ATTFUND AND SYCOM ACQUIRE STAKE IN MAJOR GERMAN SHOPPING CENTRE

Attfund Limited, one of the largest privately held property funds in Southern Africa, has acquired 22.5% of the Stenham European Shopping Centre Fund. In the same transaction, Johannesburg Stock Exchange listed Sycom Property Fund acquired 22.5% and privately held Attacq Property Fund, with assets in excess of R3 billion, acquired 4.5%. Stenham Property Limited, a UK based property fund management group, holds the remaining 50.5% shares on behalf of their investors.

The Stenham European Shopping Centre Fund has bought one of Europe’s largest shopping malls, Nova Eventis, for €362 million. This 96 000m² regional shopping mall is located near Leipzig airport in Germany, is fully let and boasts 215 stores. Approximately 60% of the tenants are fashion oriented stores such as Zara, SinnLeffers, Peak & Cloppenburg, Esprit, MEXX and C&A.

The shopping mall will continue to be managed by ECE. ECE manages a significant number of the prime shopping centres across Germany.

Louis Norval, CEO of Attfund Limited explains the decision to invest in Europe: "The rationale behind the investment is that it is a currency hedge in a quality world class investment property. Secondly, we have chosen to invest in Germany because in 2006 Germany was the major global real estate story, accounting for 20% of European volumes. Unemployment has fallen from over 5 million in late 2004 to less than 4 million and Germany is expected to grow by 2.3%, according to upwardly revised figures from the German government which also expects unemployment to fall below 3.5 million in 2008. This asset is in line with our strategy of investing in quality regional shopping centres."

"We look forward to growing our partnership with Stenham Property. We recognize the fact that they have active investment experience in Europe with €1.2 billion assets under management and an impressive weighted IRR in excess of 24%", Norval concludes.

Attfund, with assets in excess of R7 billion, owns sought after properties such as the Capegate Shopping Precinct, Woodlands Boulevard, Garden Route Mall, Atterbury Value Mart, Clearwater Mall and co-owns Centurion Mall. Attfund’s current R440 million international investments include investments in listed US based Simon Group and Deutsche Euroshop, both performing exceptionally well.

Neno Haasbroek, CEO of Sycom Property Fund explains the Fund’s investment: "We are impressed by the quality of Nova Eventis which is on par with the best shopping centres in South Africa. Given the scarcity of this type of investment opportunity in South Africa, we are excited to be part of the Stenham European Shopping Centre Fund. Through partnering with reputable industry players and investing in a stable economy, we manage the risk of investing offshore. Our medium term goal is to have 15% of our assets invested offshore."

Sycom Property Fund has a portfolio of 13 properties in both the retail and commercial office sectors which include retail investments in Somerset Mall, Paarl Mall, Vaal Mall, N1 City and Fourways Crossing. Sycom has a market capitalization of R3.6 billion.

Paul Arenson, MD of Stenham Property welcomes this partnership: "Stenham views this as an opportunity to acquire strategic medium to long-term assets which can be enhanced through the complementary skills which the respective partners bring to the table."

Stenham Property has been investing in commercial property for its clients since 1994.

14 August 2007

Contact:
Louis Norval - CEO, Attfund Limited + 27 825585087
Neno Haasbroek - CEO, Sycom Property Fund +27 828541063
Paul Arenson - MD, Stenham Property + 0044 (020) 70796600