Annual Report 2005 We are reaching new heights Pangbourne Properties Limited Annual Report Report Annual Limited Properties Pangbourne
Pangbourne Properties Limited 2005 Pangbourne Properties Limited
Pangbourne currently has an industrial portfolio of 246 properties situated within Gauteng, Free State, KwaZulu-Natal and the Western Cape
Cuzco 484 Kyalami Boulevard Kyalami Business Park Midrand
Lanzerac Old Pretoria Road Halfway House Midrand
Tillbury 16th Road Randjespark Midrand
With the listing of the retail focused
Siyathenga Property Fund, we have taken another step in our Strategy and continue to be innovative in our focus on Sustainable
Growth
Contents
Company Profile ifc
Five Year Financial Summary 01
Additional Information for Investors 02
Highlights 04
Year In Review 05
Chairman’s Report 06
Reaching New Heights
Chief Executive’s Report 08
Moving Ahead With Our Strategy
Directorate and Executive Committee 14
Corporate Governance 16
Portfolio of Properties 20 Annual Report 2005
Company Profile
Pangbourne is a Property Loan Stock
company listed on the JSE Limited
“Financials – Real Estate” sector with a
market capitalisation of R1,9 billion. Total
assets are R2,9 billion. Pangbourne’s
prime objective is to increase
distributions at a rate in excess of CPIX
on a sustainable basis. Pangbourne has
differentiated itself from other property loan
stock companies by undertaking own
management of the properties in which
it has an interest. Management owns
7,6% of the units in issue through the
Pangbourne Unit Purchase Trust scheme,
thereby aligning management objectives
with those of unitholders.
www.pangbourne.co.za
Registration No: 1987/002352/06 Share code PAP ISIN ZAE 000005252 Continuous upgrading of properties for sustainable increase in distributions.
Five Year Financial Summary
2005 2004 2003 2002 2001 R’000 R’000 R’000 R’000 R’000
Revenue 355 408 291 907 275 846 166 135 136 530 Distributable earnings (Page 2) 172 944 161 428 156 204 90 424 64 548 Investment properties 2 126 509 1 100 223 1 200 538 1 253 967 732 182 Investments and loans in associates 453 603 394 811 117 306 163 — Trading investments in listed units — 23 290 162 592 63 607 3 111 Total assets 2 901 748 1 781 628 1 628 087 1 360 046 798 813 Combined unitholders’ interest 1 390 338 1 049 346 957 569 890 221 466 034 Net borrowings 1 257 773 552 295 485 948 349 284 274 933
Weighted average units in issue 179 080 833 176 130 961 175 981 149 105 029 358 80 395 064 Earnings per combined unit (cents) Earnings 165,59 74,77 68,22 22,80 101,35 Distributable earnings 96,57 91,66 88,76 86,09 80,29
Total distribution per unit 96,00 91,50 89,00 88,00 88,00
Net debt: income earning assets 45,9% 33,9% 30,5% 25,3% 34,8%
JSE LIMITED STATISTICS Highest unit price traded (cents) 1 035 800 720 700 710 Lowest unit price traded (cents) 717 660 506 480 550 Closing unit price (cents) 1 030 720 690 500 650 Volume of units traded 92 417 490 79 466 357 77 893 671 36 791 233 16 769 699 Units traded to average units in issue 51,6% 45,1% 44,3% 35,0% 20,9%
Total market capitalisation 1 946 425 1 309 754 1 255 181 880 571 530 285
Total returns Opening unit price (cents) 720 690 500 650 600 Income return (cents) 96,0 91,5 89,0 88,0 88,0 Capital return (cents) 310 30 190 (150) 50 Total return (cents) 406,0 121,5 279,0 (62,0) 138,0 Return: opening unit price 56,4% 17,6% 55,8% (9,5%) 23,0%
Page 1 Pangbourne Properties Limited
Additional Information for Investors for the year ended 30 June 2005
Compliance with South African Statements of GAAP, which are in the process of being harmonised with IAS, and their application on the property loan stock structure, which is unique to South Africa, has made it difficult for users to interpret these financial statements. This investor information insertion is aimed at disclosing to the users the basis on which the distribution per weighted average number of combined units in issue, was calculated. A reconciliation has been included to show the accounting adjustments which were not taken into account in calculating the distribution. Group 2005 2004 Distributable earnings R’000 R’000 Revenue 355 408 291 907 Net building costs (43 869) (44 779) Administrative costs (58 365) (49 215) Net profit on disposal of investments held-for-trade 1 051 15 831 Non-cash portion of profit on disposal of loans — (2 200) Interest received 12 350 13 269 Finance costs (94 150) (64 321) Cash share of profit from associates 2 300 1 347 SA normal tax and STC (812) (411) Minority interest (969) — Distributable earnings 172 944 161 428 Investors’ distributable earnings per combined unit Weighted average number of combined units in issue 179 081 176 131 Distributable earnings per combined unit (cents) 96,57 91,66 Opening share price 7,20 6,90 Closing share price 10,30 7,20 Distribution 0,96 0,915 Total return 56% 18% Reconciliation to profit for the year Distributable earnings 172 944 161 428 Revaluation of investment properties 226 561 36 743 Unrealised revaluation of listed investments held-for-trade — 1 683 Goodwill – amortised — (8 998) – realised (1 235) (2 561) Negative goodwill – amortised — 17 616 – realised — 10 691 Net profit on disposal of investment properties 5 461 14 703 Non-cash portion of profit on disposal of loans — 2 200 Movements in fair value of interest rate derivatives (24 888) (949) Amortisation of intangible asset (4 878) (3 253) Non-cash portion of profit from associates 42 384 2 363 Profit on sale of portion of subsidiary 304 — Profit before taxation and distribution to unitholders (excluding normal tax, STC and equity earnings) 416 653 231 666 Debenture interest – debt portion (83 448) (81 860) Amortised debenture interest (2 700) (2 316) Profit before taxation (excluding normal tax, STC and equity earnings) 330 505 147 490 Taxation (9 685) 7 345 Notional taxation reversed in statements of changes in equity (25 247) (23 136) Minority interest 969 — Profit for the year 296 542 131 699 Net asset value per unit with iFour investment carried at market value (cents) 931 642
Page 2 Pangbourne Properties Limited
Left to right Mr Noah Greenhill (Manager: Pangbourne 2005 Business Development at Five Year the JSE); Financial Summary 01 Mr André von Bülow (Managing Director: Siyathenga); and Additional Information Mr Tony Richards (Pangbourne for Investors 02 Executive Director, and Chairman Siyathenga), following Highlights 04 the successful listing of Year in Review 04 Siyathenga. Chairman’s Report 06
Chief Executive’s Report 08
Directorate and Executive Committee 14
Corporate Governance 16
Portfolio of Properties 20
Breaking new horizons by expanding investors’ choices
Page 3 Highlights
● Occupancies increased from 93,8% to 96,0%.
● Distributions increased to 96,00 cents per combined unit.
● Strategy gains momentum with the listing of Siyathenga.
Area – Expiry profile of leases Rand value – Expiry profile of leases PROPERTY GEOGRAPHICAL SPREAD BY RENTAL PROPERTY USAGE BY RENTAL % % 30 30 RETAIL 11% 25 25 OTHER 2% COMMERCIAL 20 20 16% GAUTENG 15 15 78%
10 10 INDUSTRIAL 5 5 73%
0 0 KWAZULU-NATAL 20% cant Va Monthly Monthly 07/05-06/06 07/06-06/07 07/07-06/08 07/08-06/09 07/09-06/10 07/05-06/06 07/06-06/07 07/07-06/08 07/08-06/09 07/09-06/10
AFM Corporate Park South, Midrand Page 4 Pangbourne Properties Limited
April 2005 2005/2006 Year in review Announcement of corporate � February 2005 action which resulted in the Board declared and announced listing of Siyathenga. increased interim distribution of 44,5 cents per unit.
June 2005 Board declared and May 2005 announced an increased October 2004 February 2005 Acquisition of final distribution of 2004 Culmination of iFour’s November 2004 Appointment to the Paramount portfolio 51,5 cents per unit. commercial mortgage Transfer of R425 million board of Mr B D Hopkins for R125 million. backed securitisation eThekwini portfolio. and Ms Y K N Molefi joint programme. as independent non- executive directors.
Page 5 Annual Report 2005
Chairman’s Report
We are reaching new heights...
Vision Pangbourne’s vision is to provide a sustainable increase in distributions to combined unitholders at a rate exceeding inflation. Part of the strategy to achieve this, is through strategic investments in specialised funds from which income is received by way of distributions and fees for services rendered. These income streams are in addition to the rental incomes received from Pangbourne’s directly held industrial and commercial portfolios. The specialised funds approach has proved successful with investors in property sectors of established economies such as the United States of America and Australia. A significant advantage of Pangbourne’s strategy is to manage the properties as well as to act as the incubator for transactions to grow the specialised funds. This strategy was first implemented with iFour’s “A Grade portfolio” and continued with the listing of Siyathenga, a predominantly retail fund.
Trading Environment The reduction and stability of interest rates have resulted in a highly competitive environment for the acquisition of properties. This coupled with the scarcity of stock in the market, has resulted in sellers demanding prices previously unheard of, especially in the retail sector.
The increase in demand for industrial space has seen a firming of rentals. There is also a shortage of available land, in the industrial intensive nodes of KwaZulu-Natal and Gauteng with Riverhorse, Linbro Park, Longmeadow business estates and Aeroport Park being all but sold out. This bodes well for our portfolio that has a 78% industrial component with a short lease expiry profile.
The office market has still not shown tangible signs of recovery across the board, but as the stability, inflation and growth targets of the country are met we believe that this sector will begin to improve.
Retail property still remains the highest performing and most sought after asset class in the industry. We believe that if the current trading environment is maintained, retail will continue to deliver substantial growth in returns and consequently value into the foreseeable future. Pangbourne has a significant investment in this industry through its strategic 43% stake in Siyathenga Property Fund.
With the narrowing of the yield gap between property returns and the cost of debt, a challenge that we are encountering in expanding the business, is the ability to locate quality properties at positive yields for our investors.
Performance Distributions were increased by 5% to 96 cents from 91,5 cents. This together with an increase in the share price to R10,30 at 30 June 2005 (2004: 7,25), gave combined unitholders a total return of 56% for the year, which is a most satisfactory performance.
International Accounting Standards With the Property Loan Stock structure being unique to South Africa it has become increasingly difficult for investors to interpret the financial statements with the application of International accounting standards. For this reason we have included an investor’s information page to assist users to determine the earnings supporting the distribution, as well as a reconciliation back to earnings and headline earnings as per accounting standards. This reconciliation has been included on page 2.
GAAP requires that the company segregates its debentures and debenture interest into debt and equity components in the balance sheet, income statement and statement of changes in equity. This gives rise to a profit in the income statement in respect of which tax is not payable. The auditors, contrary to the opinion of the directors insist that a notional tax charge of R25,2 million (2004: R23,1 million) be raised, failing which they would qualify their opinion.
Page 6 Pangbourne Properties Limited
Siyathenga listing trophy and certificate of listing. Pangbourne 2005 Five Year Financial Summary 01
Additional Information for Investors 02
Highlights 04
Year in Review 04
Chairman’s Report 06
Chief Executive’s Report 08
Directorate and Executive Committee 14
Corporate Governance 16
Portfolio of Properties 20
Prospects The listing of Siyathenga and consequent cash flows to Pangbourne, creates opportunities for us to grow our portfolio and assist in the growth of the specialised funds through similar transactions to the bulking up of iFour through the Sipan transaction. This will not only increase the asset base under management, but will also create market related transaction fee’s and income from the portfolios acquired. This in turn underwrites Pangbourne’s ability to increase distributions to combined unitholders above the average rate of inflation. Black Economic Empowerment Pangbourne is committed to black economic empowerment. We have contributed to the formulation of the Property Charter through Anthony Diepenbroek representing the Property Loan Stock sector on the Charter committee. There are a number of challenges facing the industry, in particular, concluding Black Empowerment equity ownership transactions, meeting procurement targets and finding qualified, previously disadvantaged, staff in the industry. Pangbourne has had extensive discussions with various parties and significant progress has been made to achieve the goals as set out in the Property Charter within the required time frames, without diluting shareholders interests. Pangbourne is committed to focusing on all aspects of the charter and not only equity ownership. In order for us to achieve this, our non-executive director, Barney Tsita, chairs the transformation committee to assist in the process. The committee meets once a quarter and monitors the progress against the Property Charter scorecard for feedback to the Pangbourne board. Social Responsibility Pangbourne continues to support the Nottingham Road Combined School with all its computer, software, internet and employment requirements to run the computer training facility. Adult education lessons on computer literacy have also been introduced on a weekend basis for residents in the area and are proving to be very popular. Pangbourne has once again sponsored senior pupils to participate in the JSE schools’ competitions, giving them the opportunity to participate in experiences that they would not normally be involved with. Pangbourne continues to match rand for rand the monies raised by staff for community based projects, and special mention needs to be made of the superb effort from the Durban staff this year in raising money through various fund raising activities undertaken in their own free time. Appointments To The Board During the year we appointed three new directors to the board. Each one bringing with them a unique set of skills and expertise that will add value to Pangbourne and their participation is appreciated. I extend a warm welcome to Nene Molefi (Independent non-executive director), Bryan Hopkins (Independent non-executive director) and Anthony Diepenbroek (Executive director). The board remains well balanced with a majority of independent non-executive directors as is recommended by the King II report on corporate governance and I thank the board for their continued commitment and support to the company. I congratulate the management team for the results produced for the year and thank the staff for their continued dedication and effort that they have put into the company. Athol Campbell It is with great sadness that we record the passing of Athol Campbell on 11 September 2005. Athol was a unique businessman, with a tireless entrepreneurial flair and great leadership skills. The growth and success that has been achieved for the unitholders of Pangbourne is in no small measure a tribute to his devotion to the business. Athol did not have to lead, people just naturally followed him. He had an aura about him that made people feel at home in his company and, most importantly, he nurtured and grew the staff who worked with him. I had the privilege of not only knowing him as a business colleague but also as a friend of long standing. He was also a loving and caring family man. Athol will be greatly missed and long remembered.
P L Campbell Chairman
Page 7 Annual Report 2005
Chief Executive’s Report
Moving ahead with our strategy...
Results Pangbourne has shown substantial total return to combine unitholders. The annual distribution has increased from 91,5 cents to 96 cents per combined unitholder, while the share price has moved from R7,20 on 1 July 2004 to R10,30 as at 30 June 2005. This gives a total return to investors for the financial year of 56%. Although this is a short term measurement our assets are of a long term nature and the strategy of Pangbourne is to create a solid asset base from which it can produce sustainable earnings into the future at a rate exceeding inflation. Our track record speaks for itself with a total annualised return to combined unitholders of 19% over the past 10 years.
Implementation of strategy Pangbourne’s strategy of providing investors with the opportunity to invest in specialised differentiated funds has continued this year through the launching of the retail fund, “Siyathenga”.
Pangbourne’s strategic investment in specialised funds now consists of a 49% holding in iFour, an “A Grade portfolio”, and a 43% holding in Siyathenga, a predominantly retail focused portfolio. These holdings are in addition to Pangbourne’s industrial and office portfolio which it holds directly.
By investing in Pangbourne, combined unitholders receive a diversified risk spread through the distribution and management fees received from the specialised funds as well as the rental streams from the directly held industrial and office properties. Investors also have the choice of investing directly into specialised funds, managed by Pangbourne, dependant on where the investor considers the most value can be obtained in the property class. Key to the strategy is the concept of owner management, and for this reason Pangbourne has built up expertise in-house to provide industry leading services to the portfolios under management. The staff complement of Pangbourne now totals 131 employees.
Pangbourne further acts as the growth incubator for the specialised funds by sourcing and acquiring properties in the market, that meet the investment criteria of the funds. Using its gearing capabilities Pangbourne can warehouse properties until such time as the funds are able to raise equity and debt to purchase the properties. This assists the funds in acquiring properties in a highly competitive environment.
This strategy was first implemented with the strategic holding in the iFour portfolio and the subsequent warehousing of properties via Sipan which assisted iFour in growing its portfolio. This strategy was also utilised in the listing of Siyathenga.
Siyathenga Property Fund Limited
Siyathenga, which means “we are buying” was listed in August 2005, the Pangbourne rights issue was 97% taken up unlocking value for existing Pangbourne shareholders, leaving Pangbourne with a 43% holding in Siyathenga. Pangbourne will manage the properties in the portfolio and provide financial, secretarial and asset management services to the fund. The ultimate decisions taken over assets in Siyathenga remains with the independent board of Siyathenga.
Page 8 Pangbourne Properties Limited
Pangbourne House, 382 Jan Smuts Avenue, Pangbourne 2005 Craighall, Johannesburg. Five Year Financial Summary 01
Additional Information for Investors 02
Highlights 04
Year in Review 04
Chairman’s Report 06
Chief Executive’s Report 08
Directorate and Executive Committee 14
Corporate Governance 16
Portfolio of Properties 20
Properties under management breaks
R4 billion Experienced executive management boasting more than a century of property experience.
Page 9 Annual Report 2005
Chief Executive’s Report (incorporating our Operational Review) continued
Track record of delivery through own management...
Siyathenga is a property loan stock company whose R796 million investments are focused primarily on retail centres which will produce sustainable growth in net income due to their location, size, visibility, tenant mix and accessibility. The three flagship properties of the portfolio are: Crescent Shopping Centre in Umhlanga Ridge, Durban; Pineslopes Shopping Centre in Fourways, Johannesburg; and Willowbridge, a new lifestyle retail centre which is opening in Tygervalley, Cape Town in November. In addition Siyathenga has acquired 10 further properties from Pangbourne, with long leases from major tenants such as Edgars and Shoprite.
Pangbourne’s role as a strategic partner will enable Siyathenga to acquire additional properties to further grow its portfolio, as was done with iFour.
Pangbourne Property Portfolio Our occupancy factor as at 30 June 2005 has increased to 96,00% from the previous year’s occupancy of 93,80%. In the previous year we stated that for the Pangbourne type of portfolio this is fully let and this remains the case during the current year. Pangbourne’s historically short lease expiry profile has protected it against negative market reversions and has enabled us to take advantage of the high demand for industrial space. Pangbourne has property assets of some R4,1 billion under management as at 30 June 2005.
Developments With the successful extension to Tillbury business park in the prior year and the continued demand for space, Pangbourne has proactively identified and developed vacant land acquired with previous portfolio acquisitions.
A two phase midi-unit development “Pelican Park”, costing R22,1 million, is currently underway on our Jetpark vacant land. Phase one has been fully let with firm enquiries for the remainder of the space in phase two. Pelican Park will be a secure industrial park with good access, yard space and high eaves height. The gross lettable area is 11 190 m2 split into midi units ranging from 1 000 to 1 500 m2 with the flexibility to combine adjacent units. The development is expected to be completed by 1 October 2005.
The gross lettable area of our Pallisades industrial park in Jetpark is being increased by 3 776 m2, at a cost of R8,2 million by incorporating an adjacent vacant stand owned by Pangbourne into the complex. The extension will consist of 10 mini units with the flexibility of combining adjacent units. There is a strong demand for units in the Pallisades with the complex being 100% let for a number of years.
Both the Pelican Park and Pallisades developments have an initial yield of 13% on money spent.
A 750 m2 office block with 40 parking bays has been developed on the spare bulk of our Florida senior land. A seven-year lease has been entered into with Republiek Voedsel which commenced on 1 September 2005. The initial yield on money spent amounts to 14,16% and escalations are 8% per annum.
Asset Management With the R125 million acquisition of 15 buildings from Paramount at an 11,47% yield, Pangbourne has improved the overall quality of its portfolio. The acquisition has also given Pangbourne the opportunity to sell smaller buildings that no longer meet its investment criteria without affecting its distributions.
Jet Park, adjacent to Johannesburg International Airport with Page 10 The Palisades industrial park in the foreground and the Pelican Park development in the background. Page 11 Page 12 Pangbourne Properties Limited
Pangbourne 2005
Five Year Financial Summary 01
Additional Information for Investors 02
Highlights 04
Year in Review 04
Chairman’s Report 06
Mercurius Motors, Isando houses Chief Executive’s Report 08 a showroom, workshop and offices and is easily accesible from the R21 Directorate and and R24. Executive Committee 14
Corporate Governance 16
Portfolio of Properties 20
Certain properties, as identified in the circular to shareholders, for the acquisition of the Strupot portfolio were classified as trading properties. These properties have subsequently been sold at a profit of R5,9 million, this profit has been included in distributable earnings. In addition to the trading properties, 23 investment properties that no longer met the investment criteria of Pangbourne were sold during the current financial year at a profit of R5,3 million. The total sales value of the properties sold amounted to R71 million and this was used in part to fund the acquisition of Pineslopes and the balance of Crescent shopping centre for Siyathenga.
Gearing and Debt funding With the favourable and stable interest rate environment coupled with the demand for property, the Pangbourne board has elected to raise the internal gearing limits from 40% to 50% of income producing assets in order to assist in the growth of distributions and implementation of the strategy of specialised funds. With the listing of Siyathenga our gearing ratio to income producing assets has decreased to 31% providing the scope to substantially grow the portfolio and warehouse transactions for the specialised funds.
Securitisation remains a source of obtaining cost effective debt funding into the future. The upfront costs as well as the learning curve involved in setting up the special purpose vehicle “PROPS” and completing the first Commercial Mortgage Backed Securitisation in South Africa has been absorbed. Future taps or new issues from this vehicle are going to be substantially cheaper than bank funding.
Paforma Property Finance (Pty) Limited Paforma has once again shown considerable growth from the previous year’s profit of R5,5 million profit before tax to R10,0 million. Pangbourne has limited its exposure to Paforma by the latter using its debtors book to raise bank funding in order to repay part of the loan funding from Pangbourne and to grow the business into the future. The management in Paforma has also acquired a 30% stake in the business through loans from Pangbourne which are to be repaid over an eight-year period at market related interest rates.
Valuations Valuations have been consistently applied on a discounted cash flow basis, using a risk-free rate adjusted for a property risk factor. Further allowances are made for, amongst others, vacancies, rental reversions to market, tenant installations and capital expenditure. The valuations are tested at executive committee, audit committee and board level for rationale, consistency and accuracy.
A recently published article in a leading industry publication summed up the Pangbourne management team:
“The conventional approach – protects us from the painful job of thinking. No conventional vision (accept the oxymoron for a minute!) at Pangbourne, no fear of thinking – and thinking into the future – no temptation to fall into the comfortable trap presented by short-term financial performance at Pangbourne.”
Pangbourne has over the years assembled an impressive management team, whose track record speaks for itself. While other players in the industry have talked about transactions over the years in the market, Pangbourne has gone ahead and completed them successfully. The executive focus remains on the vision of the company to increase distributions at a rate exceeding that of inflation, thereby increasing value for unitholders, and each transaction that is contemplated in Pangbourne is measured against this vision.
Page 13 Annual Report 2005
Leadership strength furthers sustainable growth
Directorate Independent non-executive directors and executive directors
1. Colin Kenneth Hickling (67) 3. Barney Matlhola Henry Tsita 5. Peter Lamont Campbell (68) 6. David John Kennedy (63) Colin was previously Managing Director (53) Chairman Dave has been involved in the property and Deputy Chairman of Bloemfontein MAP (Wits) CA(SA), AMP Harvard industry since 1967. In 1992 he joined Board of Executors and is currently a Habron, the management company for director of The Public Trustee & Trust Barney is currently an executive director Peter retired as deputy chairman of Pangbourne at the time, as Property Corporation and Sentech Ltd. He of Shikisha Tyre and Rubber Company, Nampak Limited in 1997 after 34 years Manager. Shortly thereafter, in 1996, served three terms on the SA Council of a black entity established in partnership service in the group.. This included 21 Pangbourne decided to put in the Valuers and a term on the UTC ACT with Goodyear SA. He was previously years with Metal Box S A Ltd., 5 years management structures and systems to Advisory Committee. He previously an executive director of the FABCOS as chief executive. In 1993 Peter was manage their own buildings and Dave served as Deputy Chairman of the Group and from 1984 to 1996, a senior elected Packaging Achiever of the Year accepted the position as General SABC, Chairman of the Association of business consultant at the Centre for by the Packaging Council of S.A. for his Manager Property of Pangbourne’s Trust Companies, Chairman of the Developing Business at Wits Business service to the packaging industry. He property portfolio. Dave has been an Association of Participation Bond School. Barney is also the non- remains a non-executive director of integral part of managing the growth of Managers, Mayor of Bloemfontein and executive chairman of Ninham Shand Nampak and chairman of Nampak’s Pangbourne from an asset base of Council Member of the University of the (Pty) Ltd., a consulting engineering firm, audit committee. R365 million in 1996 to the current level Free State. He has served on the as well as a director ot the South Peter is currently chairman of Hudaco of R1,5 billion. African Post Office Limited. Pangbourne board since 1996. Industries Ltd., as well as non-executive Dave was appointed to the board in Barney is currently chairman of director of Crookes Brothers Ltd. and Delta 2003. Pangbourne’s Transformation Electrical Industries Limited. He is on the Committee. audit committee of these companies. The consultative business movement, of which Peter was a member, was a group of concerned businessmen who played an active role in facilitating the business transition process in South Africa. Peter is also a Past Chancellor of the Order of St John of South Africa. Peter has been a member of the Pangbourne board since 1995 and has served as chairman since 1999.
2. Craig McLaren Hutchison (35) 4. John Braidwood Gibbon (64) 7. Athol Marshall Armstrong BCom, BAcc (Hons), CA(SA) CA(SA) Campbell (58) Craig qualified as a chartered accountant John retired as a partner of Chief Executive Officer on completion of his articles with PricewaterhouseCoopers in 2001 BBAdmin (USA) Deloitte and Touche in July 1999, having having been with the practice since been Lead Group Manager, including 1964. He is a past president of Rotary Athol Campbell served as executive the Nasdaq listing, of Union Transport and a former member of Council of the chairman of the Robinson Group, Worldwide. He joined Pangbourne as then University of Port Elizabeth. While proprietors of the Natal Mercury, and as Group Financial Manager in October in Port Elizabeth, John played a major a non-executive director of the Sage 2000 and was appointed to the board role in the rescue of the private bus Trust Company Limited. He was a in June 2004. service and its development into a very founding member of Rand Natal Trust successful community owned business. Limited. Athol Campbell has served on the Pangbourne board since its listing in John is a non-executive director of 1987. He was appointed joint managing Hudaco Industries Limited, Siyathenga director with Tony Richards from 1996 to Property Fund Limited and iFour 1999 after which he was appointed as Properties Limited and he also serves Chief Executive Officer. Athol is currently as Chairman of the Audit Committee for a non-executive director of iFour and these companies. Siyathenga. 1.
5. 2. 3. 4.
Page 14 Pangbourne Properties Limited
Pangbourne 2005
8. Yvonne Kegomoditswe Nene 10. Johannes Antonius Arnoldus Five Year Molefi (40) Diepenbroek (49) Financial Summary 01 B Soc (Fort Hare), Honours (UCT), NDT (Civil), BSc Eng (Civil), MBA Executive Development Programme Anthony has 25 years’ experience in Additional Information (Stellenbosch Business School). real estate construction, project Nene is currently the owner and management, land- and property for Investors 02 Managing Director of Mandate in the development as well as property and field of Human Resources Consultants. asset management. He was the Highlights 04 In her 15 years experience in the field of managing director of iProp Holdings Human Resources and Change Limited (previously RMP Properties) 04 Management, she has worked and from 1998 to 2002 and since November Year in Review travelled extensively locally and 2004 serves on the Board of internationally benchmarking SA Pangbourne Properties Limited as an Chairman’s Report 06 Change Management and HR executive director. Anthony is also a Strategies against international trends. past president of SAPOA, which Chief Executive’s Report 08 Nene worked for Eskom for a period of organisation represents the interests of 10 years and was seconded by Eskom commercial property in South Africa and to the Department of Labour as head of is a member of SAPOA’s National Directorate and Human Resources Management. Council. Executive Committee 14 Through her consulting company, Nene was appointed by the Department of Foreign Affairs to establish and head a Corporate Governance 16 unit which set performance measures and systems for SA Embassies across Portfolio of Properties 20 the world. She sits on the boards of Hudaco Industries Ltd, Royal Africa Gateway, Innovent, Brockhouse Coopers, Office of the Auditor General, and Community Aids Response (CARE). Executive Committee Nene joined the board of Pangbourne in February 2005. 2. Craig Hutchison – Finance and operations 6. Dave Kennedy – Asset management 9. Anthony John Warren Langdon 11. Bryan Douglas Hopkins (58) 7. Athol Campbell – Chief Executive Officer Richards (63) BCom (Hons), Accounting & Tax, 9. Tony Richards – Executive director BA (Dublin) CA(SA) 10. Anthony Diepenbroek – Strategy and developments Tony is a partner in Change Partners After qualifying as a chartered (executive coaching) and chairman of accountant, Bryan was a member of Johan Groenewald – Company secretary Paforma Property Finance (Pty) Ltd. staff at the Department of Accounting of Previously he was an executive director the University of Cape Town and was of Hunt Leuchers & Hepburn Limited till appointed Professor of Accounting in AUDIT AND RISK MANAGEMENT COMMITTEE 1984, thereafter a member of the 1979 in charge of postgraduate J B Gibbon Chairman C K Hickling Industrial Investment Company Limited accounting studies. He served for 3 board to 1990, as well as serving on the years on the Accounting Standards A M A Campbell B M H Tsita board of Robinson Group Holdings Committee of the South African Institute P L Campbell Limited board from 1991 to 1998. After of Chartered Accountants and co- authored with Professor being appointed to the board in 1995, REMUNERATION AND NOMINATION COMMITTEE Tony was joint managing director of G K Everingharn “Generally Accepted Pangbourne Properties Limited with Accounting Practice — A S.A. P L Campbell Chairman J B Gibbon Athol Campbell from 1996 to 1999. Viewpoint” published by Juta & Co. This A M A Campbell* C K Hickling book became the leading text in SA. on Tony is currently non-executive *Member of the Nomination committee only chairman of iFour Properties Ltd and accounting standards. In May 1994 he Siyathenga Property Fund Ltd. joined Old Mutual Asset Managers as Head of Research and member of the TRANSFORMATION COMMITTEE Executive team. Bryan was appointed B M H Tsita Chairman C M Hutchison Chief Investment Officer & Executive Director of Old Mutual Asset Managers A M A Campbell A J W L Richards on its formation into a company in P L Campbell June 1997. Bryan was a director of Pangbourne COMPANY SECRETARY from 1996 to 1999 and rejoined the board in February 2005. J J Groenewald CA(SA) 2nd Floor, Pangbourne House 382 Jan Smuts Avenue Craighall 2196 PO Box 781706 Sandton 2146
9. 11. 7. 10. 6. 8.
Page 15 Annual Report 2005
Organisational integrity
Corporate Governance
Organisational integrity established and maintained...
Corporate practices and conduct Pangbourne subscribes to, and is committed to ensure that, good corporate governance is practiced throughout the group. The directors have, accordingly, established mechanisms and policies appropriate to the company’s business in keeping with its commitment to best practices in corporate governance in order to ensure compliance with the King II report. The board is of the opinion that the group currently complies with all the significant requirements as set out in the second King report and the JSE Limited Listing Requirements.
Directorate The board of directors is responsible to the unitholders and the company for the ultimate control of the business of Pangbourne and for ensuring that appropriate management and control structures are in place. The board consists of an independent, non-executive chairman, five independent non-executive directors, and five executive directors. The Chairman of Pangbourne Properties Limited is elected on an annual basis by the board and the function of this office is separate from that of the Chief Executive Officer. The board, which meets five times a year, is responsible for the strategic direction of the group and the Chief Executive Officer, who chairs the Executive Committee, is responsible for its implementation. Personal information of the executive, non-executive and independent directors is set out on pages 14 and 15. Details of directors’ and committee members’ attendance at meetings are set out below.
Audit Remuneration and Risk and Trans- Management Nomination formation Director Board Committee Committee Committee A B A B A B A B P L Campbell 5 5 3 3 3 3 3 3 A M A Campbell 5 5 3 3 3 3 3 3 L S Barnard (Resigned October 2004) 1 0 J A A Diepenbroek (Appointed November 2004) 4 4 J B Gibbon 5 5 3 3 3 3 C K Hickling 5 5 3 3 3 3 B D Hopkins (Appointed February 2005) 3 3 C M Hutchison 5 5 3 3 D J Kennedy 5 5 Y K N Molefi (Appointed February 2005) 3 3 A J W L Richards 5 5 3 3 B M H Tsita 5 4 3 3 3 3
Column A is the number of meetings held during the director’s term of office. Column B is the number of meetings attended by the director.
All directors have access to the advice and services of the company secretary and, with prior agreement of the chairman, are entitled to seek independent professional advice at the company’s cost.
Appointments to the Board The board as a whole, within its powers, selects and appoints directors on the recommendation of the Remuneration and Nomination Committee. Prior to appointment, potential board appointees are subject to a “fit and proper” test, as required by the JSE Limited. Director appointments are in terms of a formal and transparent procedure and are subject to confirmation by the shareholders at the annual general meeting.
Page 16 Pangbourne Properties Limited
Crescent Heights, Old Pretoria Road, Midrand Pangbourne 2005 Five Year Financial Summary 01
Additional Information for Investors 02
Highlights 04
Year in Review 04
Chairman’s Report 06
Chief Executive’s Report 08
Directorate and Executive Committee 14
Corporate Governance 16
Portfolio of Properties 20
Induction and Development A formal orientation programme with members of management is provided to all newly appointed directors. In addition, new directors are provided with a “Directors guide” setting out Pangbourne’s board and committee’s governance structure, all Committees’ Terms of Reference, the board plan for the year, the code of ethics, the board charter and founding documents. Directors are kept appropriately informed of key developments affecting the company and industry between board meetings.
Succession Planning A third of the directors retire by rotation annually. If eligible, their names are submitted for re-election at the annual general meeting, accompanied by appropriate biographical details set out in the annual report.
The board has established an Executive Committee, Audit and Risk Management Committee as well as a Remuneration and Nomination Committee to give detailed attention to certain of its responsibilities and which operate within defined written terms of reference.
The Executive Committee The Executive Committee comprises the Chief Executive Officer, the executive directors and senior executives of the company and formulates the financial and operating strategies of the group for consideration and approval by the board, monitors the implementation and results thereof and assumes responsibility for the risk management process. Details of the Executive Committee are set out on page 15.
The Audit And Risk Management Committee This committee is chaired by an independent non-executive director and includes an executive director and three independent non-executive directors. Internal audit and the external auditors have free access to the Chairman of this committee, the board Chairman and the Chief Executive Officer. The committee meets at least twice a year with senior management and external auditors to ensure that management creates and maintains an environment of effective corporate control and accounting, to review the group financial statements, with particular reference to current accounting issues and specific disclosures in the financial statements to ensure that all such disclosures are in accordance with Generally Accepted Accounting Practice. The committee also monitors the risk management process in the group. The members of the audit and risk management committee are listed on page 15.
Risk management The board is responsible for ensuring that appropriate risk management processes are in place and that such processes are managed on a day-to-day basis by the Executive Committee. A systematic, documented assessment of the processes and outcomes surrounding key risks is taken annually. This risk assessment addresses the company’s exposure to: ● physical and operational risks; ● human resource risks; ● technology risks; ● business continuity and disaster recovery; ● credit and market risks; and ● legal compliance risks.
There is a documented and tested process in place which will allow the company to continue its critical business process in the event of a disastrous incident impacting its activities. The group maintains a risk register. For effectiveness, the risk management process relies on regular review, communication, judgement and the knowledge of the management closest to those issues to achieve a risk management process embedded in day-to-day activities. Page 17 Annual Report 2005
Corporate Governance continued
Established culture of governance...
The board uses generally recognised risk management and internal control systems and frameworks to maintain a sound system of risk management and internal control to provide reasonable assurance of achieving organisational objectives with regard to: ● effectiveness and efficiency of operations; ● safeguarding the company’s assets (including information); ● compliance with applicable laws, regulations and supervisory requirements; ● supporting business sustainability under normal as well as adverse operating conditions; ● reliability of reporting; and ● behaving responsibly to all stakeholders.
Internal control Internal audit and internal control are managed using a combination of the Executive Committee review process over operations and the management of individual property portfolios, coverage of identified areas by an extension of the statutory audit function and by undertaking certain work internally, these functions are co-ordinated by an internal audit manager. The object of these procedures is to assist management and the directors in the effective discharge of their duties. The scope of the internal audit function is to review the reliability and integrity of the financial and operating information, the system of internal control, the means of safeguarding the assets, the effective management of the group’s resources, and the effective conduct of its operations. The scope of the work undertaken and the results thereof are monitored by the Audit and Risk Committee.
Management reporting The group has comprehensive management reporting disciplines in place managed by the executive committee which include the preparation of annual budgets and three-year profit and cash flow forecasts. Individual and consolidated budgets are reviewed and approved by the board. Monthly results are reviewed against budgets and prior years, where appropriate, by the Executive Committee. Earnings and cash flow forecasts are regularly updated and are reviewed and monitored by the Executive Committee.
The Remuneration and Nomination Committee The board has established a Remuneration Committee comprising three independent non-executive directors. The committee meets at least once a year. It is responsible for reviewing the compensation arrangements for the Chief Executive Officer, directors, non-executive directors and senior executives. This committee also reviews retirement benefits, management incentive schemes, the general remuneration policy of the group and the Pangbourne Unit Purchase Trust. The remuneration paid to directors is disclosed in note 32 to the annual financial statements. Members of the Remuneration Committee are listed on page 15. The Nomination Committee, which includes the Chief Executive Officer, is responsible for the assessment and nominations of potential new directors as well as recommending on the composition of the board. Members of this committee are listed on page 15.
Dealing in securities The company complies with JSE Limited Listing Requirements whereby directors and officers of the company are prohibited from dealing in its units for a designated period preceding the announcement of its financial results or in any other period when non-public information might influence the unit price.
Page 18 Pangbourne Properties Limited
Benrose 28, one of 68 Pangbourne-owned Pangbourne 2005 properties in the Benrose area. Five Year Financial Summary 01
Additional Information for Investors 02
Highlights 04
Year in Review 04
Chairman’s Report 06
Chief Executive’s Report 08
Directorate and Executive Committee 14
Corporate Governance 16
Portfolio of Properties 20
Employment equity Pangbourne has a policy of empowering its employees and encouraging them to maximise their potential. Departmental management is encouraged to enhance the motivation and commitment of all employees by providing opportunities for involvement in business performance improvement. The group has designed employment policies which are appropriate to its business and markets and which aim to attract, retain and motivate the staff necessary to achieve its objectives. These policies provide equal employment opportunities, without discrimination. Furthermore, all employees are encouraged to improve their educational standards by participating in the company’s educational assistance programmes. A programme is in place to ensure that the employee profile will be more representative of the demographics of the regions in which the group operates whilst maintaining the group’s high standards. An Employment Equity Committee oversees and monitors the implementation of and compliance with the Employment Equity Act.
Stakeholder communication The company subscribes to the principle of timeous and relevant communication to all relevant parties, including unitholders and employees.
Code of ethics All directors and employees are required to maintain the highest ethical standards in ensuring that the group’s business practices are conducted in a manner which is beyond reproach. Pangbourne has a code of ethics which has been adopted by the board.
Social investment The board recognises the need to define and act upon Pangbourne’s responsibilities to all stakeholders; that the “triple bottom line” principle regulates the conduct of the business in ways that produce sustainable social, environmental and economic development for the benefit of all stakeholders. Details of current corporate social investment projects are contained in the chairman’s report.
Safety, Health and Environment The executive committee is responsible for developing framework policies, guidelines and compliance regarding safety, health and the environment and ensuring that these are implemented effectively throughout the group.
Black economic empowerment Pangbourne recognises the need to ensure broader based participation of black people in the formal economy in order to achieve sustainable development and prosperity, both at corporate level and in the national interest. To this end, Pangbourne is continuing to explore opportunities to further black economic empowerment in the property industry. The company has actively participated in the consultative forums, which were responsible for producing the draft property charter. In line with the dti code of practice the charter has set targets for ownership, control, employment equity and enterprise development. In addition, as industry specific challenges, the industry has set itself targets for development in previously disadvantaged areas and disposals of property to empowered companies. The effective date for the implementaiton of the charter is January 2006 and the targets are five year targets. The company will address these challenges in a pro-active manner. In addition, the procurement policy of the company is aimed at identifying previously disadvantaged individuals who are able to supply the necessary service to the company. A Transformation Committee, chaired by independent director Barney Tsita, has been established to monitor and guide the company to achieve its transformation objectives.
Members of the committee are listed on page 15.
Page 19 Investments are listed alphabetically by property sector.
Properties as at 30 June 2005 Name/address of property of Name/address Net building income/(loss) building Net Building expenditure Building Occupancy factor Occupancy Rentable area Rentable Rent received Rent Site area Site R’000 R’000 R’000 m m 2 2 Industrial Properties ABS Centre 10 Dartfield Road, Eastgate Ext, Sandton 4 413 5 571 1 330 138 1 192 100% AFM 79 Reedbuck Crescent, Corporate Park, Randjespark, Midrand 3 978 2 933 1 494 201 1 293 100% Airways Close 7 Willcox Road, Propecton, Durban 15 462 7 200 622 271 351 100% Alexander Road 18-22 Alexander Road, Westmead, Pinetown 10 501 3 992 954 180 774 100% Alrode 01 28 Fuchs Street, Alrode, Alberton 5 375 2 584 270 32 238 100% Alrode South 02 8 and 83 De Beers Street, Alrode South, Alberton 2 100 1 000 76 85 (9) 50% Alrode South 07 257 Bosworth Street, Alrode South, Alberton 3 430 1 670 199 47 152 82% Alrode South 08 249 Bosworth Street, Alrode South, Alberton 2 817 1 568 107 171 (64) 100% Alrode South 09 9 and 11 Barnato Road, cnr Barnato and Tarry Roads, Alrode South, Alberton 4 136 1 452 201 (17) 218 100% Alrode South 10 17 Statler Street and 26 Van der Bijl Street, Alrode South, Alberton 3 138 634 93 (14) 107 100% Ampaglass Nywerheids Street and 2 Essex Terrace, Tunney, Johannesburg 12 054 12 814 1 917 74 1 843 100% Anderbolt 60 and 61 Lea Road, Anderbolt, Boksburg 9 686 7 400 627 193 434 100% Anderbolt 03 12 Atlas Road, Anderbolt, Boksburg 18 332 8 587 1 675 266 1 409 100% Anderbolt 04 103 and 104 Top Road, cnr Top and Main Roads, Anderbolt, Boksburg 18 190 7 845 1 332 198 1 134 100% Anderbolt 06 88 Kirschner Road, Anderbolt, Boksburg 9 163 3 983 578 285 293 100% Anderbolt 07 253 Dormehl Road, Middlepark, Boksburg 41 797 17 432 3 001 654 2 347 100% Anderbolt 09 The Avenues, 128 14th Avenue, Anderbolt, Boksburg 18 170 9 185 1 511 362 1 149 100% Anmerity 38 Hendrik van Eck Street, Rosslyn, Pretoria 40 468 7 776 639 251 388 88% Barnes 122, 10th Road, Kew, Johannesburg 2 974 900 143 27 116 100% Bart Street 8 Field Street, Wilbart, Germiston 3 930 3 473 626 (88) 714 100% Benrose 01 17 and 19 Bridget Road and 32, 34, 36, 38 and 40 Main Reef Road, Benrose, Johannesburg 14 922 8 802 1 275 417 858 100%
Page 20 Pangbourne Properties Limited
Left Sydney Road, Umbilo, Durban.
Right Sunnyrock, North Reef Road, Germiston. Name/address of property of Name/address Net building income/(loss) building Net Building expenditure Building Occupancy factor Occupancy Rentable area Rentable Rent received Rent Site area Site R’000 R’000 R’000 m m 2 2 Industrial Properties continued Benrose 02 19 and 29 Reuven Road, cnr Reuven and Main Reef Road, Benrose, Johannesburg 1 891 809 147 86 61 100% Benrose 04 5, 7, 9, 11 and 13 Bridget Road, Benrose, Johannesburg 6 236 5 094 2 043 171 1 872 100% Benrose 05 9, 11, 13, 15, 17, 21 and 23 Reuven Road, Benrose, Johannesburg 14 876 9 539 1 220 790 430 100% Benrose 06 22, 24, 26 and 28 Main Reef Road, cnr Main Reef and Reuven Roads, Benrose, Johannesburg 3 715 2 225 427 28 399 100% Benrose 07 12, 14, 16 and 18 Reuven Road, Benrose, Johannesburg 3 598 2 529 461 56 405 74% Benrose 08 23 New Goch Road, Benrose, Johannesburg 29 585 13 538 1 998 408 1 590 94% Benrose 09 17 Barney Road, Benrose, Johannesburg 1 883 3 034 382 106 276 49% Benrose 10 23 and 25 Barney Road, Benrose, Johannesburg 4 003 3 290 459 98 361 100% Benrose 11 96 Main Reef Road, Benrose, Johannesburg 4 155 2 726 350 72 278 100% Benrose 12 35, 37, 39, 41, 43 and 47 New Goch Road, Benrose, Johannesburg 2 748 1 867 276 173 103 97% Benrose 13 94 Main Reef Road, Benrose, Johannesburg 2 453 2 722 459 (8) 467 100% Benrose 14 84 Main Reef Road, Benrose, Johannesburg 2 997 6 461 809 1 236 (427) 97% Benrose 15 68 Main Reef Road, Benrose, Johannesburg 2 809 2 063 414 (284) 698 100% Benrose 16 56 and 62 Main Reef Road, Benrose, Johannesburg 3 573 736 190 46 144 100% Benrose 18 100, 102 and 104 Main Reef Road, cnr New Goch and Main Reef Roads, Benrose, Johannesburg 6 061 3 731 775 159 616 100% Benrose 19 114 and 116 Main Reef Road, Benrose, Johannesburg 2 101 2 004 224 46 178 85% Benrose 20 17 Julbert Road, Benrose, Johannesburg 1 890 872 147 27 120 0% Benrose 22 47 Raebor Road, Benrose, Johannesburg 984 415 84 17 67 100% Benrose 23 128 and 130 Main Reef Road, Benrose, Johannesburg 1 257 1 819 105 67 38 65% Benrose 24 55 and 57 Raebor Road, Benrose, Johannesburg 1 073 715 151 34 117 100%
Page 21 Investments are listed alphabetically by property sector.
Properties as at 30 June 2005 Name/address of property of Name/address Net building income/(loss) building Net Building expenditure Building Occupancy factor Occupancy Rentable area Rentable Rent received Rent Site area Site R’000 R’000 R’000 m m 2 2 Industrial Properties continued Benrose 25 136 Main Reef Road, Benrose, Johannesburg 1 676 1 389 197 20 177 100% Benrose 26 138 Main Reef Road, Benrose, Johannesburg 5 921 4 765 477 171 306 100% Benrose 27 77 Raebor Road, Benrose, Johannesburg 7 428 3 946 489 123 366 100% Benrose 28 99, 105 Raebor Road, Benrose, Johannesburg 4 805 3 535 544 41 503 100% Benrose 29 19, 21 and 23 Julbert Road, cnr Raebor and Julbert Roads, Benrose, Johannesburg 2 266 1 730 261 45 216 100% Benrose 30 29 Julbert Road, Benrose, Johannesburg 1 311 1 242 119 124 (5) 100% Benrose 31 31 Julbert Road, Benrose, Johannesburg 1 311 1 133 273 107 166 100% Benrose 32 33 Julbert Road, Benrose, Johannesburg 1 311 937 171 (76) 247 100% Benrose 33 35 Julbert Road, Benrose, Johannesburg 1 311 1 159 163 81 82 100% Benrose 35 39 and 45 Julbert Road, Benrose, Johannesburg 1 771 1 673 282 11 271 100% Benrose 36 47 and 49 Julbert Road, Benrose, Johannesburg 1 573 1 523 227 126 101 100% Benrose 37 55 and 57 Julbert Road, Benrose, Johannesburg 1 573 1 540 176 65 111 100% Benrose 39 63 and 65 Julbert Road, Benrose, Johannesburg 10 151 1 836 330 118 212 100% Benrose 40 58, 60, 62, 64, 70, 72, 76 and 78 Raebor Road, Benrose, Johannesburg 10 456 4 603 819 334 485 100% Benrose 42 26 New Goch Road, Benrose, Johannesburg 705 368 49 29 20 100% Benrose 43 2 Julbert Road, cnr Julbert and New Goch Roads, Benrose, Johannesburg 756 806 175 7 168 100% Benrose 44 6 Julbert Road, Benrose, Johannesburg 1 079 842 139 33 106 100% Benrose 45 22 and 24 New Goch Road, Benrose, Johannesburg 3 612 — 75 60 15 100% Benrose 46 18 and 20 New Goch Road, cnr New Goch and Barney Roads, Benrose, Johannesburg 4 403 3 066 534 49 485 100% Benrose 47 33 and 35 Raebor Road, Benrose, Johannesburg 3 812 2 584 362 35 327 100% Benrose 48 16 and 18 Julbert Road, cnr Julbert and Raebor Roads, Benrose, Johannesburg 2 238 1 841 286 402 (116) 100%
Page 22 Pangbourne Properties Limited
Left Roodekop, Bevan Road, Germiston.
Right Snigger, Kyalami Business Park, Midrand. Name/address of property of Name/address Net building income/(loss) building Net Building expenditure Building Occupancy factor Occupancy Rentable area Rentable Rent received Rent Site area Site R’000 R’000 R’000 m m 2 2 Industrial Properties continued Benrose 49 1 and 3 Theodore Road, cnr Raebor and Theodore Roads, Benrose, Johannesburg 1 561 1 098 129 35 94 100% Benrose 51 26 Julbert Road, Benrose, Johannesburg 1 978 2 054 279 178 101 100% Benrose 53 15 Theodore Road, Benrose, Johannesburg 989 836 158 7 151 100% Benrose 54 30 Julbert Road, cnr Julbert and Adam Roads, Benrose, Johannesburg 1 961 1 983 249 200 49 100% Benrose 55 39, 41 and 43 Barney Road, cnr Barney and Raebor Roads, Benrose, Johannesburg 3 459 2 933 325 146 179 100% Benrose 56 6 Theodore Road, Benrose, Johannesburg 1 062 844 171 40 131 100% Benrose 57 45, 47 and 49 Barney Road, Benrose, Johannesburg 3 112 2 030 409 57 352 100% Benrose 58 28 and 30 Adam Road, Benrose, Johannesburg 2 200 2 204 132 239 (107) 100% Benrose 59 38, 40, 42 and 44 Julbert Road, Benrose, Johannesburg 6 960 3 564 402 147 255 100% Benrose 60 46 Julbert Road, Benrose, Johannesburg 3 514 3 123 518 51 467 100% Benrose 61 50 Julbert Road, Benrose, Johannesburg 2 720 1 902 289 117 172 100% Benrose 62 71 and 73 Barney Road, Benrose, Johannesburg 6 297 3 617 263 228 35 100% Benrose 63 63 Barney Road, Benrose, Johannesburg 3 378 2 262 405 32 373 100% Benrose 64 18, 20, 22, 24 and 26 Adam Road, cnr Adam and Barney Roads, Benrose, Johannesburg 6 600 4 225 875 12 863 100% Benrose 65 60 and 62 Barney Road, Benrose, Johannesburg 1 198 841 94 48 46 12% Benrose 66 6, 8, 10 and 12 Adam Road, Benrose, Johannesburg 4 666 4 394 893 4 889 100% Benrose 68 47 Robyn Road, Benrose, Johannesburg 2 533 1 864 410 69 341 100% Benrose 69 39, 41 and 43 Robyn Road, Benrose, Johannesburg 4 250 3 469 432 145 287 100% Benrose 70 44, 46, 48, 50, 52, 54 and 56 Barney Road, cnr Barney and Adam Roads, Benrose, Johannesburg 35 841 16 446 241 (342) 583 100% Benrose 71 25, 27 and 29 Raebor Road, cnr Barney and Raebor Roads, Benrose, Johannesburg 2 961 2 347 296 105 191 100% Page 23 Investments are listed alphabetically by property sector.
Properties as at 30 June 2005 Name/address of property of Name/address Net building income/(loss) building Net Building expenditure Building Occupancy factor Occupancy Rentable area Rentable Rent received Rent Site area Site R’000 R’000 R’000 m m 2 2 Industrial Properties continued Benrose 72 16 New Goch Road, cnr New Goch and Barney Roads, Benrose, Johannesburg 1 030 607 93 82 11 100% Benrose 73 12 and 14 New Goch Road, Benrose, Johannesburg 1 782 1 158 159 5 154 100% Benrose 74 11 and 17 New Goch Road, cnr Barney and New Goch Roads, Benrose, Johannesburg 2 098 1 471 337 60 277 100% Benrose 75 18 and 24 Barney Road, Benrose, Johannesburg 8 225 4 600 687 94 593 100% Benrose 76 103 Main Reef Road, Benrose, Johannesburg 3 928 3 796 42 76 (34) 7% Benrose 78 108, 110 and 112 Main Reef Road, Benrose, Johannesburg 5 046 2 362 398 196 202 92% Benrose 79 45 Robyn Road, Benrose, Johannesburg 2 437 1 536 432 46 386 100% Broadwalk Motor City Corner Old Pretoria and Broadway Roads, Halfway House, Midrand 6 906 4 615 718 189 529 100% Bromhof 3 Arbeid Street, Strijdom Park, Randburg 2 300 1 501 394 54 340 100% Cedarfield Close 13 13 Cedarfield Close, Springfield Park, Durban 2 599 1 344 357 78 279 100% Cedarfield Close 3 3 Cedarfield Close, Springfield Park, Durban 15 039 6 519 5 525 341 5 184 100% Cedarfield Close 3a 6 Cedarfield Close, Springfield Park, Durban 12 698 5 616 1 798 3 1 795 100% Clovelly Park 342 Old Pretoria Road, Halfway House, Midrand 25 438 11 666 4 245 726 3 519 100% Colkene 71 Reedbuck Crescent, Corporate Park, Randjespark, Midrand 4 631 1 261 179 198 (19) 100% Constantia Park 1415 North Coast Road, Durban North, Durban 17 646 9 753 3 089 445 2 644 100% Cottage and Home 3 Estmil Road, Diep River, Cape Town 2 429 2 016 510 49 461 100% Crescent Heights 139 Old Pretoria Road, cnr James Crescent and Old Pretoria Road, Halfway House, Midrand 15 050 7 170 1 968 546 1 422 100% Cuzco 484 Kyalami Boulevard, Kyalami Business Park, Midrand 3 902 2 646 898 128 770 100% Dashing 1105 Anvil Road, Robertville, Johannesburg 16 049 10 800 1 281 249 1 032 100% Del Engineering 11 Martinus Ras Street, Rosslyn, Pretoria 32 372 12 810 1 344 36 1 308 100%
Page 24 Pangbourne Properties Limited
Left Nature’s Source, Umgeni Road, Durban.
Right PVC, Apex, Benoni. Name/address of property of Name/address Net building income/(loss) building Net Building expenditure Building Occupancy factor Occupancy Rentable area Rentable Rent received Rent Site area Site R’000 R’000 R’000 m m 2 2 Industrial Properties continued Dovehouse 1 Walton Road, cnr Walton and Sabax Roads, Aeroton, Johannesburg 6 764 3 928 268 150 118 89% Eastgate 01 7, 9, 11 and 13 Olympia Street, Eastgate Ext, Sandton 27 832 8 210 1 749 874 875 100% Eastgate 02 12 and 14 Olympia Street, Eastgate Ext, Sandton 8 672 3 932 1 131 347 784 89% Eastgate 04 15, 17, 19 and 21 Olympia Street, Eastgate Ext, Sandton 17 412 9 053 2 331 446 1 885 100% Ebonyfield Avenue 20 Ebonyfield Avenue, Springfield Park, Durban 8 338 5 718 1 656 334 1 322 100% Ebonyfield 19 19 Ebony Field Avenue, Springfield 4 270 2 610 644 5 639 100% FT Alrode 15 Old Vereeniging Street, Alrode, Alberton 21 562 4 128 443 121 322 100% Game 100 Indianapolis Street, Kyalami Business Park, Midrand 3 174 1 654 565 101 464 0% Gap House 44 Sixth Street, Wynberg, Sandton 3 718 2 127 326 46 280 100% Grader Road 17 Grader Road, cnr Roller Street and Grader Road, Spartan, Kempton Park 6 348 3 029 688 43 645 100% Grid 1 Imola Place, cnr Imola and Kyalami Roads, Mahogoany Ridge, Pinetown 1 955 1 280 358 60 298 100% Hekro 38 Isando Road, cnr Electron Avenue and Isando Road, Isando, Kempton Park 14 509 10 585 1 566 215 1 351 89% Hennops 30 Bell Street, Hennopspark, Centurion 19 049 8 500 3 271 (247) 3 518 100% Heriotdale 02 1 Keerom Road, cnr Mainreef Road, Heriotdale, Johannesburg 41 211 18 834 5 962 79 5 883 100% Hilti 68-72 Gazelle Avenue, Corporate Park, Randjespark, Midrand 4 513 2 372 834 45 789 100% Hi-Performance 126, 10th Road, Kew, Johannesburg 1 487 800 70 36 34 100% Hitachi 10 Hawthorne Place, Mahogany Ridge, Pinetown 6 770 1 610 680 73 607 100% Industria 01 Corner Commando Road and Price Extension, Industria, Johannesburg 57 744 38 931 2 252 280 1 972 100% Isando Estate (Diesel Road) 37 Diesel Road, Isando, Kempton Park 42 718 21 824 3 296 767 2 529 100% Isando 01 3 Latei Street and 8 Hulley Street, Isando, Kempton Park 7 464 4 804 681 292 389 100% Jet Park 01 2 and 4 Derrick Coetzee Road, Jet Park, Boksburg 2 003 1 088 265 72 193 100%
Page 25 Investments are listed alphabetically by property sector.
Properties as at 30 June 2005 Name/address of property of Name/address Net building income/(loss) building Net Building expenditure Building Occupancy factor Occupancy Rentable area Rentable Rent received Rent Site area Site R’000 R’000 R’000 m m 2 2 Industrial Properties continued Jet Park 02 64 Kelly Road, Jet Park, Boksburg 3 274 1 784 534 158 376 100% Jet Park 03 1 Derrick Coetzee Road, Jet Park, Boksburg 7 665 3 821 1 068 180 888 100% Jet Park 04 (The Palisades) 39 Kelly Road, Jet Park, Boksburg 28 804 14 689 4 235 677 3 558 93% Jet Park 06 (Pelican Park) Malcolm Moodie Crescent, Jet Park, Boksburg 24 652 4 547 63 44 19 75% John Street Industrial Park 18 and 20 John Street, Selby, Johannesburg 19 467 14 191 2 222 600 1 622 100% Johnathan Ball 10, 12 and 14 Watkins Street, Denver, Johannesburg 5 765 3 224 806 137 669 100% Kew 492 Corner 3rd Avenue and 10th Road, Kew, Johannesburg 2 974 1 928 75 (7) 82 100% Kew 573 11th Road, Kew, Johannesburg 2 974 1 668 — 139 (139) 0% Kew 833 Corner 3rd Avenue and 10th Road, Kew, Johannesburg 8 922 4 867 499 185 314 100% KMI 17 Fuchs Street, Alrode, Alberton 13 157 5 760 468 113 355 100% Koppel Elga 33 Brewery Street, cnr Brewery and Isando Roads, Isando, Kempton Park 13 546 8 370 1 336 550 786 100% Kramer Road 17 Kramer Road, Kramerville, Sandton 6 675 6 223 1 589 364 1 225 100% Lanzerac Old Pretoria Road, Halfway House, Midrand 18 796 9 412 2 649 211 2 438 87% Le Roy Sommer Bart Street, Wilbart, Germiston 2 488 1 099 244 31 213 100% Lucem House 5, 5th Street, Wynberg, Johannesburg 3 718 5 186 1 163 33 1 130 100% Malcolm Road 20 and 22 Malcolm Road, Westmead, Pinetown 8 092 5 526 1 001 198 803 100% Mercurius Motors Jurgens Street, Isando, Kempton Park 22 750 6 553 3 307 68 3 239 100% Merinda Industrial Park 71 and 73 Rudo Nel Street and 2 and 4 Rachel Street, Hughes, Boksburg 17 647 8 130 1 630 601 1 029 96% Midrand 01 Corner Richard Drive and Le Roux Avenue, Halfway House, Midrand 4 045 1 658 406 192 214 100% Midwest 1217 Leader Avenue, Robertville, Roodepoort 1 551 1 551 218 75 143 100% Mini Park 13 Trafford Road, Pinetown 17 468 9 626 1 682 267 1 415 100%
Page 26 Pangbourne Properties Limited
Left Robertville, Main Reef Road, Roodepoort.
Right Sucosa House, Kramerville, Sandton. Name/address of property of Name/address Net building income/(loss) building Net Building expenditure Building Occupancy factor Occupancy Rentable area Rentable Rent received Rent Site area Site R’000 R’000 R’000 m m 2 2 Industrial Properties continued Nature’s Source 1211 Umgeni Road, Greyville, Durban 4 857 9 470 2 722 86 2 636 100% Nelspruit 01 7 Old Pretoria Road, Nelspruit 26 059 9 983 1 099 15 1 084 100% Nitor 14 Commerce Crescent, cnr Dartfield Road and Commerce Crescent, Eastgate Ext, Sandton 6 644 8 035 1 499 524 975 96% Park Central 03 11 Broad Street, Park Central, Johannesburg 5 843 7 643 1 027 75 952 100% Park Central 04 36 Simmonds Southway, cnr Simmonds Southway and Wall Street, Park Central, Johannesburg 12 758 11 090 1 254 164 1 090 100% Park Central 05 1 London Lane, cnr London Lane and Wall Street, Park Central, Johannesburg 5 612 4 362 687 697 (10) 100% Park Central 06 27-33 Amsterdam Avenue, Park Central, Johannesburg 5 165 3 313 493 206 287 100% Park Central 09 12 and 22 Simmonds Southway, cnr Simmonds Southway and Wall Street, Park Central, Johannesburg 5 724 2 706 449 79 370 100% Park Central 10 8 Landsborough Street, Park Central, Johannesburg 6 924 4 564 596 4 592 83% Park Central 11 1 Amsterdam Avenue, Park Central, Johannesburg 1 469 966 153 (166) 319 100% Park Central 12 1, 3, 5, and 7 Ruargh Street, Park Central, Johannesburg 6 844 3 742 471 197 274 65% Prism 96 Indianapolis Street, Kyalami Business Park, Midrand 2 990 1 230 555 130 425 100% Putco Rosslyn Rautenbach Street, Rosslyn, Pretoria 24 281 4 145 801 133 668 100% PVC 57 Detroit Road, Apex, Benoni 21 278 8 747 1 583 23 1 560 100% Reliance 107 Heidelberg Road, City Deep, Johannesburg 11 397 6 768 883 475 408 100% Reuven 01 5 Andrea Road, Reuven, Johannesburg 2 365 2 724 308 89 219 100% Reuven 02 2 Andrea Road, cnr Andrea and Booysens Roads, Reuven, Johannesburg 1 099 1 123 346 86 260 100% Reuven 04 66 and 68 Booysens Road, Reuven, Johannesburg 2 919 3 089 564 (20) 584 100% Reuven 05 Mandy Road, Reuven, Johannesburg 8 260 6 193 1 065 154 911 100% Reuven 07 21 Mandy Road, Reuven, Johannesburg 1 939 1 253 228 78 150 100%
Page 27 Investments are listed alphabetically by property sector.
Properties as at 30 June 2005 Name/address of property of Name/address Net building income/(loss) building Net Building expenditure Building Occupancy factor Occupancy Rentable area Rentable Rent received Rent Site area Site R’000 R’000 R’000 m m 2 2 Industrial Properties continued Reuven 09 39 Andrea Road, cnr Andrea and Ivanseth Roads, Reuven, Johannesburg 6 458 2 599 433 — 433 100% Reuven 11 6 Ivanseth Road, Reuven, Johannesburg 1 954 1 831 283 33 250 100% Reuven 12 8, 10, 12 and 14 Ivanseth Road, Reuven, Johannesburg 7 537 9 252 820 (5 358) 6 178 100% Reuven 14 20 Ivanseth Road, cnr Heronmere Road, Reuven, Johannesburg 3 625 2 122 310 65 245 100% Richard Carte Road 45 Richard Carte Road, Mobeni, Durban 33 111 11 706 1 463 576 887 86% Richards Drive 912 Richards Drive, Halfway House, Midrand 10 508 4 320 903 456 447 92% Riverview 18 Suni Avenue, Corporate Park, Randjespark, Midrand 2 509 1 160 283 80 203 100% Robertville 01 Anvil Road, Robertville, Roodepoort 19 731 15 128 769 101 668 100% Robertville 02 Anvil Road, Robertville, Roodepoort 21 664 9 917 448 64 384 100% Roodekop 01 Bevan Road, Roodekop 58 085 19 893 1 878 (4) 1 882 100% Rosdev 53 Hendrik van Eck Street, Rosslyn, Pretoria 30 663 12 600 1 440 277 1 163 94% Safari 213 Monte Carlo Crescent, Kyalami Business Park, Kyalami, Midrand 3 042 1 428 435 134 301 100% Sebenza 23 Buwbes Road, cnr Buwbes and Bundow Roads, Sebenza, Edenvale 2 263 1 179 219 122 97 100% Serbian 1133 Anvil Road, Robertville, Roodepoort 2 738 2 399 378 24 354 100% Sharland Avenue 1380 Sharland Road, Driehoek, Germiston 2 572 1 680 322 (6) 328 100% Snigger 19 Indianapolis Street, Kyalami Business Park, Kyalami, Midrand 4 972 2 009 706 239 467 100% Spartan 01 4 Spanner Road, Spartan, Kempton Park 5 251 2 946 526 52 474 100% Spartan 02 2 Spanner Road, Spartan, Kempton Park 5 207 1 987 420 71 349 100% Springbok Park 35 and 37 Springbok Road, Industria West, Johannesburg 39 236 18 459 3 221 646 2 575 100% Stormill 88 147 Remstang Road, cnr Remstang Road and Ratchet Avenue, Stormill, Roodepoort 3 600 2 168 423 49 374 100% Stormill 90 141 Remstang Road, Stormill, Roodepoort 4 161 2 243 277 131 146 100%
Page 28 Pangbourne Properties Limited
Left Eastgate Industrial Park, Eastgate Ext, Sandton.
Right Florida Seniors development, Gordon Road, Florida North, Roodepoort. Name/address of property of Name/address Net building income/(loss) building Net Building expenditure Building Occupancy factor Occupancy Rentable area Rentable Rent received Rent Site area Site R’000 R’000 R’000 m m 2 2 Industrial Properties continued Sucosa House 3 Desmond Street, cnr Desmond and Appel Streets, Kramerville, Sandton 2 288 3 128 821 194 627 100% Sunnyrock 104 North Reef Road, Sunnyrock, Germiston 12 251 6 340 1 775 90 1 685 100% Sydney Road 565, 595 and 607 Sydney Road and 15 Watford Road, Durban 19 434 30 703 5 188 666 4 522 100% Tillbury 16th Road, Randjespark, Midrand 63 129 16 896 4 619 1 601 3 018 100% Tulisa Park 186, 188, 190 South Rand Road, Tulisa Park, Johannesburg 13 589 7 966 797 235 562 100% Value 20 Loper Avenue, cnr Loper Avenue and Orlando Place, Spartan, Kempton Park 11 114 3 827 1 074 188 886 100% Vodacom 31 Beacon Road, Florida North, Roodepoort 2 714 678 519 258 261 100% Wadeville 01 10 Log Road, Wadeville, Germiston 32 950 13 247 1 411 655 756 100% Wally’s Minis 5 Birmingham Road, Benoni 21 364 8 776 1 114 436 678 67% Watkins 3 Watkins Street, Denver, Johannesburg 2 393 1 631 269 57 212 100% Welkom 3, 3rd Street, Voorspoed East, Welkom 13 682 5 182 223 16 207 100% Wilbart 22 Mountjoy Street, Wilbart, Germiston 2 483 1 664 324 67 257 100% Willowfield Crescent 79 Willowfield Crescent, Springfield Park, Durban 4 165 2 707 775 — 775 100% Wynberg 01 20 Thora Crescent, Wynberg, Sandton 1 781 2 283 181 36 145 100% Wynberg 02 18 Thora Crescent, Wynberg, Sandton 1 598 1 566 241 113 128 100% Wynberg 04 12 Thora Crescent, Wynberg, Sandton 1 641 2 433 281 89 192 100% Wynberg 05 15 Thora Crescent, Wynberg, Sandton 1 659 1 693 207 81 126 100% Wynberg 07 44 Andries Street, Wynberg, Sandton 7 435 3 662 566 233 333 100% Wynberg 08 46 Andries Street, Wynberg, Sandton 3 718 1 796 318 71 247 100% Wynberg 09 48 Andries Street, Wynberg, Sandton 3 718 1 738 295 52 243 100%
Page 29 Investments are listed alphabetically by property sector.
Properties as at 30 June 2005 Name/address of property of Name/address Net building income/(loss) building Net Building expenditure Building Occupancy factor Occupancy Rentable area Rentable Rent received Rent Site area Site R’000 R’000 R’000 m m 2 2 Commercial Properties 357 Rivonia 357 Rivonia Boulevard, Edenburg, Rivonia 3 966 3 640 151 8 143 76% Acacia House Redlands Estate, 1 George McFarlane Avenue, Wembley, Pietermaritzburg 5 468 798 581 6 575 100% Cato Street 30-32 Cato Street, Durban 1 372 2 071 545 69 476 100% Civilia 14 Elizabeth Street, Bloemfontein 2 795 6 487 1 807 353 1 454 79% Devonshire Place 2 Devonshire Place, Durban 2 237 7 297 1 858 630 1 228 98% Embassy House Corner Beatrix and Edmond Streets, Arcadia, Pretoria 1 960 3 419 840 234 606 100% Florida Seniors 31 Beacon Road, Florida North, Roodepoort 17 131 901 357 173 184 55% Girton Road 19 Girton Road, Parktown, Johannesburg 8 854 7 450 3 258 864 2 394 89% KPMG Redlands Estate, 1 George McFarlane Avenue, Wembley, Pietermaritzburg 1 502 1 400 969 45 924 100% Moores Rowland 245 North Ridge Road, Morningside, Durban 5 068 2 327 1 786 598 1 188 100% Musgrave Road 135 Musgrave Road, Berea, Durban 2 708 4 293 3 509 987 2 522 100% Nampak Centre 114 Dennis Road, Athol Gardens, Sandton 10 134 5 736 2 888 1 2 887 100% Oxford Manor 196 Oxford Road, Illovo, Sandton 16 559 13 107 4 691 1 314 3 377 87% Pangbourne House 382 Jan Smuts Avenue, Craighall, Johannesburg 2 976 5 663 2 530 407 2 123 92% President Place Corner Hood Avenue and Baker Street, Rosebank 6 866 13 102 9 201 4 057 5 144 96% Roban 178 Erasmus Street, Meyerspark, Pretoria 2 088 3 287 1 103 218 885 100%
Page 30 Pangbourne Properties Limited
Left Heriotdale, Main Reef Road, Heriotdale, Johannesburg.
Right Reliance, Heidelberg Road, City Deep, Johannesburg. Name/address of property of Name/address Net building income/(loss) building Net Building expenditure Building Occupancy factor Occupancy Rentable area Rentable Rent received Rent Site area Site R’000 R’000 R’000 m m 2 2 Retail Properties Alberton 01 Jubilist Street, Raceview, Alberton 6 958 2 400 520 7 513 100% Benoni 01 Corner Oos Street and New Modder Road, Benoni 69 369 16 784 4 417 174 4 243 100% Gezina 01 Corner Michael Brink and Frederika Streets, Gezina 48 251 14 908 4 473 32 4 441 100% Klerksdorp 01 13 Emily Hobhouse Street, Klerksdorp 1 735 2 775 421 1 420 100% Mayberry Park 1 Onyx Street, cnr Onyx and Delphinium Streets, Mayberry Park, Alberton 5 035 1 653 277 29 248 100% Mowbray Corner Main Road and Rhodes Avenue, Mowbray 5 507 5 436 935 3 932 100% OK Bazaars – Potchefstroom 117 Kerk Street, Potchefstroom 4 634 6 549 398 149 249 100% OK Bazaars – Roodepoort Corner Lambert and Van Wyk Streets, Roodepoort 6 591 6 222 686 145 541 100% Observatory Corner Main and Lower Main Roads, Observatory 3 494 1 279 349 (4) 353 100% Pineslopes Corner Witkoppen Road and The Straight, Pineslopes, Fourways 46 474 16 801 1 107 51 1 056 94% Port Shepstone Dick King Road, Port Shepstone 7 738 8 800 1 228 134 1 094 100% Triomf 34 Edward Street, cnr Edward and Miller Streets, Triomf, Johannesburg 19 629 6 511 2 355 535 1 820 100% Umlanga Crescent 1-3 Sunset Crescent, Umhlanga Ridge New Town Centre 54 518 26 330 1 398 70 1 328 100% West Street 409-423 West Street, Durban 5 567 14 200 4 826 51 4 775 100%
Other Properties Beach Hotel 107 Marine Parade, Durban 1 254 14 174 2 388 386 2 002 100%
Page 31 Investments are listed alphabetically by property sector.
Properties as at 30 June 2005 Name/address of property of Name/address Net building income/(loss) building Net Building expenditure Building Occupancy factor Occupancy Rentable area Rentable Rent received Rent Site area Site R’000 R’000 R’000 m m 2 2 Vacant Land Benrose 38 59 and 61 Julbert Road, Benrose, Johannesburg 2 082 — — — — Benrose 39 5 Daniel Road, Benrose, Johannesburg 8 145 — — — — Benrose 41 2, 6, 10 and 14 Daniel Road, Benrose, Johannesburg 8 261 — — — — Benrose 52 28 Julbert Road, Benrose, Johannesburg 989 — — — — Benrose 67 74 and 76 Barney Road, Benrose, Johannesburg 5 340 — — — — Benrose 77 75 Barney Road, Benrose, Johannesburg 102 525 — — — — Dawn Park Corner Dagbreek and Bauhinia Streets, Dawnpark, Boksburg 225 673 — — — — Eastgate 10 Delphi Street, Sandton 7 165 — — (32) 32 Florida 31 Beacon Road, Roodepoort 10 000 — — — — Fuchs Street 15 Fuchs Street, Alrode, Alberton 12 989 — — 4 (4) Horizon Cabanas 38 Van Santen Drive, Horizon View, Roodepoort 8 100 — — — — Jet Park 05 Malcolm Moodie Crescent, Jet Park, Boksburg 72 800 — — — — Jupiter Nasmith Road, Jupiter, Germiston 17 098 — — — — New Modder Townships New Modderfontein, cnr Vermont and Daveyton Avenue, Benoni 8 069 583 — — — — Park Central 01 2, 4, 6 and 8 Broad Street, Park Central, Johannesburg 5 652 — — — — Park Central 02 7 Broad Street, Park Central, Johannesburg 4 379 — — — — Park Central 13 8, 10, 12 and 14 Paris Crescent, Park Central, Johannesburg 8 565 — — 23 (23) Park Central 14 2, 4 and 6 Amsterdam Avenue, Park Central, Johannesburg 10 431 — — — — Rietfontein Peschwar Street, Lenasia 116 393 — — — — Riverhorse Imvubu Business Park, Durban (50% portion of ownership) 38 777 — — — — Tillbury 16th Road, Randjespark, Midrand 23 540 — — — —
Page 32 Pangbourne Properties Limited
Left Lucem House, Wynberg, Johannesburg.
Right Embassy House, Arcadia, Pretoria. Name/address of property of Name/address Net building income/(loss) building Net Building expenditure Building Occupancy factor Occupancy Rentable area Rentable Rent received Rent Site area Site R’000 R’000 R’000 m m 2 2 Properties sold during the year Alrode South 05 14 Evans St, Cnr Evans and Van Der Bijl Streets, Alrode South 1 001 432 99 6 93 Anderbolt 01 88 Dam Road, Anderbolt, Boksburg 2 085 1 296 36 (10) 46 Benrose 50 11 Theodore Road, Benrose, Johannesburg 1 978 1 478 27 27 0 Clayville 40 Industry Road, Clayville, Midrand 9 175 2 310 227 62 165 Commerce House 13 Commerce Crescent, Eastgate Ext 13, Sandton 3 217 3 285 280 95 185 Eastgate 03 8 and 10 Olympia Street and 4 and 6 Delphi Street, Eastgate Ext, Sandton 30 029 3 479 964 337 627 FT Paarl Driebergen Street, Paarl 20 672 11 107 261 — 261 FT Vredenburg Heuningklip Road, Vredenburg 25 696 8 821 150 1 149 Future Bank House 122 de Korte Street, Braamfontein 634 2 584 579 205 374 Hillclimb Road 41 Hillclimb Road, Westmead, Pinetown 3 072 989 17 7 10 Hunter Street 20 Hunter Street, Durban 3 270 5 290 436 110 326 Libhof Corner Hennie Steyn and Hardie Muller Streets, Rosslyn, Pretoria 10 514 6 019 165 123 42 Linden 41, 7th Street, Linden, Johannesburg 1 573 1 535 366 139 227 Linel House Lenchen Avenue South, Centurion 2 782 2 712 555 444 111 Maynard Plaza Corner Church Street and Station Road, Wynberg, Cape Town 2 801 10 623 812 247 565 Neutron 3 Neutron Road, Chloorkop, Kempton Park 3 146 2 100 70 (20) 90 North Coast Road 85 and 89 North Coast Road, Durban 4 187 2 532 430 187 243 OK Bazaars – Benoni 53 Princess Avenue, Benoni 1 190 4 672 2 454 43 2 411 Randburg 01 (Furniture City) 333 Pretoria Avenue, Ferndale, Randburg 12 045 5 504 268 425 (157) Randhill 104 Bordeaux Drive, Randburg 1 941 4 644 365 292 73 Rand President 342 Pretoria Road, Randburg 2 274 2 274 75 28 47
Page 33 Investments are listed alphabetically by property sector.
Properties as at 30 June 2005 Name/address of property of Name/address Net building income/(loss) building Net Building expenditure Building Occupancy factor Occupancy Rentable area Rentable Rent received Rent Site area Site
Properties sold during the year R’000 R’000 R’000 m m 2 2 continued Reuven 13 16 and 18 Ivanseth Road, Reuven 3 722 3 550 60 34 26 St Albans 56 High Street, Mayfair West, Johannesburg 833 780 — 46 (46) Teljoy 12 Claim Street, Johannesburg 2 477 5 244 — 140 (140) Western Province Corner Kingfisher and Raven Streets, Elspark, Germiston 3 166 1 296 83 4 79 Wynberg 06 9 Thora Crescent, Wynberg, Sandton 1 659 2 745 — 45 (45)
Other — — 92 171 (79)
Total 246 055 43 869 202 186
Page 34 BASTION GRAPHICS Pangbourne Properties Limited Annual Report Report Annual Limited Properties Pangbourne 2005
www.pangbourne.co.za
Registration No: 1987/002352/06 Share code PAP ISIN ZAE 000005252