infrastructure required, which it cannot afford without help from foreign investors who have their eyes on other global projects. Currently Mozambique is introducing new energy policies and regulations with the express aim of attracting foreign capital by establishing a transparent regulatory and taxation environment.1

Currently Mozambique is one of the fastest growing economies among non-oil exporting countries, with an average annual growth of 7.6 % over the last five years, based mostly on sectors such as agriculture and agro-industry, hotels and tourism, fisheries and aquaculture, transport and communications, banking and insurance, public works and construction, services and power generation.

Challenges Facing Energy Companies and Industries in Mozambique

The challenges facing oil & gas companies operating in Mozambique continue to be diverse and numerous. Examples include fraud, corruption, theft, limited infrastructure, protectionist governments and lack of skilled resources among others. Regulatory uncertainty and delays in passing laws are severely inhibiting sector development in Mozambique.

Due to the number of challenges in the market, meticulous planning is paramount to success in the region. Operational excellence has become an increasingly important topic as smaller players who know the market well must operate in a lean and efficient manner to avoid unnecessary cash outlays that they simply cannot afford. Cost control continues to be a focus for most exploration and production (E&P) players globally, and Africa is no exception. This has led to a careful process of weighing risks and benefits for new project decisions and may explain the high level of success that recent drilling programmes have managed to achieve in the region.

Electricity shortages around the continent mean that governments and industry players are also looking at ways of supplying gas as an energy feedstock for local power generation. This would be a local beneficiation of hydrocarbon resources – a key initiative for most host governments in Africa. However, requirements to reduce flaring and utilise natural gas by-products in otherwise oil-centric areas could lead to longer lead times and higher project costs.

A shortage of trained oil & gas workers continues to be a serious concern around the continent. Donors like the World Bank have appropriated funds to several governments to undertake capability development programmes throughout the continent.”

The map below shows offshore oil and gas discoveries:


4.4 Real Estate Market In spite of its previous instability, Mozambique is experiencing one of the fastest growth rates for a developing country in the world. The projected growth rate for 2014 is expected to be around 7.5%, some of it cantered around the construction of several capital intensive projects in Maputo. Some of the more notable developments are listed as follows:

Edificio 24- Maputo's Roman Catholic Cathedral, is a mixed-use development that is located at the centre of the city along Avenida 24 Julho and Avenida Salvador Allende. There will be a total of 12 floors, with the bottom two designed for underground car parking. The project has been designed to accommodate 25 retail establishments as well as number of offices and apartments on the topmost floors. Amenities include a gym, swimming pool and a spa. Construction began in 2010.

Maputo Business Tower- The Maputo Business Tower, is a 47 storey building that, at its expected completion in 2014, will be considered the tallest building in the country at 190 metres. The $110 million project being developed by a U.S. company with construction that broke ground in late November 2010. The building has 5 floors available for parking roughly 600 vehicles. The ground floor will have space for retail establishments and the topmost floors will be reserved for luxury apartments.

Radisson Blu Hotel- The international hotel chain, Radisson Blu has begun construction of a 12 storey building with 154 rooms in one of the city's trendiest spots on the marginal along the beach. This new property will feature a modern design. The hotel opened in the first quarter of 2013.

Vodacom- This is a 15 storey building for the second largest telecommunication company in the country. Vodacom is one of Africa's largest telecommunications companies based in South Africa. It was projected to cost around $35 million and construction was completed in 2010. The building is designed to produce 30% of the energy it requires.

Market Overview

The following is a brief overview of each market:

Office Market

Demand for office space in Maputo principally derives from the banking, telecoms, professional and diplomatic/aid sectors. There has been a reasonable amount of development, particularly by JAT, whose latest development is JAT 5, constructed in three phases, one of which is pre-leased to a bank. There has been modest rental growth over the past 2-3 years, with prime office rents rising from US$25 per m² per month to US$30 per m² per month. New office space in Maputo is completed to a “shell and core” finish.

Residential Market

The residential market is the most buoyant property sector, benefiting both from demand for housing, and from occupiers using residential properties as offices. Growth has been strongest at the top end of the market. Villas in areas such as Sommerschield, which two years ago were leasing for US$3,500-4,000 per month, now lease for $5,500-6,000 per month. Rents are much lower on the local mass market, at around 10-20% of these levels. There is a major development programme, with low and middle income housing proposed and under construction around Maputo’s new ring road and in areas such as Matola and Zimpeto.

Retail Market

The retail market has been slow to take off because of the large size of the informal sector. However, there has been a flurry of recent activity, which has seen South African retailers, in particular, entering Mozambique. Most retail developments are out-of-town on the main arterial routes. There are a number of shopping centres in mixed-use developments, including the Polana Shopping Centre and the Maputo Shopping Centre, while the upmarket Marés Shopping Centre is a recent entrant to the market. Retail rents are in the order of $30-40 per m² per month, with good potential for rental growth.


Industrial Market

A congestion charge for large commercial vehicles in the city and escalating land prices are forcing industrial business to move to peripheral city locations. Traditional industrial areas in the centre of Maputo and close to the port and airport are generally seeing property being converted to higher value office or retail warehouse uses. Prime warehouse rents are high, in the order of US$10 per m² per month, but this reflects the city centre location of some warehouse properties and the fact that they are often used as offices.

4.5 Maputo Prime Rents and Yields Property Type Net Prime Rents Prime Yields

Offices US$ 30 to US$35 per m² per month* 10%

Retail US$ 40 per m² per month 10%

Industrial US$ 10 per m² per month 14%

Residential US$ 6,000 per m² per month* 7% Source: Knight Frank LLP

4.6 Maputo Offices Maputo has a current office stock of Grade A prime offices of 150,000m², of which just 7,500m² (5%) is vacant. Prime rentals for small space in recently built offices are $35/m² (plus operating costs). Rentals range from a low of $18/m², and the average rental is about $25/m². The central office market is depicted as follows:

Zone 1: Baixa de Maputo represents the prime office market, with 294,400m² of good quality office space.

Zone 2: Julyus Nyerere Avenue - A contains 71,600m² of prime office space.

Zone 3: Julyus Nyerere Avenue - B contains 25,497m² of secondary office space.

Zone 4: Baixa Velha contains 8,500m² of out of town secondary office space.

Zone 5: Avenue 24th July towards the Airport contains 4,000m² of secondary office space.


4.7 Land Tenure in Mozambique Mozambique has an interesting history, being under Portuguese rule for over four centuries before gaining independence in 1975. A protracted civil war soon followed, ending in 1992. Since then, the country has emerged as one of the world's fastest growing economies, which has seen major property development taking place over the last few years. In 2007, the government introduced new legislation to allow foreign nationals to purchase real estate, which has opened up great investment opportunities for property buyers in Mozambique. Land tenure is obtained through usage rights and not through the traditional form of ownership. All land in Mozambique is state-owned, so both local and foreigner buyers merely own the right to use the land. Property on the land itself does not fall under this lease basis however, and thus can be sold, transferred or rented as applicable. In the case of small-scale farmers, that right is free of charge. A 1997 land law acknowledges that land tenure rights of local communities and of individuals who, in good faith, have occupied the land for at least ten years. Companies and individuals wishing to acquire land for commercial purposes must first hold consultations with the local community and obtain a written opinion from the district administrator. Only then can they obtain authorization to use the land. While the legal system recognizes and protects property rights to buildings and movable property, private ownership of land is, however, not allowed in Mozambique. The government grants land-use concessions for periods of up to 50 years, with options to renew, and has at times granted overlapping land concessions. Foreigners are able to apply for a land concession if they have a registered property in Mozambique. The government hopes that by allowing private land concessions, there will be increased investment in production and employment creation in the rural areas of the country.


5 Property Income and Expenditure

5.1 Lease Overview We set out below the main terms and conditions of the leases:

LESSOR: CR Holdings Limitada

USE OF PREMISES:

Retail

ELECTRICITY & WATER: By Lessee

REFUSE REMOVAL:

By Lessor

RATES & TAXES: By Lessor

LESSEE’S OBLIGATIONS:

Internal maintenance

Pay Operating costs

LANDLORD’S OBLIGATIONS:

External and structural maintenance

Insurance

Security

ASSIGNMENT: Not without the prior written consent of the lessor

SUB-LETTING: Not without the prior written consent of the lessor

5.2 Lease Expiry Profiles

Lease Expiry by Area Lease Expiry Number

- ,500

1,000 1,500 2,000 2,500 3,000 3,500 4,000

Vaca

ncie

s

Ow

ner O

ccup

ied

Mon

thly

Lea

ses

2015

2016

2017

2018

2019

> 20

20

Area (m²)

05

1015202530354045

Vaca

ncie

s

Ow

ner O

ccup

ied

Mon

thly

Lea

ses

2015

2016

2017

2018

2019

> 20

20

Number of Expiries % Expiries by Number


Rental Expiry Profile

The average unexpired lease term is 50 months.

5.3 Non-Recoverable Expenses The lessor’s property expenses for the calendar year 2015 are forecast to be $730,233 compared with estimated recoveries from tenants of $455,836. This will leave a net cost to the lessor of about $274,758 as follows:

Expense Item Expense Amount $ Recoveries $ Forecast Net Expense 2015 $

Salaries 14,035 Security 45,397 Common Area Electricity 11,349 Common Area Water 3,783 Refuse Removal 9,458 Sewage Removal 9,458 Advertising Levy 5,637 Cleaning 37,831 Maintenance 3,783 Insurance 17,043 Generator Fuel 5,675 Generator Maintenance 5,675 Landscaping 3,026 Operating Costs 163,232 Totals 172,150 163,232 8,918 Non-recoverable property expenses amount to an average of $743 per month ie $0.16/m². To this figure we have added a property management fee of 3% of gross income. This has the effect of increasing non recoverable expenses to $43,921 per annum.

5.4 Tenancy Schedule

Please see Annexure C for a copy of the Tenancy Schedule

$- $200,000.00 $400,000.00 $600,000.00 $800,000.00

$1000,000.00 $1200,000.00 $1400,000.00 $1600,000.00

Vaca

ncie

s

Ow

ner O

ccup

ied

Mon

thly

Lea

ses

2015

2016

2017

2018

2019

> 20

20

Gross Annual Rent Parking Annual Rent


6 Valuation Method & Rationale

6.1 Valuation Overview In determining the Market Value of the Property we have adopted the Discounted Cash Flow method.

6.2 SWOT Analysis

STRENGHTS WEAKNESSES

Good location on the N1 Avenida De Mozambique which links Maputo’s sprawling northern residential suburbs with Maputo International Airport and the CBD.

The building is just three years old, has been well maintained, and is in good condition.

Infrastructure generally in Maputo could be improved.

OPPORTUNITIES THREATS

Maputo’s commercial sector and services industries will grow in line with Mozambique’s expanding economy.

Recent oil and gas discoveries off shore will serve to expand Mozambique’s economy in the years to come, thereby boosting the local property market.

To expand the Mall by a further 3,000m².

The local property market is immature and not transparent.

6.3 Market Rentals Net rentals range between $15/m² and $25/m² for the retail units. ATMs pay $42/m² and the sole kiosk pays $100/m². We consider that these rentals are market related. To these net rents is added $5/m² in operating expenses, although the anchor tenants Extra Supermarket, Edgars and Jet pay a low $2/m².

In terms of the DCF valuation, we have applied the contractual rental, and reverted to market rental, escalated at 3% per annum, for the reversionary period.

The following definitions apply:

Gross means ‘the total monthly Tax exclusive rental payable by the tenant to the landlord assuming that all expenses of maintaining, insuring and operating the property of whatsoever nature with the exception of those in respect of utility services consumed by the tenant, such as electricity, water, sanitary, sewerage and refuse removal charges, are payable by the landlord’.

Net means ‘the monthly Tax exclusive rental payable by the tenant to the landlord assuming that all expenses of operating and maintaining the property of whatsoever nature including those in respect of utility services consumed thereon, such as electricity, water, sewerage and refuse removal charges, are for the account of the tenant’.

6.4 Discounted Cash Flow We have used the discounted cashflow method of valuation using the Cougar System. The DCF valuation is also the approach by which private, institutional, local and overseas investors analyse property for investment purposes to estimate the market value.

The DCF valuation method takes into account the time value of money between the valuation date and the date when the income stream theoretically reverts to market levels and is described as follows:

The property is valued by discounting the expected future net income for a specific period at an appropriate discount rate (or total rate of return) to give the present value (PV) of the expected net income cash flow. To this figure an applicable final discounted residual or reversionary value is added.


The reversionary value is calculated by the following method:

The net market related income prevailing at the end of the cash flow projection period is capitalised at the appropriate rate and discounted to the present value by the discount rate.

6.5 Capitalisation Rate We have discussed the capitalisation rate with a number of key agents and they are of the opinion that retail premises in Maputo are worth an initial yield of 10% to 11% depending on location and tenant mix.

When considering an appropriate capitalisation rate to apply we have considered the following points:

The characteristics of the location; Quality of the improvements/building; Leasing covenants/security of income cash flow.

Having considered the above factors and also the fact that the property is generally let at below market rentals, we have applied a capitalisation rate of 9.50%.

6.6 Discount Rate The discount rate is the annual return that a prudent rational investor requires in order to invest in the property in a competitive market as opposed to alternative asset classes. It is widely expected that a yield premium would be required to induce investors to hold property over the appropriate risk-free rate because of the characteristics of property as an investment class. The total target discount rate required is arrived at using various methods.

The discount rate can be calculated using the risk-free rate and applying a risk premium for the property or alternatively it can be extracted with reference to the market transactional data, or from adding a net operating income growth percentage to the capitalisation rate, or from building a Weighted Average Cost Capital (WACC) model.

We have determined our discount rate by adding a risk premium to an estimated risk-free rate of return. By definition, the risk free-rate is the return on investment that has no default risk, and we have applied the current Yield to Maturity on Government Bonds of 7.5%.

In line with valuation practice we have added a risk premium for the property of 5.0%, as follows: Liquidity risk of 2.00%, Property risk of 1.50%, and Tenant risk of 1.5%. Thus we have applied a discount rate of 12.5%.

6.7 Reversionary Rate The market determines the capitalisation rate; i.e. the ‘cap rate’ is determined by the rate at which similar assets have traded recently and is influenced by the following factors:

Rates of return on comparable properties, risk, obsolescence, inflation, gross market rental growth rates, rates of return on alternative investments, mortgage rates, property expenditure, lease covenant, and vacancies.

The capitalisation rate used for the Property was also made with reference to published material including SAPOA publications and the Investment Property Databank (IPD) surveys.

Taking all these factors into account including current demand and supply forecasts we believe a fair exit capitalisation rate for this property would be 10.0%.

6.8 Vacancy Periods The Cougar System has calculated a structural vacancy factor over the period of the cashflow at 1.00%.


6.9 Summary of Parameters The parameters we have applied in our cashflow valuation are as follows:

CAPITALISATION RATE: 9.50%

REVERSIONARY RATE: 10.00%

DISCOUNT RATE: 12.50%

CASHFLOW PERIOD: 5 years

MARKET RENTAL GROWTH: 3.0%

EXPENSE GROWTH: 3.0%

6.10 Additional Bulk We have been advised that additional bulk (or Floor Area Ratio FAR) of 3,000m² is available at the site. At a market related value of $250/m² of FAR, an additional value of $750,000 is obtained. We confirm that we have seen no proof of this additional FAR and are relying on verbal confirmation from the client.

6.11 CAPEX No CAPEX has been allowed for.

6.12 Valuation Reconciliation This is as follows:

GROSS ANNUAL INCOME: $1,019,000

EXPENSES: $44,000

NET ANNUAL INCOME $975,000

DCF MARKET VALUE: $9,800,000

VALUE RATE PER M² OF RENTABLE AREA R2,057

VALUE OF ADDITIONAL FAR: $750,000

TOTAL MARKET VALUE: $10,500,000

Please see Annexure D for the Discounted Cash Flow


7 Valuation

7.1 Market Value

We are of the professional independent opinion that the Fair / Market Value of the land and buildings on Stand 1A Avenida De Mozambique, Mozambique, as at the 31st December 2014 and assuming the Property is free of encumbrances, restrictions or other impediments of an onerous nature which would affect value, is:

Market Value

$10,500,000

(Ten Million Five Hundred Thousand United States Dollars)

Our opinion of value excludes any Taxes which the vendor may have to charge in addition to the sale price.

We further confirm the following:

The statements of fact presented in the report are correct to the best of the Valuers knowledge; The analysis and conclusions are limited only by the reported assumptions and conditions; Jones Lang LaSalle and its valuation consultants have no interest in the subject property; Jones Lang LaSalle fee is not contingent upon any aspect of the report; The valuation was performed in accordance with an ethical code and performance standards as set by the

RICS; The Valuer has satisfied professional education requirements; The Valuer has experience in the location and category of the property being valued; The Valuer has made a personal inspection of the property;

We trust that we have carried out the valuation in accordance with your instruction and should there be any points that require clarification, please contact the undersigned.

Finally, and in accordance with our normal practice, we confirm that this report is confidential to Delta International Limited for possible purchase purposes. No responsibility is accepted to any third parties. Neither the whole of the report, or any part of it, or any reference to it, may be published in any document, statement or circular nor in any communication with third parties without our prior written approval of the form and context in which it will appear.

Yours faithfully

For and on behalf of Jones Lang LaSalle (Pty) Ltd.

Roger Long MBA FRICS MIV(SA) Chartered Valuation Surveyor (59664) Professional Valuer (2649/5) Head of Valuations

Valuation Report: Zimpeto Square, Maputo, Mozambique – Page 20 1st June 2014

Annexure A – Certificate of Use


Annexure B – Site Layout

1:350ESPECIALIDADE:

DESENHO: Planta de ImplantacaoA.01DATA: 07.10.2011

ESCALA:

PROPRIETÁRIO:

PROJECTO: ZIMPETO

12

34

56

78

910

1112

1314

1

2

3

4

5

6

7

8

1

2

3

4

5

6

7

8

1 2 3 4 5 6 7 8

1

2

3

4

5

6

7

8

1

2

3

4

5

6

7

8

1

2

3

4

5

6

7

8

1 2 3 4 5 6 7 8 9 10

11 12

13

14

15

16

C

C

D

D

E'

E'

F

F

G

G

H

H

I

I

J'

J'

K

KL

M

E E

J

J

01

02

04

05

06

07

0808

21222324

11.03 %

12

34

56

78

910

1112

1314

12

34

56

78

910

1112

12

34

56

78

910

1112

1314

31.09 %

12

34

12

34

56

7

B

B

16.01 %

24

G'

G'

5.00

5.00

4.00

2.50

24.3

9

19.8

9

2.50

6.60

4.00

4.50

+18.6

+18.

6

+18.

6+18.

6

+17.6

CT

19

CT

19

CT

20

CT

20

CT

22 CT

22C

T27

CT

27

CT

29

CT

29

CT

30

CT

30

CT

31C

T31

CT

32

CT

32C

T33

CT

33

CT

34C

T34

CT

35

CT

35

1.2

3 m

2

1.2

3 m

2

1.3

6 m

2

1.3

8 m

2

1.4

4 m

2

1.2

3 m

2

1.2

3 m

2

16

.76

m2

0.8

8 m

2

13

.78

m2

5.89

m2 11.1

9 m

2

86.9

1 m

2

2.94

m2

24.4

4 m

2

42.7

6 m

2

5.87

m2

6.24 m2

7.33

m2

10.2

5 m

2

3.55

m2

7.46

m2

7.53

m2

2.59 m2

PO

RTA

BLI

ND

AD

AE

SP

EC

IAL(

aes

peci

ficar

)

Ral

o de

pav

imen

to

Pon

to d

e ág

ua

Con

tain

er (

1.2

m3 )

Con

tain

er (

1.2

m3 )

PIS

SÍV

EL

AC

ES

SO

PO

ST

ER

IOR

DA

LO

JA 0

3

VE

DA

ÇÃ

O M

ET

ÁLI

CA

Parede em betão rebocada epintada em duas demãos comtinta plástica da CIN somentena face voltada á loja.

Parede em betãorebocada e pintada em

duas demãos com tinta

plástica da CIN emambas faces. Rodapé em placas de

granito cinza neve;h=10cm

Parede em betãorebocada e pintada

em duas demãoscom tinta plástica da

CIN em ambasfaces. Rodapé em placas

de granito cinzaneve; h=10cm

Junta dedilatação(95mm) empolietileno

VE

DA

ÇÃ

O M

ET

ÁLI

CA

NU

M P

ER

IME

TR

O D

E 4

3.20

Pai

nel P

ublic

itário

Pai

nel P

ublic

itário

Pai

nel P

ublic

itário

Pai

nel P

ublic

itário

Pai

nel P

ublic

itário

Áre

a T

écni

ca:

- Q

uadr

o E

léct

rico;

- Á

gua;

- E

sgot

o

Áre

a T

écni

ca:

- Q

uadr

o E

léct

rico;

- Á

gua;

- E

sgot

o

Áre

a T

écni

ca:

- Q

uadr

o E

léct

rico;

- Á

gua;

- E

sgot

o

Apl

ique

de

Par

ede

para

Lâm

pada

de

halo

géne

o 12

vV

ELA

I

Apl

ique

de

Par

ede

para

Lâm

pada

de

halo

géne

o 12

vV

ELA

IA

pliq

ue d

e P

ared

epa

ra L

âmpa

da d

eha

logé

neo

12 v

VE

LA I

Apl

ique

de

Par

ede

para

Lâm

pada

de

halo

géne

o 12

vV

ELA

I

Apl

ique

de

Par

ede

para

Lâm

pada

de

halo

géne

o 12

vV

ELA

I

Apl

ique

de

Par

ede

para

Lâm

pada

de

halo

géne

o 12

vV

ELA

I

1

2

3

4

5

6

7

1

23456

+16.50

+1

6.5

0

+1

8.5

0

+1

9.5

0

+17.55

+17.55

+17.60

+18.60

+18.55

+18.60

+17.60

+1

7.6

0

EN

TRA

DA

SA

IDA

ES

PA

ÇO

VE

RD

E

FU

TU

RO

AC

ES

SO

DE

FIN

ITIV

O

FU

TU

RO

AC

ES

SO

DE

FIN

ITIV

O

PARE

DES

INTE

RIO

RES

(Áre

a=13

3.9

98m

2)

PARE

DES

INTE

RIO

RES

(Áre

a=11

7.54

0m

2)

ATM

-FN

B

ESCR

ITÓR

IO

12

34

56

78

910

PEP

FARM

ÁCIA

OCUL

ISTA

FNB

FASH

ION

WOR

LDSG

L

P01

ENTRADA

SAÍDA

WC

WC

POLO

TÉC

NICO

BAST

IDOR

ECONOMATO

COPA

CASA

FOR

TEAT

M´s

CAIX

A 01

CAIX

A 02

CAIX

A 03

CAIX

A 04

OFFI

CE 0

1OF

FICE

02

CIRC

ULAÇ

ÃO

OFFI

CE4

wor

ker´

s

CIRC

ULAÇ

ÃO

MANAGER'S

OFFICE

CREDENZAWORKTOP

CRED

ENZA

KITCHENETTE

SAFE

CASH DRAWER

CASH OFFICE

CHUBBDOOR

CREDENZAWORKTOP

SAFE

CREDENZA

FLOORDRAIN

120

0 m

m R

OLL

ER D

OO

R

PAREDE BAIXASEM VIDRO

42"

PIE

SERVE

D 4'

CH

IP

BASK

ETTR

OLL

EYS RAISED

UP

FLOOR

2743 RACK

2743 RACK2743 RACK

2743 RACK

2743 RACK

2743 RACK

2743 RACK2743 RACK

BASK

ETTR

OLL

EYS

BASK

ETTR

OLL

EYS

2743 RACK

2743 RACK

DRAIN

2743 RACK2743 RACK2743 RACK2743 RACK2743 RACK

2743 RACK 2743 RACK

DRAIN

POTR

ACK

ABO

VE

83

21

76

54

83

21

76

54

83

21

76

54

83

21

76

54

83

21

76

54

83

21

76

54

83

21

76

54

83

21

76

54

8 X PICK 'N PAY CHECKOUTS WITH 4 X END MERCHANDISERS

2345678

P.O.S.P.O.S.

1

P.O.S.P.O.S.P.O.S.P.O.S.P.O.S.P.O.S.

COKE

COKE

COKE

COKE

FLO

OR T

O B

E

REC

ESSE

D

INTO

SLA

B

FR

EE

ZE

R

GE

NE

RA

L

GENERAL

COLDROOM

STOCK ROOM

FLOORDRAINFLOOR

DRAINFLOOR

DRAINFLOOR

DRAINFLOOR

BAKERY

PREP AREA

DRAIN

PR

EP

AR

EA

DE

LI &

HO

TFO

OD

S

FLOOR

DRAIN

BAKERY

FREEZERY

DELI

C/ROOMHMS

STORE

SHO

PFIT

TED

POTR

ACK

ABO

VE

32

1

FLOWERS

BACK

WAL

L U

NIT

with

no

door

s

wra

pCH

EESE

CU

TTER

SLIC

ERVA

CPAC

wrap

MEN

U B

OAR

D(5

x e

lect

ric.

poin

ts r

eq'd

)

4' D

ELI

SERVE

D8'

UPR

IGH

TCA

KE8'

CO

NFE

CTIO

NAR

YSE

RVE

D U

NIT

DU

MP

TABL

E

FLOUR

STORE

FLOOR 12' F

/PRO

DU

CE &

JU

ICE

4' S

ALAD

S/SE

RVE

D

23

1

ROLL

SRO

LLS

ROLL

S

1

2

HO

TBR

EAD

2250

s/s

TAB

LE

300

SHEL

F O

VER

2250

s/s

TAB

LE

300

SHEL

F O

VER

BAKERY

C/ROOM

FLOOR

1

FLO

OR

DRAI

N

120E

slim

line

PRO

OVE

R16

50 s

/s T

ABLE

DO

UG

HN

UT

FRYE

R

DO

UG

HM

IXER

SM30

RO

LLM

OU

LDER

BREADMOULDER

CAKE

MIX

ER

1250

TAB

LE12

50 T

ABLE

scale

scale

scale

scale

scale

DRAIN

BUTCHERY

COLDROOM

WAL

L SC

ALE

BUTCHERY

FREEZER

1

3

1650

s/s

TAB

LE

wrap

1650 s/s TABLE

300 SHELF OVER

F&V PREP

EXTR

ACTI

ON

OVE

R

POTR

ACK

ABO

VE

8' S

ERVE

D U

NIT

4' C

HIC

KEN

8' H

OT

TOG

O

2

spec

tank

1

2

4 3

1250

TAB

LE

2 PL

ATE

HO

T ST

OVE

FLOOR

LOW

WAL

L AT

131

0mm

AFF

L

BACK

WAL

L U

NIT

COM

BISTEAM

ER

CHIP

FRYE

R

PRES

SRFR

YER

FLAM

E G

RIL

L(6

BU

RN

ER)

wra

pCH

ICKE

NG

RIL

LER

DU

MP

TABL

E

600x

600

FUTU

RE

FUTU

RE

CHIP

FRYE

R

EXTR

ACTI

ON

CAN

OPY

2250

s/s

TAB

LE

300

SHEL

F O

VER

1650

s/s

TAB

LE FUTU

RE

BREADINGTABLE TUMBLER

electric

TILT

PAN

FLO

OR

DRAI

N

120E

slim

line

PRO

OVE

R

FUTU

RE

FUTU

RE

8' FROZEN 8' FRESH

RE

CE

IV

IN

G

& C

APTU

RE

OFF

ICE

CANTEEN

SHEL

VIN

G A

BOVE

WO

RKT

OP

CREDENZA

BUTCHERY

DROP TEMP.

2250

s/s

TAB

LEb

BAN

DSA

W

1650 s/s TABLE

scal

e

wra

p

2250

s/s

TAB

LE

MA

LE

TO

ILE

TS

TO

ILE

TS

FE

MA

LE

DU

CT

WIN

DO

W

WINDOW

12' UPRIGHT MEAT

SAU

SAG

ETA

BLE

FILL

ERTR

OU

GH

MIN

CER

1650 s/s TABLE

12' UPRIGHT MEAT

8 7 6

4 3 2 1FRUIT & VEG. TROLLEYS

FRUIT & VEG. TROLLEYS

5

910

BULKBIN

BULKBIN

SCAL

E

12' I

SLAN

D F

REE

ZER

BREA

D D

ISPL

AYtr

olle

y by

sup

plie

r

ICE-

CREA

MIQ

F

83

21

76

54

BAKERYDISPLAY

BAKERYDISPLAY

BULK

PLA

TFO

RM

BULK

PLA

TFO

RM

4X EGG TROLLEYS

12' I

SLAN

D F

REE

ZER

BULK PLATFORM

BULKBIN

2743 RACK

MANAGER'S

PULPIT

CRED

ENZA

KIOSK

PARED

E BA

IXA

COM

VID

RO

PO

R C

IMA

PARE

DE

BAIX

ASE

M V

IDRO

BASK

ETTR

OLL

EYS

SHELVING ABOVE

12

34

5

LOW

GO

ND

OLA

MO

DU

LES

2D COKE3 x CIGARETTE UNITSACC

P.O.S.

BASK

ETTR

OLL

EYS

BASK

ETTR

OLL

EYS

ADMIN

OFFICE

UPS

CREDENZA

SHELVING ABOVEWORKTOP

P.O.S.

12' FRESH PRODUCE

2743 RACK

2743

RAC

K

2743 RACK

2743 RACK

BASKETS MAGAZINES

BULK

PLA

TFO

RM

BULK

PLA

TFO

RM

FIRE

ESCA

PE83

21

76

54

83

21

76

54

910

1112

13

910

1112

13

1829RACK

2743

RAC

K27

43 R

ACK

2743

RAC

K

4 BU

RN

ER S

TOVE

ST

OR

E

HI- R

IS

K

ST

OR

E

SE

CU

RE

1500 mm ROLLER DOOR2400 mm ROLLER DOOR

DRAIN

CARDBOARD

CAGE

CLEANING

ROOMREFUSE

ROOMCRATE

CAGE

PRO

POSE

D S

LAB

ABO

VE F

OR

REF

RIG

ERAT

ION

, A

IRCO

NPL

ANTR

OO

MS

AND

GEN

ERAT

OR

ÁREA

- 1

61 m

2

1764

.48m

2

PICK

N´ P

AY

103.2

2 m

2

124.1

9 m

2

VODA

COM

133.8

6 m

217

0.0

3 m

2

400.0

5 m

2

83.4

4 m

285.5

0m

2

MIL

LENN

IUM

BIM

215.8

8 m

2

MIM

MO´

S19

9.6

3 m

2

furo

de

ag

ua

GER

1

GER

2

VA

LA D

E

DR

EN

AG

EM

VALA DE DRENAGEM

Tub

o d

e a

gu

a

P01

P01

P01

P01

P01

P01

P01

P01

45˚

ES

TAC

ION

AM

EN

TO

45˚

90˚

CT

26C

T26

CT

28C

T28

24

12

34

56

78

910

12

34

56

78

910

1112

12

34

56

78

910

9.50 %

12

34

56

78

9

12

34

56

78

910

A

A

12

34

56

12

34

14.02

1.44

4.25

11.3915.01 2.46

3.5

7

3.1

00.8

5

2.2

6

3.1

00.8

5

4.0

5

3.1

00.8

5

2.5

0

3.1

00.1

4

2.56

26.70

1.95

14.17

0.97

19.49

4.27

1.40

0.27

3.90

4.43

4.42 1.31

8.80

134.88

128.

92

33.28

0.2711.40

1.66

2.92

3.55

2.46

2.44

29.8

6

26.19

25.67

10.5

2

4.85

2.82 4.38

4.09

4.16

5.90

1.47

4.86

17.3

7

14.032.04

0.741.70 4.08 2.51

2.60

1.30

2.97

26.492.652.63

4.27 14.39

3.94 9.83

5.1

4

6.927.0717.1922.62

0.85

3.99

3.101.35

1.18

4.93

3.100.05

9.7

1

9.8

3

8.05

1.7

0

7.906.018.395.70

9.14

3.9

2

3.37

3.00

3.00 1.20 3.00

4.222.98

6.20

2.06

0.94

4.32

0.94

2.06

2.520.48

1.20 1.70 1.30

1.4

0

1.53

20.40

9.066.72

3.98 20.33

8.94

43.9

7

82.3

0

2.50

0.15

2.49

0.36

0.47

0.69

0.47

0.47

2.46

2.40

1.20

2.0

4

2.37

0.15

4.10

2.54

2.32

4.53

0.75

3.71

1.15

1.20

0.80

8.60

1.07

3.12

6.870.152.28

13.57

2.10

3.393.43

5.22

1.88

0.05

1.45

0.05

1.40

0.05

1.47

0.15

0.15

2.35

0.15

2.33

0.15

0.15

3.15

0.15

0.150.95

0.20

0.154.380.15

3.95

0.20

1.18

0.97

2.700.10

0.15

1.02

0.20

4.61

35.40

0.4

0

4.8

87.1

17.6

64.7

9

0.4

0

4.8

15.0

08.9

1

5.0

05.0

03.9

0

39.88

9.43

9.28

12.0

6

0.73

0.2

4

4.8

5

0.2

4

0.24

4.85

0.24

3.8

00.5

00.4

83.8

00.4

90.6

03.8

00.6

00.6

03.8

00.6

00.5

03.8

00.5

00.4

00.5

03.8

00.5

00.6

03.8

00.6

00.6

03.8

00.6

00.4

13.0

00.4

9

0.7

54.2

00.5

84.2

00.6

84.2

00.8

04.2

00.7

04.2

01.0

04.2

00.7

04.2

00.8

04.2

00.6

13.4

00.3

1

76.7

9

5.715.4216.81

4.9

4

0.2

412.1

40.2

47.3

80.2

49.7

20.2

49.9

5

0.20

3.20

3.10

0.25

0.22

3.20 3.1

0

0.18

0.4

54.2

40.8

51.5

43.2

01.5

00.8

51.8

13.2

02.0

31.0

23.2

02.0

13.2

00.6

3

11.2

112.4

2

3.052.535.595.605.575.585.555.603.601.854.21

11.1911.1511.153.601.854.21

4.223.052.535.595.605.571.524.065.555.603.581.85

6.4

15.7

15.5

05.8

3

1.07

300

2.70

300

2.66

0.30

243

9.34

1.50

1.70

1.50

1.40

1.001.303.38

1.40

1.50

1.70

1.50

0.57

6.093.

48

10.3

2

7.20

9.2

0

49.43

2.50

1.50

1.10

9.00

7.82

500

1.65

900

7.00

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

1.43

2.50

2.50

2.50

2.50

2.50

2.502.50

2.50

2.50

2.50

2.50

2.50

5.19

3.242.92

6.07

2.48

0.19

2.50

0.17

Pav

imen

to e

mm

osai

co e

mgr

anito

cin

za n

eve

asse

nte

com

cim

ento

col

a

Pavimento em mosaicoem granito cinza neveassente com cimento

cola

CT

15

CT

15

CT

16C

T16

Annexure C – Tenancy Schedule

TENANCY SCHEDULE

PROPERTY: ZIMPETO SQUARE

LEASE INCOME AS AT: January, 2015

No. Unit Tenant Area (m²) Lease Start Lease EndBase Rent

(Rate/pm²/pm)Esc. %

Operating Cost (Rate/pm²/pm)

Esc. %Current Rent

Passing (Rate/pm²/pm)

Market Rent (Rate/pm²/pm)

Other Rent (monthly)

Esc. %Parking Bays

(no.)

Parking Rent (Rate/bay/pm

)Esc. %

Market Parking

(R/bay/pm)

1 Shop - Extra Supermarket 1,780.00 01/06/2014 31/05/2024 15.53$ 3.00% -$ $ 15.53 $ 15.53 0 -$ 2 Shop - Millenium Bank BIM 230.00 01/05/2014 30/04/2021 18.45$ 3.00% -$ $ 18.45 $ 18.45 0 -$ 3 Shop - Vodacom 137.00 01/10/2014 30/09/2016 18.45$ 3.00% -$ $ 18.45 $ 18.45 0 -$ 4 Shop - Mimmos Restaurant 198.00 01/11/2014 31/10/2021 17.88$ 3.00% -$ $ 17.88 $ 17.88 0 -$ 5 Shop - Fashion World 177.00 01/10/2014 30/09/2016 18.88$ 3.00% -$ $ 18.88 $ 18.88 0 -$ 6 Shop - Intermoda 108.00 01/01/2015 31/12/2017 25.10$ 3.00% -$ $ 25.10 $ 25.10 0 -$ 7 Shop - FNB 142.00 01/04/2014 31/03/2017 18.91$ 3.00% -$ $ 18.91 $ 18.91 0 -$ 8 Shop - PEP 373.00 01/11/2014 31/10/2016 18.92$ 3.00% -$ $ 18.92 $ 18.92 0 -$ 9 Shop - Chemist Sorriso 83.00 01/11/2014 31/10/2016 18.90$ 3.00% -$ $ 18.90 $ 18.90 0 -$

10 Shop - Maputo Opticians 88.00 01/06/2014 31/05/2021 18.45$ 3.00% -$ $ 18.45 $ 18.45 0 -$ 11 Shop - Edgars & Jet 1,170.00 01/10/2014 30/09/2021 22.15$ 3.00% -$ $ 22.15 $ 22.15 0 -$ 12 Shop - Mimmos Outside Seating 265.00 01/11/2014 31/10/2021 1.00$ 3.00% -$ $ 1.00 $ 1.00 0 -$ 13 ATM - FNB ATMs 6.00 01/04/2014 31/03/2017 42.00$ 3.00% -$ $ 42.00 $ 42.00 0 -$ 14 Kiosk - Five Senses Mall Kisok 6.00 01/01/2015 31/12/2015 100.00$ 3.00% -$ $ 100.00 $ 100.00 0 -$

TOTAL 4,763.00 $ - 0

TOTAL VACANCY 0.00 0.00%


Annexure D – Discounted Cash Flow

Presentation Discount Cashflow Valuation

DCF Zimpeto Square.xlsx

. .

31 Dec 2014 31 Dec 2015 31 Dec 2016 31 Dec 2017 31 Dec 2018 31 Dec 2019

CashflowsRentals $1,019,234 $1,049,692 $1,080,119 $1,112,423 $1,145,795Recoveries $0 $0 $0 $0 $0Gross Rental $1,019,234 $1,049,692 $1,080,119 $1,112,423 $1,145,795Percentage Rental $0 $0 $0 $0 $0Other Rental $0 $0 $0 $0 $0Total Rental $1,019,234 $1,049,692 $1,080,119 $1,112,423 $1,145,795Parking $0 $0 $0 $0 $0Naming & Signage $0 $0 $0 $0 $0Sundry Income $0 $0 $0 $0 $0Miscellaneous Income $0 $0 $0 $0 $0Income $1,019,234 $1,049,692 $1,080,119 $1,112,423 $1,145,795Direct Recoveries $0 $0 $0 $0 $0Tenant's Association $0 $0 $0 $0 $0

Receipts $1,019,234 $1,049,692 $1,080,119 $1,112,423 $1,145,795

Recoverable Expenses $0 $0 $0 $0 $0Non-Recoverable Expenses $43,921 $59,076 $45,155 $46,148 $49,980Expenses $43,921 $59,076 $45,155 $46,148 $49,980Directly Recoverable Expenses $0 $0 $0 $0 $0Promotional Expenses $0 $0 $0 $0 $0Payments $43,921 $59,076 $45,155 $46,148 $49,980Net Operating Income $975,313 $990,616 $1,034,964 $1,066,275 $1,095,815Recurring Capital Expenditure $0 $0 $0 $0 $0Non-Recurring Capital Expenditure $0 $0 $0 $0 $0Total Capital Items $0 $0 $0 $0 $0Net Cashflow $975,313 $990,616 $1,034,964 $1,066,275 $1,095,815Present Value of Net Cashflow $919,534 $830,188 $770,982 $706,050 $644,987

ValuationsHolding Period 5 years Market Operating Income at 31 Dec 2019: $1,073,602NPV of Net Cashflows $3,871,741 Capitalised at the Reversionary Cap. Rate of 10.50%: $10,736,024Internal Rate of Return (%) 13.41% Adjustment for Over(±) Market Income : -$6,181

Adjustment for Lost Income on Vacant Space : $0Adjustment for Abatements : $0

Adjustment for the next 21 year's Non-Rec Capex: $0Adjustment for Temporary Income : $0

Adjustment for Future Income : $0

Adjustment for Disposal Costs of 0.00%: $0Proceeds from Disposal in the reversionary year: $10,729,843

PV of Reversionary Disposal at 13.0% $5,954,301Total Net Present Value $9,826,042 less Acquisition Costs $0

$9,800,000


Roger Long Head of Valuations 18 Hurlingham Road Illovo Johannesburg (011) 507 2200 [email protected]

Jurgen Karg Senior Valuer 18 Hurlingham Road Illovo Johannesburg (011) 507 2200 [email protected]

Kim Pfaff Chartered Valuation Surveyor 18 Hurlingham Road Illovo Johannesburg (011) 507 2200 [email protected]

Ntokozo Mkhize Candidate Valuer 18 Hurlingham Road Illovo Johannesburg (011) 507 2200 [email protected]

COPYRIGHT © JONES LANG LASALLE IP, INC. 2015.

This publication is the sole property of Jones Lang LaSalle IP, Inc. and must not be copied, reproduced or transmitted in any form or by any means, either in whole or in part, without the prior written consent of Jones Lang LaSalle IP, Inc.

The information contained in this publication has been obtained from sources generally regarded to be reliable. However, no representation is made, or warranty given, in respect of the accuracy of this information. We would like to be informed of any inaccuracies so that we may correct them.

Jones Lang LaSalle does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance on this publication.

67

Annexure E

ANNUAL REPORT OF THE COMPANY FOR THE YEAR ENDED 31 AUGUST 2013

68

Annexure F

ANNUAL REPORT OF THE COMPANY FOR THE 10 MONTHS ENDED 30 JUNE 2014

2014INTEGRATED

ANNUAL REPORT

3

Annual fi nancial statements

for the 10 months ended 30 June 2014and independent auditor’s report

Incorporation, history and nature of the business 4

Group structure 5

Board of directors 6

Corporate governance report 8

Directors’ responsibility statement 12

Report of the risk and audit committee 13

Directors’ report 14

Directors’ remuneration report 16

Independent auditor’s report 17

Statement of comprehensive income 18

Statement of fi nancial position 19

Statement of changes in equity 20

Statement of cash fl ows 21

Notes to the annual fi nancial statements 22

General shareholders’ information 36

4

ANNUAL FINANCIAL STATEMENTS

Incorporation, history and nature of the business

Incorporation, name, address and subsidiariesDelta International Property Holdings Limited (“Delta International” or “the Company”), previously known as Osiris Properties International Limited, was incorporated on 16 May 2012 in Bermuda in accordance with the applicable laws of Bermuda. The Company’s registered address is 20 Reid Street, 3rd Floor, Williams House, Hamilton, HM11, Bermuda.

HistoryThe Company was incorporated on 16 May 2012 and is dual listed, with its primary listing on the Bermuda Stock Exchange (“BSX”) and its secondary listing on the Alternative Exchange (“AltX”) of the Johannesburg Stock Exchange (“JSE”) effective from 20 August 2012.

The Company initially acquired, with effect from 1 June 2012, 100% of the shareholding of Banstead Property Holdings Limited, which owned a retail property in the United Kingdom (“UK”). During the financial year ended 31 August 2013, the Company sold 100% of its shares in Banstead Property Holdings Limited, with effect 1 June 2013 and acquired 100% of the shares in Trito Petersfield Limited, on 1 June 2013.

During the current financial period, the investment in Trito Petersfield Limited was sold to KSP Offshore Limited on 15 April 2014 and no further acquisitions were made in the period.

On 16 May 2014 the Company changed its name from Osiris Properties International Limited to Delta International Property Holdings Limited.

Nature of the businessThe primary objective of the Company is to invest in premium real estate assets underpinned by long-term leases with high quality tenants delivering strong sustainable income. The Company has changed its focus from the UK and Europe to Africa (excluding South Africa) thereby offering investors direct access to high growth opportunities in African real estate.

Reporting currencyThe Company’s results are reported in United States Dollars (“US$ or $”). The functional and presentation currency of Delta International was converted from Pounds Sterling (GBP) to US$ on 16 May 2014.

5DELTA INTERNATIONAL PROPERTY HOLDINGS LIMITED Integrated Report

Group structure*

Delta Property Fund Limited(South Africa – JSE listed)

Bowwood & Main 117 Proprietary Limited (South Africa)

Investors via South African and Bermudan registers

Delta International Property Holdings Limited

(BSX and JSE AltX listed)

Freedom Asset Management Limited

Asset Managers(Mauritius GBC1)

Delta International Mauritius LimitedOperating Company

(Mauritius GBC1)

53% 13% 34%

Anfa PlaceShopping Centre

Casablanca, Morocco

Delta International Bahrain SPC(Bahrain Company)

Freedom Property Fund SARL(Moroccan Company)

SAL Investment Holdings Limited(Mauritian Company)

S&C Imobiliaria Limitada(Mozambican Company)

Anadarko BuildingMaputo, Mozambique

* The above diagram reflects the group structure of Delta International as at December 2014.

6


Board of directors

Sandile NomveteChairman and Non-executive Director

Sandile is the founder and Chief Executive Officer (“CEO”) of Delta Property Fund Limited (South Africa) (“Delta SA”), a Real Estate Investment Trust (“REIT”) listed on the JSE with a portfolio of assets valued at R7 billion at 28 February 2014. At listing, Delta SA comprised of assets to the value of R2.1 billion. Headed up by Sandile, Delta SA has grown its asset base to R7 billion in 18 months.

He co-founded Motseng Investment Holdings Proprietary Limited which eventually became the empowerment partner to Marriot Property Group. A series of mergers and acquisitions within the sector provided the opportunity for Motseng to become the largest 100% black-owned property management company in South Africa.

Sandile serves as a director on a number of other listed entities, including KAP Limited. He has nearly a decade and a half of experience in executive and non-executive positions.

In addition, Sandile is a graduate of the Property Development Programme from the University of Cape Town Graduate School of Business (2003), and holds an Executive Development Programme of Finance for non-financial managers diploma from the University of Witwatersrand Graduate School of Business (2004).

Louis SchnetlerChief Executive Officer and Executive Director

Louis was admitted as an advocate of the Supreme Court of South Africa in 1992 after a brief spell of practising law.

He later left law to follow a banking career, specialising in the real estate sector.

From 1995, he was part of the BoE Corporate Property Finance team (“BoE”), with various roles ranging from being a member of the credit committee to deal-making, as well as managing the investment side of the property business for BoE. His primary focus was, however, always the client facing side of the business, leading deal teams in implementing large-scale real estate transactions.

After heading up regional real estate businesses at First National Bank (“FNB”) Corporate and Absa Group Limited (“Absa”), he moved into the Rand Merchant Bank (“RMB”) Real Estate Investment Banking division, fulfilling various roles and once again leading and implementing major real estate transactions in South Africa. As a member of a leading investment banking business, he was tasked with setting up a real estate debt business north of South Africa, in sub-Saharan Africa towards the end of 2010. For the past five years, he was responsible for building this business, being deal originator and sponsor for large-scale real estate transactions in African countries such as Nigeria, Ghana, Angola, Namibia, Lesotho, Botswana and other African countries.

He is a respected African real estate practitioner, with solid experience north of the South African border.

Gregory PearsonChief Investment Officer and Executive Director

Gregory is a graduate of Kingston University, London, where he studied Business Management and Project Management (2001 to 2005) and is registered with the Chartered Management Institute.

Gregory was formerly a project manager at Imtech (1999 to 2003), a project manager at Turner and Townsend (2003 to 2006) and an executive at AECOM, a multi-national multi-disciplinary property company. Gregory was instrumental in expanding the footprint of the “Rest of Africa” business (outside of South Africa) for AECOM in Africa (2006 to March 2014).

Bronwyn CorbettNon-executive Director

Bronwyn holds a BCompt Degree from the University of South Africa (1999 to 2002), an Honours Degree in Accounting from the University of Durban (2003) and she qualified as a Chartered Accountant in 2005.

She is the Chief Financial Officer (“CFO”) as well as the Chief Operating Officer (“COO”) of Delta SA, a REIT listed on the JSE with a portfolio of assets valued at R7 billion at 28 February 2014. As CFO of Delta SA she has been instrumental in growing the fund from R2.1 billion in 2012 to R7 billion by 28 February 2014.

She has over 10 years’ experience in the property sector with a specific focus on property ownership. Prior to joining Motseng in April 2009 as the CFO, Bronwyn was the Financial Director and joint founder of Universal Retail Construction Company. Bronwyn also filled the role as the Financial and Operations Director of Universal Property Professionals, a development and property ownership company with a portfolio in excess of R12 billion.

Bronwyn was integral in the establishment of Tuffsan 89 Investment Holdings Proprietary Limited (now Delta SA) and built the property portfolio to R2.1 billion which ultimately led to the listing of Delta SA on the JSE. Bronwyn, as COO and CFO of Delta SA, contributed significantly to its success.


Peter ToddIndependent non-executive Director

Peter was appointed as an Independent non-executive Director with effect from 14 August 2014.

He qualified as an attorney and then went on to become the senior tax manager at Arthur Anderson and Associates in Johannesburg. He joined TWS Rubin Ferguson in 1993 as a tax partner and was instrumental in listing six companies on the JSE.

In 2000, Peter set up Osiris International Trustees Limited in the British Virgin Island (“BVI”) to provide international trust and corporate administrative services to global clients, as well as Drake Fund Advisors which sets up and administers hedge funds in the BVI and Cayman Islands.

He was a Non-executive Director of Redefine International Limited from initial listing for some nine years and has otherwise been involved in the property industry for many years.

Greg BooyensChief Financial Officer and Executive Director

Greg is a qualified Chartered Accountant with over 10 years’ experience in the finance industry and was previously CFO at MPI Property Asset Management (Delta SA’s management Company) contributing significantly to the rapid growth of Delta SA since its listing in 2012, increasing the property portfolio from R2.1 billion to R7 billion in 18 months. Greg was also part of the team that listed Delta SA on the JSE and was integral in raising over R4 billion in equity and R3 billion in debt.

He completed his articles at PKF South Africa and in 2004 joined UBS (London) as a Financial Accountant in their fixed income division. Thereafter, Greg spent time at Barclays PLC in their treasury department before joining Evolution Group PLC (“Evolution”) in 2006 as a Financial Controller where he spent six years. At Evolution Greg was responsible for the management and financial accounting of investment banking operations in their Chinese and United States subsidiaries.

Upon returning to South Africa in 2011, Greg joined the Motseng Group and from there he moved on to the JSE listed Delta. He holds a BCom Honours degree in Accounting from the University of Port Elizabeth (2000 to 2003).

James KeyesIndependent non-executive Director

James attended Oxford University as a Rhodes Scholar and graduated with a degree in Politics, Philosophy and Economics (MA with Honours) in 1985. He was admitted as a solicitor in the UK in 1991 and was admitted to the Bermuda Bar in 1991. He became a Notary Public in 1998. He was a partner of Appleby, the offshore law firm, for 11 years from 1991.

James acts as a Non-executive Director of a number of funds and companies.

David BrownIndependent non-executive Director

David Brown was appointed to the Board on 26 April 2013. He has worked in fund administration industry in Bermuda for the last 10 years. Prior to being appointed Managing Director of Apex Fund Services (Bermuda), he was most recently a Senior Manager of Operations for Butterfield Fulcrum, and has also held a senior management position at CACEIS Investor Services (formerly Olympia Capital) in Bermuda.

David worked for PwC, both in England and Bermuda, within their Alternative Investment and Banking group where he had a client portfolio encompassing a range of hedge funds, private equity funds and investment companies.

David is a fellow of the Institute of Chartered Accountants in England and Wales.

8


Corporate governance report

Delta International is fully committed to complying with effective corporate governance principles and will, to the extent applicable, comply with the Code of Corporate Practices and Conduct in South Africa as contained in the King III Report.

The directors recognise the need to conduct the enterprise with integrity and in accordance with generally acceptable corporate practices. This includes timely, relevant and meaningful reporting to its shareholders and other stakeholders and providing a proper and objective perspective of the Company and its activities.

The directors have, accordingly, established mechanisms and policies appropriate to the Company’s business according to its commitment with best practices in corporate governance. The Board will review these mechanisms and policies from time to time.

The formal steps taken by the directors are summarised below.

1. Board of DirectorsThe Board consists of three Executive Directors and four Non-executive Directors. The Chairperson, Sandile Nomvete, is a Non-executive Director whose role is separate from that of the CEO. The Board will ensure that there is an appropriate balance of power and authority on the Board, such that no one individual or block of individuals dominates the Board’s decision taking. The Non-executive Directors are individuals of caliber, credibility and have the necessary skills and experience to bring independent judgment on issues of strategy, performance, resources, standards of conduct and evaluation of performance.

The Board is responsible for the strategic direction of the Company. It is in the process of implementing values which the Company will adhere to and will formulate in this regard a code of ethics which will be applied throughout the Company, as provided below.

The Board has appointed a CEO and is in the process of establishing a framework for delegation of authority. The Board ensures that the role and function of the CEO is formalised and that the CEO’s performance is evaluated against specified criteria.

The current Board’s diversity of professional expertise and demographics make it a highly effective Board with regard to Delta International’s current strategies. The Board shall ensure that in appointing successive Board members, the Board as a whole will continue to reflect, whenever possible, a diverse set of professional and personal backgrounds.

The information needs of the Board will be reviewed annually and directors will have unrestricted access to all Company information, records, documents and property to enable them to discharge their responsibilities efficiently. Efficient and timely methods of informing and briefing Board members prior to Board meetings will be developed and in this regard steps have been taken to identify and monitor key risk areas, key performance areas and non-financial aspects relevant to Delta International. In this context, the directors will be provided with information in respect of key performance indicators, variance reports and industry trends.

The Board will establish a formal induction programme to familiarise incoming directors with the Company’s operations, senior management and its business environment, and to induct them in their fiduciary duties and responsibilities. Directors will receive further briefings from time to time on relevant new laws and regulations as well as on changing economic risks. Directors will ensure that they have a working understanding of applicable laws. The Board will ensure that the Company complies with applicable laws and considers adherence to non-binding industry rules and codes and standards. In deciding whether or not non-binding rules shall be complied with, the Board will factor the appropriate and ethical considerations that must be taken into account. New directors with no or limited board experience will receive appropriate training to inform them of their duties, responsibilities, powers and potential liabilities.

The Board has disclosed details in their Directors’ report of how it has discharged its responsibilities to establish an effective compliance framework and process.

The Board will evaluate the Chairperson’s performance and ability to add value to the Company on an annual or such other basis as the Board may determine. The Chairperson, or a sub-committee appointed by the Board, will appraise the performance of the CEO at least annually.

All directors will be subject to retirement by rotation and re-election by Delta International’s shareholders every year in accordance with the Company’s Bye-Laws.

The Board will develop a charter setting out its responsibilities for the adoption of strategic plans, monitoring of operational performance and management, determination of policy and processes to ensure the integrity of the Company’s risk management and internal controls, communication policy and director selection, orientation and evaluation.

Board meetings will be held at least quarterly going forward, with additional meetings convened when circumstances necessitate. The Board will set the strategic objectives of the Company and determine investment and performance criteria as well as being responsible for the sustainability, proper management, control, compliance and ethical behaviour of the businesses under its direction. The Board will establish a number of committees to give detailed attention to certain of its responsibilities and which will operate within defined, written terms of reference.


The Board will determine a policy for detailing the manner in which a director’s interest in transactions is to be determined and the interested director’s involvement in the decision-making process. Real or perceived conflicts will be disclosed to the Board and managed in accordance with the predetermined policy used to assess a director’s interest in transactions. The independence of Non-executive Directors will be reviewed from time-to-time. The Company does not propose to conduct a rigorous and extensive review of the independence of the Non-executive Directors. It is the Company’s belief that, unless the directors have newly acquired recent interest in the Company, passage of time does not lead to a lack of independence.

The Board as well as the individual directors will have their performance annually reviewed to identify areas for improvement in the discharge of individual director’s and the Board’s functions. These reviews will be undertaken by the Chairperson and, if so determined by the Board, an independent service provider. An overview of the appraisal process, results and action plan will be disclosed in the Directors’ report. Nominations for the re-appointment of a director will only occur after the evaluation of the performance and attendance of the director at Board meetings.

The Board will determine a policy for detailing the procedures for appointments to the Board. Such appointments are to be formal and transparent and a matter for the Board as a whole assisted where appropriate by the Corporate Governance Committee.

The development and implementation of nomination policies will be undertaken by the Board.

The Board will delegate certain functions to the Risk and Audit Committee, the Remuneration Committee and the Investment Committee. The Board is conscious of the fact that such delegation of duties is not an abdication of the Board members’ responsibilities. The various committees’ terms of reference shall be reviewed annually and such terms of reference will be disclosed in the Company’s Directors’ report.

External advisors and executive directors who are not members of specific committees shall attend committee meetings by invitation, if deemed appropriate by the relevant committees.

The Board will establish a procedure for directors, in furtherance of their duties, to take independent professional advice, if necessary, at the Company’s expense. All directors will have access to the advice and services of the Company Secretary.

2. Risk and Audit CommitteeThe Board has established a Risk and Audit Committee consisting of Independent Non-executive Directors, of whom one shall be appointed as the Chairman of the committee. The Risk and Audit Committee comprises James Keyes and David Brown. King III provides that an audit committee should comprise three members. The Company is in the process of looking to appoint an additional member.

Both members of the committee are financially literate (and the Board will ensure that any future appointees are financially literate). The committee’s primary objective will be to provide the Board with additional assurance regarding the efficacy and reliability of the financial information used by the directors, to assist them in the discharge of their duties. The committee will be required to provide satisfaction to the Board that adequate and appropriate financial and operating controls are in place; that significant business, financial and other risks have been identified and are being suitably managed; and that satisfactory standards of governance, reporting and compliance are in operation. The Risk and Audit Committee will be responsible for overseeing the Directors’ report. In this regard the Risk and Audit Committee will have regard to all factors and risks that may impact on the integrity of the Directors’ report, and the Board will review and comment on the financial statements and the disclosure of sustainability issues included in the Directors’ report. In addition, the Risk and Audit Committee will have general oversight over and report on the sustainability issues, will review the Directors’ report to ensure that the information contained therein is reliable and does not contradict the financial aspects of the report and will oversee the provision of assurance over sustainability issues. The Risk and Audit Committee will review the content of the Company’s interim results and will engage external auditors to provide assurance on the summarised financial information.

Within this context, the Board is responsible for the Company’s systems of internal, financial and operational control. The Executive Directors will be charged with the responsibility of determining the adequacy, extent and operation of these systems. Comprehensive reviews and testing of the effectiveness of the internal control systems in operation will be performed by the Risk and Audit Committee. These systems are designed to provide reasonable, but not absolute, assurance as to the integrity and reliability of the financial statements, to safeguard, verify and maintain accountability of its assets and to identify and minimise significant fraud, potential liability, loss and material misstatement while complying with applicable laws and regulations. A Risk and Audit Committee charter is to be prepared and reported to the Board.

The Risk and Audit Committee will meet at least four times a year. Executives and managers responsible for finance and the external auditors will be in attendance. The Risk and Audit Committee will review the finance function of the Company on an annual basis.

10


Corporate governance report continued

2. Risk and Audit Committee (continued)The Risk and Audit Committee may authorise engaging for non-audit services with the appointed external auditors or any other practising firm of auditors, after consideration of the following:

• the essence of the work being performed may not be of a nature that any reasonable and informed observer would construe as being detrimental to good corporate governance or in conflict with that normally undertaken by the accountancy profession;

• the nature of the work being performed will not affect the independence of the appointed external auditors in undertaking the normal audit assignments;

• the work being done may not conflict with any requirement of generally accepted accounting practice or principles of good corporate governance;

• the operational structure, internal standards and processes being adopted by the audit firm in order to ensure that audit independence is maintained in the event that such audit firm is engaged to perform accounting or other non-audit services to its client base. Specifically:

– the Company may not appoint a firm of auditors to improve systems or processes where such firm of auditors will later be required to express a view as to the functionality or effectiveness of such systems or processes;

– the Company may not appoint a firm of auditors to provide services where such firm of auditors will later be required to express a view on the fair representation of information the result of these services to the Company;

• the total fee being earned by an audit firm for non-audit services in any financial year of the Company, expressed as a percentage of the total fee for audit services, may not exceed 35% without the approval of the Board; and

• a firm of auditors will not be engaged to perform any management functions (eg acting as curator) without the express prior approval of the Board. A firm of auditors may be engaged to perform operational functions, including that of bookkeeping, when such firm of auditors are not the appointed external auditors of the Company and work is being performed under management supervision.

Information relating to the use of non-audit services from the appointed external auditors of the Company shall be disclosed in the notes to the annual financial statements. Separate disclosure of the amounts paid to the appointed external auditors for non-audit services as opposed to audit services, shall be made in the annual financial statements.

The Risk and Audit Committee must consider on an annual basis and satisfy itself of the appropriateness of the expertise and experience of the Chief Financial Officer and the Company must confirm this by reporting to shareholders in its annual report that the Risk and Audit Committee has executed this responsibility.

With regards to the appointment of directors, the Risk and Audit Committee will undertake background and reference checks before the appointment of directors. The Board shall make full disclosures regarding individual directors to enable shareholders to make their own assessment of the directors.

The Risk and Audit Committee will report at the Company’s Annual General Meeting (“AGM”) how it has discharged its duties during the financial year to be reported on.

3. Risk management and internal controlsRisk and internal controls management will be under the responsibility of the Risk and Audit Committee. The Risk and Audit Committee will participate in management’s process of formulating and implementing the risk management plan and will report on the plan adopted by management to the Board.

The objective of risk management is to identify, assess, manage and monitor the risks to which the business is exposed, including, but not limited to, Information Technology (“IT”) risk. The Board will be responsible for ensuring the adoption of appropriate risk management policies by management. The Board will also ensure that there are processes in place between itself and management enabling complete, timely, relevant, accurate and accessible risk disclosure to shareholders.

To enable the Risk and Audit Committee to meet its responsibilities, the Risk and Audit Committee will set standards and management will implement systems of internal control and an effective risk-based internal audit, comprising policies, procedures, systems and information to assist in:

• safeguarding assets and reducing the risk of loss, error, fraud and other irregularities;

• ensuring the accuracy and completeness of accounting records and reporting;

• preparing timely, reliable financial statements and information in compliance with relevant legislation and generally accepted accounting policies and practices; and

• increasing the probability of anticipating unpredictable risk.

The Board will, in its Directors’ report, comment on the effectiveness of the system and process of risk management.

The Board will ensure that management considers and implements the appropriate risk responses and IT strategy.


4. Remuneration CommitteeThe Executive Directors are employees of and will be paid by Freedom Asset Management Proprietary Limited (“Investment Manager”) and Non-executive Directors are paid by the Company. Accordingly, the Remuneration Committee’s only responsibility will be for determining Non-executive Directors and Directors’ committee fees which are recommended to shareholders for approval by way of special resolution.

None of the Non-executive Directors have entered into service contracts with the Company.

The Remuneration Committee currently comprises of Sandile Nomvete (Non-Executive Director) and Peter Todd (Non-Executive Director) and a majority of Independent Non-Executive Directors will be reviewed to form part of the Remuneration Committee.

5. Directors’ dealingsThe Company will implement a policy of prohibited dealings by directors and the Company Secretary during the period of one month immediately preceding the announcement of the issuer’s annual results and the publication of the interim (quarterly) report together with dividends and distributions to be paid or passed and at any other time deemed necessary by the Board.

6. The Company SecretarySharon Ward, the Company Secretary, who is not a director of the Company will provide the Board as a whole and directors individually with detailed guidance as to how their responsibilities should be properly discharged in the best interest of the Company. The Company Secretary will provide a central source of guidance and advice to the Board, and within the Company, on matters of ethics and good corporate governance and will assist with the appointment of directors to the Board. The Company Secretary will be subject to an annual evaluation by the Board.

7. Communication with shareholdersIt will be the policy of Delta International to meet regularly with institutional shareholders, private investors and investment analysts for discussion on the performance and management of the Company and it shall promote a stakeholder inclusive approach.

The Board appreciates that shareholders’ perceptions affect the Company’s reputation and in this regard will establish policy for the engagement of the Company’s stakeholders. The Board will encourage shareholders to attend AGMs through effective communication whether by means of the press or otherwise.

8. Directors’ reportThe Company’s annual report and accounts will include detailed reviews of the Company, together with a detailed review of the financial results and financing positions. In this way the Board will seek to present a balanced and understandable assessment of the Company’s position and prospects.

The Company will establish comprehensive management reporting disciplines which include the preparation of monthly management accounts, detailed budgets and forecasts. Monthly results, the financial position and cash flows of operating units will be reported against approved budgets and compared to the prior period. Any profit and cash flow forecasts and working capital levels published by the Company (including those appearing in this pre-listing statement) will be reviewed regularly.

The Board will ensure the integrity of the Directors’ report.

9. Social and Ethics CommitteeDelta International has outsourced its investment management and property management services and has no employees. It remains committed to promoting the highest standards of ethical behaviour amongst all persons involved in the Company’s operation, to this extent, a code of ethics for the Company is to be adopted and a Social and Ethics Committee will be established as soon as practical having regarded the size of the Company and its operations. The Board will ensure that the Investment Manager adopts corporate citizenship policies.

The Board will ensure that the Company’s performance and interaction with its stakeholders is guided by the Bye-Laws of the Company.

The Board will consider the impact of its property holding business on the environment, society and the economy.

The Board and the executive management will be assessed annually and will include its adherence to corporate citizenship principles and ethics performance.

10. Business rescueShould the Board ever feel that the Company has become financially distressed, they have undertaken that they will immediately meet to consider available business rescue procedures or other turnaround mechanisms. In this regard, the Board will monitor, on a continuous basis, the solvency and liquidity of the Company and in the event that business rescue is adopted, a suitable practitioner will be appointed. The practitioner will be required to provide security for the value of the assets of the Company.

12


Directors’ responsibility statement

The directors are responsible for the preparation and fair presentation of the annual financial statements of Delta International Property Holdings Limited, comprising the statement of financial position at 30 June 2014, statement of comprehensive income, statement of changes in equity and statement of cash flows for the 10-month period then ended, and the notes to the financial statements which include a summary of significant accounting policies and other explanatory notes, and the Directors’ report, in accordance with International Financial Reporting Standards, the AC 500 Series as issued by the Accounting Practices Board and its successor, the Listings Requirements of the JSE Limited, and in the manner required by the Companies Act of South Africa. In addition, the directors are responsible for preparing the Directors’ report.

The directors are also responsible for such internal control as they determine are necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and for maintaining adequate accounting records and an effective system of risk management as well as the preparation of the supplementary schedules included in these financial statements.

The directors have made an assessment of the ability of the Company to continue as going concern and have no reason to believe that the businesses will not be a going concern in the year ahead.

The auditor is responsible for reporting on whether the annual financial statements are fairly presented in accordance with the applicable financial reporting framework.

Approval of the annual financial statementsThe annual financial statements of Delta International Property Holdings Limited, as identified in the first paragraph, were approved by the Board of Directors on 18 December 2014 and are signed on their behalf by:

L Schnetler G BooyensDirector Director


Report of the risk and audit committeefor the 10 months ended 30 June 2014

The Risk and Audit Committee (“the Committee”) considers that it has adequately performed its functions in terms of its mandate, the King Code of Governance Principles for South Africa, 2009 and the Companies Act, 2008, as amended.

The Committee carried out its duties by reviewing the following on a quarterly basis or as required:

• Financial Management reports;

• Investment Advisor reports;

• Company Secretarial reports;

• Independent Tax Advisor reports;

• External Audit reports; and

• Board minutes.

The aforementioned information, together with the interactions with persons attending the meetings in an ex officio capacity, collectively enabled the Committee to conclude that the systems of internal financial control had been designed adequately and were operating effectively during the financial period under review.

Furthermore, the Committee is satisfied with:

• the independence of the external auditor, including the provision of non-audit services and compliance with the Committee’s policy in this regard, which is reviewed annually;

• the terms, nature, scope and proposed fee of the external auditor for the 10-month period ended 30 June 2014;

• the financial statements and the accounting practices utilised in the preparation thereof and has recommended the financial statements for approval to the Board;

• Delta International’s continuing viability as a going concern, which it has reported to the Board for its deliberation; and

• Delta International’s Chief Financial Officer having the necessary expertise and experience to carry out his duties in terms of the JSE Limited Listings Requirements.

No concerns and complaints were received from within or outside the Company relating to accounting practices and internal financial controls, and the content or auditing of the Company’s financial statements.

The Committee has performed its duties in accordance with its terms of reference and assesses its performance on an annual basis to determine whether or not it has delivered on its mandate.

David Brown

Risk and Audit Committee

18 December 2014

14


Directors’ report

The directors present their report together with the audited financial statements for the 10-month period ended 30 June 2014.

Principal activityThe primary objective of the Company is to invest in premium real estate assets underpinned by long-term leases with high quality tenants delivering strong sustainable income. The Company has changed its focus from the UK and Europe to Africa (excluding South Africa) offering investors’ direct access to high growth opportunities in African real estate.

Business reviewThe Company had limited trading activity in the reporting period due to the sale of Trito Petersfield Limited (“Trito”) and the Pan African strategy only taking effect post the reporting date.

On 15 April 2014, Delta International sold 100% of its shares in Trito Petersfield Limited to KSP Offshore Limited as part of its change in strategy and focus into the African real estate market.

At reporting date the Company held no investment property. The assets on the Company’s statement of financial position at 30 June 2014 consisted of cash on hand of $649 328, prepayments of $31 946 and a loan of $275 734 advanced to Delta International Mauritius Limited.

Subsequent to the reporting date the Company acquired 100% of the share capital in Delta International Mauritius Limited, the platform from which investments into African real estate will be made. Details are provided in note 21, “Subsequent events”.

Principal risks and uncertaintiesThe principal risks pertaining to the Company and the way in which it manages and controls these risks are outlined on pages 28 – 29 to the financial statements.

Results and proposed distributionsThe Company delivered a profit attributable to Delta International shareholders of $36 388 (2013: $56 662) for the period ended 30 June 2014. This is mainly due to the translation of the presentation and functional currency from Pounds Sterling (“GBP”) to United States Dollars (“US$”). The directors have resolved not to declare any dividend for the year ended 30 June 2014.

Share capitalNo shares were issued during the financial year ended 30 June 2014.

An analysis of shareholders’ spread is included on page 36.

Going concernThe committee through its review of the 2015 budget and discussions with executive management reported to the Board that it supports management’s view that the Company will continue to operate as a going concern for the foreseeable future.


DirectorsThe directors of Delta International, who served during the year, were as follows:

Director Date of appointment Date of resignation

Serge Richard^ 23/05/2012 12/05/2014Peter Todd# 23/05/2012 –Julie Lamberth-Dawson^ 23/05/2012 12/05/2014Andrew Rowell^ 23/05/2012 12/05/2014James Keyes# 23/05/2012 –David Brown# 26/04/2013 –Tiffany Purves^ 26/04/2013 12/05/2014Nicolaas Faure* 23/05/2012 12/05/2014Sandile Nomvete (Chair)* 22/05/2014 –Bronwyn Corbett* 22/05/2014 –Paul Simpson ED 22/05/2014 14/08/2014Gregory Pearson ED (CIO) 22/05/2014 –Louis Schnetler ED (CEO) 01/08/2014 –Greg Booyens ED (CFO) 22/05/2014 –

ED – Executive Director* Non-executive Director# Independent non-executive Director^ Resigned

Details of the interests of the current directors in the shares of Delta International are set out in the Report on Directors’ Remuneration on page 16.

Delta International maintains insurance for the directors in respect of liabilities arising from the performance of their duties.

Share optionsThere are no share options granted to directors.

Charitable donationsDuring the year Delta International made no charitable donations.

Payment of suppliersThe policy of the Company is to settle supplier invoices within the terms of trade agreed with individual suppliers. Where no specific terms have been agreed, payment is usually made within one month of receipt of the goods or service.

Stakeholder pensions and employee share schemesAs there are no employees, no pension plan or employee share schemes are in place.

AuditorsDeloitte Limited have expressed their willingness to continue in office and a resolution to re-appoint them may be proposed at the AGM.

Included in net operating income in the statement of comprehensive income are the following fees paid to Deloitte Limited during the year:

Period ended 30 June 2014

$

Year ended 31 August 2013

$

Audit fees 28 111 13 230Non-audit fees – –

Total 28 111 13 230

16


Directors’ remuneration report

Remuneration policyThe directors (other than alternative directors) shall be paid by the Company for their services as directors such aggregate sums as the Board recommends to the shareholders for approval. Any such sums shall be distinct from any salary, remuneration or other amounts payable to a director pursuant to other provisions of the Articles of Association.

The directors are entitled to be paid all reasonable travelling, hotel and other expenses properly incurred in attending meetings of the Board, committees of the Board, general meetings or otherwise in connection with the business of Delta International.

Basic feesThe table below shows the actual fees paid to each of the directors in US$.

Director

Basic salaries

Other fees

Total30 June

2014Basic

salariesOther

fees

Total31 August

2013$ $ $ $ $ $

Executive Directors*Julie Lamberth-Dawson 1 417 – 1 417 2 000 – 2 000Peter Todd 1 417 – 1 417 2 000 – 2 000Nicolaas Faure 1 417 – 1 417 2 000 – 2 000Sandile Nomvete – – – – – –Louis Schnetler – – – – – –Greg Booyens – – – – – –Greg Pearson – – – – – –Bronwyn Corbett – – – – – –Non-executive DirectorsSerge Richard 2 751 – 2 751 2 000 – 2 000James Keyes 1 834 – 1 834 5 000 – 5 000David Brown 1 834 – 1 834 1 743 – 1 743Tiffany Purves 917 – 917 697 – 697Sharon Ward – – – 3 750 – 3 750

Total 11 587 – 11 587 19 190 – 19 190

Directors’ interests in sharesThe interests of directors in the share capital of the Company were as follows:

BeneficialDirect Indirect Total

Non-Executive DirectorsBronwyn Corbett – 3 126 377 3 126 377Sandile Nomvete – 3 853 264 3 853 264

Total – 6 979 641 6 979 641


Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms.

Deloitte Ltd. is an affiliate of DCB Holding Ltd., a member firm of Deloitte Touche Tohmatsu Limited.

Deloitte Ltd. Chartered Professional Accountants Corner House 20 Parliament Streets P.O. Box 1556 Hamilton HM FX Bermuda

Tel: + 1 (441) 292 1500 Fax: + 1 (441) 292 0961 www deloitte bm

INDEPENDENT AUDITORS’ REPORT

To the Shareholders of Delta International Property Holdings Limited

We have audited the accompanying financial statements of Delta International Property Holdings Limited (the “Company”), previously known as Osiris Properties International Limited, which comprises the statement of financial position as at 30 June 2014, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the period from 1 September 2013 to 30 June 2014, and a summary of significant accounting policies and other explanatory information.

Management’s responsibility for the financial statements

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements give a true and fair view, in all material respects, of the financial position of the Company as at 30 June 2014, and the results of its financial performance and cash flows for the period from 1 September 2013 to 30 June 2014 in accordance with International Financial Reporting Standards.

Other reports

As part of our audit of the Company’s financial statements for the period ended 30 June 2014, we have read the directors’ report, the audit and risk committee’s report and the directors’ remuneration report for the purpose of identifying whether there are material inconsistencies between these reports and the audited Company’s financial statements. These reports are the responsibility of the respective preparers. Based on reading these reports we have not identified material inconsistencies between these reports and the audited Company financial statements. However, we have not audited these reports and accordingly do not express an opinion on these reports.

18 December 2014

18


Statement of comprehensive incomefor the 10 months ended 30 June 2014

10 months ended Year ended

30 June 31 August2014 2013

Notes $ $

RevenueInvestment revenue 4 63 156 –

Total revenue 63 156 –

ExpensesAdministrative expenses (20 397) (34 182)Investment management and professional fees 5 (56 605) (61 133)Property operating expenses – –

Net operating loss (13 846) (95 315)Net fair value gain on investment property – –(Loss)/Profit on disposal of subsidiaries 19.2 (33 401) 179 486

(Loss)/Profit from operations (47 247) 84 171

Interest income 58 680Foreign currency loss (157) (10 269)

(Loss)/Profit for the period before tax (47 346) 74 582

Taxation 6 – –

(Loss)/Profit for the period after tax (47 346) 74 582

Gain/(Loss) on translation of presentation currency 83 734 (17 920)Other comprehensive income – –

Total comprehensive income 36 388 56 662

Actual number of shares in issue (’000) 7 664 180 664 180Weighted average number of shares in issue (’000) 7 664 180 664 180Basic earnings per share (cents)* 7 5.48 8.53Headline loss per share (cents)* 7 (2.10) (15.79)Reconciliation of basic and headline earnings:Profit for the period attributable to shareholders 36 388 56 662Foreign currency translation reserve movement (87 734) 17 920Gain/(Loss) on the loss of control of a subsidiary 33 401 (179 486)

Headline earnings attributable to shareholders (13 945) (104 904)

*The Company does not have any dilutive instruments in issue.

The accompanying notes form an integral part of the financial statements.


Statement of financial positionas at 30 June 2014

As at As at As at30 June 31 August 31 August

2014 2013 2012Notes $ $ $

AssetsNon-current assetsLoans to related parties 8 275 734 – –Investment in subsidiaries 9 – 1 170 138 818 012

Total non-current assets 275 734 1 170 138 818 012

Current assetsTrade and other receivables 10 31 946 327 –Cash and cash equivalents 11 649 328 38 824 110 832

Total current assets 681 274 39 151 110 832

Total assets 957 008 1 209 289 928 844

Equity and liabilitiesCapital and reservesShare capital 12 107 107 107Share premium 864 548 864 548 864 548Retained earnings 19 471 66 817 (7 764)Foreign currency translation reserve 52 865 (30 869) (12 949)

Total equity attributable to equity shareholders 936 991 900 603 843 942

Current liabilitiesTrade and other payables 13 20 017 308 686 84 902

Total current liabilities 20 017 308 359 84 902

Total liabilities 20 017 308 359 84 902

Total equity and liabilities 957 008 1 209 289 928 844

The accompanying notes form an integral part of the fi nancial statements.

These fi nancial statements were approved by the Board of Directors on 18 December 2014 and signed on its behalf by:

L. Schnetler G. Booyens

Director Director

20


Statement of changes in equityfor the 10 months ended 30 June 2014

Share capital

$

Share premium

$

Retained earnings

$

Foreign currency

translation reserve

$

Total equity

$

Balance at 31 August 2012 107 864 548 (7 765) (12 949) 843 941Total profit for the year – – 74 582 – 74 582Foreign currency translation reserve movement – – – (17 920) (17 920)

Balance at 31 August 2013 107 864 548 66 817 (30 869) 900 603

Balance at 1 September 2013 107 864 548 66 817 (30 869) 900 603Total loss for the year – – (47 346) – (47 346)Foreign currency translation reserve movement – – – 83 734 83 734

Balance at 30 June 2014 107 864 548 19 471 52 865 936 991

Note 12

The accompanying notes form an integral part of the fi nancial statements.


Statement of cash flowsfor the 10 months ended 30 June 2014

10 months ended Year ended

30 June 31 August2014 2013

Notes $ $

Cash flows from operating activitiesProfit for the period before tax 36 388 56 662Adjusted for:Loss/(Profit) on disposal of subsidiaries 19.2 33 401 (179 486)Foreign currency loss 157 10 269Foreign currency (gain)/loss on translation reserve (83 734) 17 920Interest income (58) (680)

Cash utilised in operations (13 846) (95 315)Changes in working capital 10, 13 (320 289) 223 457

Cash (utilised in)/generated from operations (334 135) 128 142Interest received 58 680Foreign currency loss (157) (10 269)

Net cash (utilised in)/generated from operating activities (334 234) 118 553

Cash flows from investing activitiesLoans to related parties 18 (275 734) 1 106 015Disposal of subsidiaries 926 369 (1 278 656)

Net cash generated from/(utilised in) investing activities 650 635 (172 641)

Cash flows from financing activitiesSettlement of other financial liabilities 210 369 –Foreign currency gain/(loss) on translation reserve 83 734 (17 920)

Net cash generated from/(utilised in) financing activities 294 103 (17 920)

Net increase/(decrease) in cash 610 504 (72 008)Net cash at the beginning of the period 38 824 110 832

Net cash at the end of the period 649 328 38 824

The accompanying notes form an integral part of the financial statements.

22


Notes to the annual financial statementsfor the 10 months ended 30 June 2014

1. General informationDelta International Property Holdings Limited (previously known as “Osiris Properties International Limited”) was incorporated on 16 May 2012 under the laws of the Bermuda. The preparation of the financial statements was supervised by the Chief Financial Officer, Greg Booyens.

The primary objective of the Company is to invest in premium real estate assets underpinned by long-term leases with high quality tenants delivering strong sustainable income. The Company has changed its focus from the UK and Europe to Africa (excluding South Africa), offering investors direct access to high growth opportunities in African real estate.

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Actual results may differ marginally from these estimates. In preparing these financial statements, the significant judgements made by management in applying the Company’s accounting policies and the key sources of estimation are discussed further in note 2.2 basis of preparation.

2. Significant accounting policies2.1 Statement of compliance

The Company financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the IASB, the AC 500 series issued by the Accounting Practices Board and the requirements of the South African Companies Act, the Companies Regulations 2011, and incorporate the principal accounting policies set out below.

The accounting policies have been applied consistently to all periods presented in these financial statements except for the adoption of new accounting standards as set out below.

2.2 Basis of preparationThe financial statements are presented in US$, which is the functional and presentational currency of the Company and are rounded to the nearest thousand. They are prepared using the historical cost basis except for investment property and financial instruments at fair value through profit or loss.

Critical judgements and estimatesThe preparation of financial statements in conformity with IFRS requires the use of accounting estimates. It also requires management to exercise its judgment in the process of applying the Company’s accounting policies. The estimates and assumptions relating to the fair value of investment properties have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. See note 3 for further details.

The principal areas where such judgements and estimates have been made are:

Going concernThe Company’s financial statements have been prepared on a going concern basis.

Property acquisitionsWhere properties are acquired through the acquisition of corporate interests, the directors have regard to the substance of the assets and activities of the acquired entity in determining whether the acquisition represents the acquisition of a business.

Where such acquisitions are not judged to be an acquisition of a business the transactions are accounted for as if the Company had acquired the underlying property directly. Accordingly, no goodwill arises, rather the cost of the corporate entity is allocated between the identifiable assets and liabilities of the entity based on their relative fair values at the acquisition date.

Otherwise corporate acquisitions are accounted for as business combinations.

2.3 Currency translation reserveTransactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to the functional currency at the foreign exchange rate ruling at that date. Foreign exchange differences arising on translation are recognised in the income statement. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are translated to the functional currency at the rates at the dates of the transaction or at an average rate for the period where this is a reasonable approximation.

The functional and presentation currency of Delta International Property Holdings Limited was changed from Pounds Sterling to US$ on 16 May 2014. The reason for the change in functional and presentation currency of the Company is largely due to the change in primary focus of the Company as the majority of its transactions within Africa are denominated in US$.


At the reporting date, the assets and liabilities of the Company were translated into the presentation currency of the Company (US$) at the ruling exchange rate at reporting date and the statement of comprehensive income was translated at the average exchange rate for the period. The presentation currency has been restated retrospectively to the earliest period applicable.

2.4 Investment propertyInvestment properties are those which are held either to earn rental income or for capital appreciation or for both. Investment properties are stated at fair value. External, independent valuation companies, having professionally qualified valuers and recent experience in the location and category of property being valued, value the portfolios on an annual basis. The fair values are based on market values, being the estimated amount for which a property could be exchanged on the date of valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably and without compulsion.

The valuations are prepared by considering comparable market transactions for sales and letting and having regard for the current leases in place. In the case of lettings this includes considering the aggregate of the net annual market rents receivable from the properties and where relevant, associated costs. A yield which reflects the risks inherent in the net cash flows is applied to the net annual rentals to arrive at the property valuation.

Any gain or loss arising from a change in fair value is recognised in the statement of comprehensive income.

Under the revised IAS 40 “Investment Property”, property that is under construction or development for future use as investment property is within the scope of IAS 40. As the fair value model is applied, such property is measured at fair value. However, where the fair value of investment property under redevelopment is not reliably measurable, the property is measured at cost.

Borrowing costs are capitalised if they are directly attributable to the acquisition, construction or production of a qualifying asset. Capitalisation of borrowing costs commences when the activities to prepare the asset are in progress and expenditures and borrowing costs are being incurred. Capitalisation of borrowing costs may continue until the assets are substantially ready for their intended use. If the resulting carrying amount of the assets exceeds its value, an impairment loss is recognised. The capitalisation rate is arrived at by reference to the actual rate payable on borrowings for development purposes or, with regard to that part of the development cost financed out of general funds, to the average rate.

2.5 Financial instruments – Recognition, classification and measurementNon-derivative financial instrumentsNon-derivative financial instruments comprise investment in equity securities, trade and other receivables, cash and cash equivalents, loans and borrowings, and trade and other payables.

Non-derivative financial instruments are recognised initially at fair value plus, for instruments not carried at fair value through profit or loss, any directly attributable transaction costs, except as described below.

A financial instrument is recognised when the Company becomes a party to the contractual provisions of the instrument. Financial assets are derecognised if the Company’s contractual rights to the cash flows from the financial assets expire or if the Company transfers the financial assets to another party without retaining control or substantially all risks and rewards of ownership of the asset. Regular way purchases and sales of financial assets are accounted for at the trade date, ie the date that the Company commits itself to purchase or sell the assets.

Investments at fair value through profit or lossAn instrument is classified at fair value through profit or loss if it is held for trading or is designated as such upon initial recognition. Financial instruments are designated as fair value through profit or loss if the Company manages such investments and makes purchase and sale decisions based on their fair value.

Upon initial recognition, attributable transaction costs are recognised in the statement of comprehensive income when incurred. Financial instruments at fair value through profit or loss are measured at fair value, and changes therein are recognised in the statement of comprehensive income. Fair values are determined by reference to their quoted bid price at the reporting date, where such a price is available.

2.6 ImpairmentFinancial assets that are stated at cost or amortised cost are reviewed at each balance sheet date to determine whether there is objective evidence of impairment. If any such indication exists, an impairment loss is recognised in the statement of comprehensive income as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate.

If in a subsequent period the amount of an impaired loss recognised on a financial asset carried at amortised cost decreases and the decrease can be linked objectively to an event occurring after the write-down, the write-down is reversed through the statement of comprehensive income.

24


2. Significant accounting policies (continued)2.7 Cash and cash equivalents

Cash and cash equivalents comprise cash balances on hand, cash deposited with financial institutions and other short-term liquid investments that are readily convertible to a known amount of cash. These are initially recorded at fair value and subsequently measured at amortised cost. Cash and cash equivalents are classified as loans and receivables.

2.8 Share capitalOrdinary share capitalOrdinary shares are classified as equity. External costs directly attributable to the issue of new shares are shown as a deduction in equity, net of tax, from the proceeds.

Non-distributable reservesAll unrealised gains/losses arising from the movements in fair value of investment property, fair value adjustments on investments, derivatives, post-acquisition reserves from associates, gains and losses on the sale of investment property and investments are transferred to/from non-distributable reserves and are not available for distribution.

2.9 Leasehold propertyLeasehold properties that are leased out to tenants under operating leases are classified as investment properties as appropriate, and carried in the statement of financial position at fair value.

2.10 Loans and borrowingsInterest-bearing borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost with any difference between cost and redemption value being recognised in the statement of comprehensive income over the period of the borrowings on an effective interest basis.

Finance costsFinance costs recognised in the statement of comprehensive income comprise interest payable on borrowings calculated using the effective interest rate method, net of interest capitalised.

2.11 DividendsDividends to the Company’s shareholders are recognised when they become legally payable. In the case of interim dividends, this is when declared by the directors. In the case of final dividends, this is when approved by the shareholders at an annual general meeting.

2.12 Rental incomeRental income from investment property leased out under operating leases is recognised in the statement of comprehensive income on a straight-line basis over the term of the leases. Lease incentives granted are recognised as an integral part of the total rental income and amortised over the term of the leases.

Contingent rental income is recognised as it arises. Premiums to terminate leases are recognised in the statement of comprehensive income as they arise.

Management has considered the potential transfer of risks and rewards of ownership for all properties leased to tenants and has determined that all such leases are to be classified as operating leases.

2.13 Income taxCurrent tax assets and liabilitiesCurrent tax for current and prior periods is, to the extent unpaid, recognised as a liability. If the amount already paid in respect of current and prior periods exceeds the amount due for those periods, the excess is recognised as an asset.

Current tax liabilities (assets) for the current and prior periods are measured at the amount expected to be paid to (recovered from) the tax authorities, using the tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax assets and liabilitiesA deferred tax liability is recognised for all taxable temporary differences, except to the extent that the deferred tax liability arises from the initial recognition of an asset or liability in a transaction which at the time of the transaction, affects neither accounting profit nor taxable profit (tax loss).

A deferred tax asset is recognised for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilised. A deferred tax asset is not recognised when it arises from the initial recognition of an asset or liability in a transaction at the time of the transaction, affects neither accounting profit nor taxable profit (tax loss).

A deferred tax asset is recognised for the carry forward of unused tax losses to the extent that it is probable that future taxable profit will be available against which the unused tax losses can be utilised.

Notes to the annual financial statements continuedfor the 10 months ended 30 June 2014


Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

Tax expensesCurrent and deferred taxes are recognised as income or an expense and included in profit or loss for the period, except to the extent that the tax arises from:

• a transaction or event which is recognised, in the same or a different period, to other comprehensive income; or

• a business combination.

Current tax and deferred taxes are charged or credited to other comprehensive income if the tax relates to items that are credited or charged, in the same or a different period, to other comprehensive income.

2.14 Earnings per share and headline earnings per shareBasic earnings per linked unit is calculated by dividing the profit or loss by the weighted average number of ordinary units outstanding during the period. Diluted earnings per linked unit is determined by adjusting the profit or loss attributable to ordinary unitholders and the weighted average number of ordinary shares outstanding adjusted for the effects of all dilutive potential ordinary shares.

EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding adjusted for the effects of all dilutive potential ordinary shares.

In calculating headline earnings per share, headline earnings include fair value adjustments for financial liabilities and accounting adjustments required to account for lease income on a straight-line basis, as well as other non-cash accounting adjustments that do not affect distributable earnings.

2.15 Amendments to IFRS affecting presentation and disclosure onlyAmendments to IAS 1 – Presentation of Items in Other Comprehensive IncomeThe Company has applied the amendments to IAS 1 – Presentation of Items in Other Comprehensive Income in the current year. These amendments require companies preparing financial statements in accordance with IFRS to Company together items within other comprehensive income that may be reclassified to the profit or loss section of the income statement. The amendments also re-affirm existing requirements that items in other comprehensive income and profit or loss should be presented as either a single statement or two consecutive statements.

New and revised IFRS in issue but not yet effectiveThe following new accounting standards and amendments to existing standards approved by the IASB in 2011 or prior years, but not early adopted by the Company, will impact the Company’s financial reporting in future periods. The Company is currently considering the impacts of these amendments. The new accounting standards and amendments which are more relevant to the Company are detailed below.

The following will be applied in 2014 unless otherwise noted:

IFRS 13 – Fair Value MeasurementThis standard, which applies prospectively for annual periods beginning on or after 1 January 2013, establishes a single source of guidance for fair value measurements under IFRSs. IFRS 13 defines fair value, provides guidance on its determination and introduces consistent requirements for disclosures on fair value measurements. IFRS 13 requires entities to disclose information about the valuation techniques and inputs used to measure fair value, as well as information about the uncertainty inherent in fair value measurements. This information will be required for both financial and non-financial assets and liabilities. The impact of the standard is being assessed by the Company and may result in additional disclosures.

Offsetting Financial Assets and Financial Liabilities – Amendments to IAS 32, and Disclosures – Offsetting Financial Assets and Financial Liabilities – Amendments to IFRS 7In December 2011, the IASB issued amendments to IAS 32 and IFRS 7 which clarify the accounting requirements for offsetting financial instruments and introduce new disclosure requirements that aim to improve the comparability of financial statements prepared in accordance with IFRS and US GAAP.

The amendments to IFRS 7 will require more extensive disclosures than are currently required. The disclosures focus on quantitative information about recognised financial instruments that are offset in the statement of financial position, as well as those recognised financial instruments that are subject to master netting or similar arrangements, irrespective of whether they are offset. The amended offsetting disclosures are to be retrospectively applied, with an effective date of annual periods beginning on or after 1 January 2013.

26


2. Significant accounting policies (continued)2.15 Amendments to IFRS affecting presentation and disclosure only (continued)

The amendments to IAS 32 clarify that the right of set-off must be currently available and legally enforceable for all counterparties in the normal course of business, as well as in the event of default, insolvency or bankruptcy. The IAS 32 changes are effective for annual periods beginning on or after 1 January 2014 and apply retrospectively.

New accounting standards and interpretations not yet adopted:

IFRS 9 – Financial instrumentsIn 2009, the IASB commenced the implementation of its project plan for the replacement of IAS 39. This consists of three main phases:

Phase 1: Classification and measurementIn November 2009, the IASB issued IFRS 9 – Financial Instruments, covering classification and measurement of financial assets, as the first part of its project to replace IAS 39 and simplify the accounting for financial instruments. The new standard endeavours to enhance the ability of investors and other users of financial information to understand the accounting for financial assets and to reduce complexity.

IFRS 9 uses a single approach to determine whether a financial asset is measured at amortised cost or fair value, replacing the many different rules in IAS 39. The approach in IFRS 9 is based on how an entity manages its financial instruments (its business model) and the contractual cash flow characteristics of the financial assets.

In October 2010, the IASB re-issued IFRS 9 incorporating new requirements on accounting for financial liabilities, and carrying over from IAS 39 the requirements for derecognition of financial assets and financial liabilities. IFRS 9 does not change the basic accounting model for financial liabilities under IAS 39. Two measurement categories continue to exist: fair value through profit or loss (“FVTPL”) and amortised cost. Financial liabilities held for trading are measured at FVTPL, and all other financial liabilities are measured at amortised cost unless the fair value option is applied. IFRS 9 requires gains and losses on financial liabilities designated as at fair value through profit or loss to be split into the amount of change in the fair value that is attributable to changes in the credit risk of the liability, which should be presented in other comprehensive income, and the remaining amount of change in the fair value of the liability which should be presented in profit or loss.

• The basic premise for the derecognition model in IFRS 9 (carried over from IAS 39) is to determine whether the asset under consideration for derecognition is:

− an asset in its entirety; or

− specifically identified cash flows from an asset (or a group of similar financial assets); or

− a fully proportionate (pro rata) share of the cash flows from an asset (or a group of similar financial assets); or

− a fully proportionate (pro rata) share of specifically identified cash flows from a financial asset (or a group of similar financial assets).

• A financial liability should be removed from the statement of financial position when, and only when, it is extinguished, that is, when the obligation specified in the contract is either discharged or cancelled or expires.

• All derivatives, including those linked to unquoted equity investments, are measured at fair value. Value changes are recognised in profit or loss unless the entity has elected to treat the derivative as a hedging instrument in accordance with IAS 39, in which case the requirements of IAS 39 apply.

Phase 2: Impairment methodologyAn exposure draft issued by the IASB in November 2009 proposes an “expected loss model” for impairment. Under this model, expected losses are recognised throughout the life of a loan or other financial asset measured at amortised cost, not just after a loss event has been identified. The expected loss model avoids what many see as a mismatch under the incurred loss model – front-loading of interest revenue (which includes an amount to cover the lender’s expected loan loss) while the impairment loss is recognised only after a loss event occurs. The impairment phase of IFRS 9 is subject to ongoing deliberations and has not yet been finalised.

Phase 3: Hedge accountingIn December 2010, the IASB issued an exposure draft on hedge accounting which will ultimately be incorporated into IFRS 9. The exposure draft proposes a model for hedge accounting that aims to align accounting with risk management activities. It is proposed that the financial statements will reflect the effect of an entity’s risk management activities that uses financial instruments to manage exposures arising from particular risks that could affect profit or loss. This aims to convey the context of hedge instruments to allow insight into their purpose and effect. This phase of IFRS 9 is not yet finalised.

The effective date for implementation of IFRS 9 is annual periods beginning on or after 1 January 2015, which was extended from 1 January 2013 due to delays in completing phases 2 and 3 of the project as well as the delay in the insurance project.



IFRS 10 – Consolidated financial statementsThe amendments to IFRS 10 define an investment entity and introduce an exception to the principle that all subsidiaries must be consolidated. In terms of the exception, entities meeting the definition of ‘Investment Entities’ must account for investments in subsidiaries at fair value under IFRS 9 – Financial Instruments, or IAS 39 – Financial Instruments: Recognition and Measurement through profit and loss. The exception does not apply to subsidiaries of investment entities that provide services that relate to an investment entity’s investment activities.

To qualify as an investment entity, certain criteria have to be met. Specifically, an entity is an investment entity when it:

• obtains funds from one or more investors for the purpose of providing them with investment management services;

• commits to its investor(s) that its business purpose is to invest funds solely for returns from capital appreciation, investment income or both; and

• measures and evaluates performance of substantially all of its investments on a fair value basis.

Consequential amendments to IFRS 12 and IAS 27 have been made to introduce new disclosure requirements for investment entities. In general, the amendments require retrospective application, with specific transitional provisions.

It is not anticipated that the application of the new standard will have a significant impact on the Company’s financial assets as it does not meet the investment entity qualification criteria.

IFRS 15 – Revenue from contracts from customers New standard that requires entities to recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This core principle is achieved through a five-step methodology that is required to be applied to all contracts with customers.

The new standard will also result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively and improve guidance for multiple-element arrangements.

The new standard supersedes:

a. IAS 11 Construction contracts;

b. IAS 18 revenue;

c. IFRIC 13 customer loyalty programmes;

d. IFRIC 15 agreements for the construction of real estate;

e. IFRIC 18 transfers of assets from customers; and

f. SIC-31 Revenue – Barter transactions involving advertising services.

IFRS 15 is effective for reporting periods beginning on or after 1 January 2017 with early application permitted. Entities can choose to apply the standard retrospectively or to use a modified transition approach, which is to apply the standard retrospectively only to contracts that are not completed contracts at the date of initial application. Management is currently evaluating the impact that IFRS 15 will have on the Company’s financial statements and disclosures.

Annual improvements to IFRSs 2011 to 2013 CycleWith regard to the amendments to IAS 40 – Investment Property, (“IAS 40”), the amendments clarify that IAS 40 and IFRS 3 – Business Combinations (“IFRS 3”) are not mutually exclusive and the application of both standards may be required. Consequently, an entity acquiring investment property must determine whether the property meets the definition of investment property in terms of IAS 40 and the transaction meets the definition of business combination under IFRS 3.

In considering whether the acquisition of an investment property is an asset acquisition or a business combination, significant judgement is required taking into account the specific facts and circumstances surrounding each transaction. Management is currently evaluating the impact that these annual improvements will have on the Company’s financial statements and disclosures.

There are no other standards, interpretations or amendments to existing standards that are effective for the first time for financial periods beginning after 1 September 2013 that would be expected to have a material impact on the Company.

28


3. Financial risk managementThe Company has exposure to the following risks from its use of financial instruments:

• credit risk

• liquidity risk

• market risk

This note presents information about the Company’s exposure to each of the above risks, the Company’s objectives, policies and processes for measuring and managing risk, and the Company’s management of capital. Further quantitative disclosures are included throughout the consolidated financial statements.

The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Board is responsible for developing and monitoring the Company’s risk management policies.

The Company’s risk management policies require the identification and analysis of the risks faced by the Company, the setting of appropriate risk limits and controls, and the monitoring of risks and adherence to limits. Risk management policies and systems are reviewed regularly and adjusted to reflect changes in market conditions and the Company’s activities.

The Company’s Audit Committee oversees management’s monitoring of compliance with the Company’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.

Credit riskCredit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from tenants and on investment securities.

Trade and other receivablesThe Company is exposed to concentrations of sectoral credit risk. Concentrations of tenant risk exist in each individual property portfolio. The Board of Directors monitors the concentration of credit risk with individual tenants and counterparties across the portfolio. The level of concentration is addressed both with regards to the sector of property, the industry in which the tenant operates and the credit history of the tenant/customer. An allowance is made where there is an identified loss event which is evidence of a reduction in the recoverability of the cash flows.

Cash and cash equivalentsThe Company limits its exposure to credit risk by only investing in liquid securities and only with counterparties that have a credit rating of at least investment grade from Standard & Poor’s or Moody’s, except where specific exemptions are granted by the Board. Given the credit quality, management does not expect any counterparty to fail to meet its obligations. Cash transactions are limited to high-credit-quality financial institutions. The Board of Directors monitors the exposure of the Company to any one financial institution and ensures that this is limited by diversification of deposits and lending from each institution across the portfolio.

Liquidity riskThe Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

The Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient rental income to service its financial obligations when they fall due. The monitoring of liquidity risk is assisted by the monthly review of financial covenants imposed by financial institutions, such as interest and loan to value covenant ratios. Renegotiation of loans takes place in advance of any potential covenant breaches in so far as the factors are within the control of the Board. In periods of increased market uncertainty the Board will ensure sufficient cash resources are available for potential loan repayments/cash deposits as may be required by financial institutions.

Market riskMarket risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Company’s income or the value of its investments in financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return on risk.

The Board of Directors receives reports on a quarterly basis with regards to currency exposures as well as interest rate spreads and takes the necessary steps to hedge/limit the risk the Company is exposed to.

Currency riskThe Company operates internationally and is exposed to foreign exchange risk. Foreign exchange risk arises from current exposures the Company has to foreign currencies, recognised monetary assets and liabilities and net investments in foreign operations.



3. Financial risk management (continued)Interest rate riskThe Company’s exposure to the risk of the changes in market interest rates is limited due to a fixed interest rate on loans and borrowings.

Commercial property price riskThe directors draw attention to the risks associated with commercial property investments. Although over the long term property is considered a low risk asset, investors must be aware that significant short- and medium-term risk factors are inherent in the asset class.

Investments in property are relatively illiquid and usually more difficult to realise than listed equities or bonds and this restricts the Company’s ability to realise value in cash in the short term.

Estimates of fair value of investment propertiesThe best evidence of fair value is current prices in an active market for similar lease and other contracts. In the absence of such information, the Company determines the amount within a range of reasonable estimates. The Company considers a variety of information including:

• valuations from independent valuers;

• current prices in an active market for properties of a different nature, condition or location, adjusted for those differences;

• recent prices from similar properties in less active markets, with adjustments to reflect differences in economic conditions; and

• discounted cash flow projections based on reliable estimates of future cash flows, derived from the terms of any existing lease and from external evidence such as current market rents for similar properties in the same location and condition, and using discount rates that reflect current market assessments.

Further details of the portfolio by business segment and yields applied is provided in the Property Portfolio section of the financial statements.

Capital managementThe Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The Board of Directors monitors both the demographic spread of unitholders, as well as the return on capital, which the Company defines as total unitholders’ equity.

4. Investment income10 months

ended 30 June

2014 $

Year ended 31 August

2013$

Dividend received from Trito Petersfield Limited 63 156 –

Total investment income 63 156 –

5. Investment management and professional feesThe following items have been charged in arriving at net operating income:Secretarial fees 4 768 13 728Audit fees 28 111 13 230Other professional fees 23 726 34 175

Total 56 605 61 133

The fees for the performance of investment management duties will be agreed by Delta International and the Investment Manager from time to time. Up to the date of disposal of the investment property, the following fees applied:

• the Company will pay the Investment Manager an annual fee of up to a maximum of 0.5% of the gross investment property asset value of Delta International;

• there will be an acquisition fee equal to 1% of the gross investment property asset value acquired by Delta International; and

• the base investment management fee shall, be calculated quarterly based on the value on the last working day in the final month of each calendar quarter.

30


6. TaxationThe Company is resident for taxation purposes in Bermuda by virtue of being incorporated in Bermuda. The standard rate of corporation tax in Bermuda is 0%.

The differences are explained below:

10 months ended

30 June 2014

$


2013$

(Loss)/Profit before tax (47 346) 74 582Taxation at 0% – –Effect of:Fair value gain on investment property – –Expenses not deductible – –Losses brought forward – –

Total tax for the year – –

7. Basic earnings and headline earnings per shareProfit attributable to shareholders 36 388 56 662

Weighted average number of ordinary shares 664 180 664 180Number of ordinary shares– In issue 664 180 664 180– Weighted average 664 180 664 180Basic earnings per share (cents) 5.48 8.53Headline loss per share (cents) (2.10) (15 79)Basic profit is reconciled to headline earnings as follows:Profit attributable to shareholders 36 388 56 662Foreign currency translation reserve movement (83 734) 17 920Gains or losses on the loss of control of a subsidiary 33 401 (179 486)

Headline loss attributable to linked unitholders (13 945) (104 904)

8. Loans to related partiesAs at

30 June 2014

$

As at 31 August

2013$

Amounts due from related parties (refer note 21) 275 734 –

275 734 –

9. Investment in subsidiariesOpening balance 1 170 138 1 170 138

Translation to presentation currency (refer to foreign currency translation reserve) 92 755 –Disposal of subsidiary (1 262 893) –

Closing balance – 1 170 138

With effect 15 April 2014, the Company sold its investment in the shares together with any claims on the loan account of Trito Petersfield Limited (incorporated in the British Virgin Islands on 19 January 2005), for $1 262 893 (£735 000) to KSP Offshore Limited. The loss realised on disposal of the subsidiary amounted to $33 401 (refer to note 19.2).



10. Trade and other receivablesAs at

30 June 2014

$

As at 31 August

2013$

Prepayments 31 946 327

31 946 327

11. Cash at bankBank balances 649 328 38 824

649 328 38 824

12. Share capital and reservesShare capital and share premiumAuthorised7 500 000 000 ordinary shares of $0.0001659 each 1 244 250 1 244 250

Issued664 180 ordinary shares of $0.0001659 each 107 107

107 107

No shares were issued during the financial year.The unissued shares are under the control of the directors. This authority remains in force until the next annual general meeting (AGM).

13. Trade and other payablesTrade payables 5 017 –Amount owing to related parties (refer to note 21) – 101 422Director fees payable (refer to note 21) – 8 564Deferred consideration on acquisition of Trito Petersfield Limited – 190 959Other accruals 15 000 7 741

20 017 308 686

14. Credit riskExposure to credit riskThe carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was:Investment in subsidiary – 1 170 138Loans and receivables 275 734 –Trade and other receivables 31 946 327Cash and cash equivalents 649 328 38 824

957 008 1 209 289

32


15. Liquidity riskThe following are the contractual maturities of financial liabilities, including interest payments and excluding the impact of netting agreements:

Company

Carrying amount

$

Contractual cash flows

$

6 months or less

$

6 – 12 months

$

1 – 2 years

$

2 – 5 years

$

More than 5 years

$

30 June 2014Trade and other payables 20 017 (20 017) (20 017) – – – –

20 017 (20 017) (20 017) – – – –

31 August 2013Trade and other payables 308 686 (308 686) (308 686) – – – –

308 686 (308 686) (308 686) – – – –

Cash flows on financial liabilities at amortised cost were based on the respective loan interest rates as per note 14.

16. Currency riskThe Company has no investments in foreign subsidiaries. The Company’s currency risk relates to the South African and British bank accounts of the Company, denominated in ZAR and GBP respectively.

Sensitivity analysisA 5% strengthening in the US$ exchange rate against the ZAR and GBP respectively at period end would have affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables remain constant.

As at 30 June

2014 $

As at 31 August

2013$

South African Rand (34) (1 852)Pounds Sterling (30 886) (24 671)

A 5% weakening in the US$ exchange rate against the ZAR and GBP respectively at year-end would have had the equal but opposite effect on the above currencies to the amounts shown above, on the basis all other variables remain constant.

The Company’s total net exposure to fluctuations in foreign currency exchange rates at the reporting date was as above. This reflects the total and financial and non-financial assets and liabilities in foreign currencies.

The following exchange rates were applied during the period:

Average rate

2014

Average rate

2013

Period end rate

2014

Period end rate 2013

South African Rand 10.451 9.1125 10.5784 10.3016Pounds Sterling 0.6080 0.6397 0.5872 0.6453



17. Fair valuesFair values versus carrying amountsThe fair values of financial assets and liabilities, together with the carrying amounts shown in the statement of financial position, are as follows:

30 June 2014 31 August 2013Carrying amount

Fair value

Carrying amount

Fair value

Notes $ $ $ $

CompanyLong-term receivables 8 275 734 275 734 – –Investment in subsidiary 9 – – 1 170 138 1 170 138Loans and receivables 10 31 946 31 947 327 327Cash and cash equivalents 11 649 328 649 328 38 824 38 824

957 008 957 009 1 209 289 1 209 289

Financial liabilitiesTrade and other payables 13 20 017 20 017 308 686 308 686

20 017 20 017 308 686 308 686

The Company measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements.

Level 1: Quoted market price (unadjusted) in an active market for an identical instrument.

Level 2: Valuation techniques based on observable inputs, either directly (ie as prices) or indirectly (ie derived from prices). This category includes instruments valued using: quoted market prices in active markets for similar instruments; quoted prices for identical or similar instruments in markets that are considered less than active; or other valuation techniques where all significant inputs are directly or indirectly observable from market data.

Level 3: Valuation techniques using significant unobservable inputs. This category includes all instruments where the valuation technique includes inputs not based on observable data and the unobservable inputs have a significant effect on the instrument’s valuation. This category includes instruments that are valued based on quoted prices for similar instruments where significant unobservable adjustments or assumptions are required to reflect differences between the instruments.

Fair values of financial assets and financial liabilities that are traded in active markets are based on quoted market prices or dealer price quotations. For all other financial instruments the Company determines fair values using valuation techniques.

Valuation techniques include net present value and discounted cash flow models, comparison to similar instruments for which market observable prices exist. Assumptions and inputs used in valuation techniques include risk-free and benchmark interest rates, credit spreads and other premium used in estimating discount rates, foreign currency exchange rates and expected price volatilities and correlations. The objective of valuation techniques is to arrive at a fair value determination that reflects the price of the financial instrument at the reporting date that would have been determined by market participants acting at arm’s length.

The Company uses widely recognised valuation models for determining the fair value of common and more simple financial instruments such as interest rate that use only observable market data and require little management judgment and estimation. Observable prices and model inputs are usually available in the market for simple over the counter derivatives, eg interest rate swaps. Availability of observable market prices and model inputs reduces the need for management judgment and estimation and also reduces the uncertainty associated with determination of fair values. Availability of observable market prices and inputs varies depending on the products and markets and is prone to changes based on specific events and general conditions in the financial markets.

34


18. Related party transactionsRelated parties of the Company include subsidiary undertakings, directors and, key management personnel, as well as entities connected through common directors.

Apex Fund Services being hired as administrator for secretarial work in the two months to June 30, 2014.

As at 30 June

2014$

As at 31 August

2013$

Trading transactionsDividends received from Trito Petersfield Limited 63 156 –Director fees 11 587 19 190

Amounts receivableDelta International Mauritius Limited 275 734 –

Amounts payableRedefine International Holdings Limited – 190 957Osiris Property Services Limited – 101 422Director fees – 8 566

Loans receivable from Delta International Mauritius Limited are not secured, bear no interest and is repayable within 24 months from the utilisation date. The loan receivable forms part of a loan facility available to Delta International Mauritius Limited to a total value of $10 000 000.

Loans payable to Osiris Property Services Limited are not secured, bear no interest and are expected to be repaid in cash within 12 months.

Directors$11 587 (2013: $19 190) was paid to directors during the financial period ended 30 June 2014. Refer to the Directors’ Remuneration report for further details.

19. Cash flow information19.1 Changes in working capital

10 months ended

30 June 2014

$


2013$

(Increase) in trade receivables (31 947) (327)(Decrease)/Increase in trade payables (288 342) 223 784

(320 289) 223 457

19.2 Disposal of subsidiariesThe Company disposed of the following subsidiary during the financial year ended 30 June 2014:

• Trito Petersfield Properties Limited was disposed on 15 April 2014 to KSP Offshore Limited together with any claims on the loan account which the Company held in Trito for a total sales price of £735 000.

The assets and liabilities from the disposal was as follows:

10 months ended

30 June 2014

$


2013$

Investment disposedCost of investment in subsidiary (£755 025) (1 262 893) (818 012)Less: Loan accounts settled 303 123 (957 874)Less: Cash received 926 369 (39 624)

(Loss)/Profit on disposal of the subsidiary (33 401) (179 486)



20. Contingencies, guarantees and capital commitmentAt the reporting date, the Company had entered into the following commitments:

• On 27 May 2014, the Company entered into an agreement with Sociedade Construcoes Catembe Limitada to purchase the Vodacom building for a purchase consideration of $45 000 000. The multi-storey building is located in Maputo, Mozambique. The acquisition thereof is still dependent on a number of the conditions as per the agreement being fulfilled.

• On 28 April 2014, the Company entered into an agreement with CV6 Limited, Vincente, Mandlate, Mirapeix, Cotoa Alvim, NAth, Hulley-Miller, Valy and Mittermayer to purchase all (100%) the shares and claims in HM&K Properties Limited (“HM&K”) (incorporated in Mauritius) for a purchase consideration of $13 347 500. HM&K indirectly owns the Hollard building through its subsidiary Commotor Limitada (incorporated in Mozambique).

21. Subsequent eventsThe Company has embarked on a strategy of acquiring a portfolio of African real estate assets (excluding assets in South Africa) in furtherance of the its stated objective.

Post year-end Delta International directly or indirectly completed the following equity and property acquisitions:

• Delta International Mauritius Limited (incorporated in Mauritius), a wholly owned subsidiary of Delta International Property Holdings Limited;

• Delta International Bahrain Limited (incorporated in Bahrain), a wholly owned subsidiary of Delta International Mauritius Limited;

• Freedom Property Fund SARL (incorporated in Morocco), a wholly owned subsidiary of Delta International Bahrain Limited. Freedom Property Fund acquired Anfa Place, a 30 711 m2 shopping centre located in Casablanca, Morocco;

• SAL Investment Holdings Limited (incorporated in Mauritius), a wholly owned subsidiary of Delta International Mauritius Limited; and

• S&C Imobiliaria Limitada (incorporated in Mozambique), wholly owned subsidiary of SAL Investment Holdings Limited. S&C Imobliaria Limitada is the owner of the Anadarko Building, a 7 058 m2 office building located in Maputo, Mozambique.

The acquisitions were largely financed through the issue of new Delta International shares as follows:

• 9 962 500 shares issued on 11 July 2014 for a total consideration of $19 925 000;

• 33 291 876 shares issued on 23 July 2014 for a total consideration of $66 583 752; and

• 428 791 shares issued on 1 October 2014 for a total consideration of $857 582.

At a special general meeting held on 31 October 2014 the shareholders approved a change in the domicile of the Company from Bermuda to Mauritius. The Company will be discontinued as an exempted company incorporated in Bermuda and continued as a Global Business Company organised under the laws of Mauritius under the name “Delta International Property Holdings Limited”. The application to migrate the Company is still pending and is expected to be completed in January 2015.

22. Approval of financial statementsThe financial statements were approved by the Board on 18 December 2014.

36


General shareholders’ information

Shareholders’ analysisfor the 10 months ended 30 June 2014

Number of shareholdings

% of total shareholdings

Number of shares

% of issued capital

Equity holders’ spread1 – 999 shares 9 64.69 1 600 0.241 000 – 9 999 shares 2 14.29 9 192 1.3810 000 – 99 999 shares 2 14.29 62 176 9.36100 000 – 999 999 shares 1 7.14 591 212 89.01

Total 14 100.00 664 180 100.00

Distribution of equity holdersBanks/Brokers 12 85.72 72 168 10.87Private Corporations 1 7.14 800 0.12Holding Company 1 7.14 591 212 89.01

Total 14 100.00 664 180 100.00

Shareholder typeNon-public shareholders 14 100.00 664 180 100.00Holding Company 1 7.14 591 212 89.01Other non-public shareholders 13 92.86 72 968 10.99Public shareholders – – – –

Total 14 100.00 664 180 100.00

Total shareholding

% of issued capital

Beneficial shareholders with a holding greater than 5% of the issued sharesDelta Property Fund Limited 591 212 89.01

Total 591 212 89.01

Share performance – period ended (not reviewed)

2014 2013

Shares traded 591 212 6 300Shares in issue 664 180 664 180Shares traded as percentage of number of shares in issue (%) 89.01 0.95

Value traded (ZAR) 8 720 377 65 000

Opening price (ZAR cents) 1 550 1 300Closing price (ZAR cents) 1 550 1 550High closing price for the period (ZAR cents) 1 550 1 550Low closing price for the period (ZAR cents) 1 550 1 300


Notes

www.deltainternationalproperty.com

69

Annexure G

UNAUDITED FINANCIALS FOR THE PERIOD ENDED 31 DECEMBER 2014

GEOGRAPHIC PROFILEGLA (%)

Morocco (80%)

Mozambique (20%)

GEOGRAPHIC PROFILERevenue (%)

Morocco (72%)

Mozambique (28%)

www.deltainternationalproperty.com

Delta International Property Holdings Limited(formerly Osiris Properties International Limited)(Incorporated in Bermuda with registration number 46566)BSX share code: DLI.BHJSE share code: DLI ISIN: BMG2707T1018(“Delta International” or “the Company” or “the Group”)

Further details concerning the Company and this regulatory release can be accessed via the Company’s website at www.deltainternationalproperty.com.

By order of the Board

Sandile Nomvete Louis SchnetlerChairman Chief executive officer

Bermuda4 February 2015

NotesBasis of preparationThe unaudited interim results for the six months ended 31 December 2014 have been prepared in accordance with International Financial Reporting Standards (“IFRS”), including IAS 34 – Interim Financial Reporting, the rules of the BSX and the Listings Requirements of the JSE.

The results above have not been audited or reviewed by the Company’s external auditors, Deloitte Limited Bermuda. The accounting policies adopted are consistent with those published in the audited annual financial statements for the year ended 30 June 2014. Where applicable, new accounting policies have been adopted by the Group in the current reporting period. The investments in subsidiaries which the Group has made in the current reporting period have been accounted for as a financial instrument in terms of IFRS 9 and are measured at fair value through profit and loss in its separate financial statements.

These financial statements were approved by the Board on 04 February 2015.

Dividend declarationThe Board has approved and notice is hereby given that a maiden cash dividend of 6.63 USD cents per share, has been declared in respect of the six months from 01 July 2014 to 31 December 2014.

The salient dates for the dividend are set out below:

Last day to trade cum dividend (BSX and JSE) Friday, 20 February 2015Securities trade ex-dividend (BSX and JSE) Monday, 23 February 2015Record date (BSX and JSE) Friday, 27 February 2015Payment date Monday, 02 March 2015

Payment dateNo dematerialisation or rematerialisation of share certificates, nor transfer of shares between sub-registers in Bermuda and South Africa will take place between Monday, 23 February 2015 and Friday, 27 February 2015, both days inclusive. Shareholders on the South African sub-register will receive dividends in South African Rand, based on the exchange rate to be obtained by the Company on or before Friday, 13 February 2015. A further announcement in this regard will be made on or before Friday, 13 February 2015.

The Board accepts full responsibility for the accuracy of the information contained in these financial statements. The directors are not aware of any matters or circumstances arising subsequent to the period ended 31 December 2014 that require any additional disclosure or adjustment to the financial statements.

Unaudited

Interim financial results

Directors’ commentaryNature of the businessDelta International was incorporated on 16 May 2012 in Bermuda as an Exempted Company in accordance with the applicable laws of Bermuda. Pursuant to a shareholders resolution passed on 31 October 2014, the Company is in the process of migrating from Bermuda to Mauritius and will be continued as a Global Business Company organised under the laws of Mauritius. Delta International has a primary listing on the Bermuda Stock Exchange (“BSX”) and a secondary listing on the Alternative Exchange (“AltX”) of the Johannesburg Stock Exchange Limited (“JSE”). The Company will delist from the BSX and is seeking a listing on the Stock Exchange of Mauritius (“SEM”), subject to the registration and continuance of the Company in Mauritius. The application to migrate the Company is still pending and is expected to be completed during February 2015. Upon the completion of the migration to Mauritius and subsequent listing on the SEM, the Company intends to transfer from the JSE’s AltX to the JSE Main Board.

The primary objective of the Company is to invest in high quality real estate assets underpinned by long-term leases with strong counterparties delivering sustainable income. The Company’s strategy is to invest in stable, high growth countries in Africa, outside of South Africa.

Business reviewDuring the financial period ended 30 June 2014 the Company disposed of its only asset, a UK based property, and changed its focus from the United Kingdom and Europe to Africa (excluding South Africa). A comparison of the six months ended 31 December 2014 to the six months ended 31 December 2013 is therefore not considered meaningful and has not been presented.

During the six-month period ended 31 December 2014 the Company raised United States Dollars (“USD”) 87,941,691 through the issue of 43,992,267 new shares. The equity raised, together with new debt facilities, was used to acquire the two properties outlined below:

• On 14 July 2014 the Company, through its subsidiary Delta International Mauritius Limited, acquired a property known as the Anadarko Building through the acquisition of 100% of the issued shares of SAL Investment Holdings Limited. The Anadarko Building is a 7,805 m2 office building located in the affluent suburb of Sommershield, Maputo, Mozambique. Within Sommershield there is an emerging prime business node with many international tenants. The building is anchored by Anadarko Petroleum Corporation (“Anadarko”) with a lease term of 15 years which commenced in June 2013.

• On 25 July 2014 the Company, through its subsidiary Freedom Property Fund SARL, acquired a property known as Anfa Place. The 30,711 m2 shopping centre is located in the prestigious suburb of Anfa in Casablanca, Morocco. The centre has been operational for 24 months and forms part of a mixed use complex, including offices, residential apartments, a Four Seasons Hotel (opening mid 2015) and a Pestana Hotel. The regional shopping centre is anchored by Carrefour, Marks & Spencer, H&M as well as several brands within the Alshaya Group.

For the six months ended 31 December 2014, the Group showed a net loss after tax of USD 1.4 million. Included in the loss is a deferred tax expense of USD 2.0 million relating to straight-line rental income and investment property fair value adjustments as well as an unrealised foreign currency exchange loss of USD 6.4 million, primarily relating to the conversion of Moroccan Dirham (“MAD”) denominated net assets within Freedom Property Fund SARL, a 100% owned subsidiary.

Contractual rentals on the Anadarko Building are denominated in USD whereas the rentals on Anfa Place are denominated in MAD. The MAD rental income on Anfa Place is converted into USD using the average exchange rate for the reporting period. The Company does not hedge its MAD currency positions. From the date of acquisition of Anfa Place to 31 December 2014, the MAD has depreciated by 10.1% against the USD. The weaker exchange rate resulted in a reduced USD-based rental income of USD 0.47 million.

The loan to value ratio of the Group at 31 December 2014 was 49.48%.

The geographic breakdown of property revenue for the period under review was as follows:

for the six months ended 31 December 2014

Property Portfolio

Market value as Weighted at 31 December average Property

Property name Location SectorTotal GLA

(m2)2014

(USD’000)lease

expiryyield

(%)Occupancy

(%)

Anfa Place Casablanca, Morocco Retail 30,711 112,906 7.5 years 7.54 90.8Anadarko Building Maputo, Mozambique Office 7,805 37,500 10.9 years 10.42 100.0

Total 38,516 150,406 92.6^

^Represent the weighted average occupancy.

DividendDelta International‘s maiden dividend for the six-month period ended 31 December 2014 is 6.63 USD cents per share (2013: Nil).

Subsequent eventsOn 23 January 2015 the Group indirectly acquired the Hollard Building for USD 14.1 million through the acquisition of 100% of the issued shares of HM&K Properties Limited. The Hollard Building is a 4,945 m2 building, located in the rapidly emerging new downtown CBD of Maputo, Mozambique. The weighted average lease expiry is 3.6 years. The property yield in year one is 10.43%. The acquisition was funded with new debt facilities. The property is 100% occupied, and is anchored by Hollard Insurance, KPMG and British Petroleum. Other tenants in the area include the headquarters of Millennium Bank, USAID, Vale as well as various international oil and gas producing companies.

ProspectsThe Group is in the process of finalising the previously announced acquisition of the Vodacom Building in Maputo, Mozambique. The delay in transfer of the property has resulted in the purchase price increasing from USD 45 million to USD 49 million. The property, completed in December 2010, is an iconic multi-storey building located in a prime position in the new downtown CBD of Maputo, close to the Hollard Building. The single tenanted building is occupied by the Vodacom Group Limited with a 10 + 10-year fully maintaining lease, which commenced on 01 January 2011. The property is expected to be acquired at a yield of 6.97%.

Management will continue to focus on bedding down the initial acquisitions in order to optimise the full potential of the portfolio.

The development of phase 2 of the Anadarko Building is expected to commence in 2015. In addition to the net rental income to be generated on the leased building, the Group will share in the development fee without taking any development risk, reflecting the Group’s existing interest in the land. The development will be pre-committed with a long-term lease to Anadarko.

The Company is committed to progressively increasing its portfolio and continues to evaluate potential opportunities consistent with its strategy and investment principles. In the short term the Company will be focused on increasing its investments in Mozambique and Morocco.

Directors’ interests in sharesThe interests of directors in the share capital of the Company as at 31 December 2014 were as follows:

Beneficial Name Title Direct Indirect Shareholding %

Non-executive directors Bronwyn Corbett Non-executive director – 3,122,492 6.99Sandile Nomvete Chairman – 3,837,114 8.59

6,959,606 15.58

Unaudited consolidated statement of changes in equityfor the six months ended 31 December 2014

Foreign currency Total

Share translation Retained attributable tocapital reserve earnings equity holders

USD'000 USD'000 USD'000 USD'000

Balance at 01 September 2013 865 (31) 67 901Total comprehensive loss for the period – – (48) (48)Foreign currency translation reserve movement – 84 – 84

Balance at 30 June 2014 865 53 19 937

Total comprehensive loss for the period – – (2,156) (2,156)Foreign currency translation reserve movement – 736 – 736Shares issued 87,942 – – 87,942Share issue expenses (1,164) – – (1,164)

Balance at 31 December 2014 87,643 789 (2,137) 86,295

Consolidated statement of financial positionas at 31 December 2014

Unaudited AuditedAs at As at

31 Dec 2014 30 Jun 2014USD'000 USD'000

ASSeTSNon-current assetsInvestment property 150,406 –

Fair value of property portfolio 149,490 – Straight-line rental income accrual 916 –

Property, plant and equipment 81 –Goodwill 5,205 –Other financial assets 3,275 276

Total non-current assets 158,967 276

Current assetsTrade and other receivables 9,504 32Cash and cash equivalents 1,844 649

Total current assets 11,348 681

Total assets 170,315 957

eqUITy AND LIABILITIeSTotal equity attributable to equity holdersShare capital 87,643 865Foreign currency translation reserve 789 53Retained earnings (2,137) 19

Total equity attributable to shareholders 86,295 937

LiabilitiesNon-current liabilitiesInterest-bearing borrowings 74,418 –Deferred tax 7,975 –

Total non-current liabilities 82,393 –

Current liabilitiesTrade and other payables 1,105 20Current tax payable 522 –

Total current liabilities 1,627 20

Total liabilities 84,018 20

Total equity and liabilities 170,315 957

Net asset value per share (cents) 193.24 141.07Net asset value per share (excluding deferred taxation) (cents) 211.10 141.07

Consolidated statement of comprehensive incomefor the six months ended 31 December 2014

Unaudited Auditedsix months ended 10 months ended

31 Dec 2014 30 Jun 2014USD'000 USD'000

Gross rental income 6,837 –Straight-line rental income accrual 916 –

Revenue 7,753 –Investment income – 63Property operating expenses (1,671) –

Net property income 6,082 63Other income 66 –Administrative expenses (572) (78)

Profit/(loss) from operations 5,576 (15)Acquisition costs (2,487) –Set-up costs (525) –Fair value adjustment on investment property 5,333 –Disposal of investment in subsidiary – (33)Realised foreign currency gain 516 –Unrealised foreign currency loss (6,373) –

Profit/(loss) before interest and taxation 2,041 (48)Interest income 18 –Finance costs (1,701) –

Profit/(loss) for the period before tax 358 (48)Current tax expense (530) –Deferred tax expense (1,984) –

Loss for the period after tax (2,156) (48)

Gain on translation of presentation currency 736 84

Total comprehensive (loss)/income for the period attributable to equity holders (1,420) 36

Reconciliation of earnings, headline earnings and distributable earningsfor the six months ended 31 December 2014


31 Dec 2014 30 Jun 2014USD'000 USD’000

Basic earnings (1,420) 36Fair value adjustment on investment property (net of deferred taxation) (3,633) –

– Fair value adjustment (5,333) –– Deferred taxation 1,702 –

Gains or loss on the loss of control of a subsidiary – 33Foreign currency translation reserve movement (736) (84)

Headline earnings/(loss) attributable to shareholders (5,788) (15)Straight-line rental income accrual (net of deferred taxation) (633) –

– Straight-line rental income accrual (916) –– Deferred taxation 283 –

Unrealised foreign currency exchange differences 6,373 –Acquisition costs 2,487 –Set-up costs 525 –

Distributable earnings attributable to shareholders for the period 2,963 (15)Distribution from reserves – –Less: interim dividend (2,963) –

earnings not distributed – (15)Number of shares entitled to a dividend 44,656,447 664,180

Distributable earnings per share (cents) 6.63 N/A

Number of shares in issue 44,656,447 664,180Weighted average number of shares in issue 20,071,041 664,180Basic (loss)/earnings per share (cents)* (7.07) 5.48Headline earnings/(loss) per share (cents)* 0.34 (2.10)

* The Company does not have any dilutive instruments in issue.

Condensed consolidated statement of cash flowsfor the six months ended 31 December 2014


31 Dec 2014 30 Jun 2014USD'000 USD'000

Net cash utilised in operating activities (3,796) (335)Net cash (utilised in)/generated from investing activities (94,368) 651Net cash generated from financing activities 99,359 294Net cash at the beginning of the period 649 39

Net cash at the end of the period 1,844 649

Consolidated segmental analysisUnaudited Audited

six months ended 10 months ended31 Dec 2014 30 Jun 2014

USD’000 USD’000

Profit/(loss) before taxMorocco (3,500) –Mozambique 6, 791 –Corporate (2,933) (48)

Total 358 (48)

Unaudited AuditedAs at As at

31 Dec 2014 30 Jun 2014USD’000 USD’000

Total assetsMorocco 118,718 –Mozambique 46,439 –Corporate 5,158 –

Total 170,315 –

Registered officeWilliams House, 3rd Floor, 20 Reid Street, Hamilton, Bermuda, HM11

Directors: Sandile Nomvete (Chairman and non-executive director), Louis Schnetler (Chief executive officer), Greg Pearson (Chief operating officer), Greg Booyens (Chief financial officer), Bronwyn Corbett (Non-executive director), James Keyes (Independent non-executive director), David Brown (Independent non-executive director) and Peter Todd (Independent non-executive director).

Auditors: Deloitte Limited (Bermuda)

Transfer secretary: Computershare Investor Services Proprietary Limited Ground Floor, 70 Marshall Street, Johannesburg, 2001, South Africa

Registrar and transfer agent: Apex Fund Services Limited

BSX sponsor: Global Custody and Clearing Limited

JSe sponsor: Java Capital

Company secretary: Apex Fund Services Limited

70

Annexure H

SCHEDULE OF RENTAL INCOME

Anadarko Building

Tenant Name 2015 2016 2017

Schlumberger [USD] 167,642.94 174,348.65 181,322.60

PTTEP [USD] 118,249.42 122,979.40 127,898.57

Fluor [USD] 163,861.96 170,416.44 177,233.10

Baker Hughes [USD] 90,544.00 94,165.76 97,932.39

[VACANT Management House] [USD] - - -

[VACANT Cafe area] [USD] - - -

Anadarko - 1st floor [USD] 186,733.37 194,202.70 201,970.81

Mitsui [USD] 205,495.61 213,715.43 222,264.05

Standard Chartered - area 1 [USD] 172,343.23 179,236.96 186,406.44

Standard Chartered - area 2 [USD] 144,828.90 150,622.05 156,646.93

Sal & Calderia Advogados [USD] 663,635.10 690,180.50 717,787.72

Anadarko - 3rd floor [USD] 684,991.88 687,253.96 691,701.31

Anadarko - 4th floor [USD] 684,991.88 687,253.96 691,701.31

Anadarko - 5th floor [USD] 679,796.85 706,988.72 735,268.27

Other recoveries [USD] 140,328.00 145,941.00 151,778.00

4,103,443.13 4,217,305.54 4,339,911.52

Anfa Place Shopping Centre

Tenant Name 2015 2016 2017

VACANT [MAD] 6,393.60 6,660.00 7,032.96

VACANT [MAD] 20,688.00 21,550.00 22,756.80

CANDYLAND [MAD] 101,594.26 106,265.08 111,885.01

CANDYLAND [MAD] 29,168.91 30,509.95 32,123.50

BENSON SHOES [MAD] 38,129.19 42,997.20 45,271.15

VACANT [MAD] 21,316.80 22,205.00 23,448.48

VACANT [MAD] - - -

Flexa [MAD] 40,337.07 42,191.58 44,422.92

CELIO CLUB [MAD] 72,077.52 75,391.29 79,378.43

VACANT [MAD] 29,388.00 30,612.50 32,326.80

CELIO [MAD] 185,498.36 194,026.67 204,287.96

PAUL [MAD] 167,826.86 175,620.04 184,849.66

VACANT [MAD] 16,368.00 17,050.00 18,004.80

VACANT [MAD] - - -

Label Vie [MAD] - - -

FUXIA [MAD] 37,268.62 38,982.05 41,043.66

VACANT [MAD] 26,745.60 27,860.00 29,420.16

DAGY [MAD] 108,874.07 113,879.57 119,902.20

PARADIS DU FRUIT [MAD] 116,111.85 121,503.61 127,889.17

VACANT [MAD] - - -

VACANT [MAD] - - -

VACANT [MAD] 141,187.20 147,070.00 155,305.92

MARKS & SPENCERS [MAD] 166,416.82 174,067.86 183,273.60

GREEN IS BETTER [MAD] 14,845.33 15,527.85 16,349.06

VACANT [MAD] 30,528.00 31,800.00 33,580.80

VACANT [MAD] 6,028.80 6,280.00 6,631.68

VACANT [MAD] 7,780.80 8,105.00 8,558.88

PIZZA PINO [MAD] 381,577.72 399,296.60 420,281.43

71

ANGELO EXPRESS [MAD] 41,046.16 42,875.67 45,186.56

GIFI [MAD] 2,368,522.01 2,567,258.52 2,706,432.32

GIFI [MAD] 2,790,056.33 3,024,162.67 3,188,105.73

STARBUCKS [MAD] 680,428.77 684,488.67 688,751.57

H&M [MAD] 6,158,781.91 6,333,319.72 6,394,038.47

MOTHERCARE [MAD] 1,846,647.18 1,860,826.96 1,875,715.73

ORCHESTRA [MAD] 1,426,263.57 1,716,762.74 1,837,305.33

VIRGIN [MAD] 2,849,681.11 3,542,852.66 3,735,182.80

LA GRANDE RECRE [MAD] 600,905.40 691,919.05 729,809.73

LA GRANDE RECRE [MAD] 251,327.96 289,394.31 305,242.04

MOROCCAN TOUCH [MAD] 535,441.46 570,639.95 602,262.32

FIRST TIME [MAD] 207,106.52 215,902.85 227,867.24

SWATCH [MAD] 172,699.47 180,034.45 190,011.17

D'EN NOGUES [MAD] 269,856.14 281,317.61 296,906.99

ERAM [MAD] 338,540.76 418,745.29 448,426.36

MISS PARIS [MAD] 448,247.86 477,714.48 504,187.33

KRYS [MAD] 375,077.18 401,470.22 423,585.38

SPRINGFIELD/CAMAEIU [MAD] 948,057.19 1,195,367.48 1,279,883.60

CITY SPORT [MAD] 116,179.21 121,177.75 127,844.45

CITY SPORT [MAD] 2,039,309.98 2,128,750.48 2,244,581.76

AMERICAN EAGLE [MAD] 394,888.54 397,507.46 400,257.34

AMERICAN EAGLE [MAD] 1,493,285.17 1,504,589.42 1,516,458.90

AMERICAN EAGLE [MAD] 505,229.74 508,384.97 511,697.97

PILI CARRERA [MAD] 506,463.55 539,757.12 569,668.10

FG4 Kids [MAD] 473,418.67 571,900.44 603,495.28

MAYORAL [MAD] 1,195,046.07 1,273,605.22 1,344,182.85

ZIDDY [MAD] 425,881.50 514,474.48 542,896.79

ZIDDY [MAD] 483,316.69 583,857.48 616,112.89

MAROC TELECOM [MAD] 234,804.36 244,921.91 258,385.01

Flexa [MAD] 656,938.51 684,957.04 722,826.19

ATTIJARI WAFA BANK [MAD] 531,333.85 553,968.02 584,615.82

EXCLUSIVE [MAD] 425,572.33 453,548.32 478,681.98

MOA [MAD] 458,268.63 551,920.36 582,480.27

LABEL VIE [MAD] 4,708,232.67 5,201,567.01 5,477,456.67

NEXT [MAD] 1,647,033.70 1,706,654.40 1,718,489.81

CELIO CLUB [MAD] 358,890.56 432,233.13 456,165.94

CELIO CLUB [MAD] 362,998.26 437,180.54 461,387.29

FG4 Women [MAD] 462,499.77 558,710.16 589,576.30

Costa Café (Ex Women Secret) [MAD] 651,834.60 736,172.20 776,934.16

MONSOON [MAD] 837,781.49 1,012,058.96 1,067,970.50

JENNYFER [MAD] 768,030.70 924,985.37 976,201.95

CELIO [MAD] 860,748.30 897,360.44 947,047.42

CLARCK’S [MAD] 518,559.00 626,430.98 661,038.38

US POLO [MAD] 792,374.84 957,206.70 1,010,087.92

PAYLESS SHOES [MAD] 915,992.30 960,807.35 967,889.92

ACCESSORIZE [MAD] 252,998.91 305,628.40 322,512.95

LA SENZA [MAD] 619,161.78 775,652.71 818,503.91

PEDRO [MAD] 370,709.98 447,826.04 472,566.34

NINE WEST [MAD] 643,194.25 776,993.19 819,918.44

CELIO [MAD] 750,073.62 781,978.18 825,276.43

JENNYFER [MAD] 505,530.42 608,840.56 642,552.15

STEVE MADDEN [MAD] 513,898.49 620,800.99 655,097.35

Body Shop [MAD] 390,697.58 729,525.58 769,737.62

BEAUTY SUCCESS [MAD] 718,596.07 792,359.30 836,268.38

BEAUTY SUCCESS [MAD] 663,647.93 731,770.78 772,322.32

CHARLES & KEITH [MAD] 574,440.69 693,937.33 732,274.13

LA VIE EN ROSE [MAD] 284,557.20 343,751.52 362,742.19

QUIZ [MAD] 498,141.54 601,766.24 635,011.02

SALSA JEANS [MAD] 561,835.13 678,709.53 716,205.07

MARKS & SPENCERS [MAD] 3,438,287.61 3,772,069.62 3,978,331.39

72

COLLEZIONE [MAD] 1,383,371.42 1,671,143.93 1,763,466.84

CARAMELO [MAD] 475,800.38 496,534.18 523,653.05

LACOSTE [MAD] 627,028.74 661,166.24 697,790.71

GANT [MAD] 620,509.06 654,291.61 690,535.27

SERGE BLANCO [MAD] 624,974.08 666,058.21 702,968.24

PARLONS FRINGUES [MAD] 600,024.49 639,468.50 674,905.05

BENETTON [MAD] 1,386,541.03 1,669,894.13 1,762,356.42

DIAMANTINE [MAD] 322,402.44 342,204.83 368,940.82

FLOMERIE [MAD] 222,328.34 268,577.66 283,415.32

ICE WATCH [MAD] 131,782.98 137,380.13 144,993.14

MOOD'S [MAD] 155,761.64 162,377.22 171,375.46

NEW YORKER [MAD] 2,857,629.18 3,097,081.24 3,267,685.30

TERRANOVA [MAD] 1,704,180.96 1,957,260.71 2,065,248.75

ADL [MAD] 818,162.97 988,359.35 1,042,961.60

VACANT [MAD] 410,572.76 427,679.96 451,630.04

VACANT [MAD] 63,213.23 65,847.12 69,534.56

ATLAS VOYAGES [MAD] 247,101.34 265,582.78 280,284.82

Kosebasi [MAD] 288,899.00 313,472.78 317,892.17

GREEN IS BETTER [MAD] 388,874.15 424,987.15 448,576.06

O' CREPE [MAD] 440,634.28 481,554.01 508,282.66

ANGELO EXPRESS [MAD] 510,420.69 557,821.18 588,783.04

BE WOK [MAD] 341,864.06 446,610.04 460,303.71

VACANT [MAD] 407,712.80 424,700.84 448,484.08

VACANT [MAD] 407,712.80 424,700.84 448,484.08

COFFEE SHOP COMPANY [MAD] 449,371.59 491,080.89 518,334.96

LUIGI-DA-GINO [MAD] 455,967.84 498,311.53 525,970.31

OLIVERI [MAD] 453,200.32 495,287.00 522,777.90

Domino's Pizza [MAD] 436,432.06 501,254.32 529,076.43

Burgy [MAD] 336,350.48 357,909.31 434,333.90

Burgy [MAD] 342,695.68 364,661.21 442,527.53

BURGER KING [MAD] 639,270.81 700,444.26 739,253.94

BURGER KING [MAD] - - -

BEIRUT CHEF [MAD] 507,503.58 554,633.16 585,418.07

LLAOLLAO [MAD] 501,145.76 547,684.92 578,084.16

SUSHI CLUB [MAD] 448,787.24 490,464.11 517,687.31

K F C [MAD] 576,229.90 580,591.99 593,321.99

DAGY [MAD] 733,652.62 797,369.97 841,525.30

COFFEE SHOP COMPANY [MAD] 39,738.14 41,509.35 43,746.59

LUIGI-DA-GINO [MAD] 39,609.18 41,374.64 43,604.62

O' CREPE [MAD] 31,082.03 32,511.03 34,230.41

Oliveri [MAD] 40,732.97 42,548.52 44,841.77

BEIRUT CHEF [MAD] 48,562.70 50,727.23 53,461.29

Domino's Pizza [MAD] 40,732.97 42,548.52 44,841.77

VACANT [MAD] - - -

Burgy [MAD] 39,609.18 40,299.64 41,884.62

Burgy [MAD] 39,609.18 40,299.64 41,884.62

VACANT [MAD] 42,888.31 44,675.32 47,177.14

JUJU'S [MAD] 119,822.65 134,390.72 141,865.65

Lavazza [MAD] 93,935.63 105,356.35 111,216.36

Cinabon [MAD] 252,381.77 276,687.89 277,652.29

VACANT [MAD] 351,306.68 365,944.46 386,437.35

VACANT [MAD] 98,863.87 102,983.20 108,750.26

VACANT [MAD] 218,617.34 227,726.40 240,479.08

VACANT [MAD] 114,364.07 119,129.24 125,800.48

BMCE BANK [MAD] 757,729.68 790,046.96 833,726.21

FLORALIA [MAD] 194,853.40 266,071.20 270,027.17

PHARMACIE ANFAPLACE [MAD] 336,797.10 351,128.65 370,566.31

CANDYLAND [MAD] 1,589,863.66 1,718,328.66 1,813,258.31

PAUL [MAD] 955,233.01 1,034,824.40 1,091,945.29

L'ARBRE DE ZOE [MAD] 36,000.00 - -

73

VACANT [MAD] 992,270.77 1,033,615.39 1,091,497.85

BENSON SHOES [MAD] 312,757.09 375,815.63 396,593.31

EVE JOAILLERIE [MAD] 386,603.32 416,209.41 439,235.83

VACANT [MAD] 416,450.91 433,803.03 458,096.00

VACANT [MAD] 304,344.37 317,025.39 334,778.81

VACANT [MAD] 114,271.19 119,032.49 125,698.30

VACANT [MAD] 75,680.39 78,833.74 83,248.43

VACANT [MAD] 115,783.81 120,608.14 127,362.19

PIZZA PINO [MAD] 349,118.99 384,497.46 405,755.14

PIZZA PINO [MAD] 349,273.56 384,667.70 405,934.78

PIZZA PINO [MAD] 366,688.29 403,847.17 426,174.63

PIZZA PINO [MAD] 824,881.21 908,471.72 958,698.31

Terrazas (Pizza Pino) [MAD] 25,524.50 26,800.73 28,140.76

Terrazas (Pizza Pino) [MAD] 103,260.55 108,423.57 113,844.75

NESPRESSO [MAD] 334,850.01 349,110.98 368,427.67

FUXIA [MAD] 660,228.22 751,022.53 792,555.78

Terrazas Fuxia [MAD] 22,235.99 23,347.79 24,515.18

Terrazas Fuxia [MAD] 62,462.45 65,585.57 68,864.85

VACANT [MAD] 513,895.05 535,307.34 565,284.55

VACANT [MAD] - - -

VACANT [MAD] - - -

PARADIS DU FRUIT [MAD] 827,869.54 911,762.88 962,171.42

Terrazas Paradis du fruit [MAD] 15,379.57 16,148.55 16,955.98

Terrazas Paradis du fruit [MAD] 56,553.41 59,381.08 62,350.13

OKKU [MAD] 1,280,476.12 1,407,893.26 1,485,478.62

OKKU [MAD] 952,193.31 1,046,943.81 1,104,638.18

Terrazas Okku [MAD] 173,642.40 182,324.52 191,440.75

OKKU [MAD] 572,825.05 629,825.51 664,533.57

MEAT CO [MAD] 354,168.24 390,058.38 411,623.50

MEAT CO [MAD] 1,051,787.95 1,158,372.38 1,222,415.20

Terrazas Meat & CO [MAD] 112,901.28 118,546.34 124,473.66

MEAT CO [MAD] 719,516.94 792,430.21 836,241.22



VACANT [MAD] 607,981.92 633,314.50 668,780.11

VACANT [MAD] 682,363.77 710,795.59 750,600.15

VACANT [MAD] - - -

VACANT [MAD] - - -

VACANT [MAD] - - -

Other property recoveries [MAD] 5,104,187.50 5,604,656.25 8,001,556.25

Vacancy adjustments Storage [MAD] - 293,657.10 337,067.28

Local CC [MAD] - -

1,276,595.75 -

1,465,309.90

Local SR [MAD] - -

4,414,269.39 -

5,066,813.56

103,414,101.27 108,188,311.13 115,122,204.73

9.47 9.47 9.47

Total rental income and recoveries [USD] 10,925,832.93 11,430,234.35

12,162,809.13

Hollard Building

Tenant Name 2015 2016 2017

KPMG [USD] 177,277.93 432,239.60 445,206.79

KPMG - parking [USD] 2,384.28 5,813.37 5,987.77

BP [USD] 173,170.63 424,415.71 441,392.34

BP - parking [USD] 4,293.12 10,521.80 10,942.68

74

Hollard [USD] 73,076.01 179,098.54 186,262.49

British Council [USD] 76,860.74 193,900.28 209,412.31

British Council - parking [USD] 452.74 1,142.14 1,233.51

Barclays [USD] 52,354.73 127,651.48 131,481.02

Barclays - parking [USD] 183.41 447.18 460.60

ABB [USD] 36,316.80 90,356.20 93,970.45

Hollard (Vida/Life) [USD] 25,173.58 61,696.73 64,164.60

Hollard (Vida/Life) - parking [USD] 536.64 1,315.23 1,367.83

Café Allegra [USD] 16,384.41 40,336.37 41,949.82

Café Allegra - parking [USD] 532.48 1,310.90 1,363.34

Apartment 1 [USD] 19,881.48 48,726.58 50,675.64

Apartment 2 [USD] 16,929.96 41,492.84 43,152.55

VDE [USD] 4,520.16 11,078.25 11,521.38

Other property recoveries [USD] 17,211.60 42,761.26 44,471.71

697,540.70 1,714,304.46 1,785,016.82

Vodacom Building

Tenant Name 2015 2016 2017

Vodacom - office [USD] 732,660.40 3,003,907.65 3,154,103.04

Vodacom - storage [USD] 22,577.05 92,565.89 97,194.18

Vodacom - parking [USD] 120,072.57 492,297.53 516,912.41

Sublease [USD] 14,741.21 60,438.97 63,460.92

Other property recoveries [USD] 2,025.53 8,264.17 8,594.74

892,076.76 3,657,474.22 3,840,265.29

Zimpeto Square

Tenant Name 2015 2016 2017

Retail Masters, S.A [USD] 95,794.44 389,806.91 403,450.16

BIM, SA [USD] 16,585.01 66,754.68 68,423.54

Vodacom Mozambique, SA [USD] 10,119.85 42,166.03 44,274.33

Jimco, LDA [USD] 14,001.27 57,265.19 58,983.15

Judy's Pride Fashions, LDA [USD] 13,312.65 55,469.36 58,242.83

VHL Servicos, LDA [USD] 10,245.69 42,007.33 44,107.70

FNB Mocambique [USD] 10,694.23 43,489.89 45,664.38

PEP (Mocambique), LDA [USD] 28,106.90 116,643.64 122,475.83

Farmacia Sorriso, LDA [USD] 6,248.66 25,931.92 27,228.51

Maputo Optica E Servicas, LDA [USD] 6,293.98 25,488.04 26,125.24

EDCON Mocambique, LDA [USD] 89,004.83 370,853.44 389,396.11

Jimco, LDA [USD] 818.85 3,349.10 3,449.57

FNB Mocambique, SA [USD] 850.50 3,458.70 3,631.64

Five Senses [USD] 1,854.00 7,527.24 7,753.06

Total 303,930.85 1,250,211.46 1,303,206.03

to download part c of the business plan

Documents