Oasis Crescent Property Fund Annual Report

ANNUAL REPORT 2008

Superior returns at lower than market risk. DEFINITIONS

“ALTx” the Alternative Exchange of the JSE which is a market for small to medium companies that are in a growth phase;

“CISCA” the Collective Investment Schemes Control Act (Act 45 of 2002);

“Crescent range” or “Shari’ah compliant” investment products offered by the Oasis Group, which are managed in accordance with the investment guidelines that have been established by the Oasis Group Shari’ah Advisory Board;

“FSB” Financial Services Board established by section 2 of the Financial Services Board Act, 1990 (Act No. 97 of 1990);

“the fund” Oasis Crescent Property Fund (JSE code OAS, ISIN ZAE000074332), a closed-end property fund created under the scheme, registered in terms of CISCA;

“independent valuer” Mills Fitchet Magnus Penny (Proprietary) Limited, a duly authorised professional valuer, registered without restriction in terms of the Property Valuers Professional Act, 2000 (Act No. 47 of 2000);

“the JSE” the JSE Limited (registration number 2005/022939/06), a company duly registered and incorporated with limited liability under the company laws of the RSA, licensed as an exchange under the Securities Services Act, 2004;

“NPI” or “non-permissible income” contaminated income that will be disclosed separately and treated in line with the guidelines of the Oasis Group Shari’ah Advisory Board;

“the Oasis Group” an independent organisation, which offers a range of savings products, including domestic and global collective investment schemes, as well as retirement and preservation schemes;

“OCPFM” Oasis Crescent Property Fund Managers Limited (registration number 2003/012266/06), a public company duly incorporated in terms of the laws of the RSA and approved by the Registrar to manage the scheme;

“the scheme” the Oasis Crescent Property Trust Scheme, a collective investment scheme in property registered in terms of CISCA;

“Scheme deed” the scheme deed made and entered into between OCPFM and the Trustee to establish a collective investment scheme in property and the terms under which it is administered, which was approved by the Registrar on 2 November 2005;

“Trustee” ABSA Real Estate Asset Management, a division of ABSA Bank Limited (registration number 1986/004794/06), a public company duly incorporated in terms of the laws of the RSA.

OASIS CRESCENT PROPERTY FUND | Annual Report 2008 1 CORPORATE INFORMATION

Registered ofﬁce of the fund Manager 20th Floor, Triangle House Oasis Crescent Property Fund Managers Limited 22 Riebeek Street Registration number 2003/012266/06 Cape Town, 8001 PO Box 1217, Cape Town, 8000 Principal ofﬁce of the Manager: 20th Floor, Triangle House 22 Riebeek Street Cape Town, 8001 PO Box 1217, Cape Town, 8000

Directors and secretary of the manager Auditors Directors: PricewaterhouseCoopers Inc MS Ebrahim (Executive Chairman) Registration number 1998/012055/21 N Ebrahim Registered Auditors M Swingler No. 1 Waterhouse Place H Jeena* # Century City, 7441 Z Ismail Kara* # PO Box 2799, Cape Town, 8000 Dr Y Mahomed*#

Secretary: N Ebrahim (B.Soc.Sc. B.Proc.)

Trustee Independent property valuers ABSA Real Estate Asset Management, Mills Fitchet Magnus Penny (Proprietary) Limited a division of ABSA Bank Limited Registration number 1996/004736/07 Registration number 1986/004794/06 20th Floor, 1 Thibault Square 1st Floor, Block E, Flora Ofﬁce Park Cape Town, 8001 Cnr Ontdekkers and Conrad Roads PO Box 4442, Cape Town, 8000 Florida, 1709 PO Box 1132, Johannesburg, 2000

Designated Advisor Transfer secretaries Ernst & Young Sponsors (Proprietary) Limited ** Computershare Investor Services 2004 (Proprietary) Limited Registration number 2000/031843/07 Registration number 2004/003647/07 Wanderers Ofﬁce Park Ground Floor 52 Corlett Drive 70 Marshall Street Illovo, 2196 Johannesburg, 2001 PO Box 2322, Johannesburg, 2000 PO Box 61051, Marshalltown, 2107

Attorneys Commercial banker Ebrahims Inc ABSA Bank Limited Registration number 19095/12638/21 Registration number 1986/004794/06 21st Floor, Triangle House 170 Main Street 22 Riebeek Street Johannesburg, 2001 Cape Town, 8000 PO Box 7757, Johannesburg, 2000 PO Box 477, Cape Town, 8000

Note: * Non-executive # Audit committee ** Ernst & Young Sponsors (Proprietary) Limited ceased to provide the designated advisor services from 23 May 2008. PSG Capital (Proprietary) Limited have been appointed as the designated advisor to the fund and OCPFM from 23 May 2008.

2 OASIS CRESCENT PROPERTY FUND | Annual Report 2008 PROFILE

The Oasis Group is an independent organisation, owned and driven by its founding shareholders, management and staff. It endeavours to provide unrivalled ﬁnancial products and services to its clients. Since inception, the Oasis Group has experienced success and received widespread acclaim for growth in assets under management and excellent investment performance, and for delivering on its mission, which is to provide SUPERIOR RETURNS AT LOWER THAN MARKET RISK.

Oasis offers a range of domestic and global collective investment schemes, as well as retirement and preservation schemes in the Crescent (socially responsible or Shari’ah compliant) and Oasis ranges. Oasis Crescent Property Fund provides an alternative to conventional South African property unit trusts or property loan stock companies for Shari’ah compliant investors to diversify the asset allocation of their investment portfolio.

The fund, created under the scheme, is a collective investment scheme in property registered in terms of CISCA to house the properties.

OBJECTIVES OF THE FUND

The objectives of the fund are to:

• provide sustainable income and real returns for investors

• provide an opportunity for clients to diversify their portfolios by investing in a liquid and transparent Shari’ah compliant property fund in the regulated environment of the JSE Limited.

• build a high-quality property portfolio consisting of commercial, industrial and retail properties backed by national, multi-national and government tenants

• develop the existing properties to their full potential

OASIS CRESCENT PROPERTY FUND | Annual Report 2008 3 STRUCTURE

The fund is a property fund created under the scheme in terms of the CISCA to house the properties. The scheme was registered by the Registrar on 2 November 2005 and is managed by Oasis Crescent Property Fund Managers Limited. The fund structure is illustrated below:

REGULATORY MANAGEMENT BODIES

REGISTRAR FSB

JSE THE FUND OCPFM

TRUSTEE

ABSA Real Estate Asset Management

AUDITORS Pricewaterhouse Investment Property Coopers Inc Manager Administration

SHARI’AH ADVISORY BOARD

4 OASIS CRESCENT PROPERTY FUND | Annual Report 2008 DIRECTORATE

PROFILES OF THE OCPFM DIRECTORS Zaheeda Ismail Kara, (42) Mohamed Shaheen Ebrahim (53) Designation and function: Non-executive Director Designation and function: Executive Chairman Zaheeda Ismail Kara has accumulated 20 years of Shaheen Ebrahim has successfully managed property experience since she joined Old Mutual several enterprises, acquiring over thirty years Properties as a Property Portfolio Manager in 1988. experience in commerce. He has been involved She was appointed as Director – Properties for the with the Oasis Group since the inception thereof in Public Investment Commissioners in 2001 and sub- 1997 and is Chairman of the Oasis Group. sequently joined Telkom SA Limited where she is currently Executive Manager of Strategic Property Nazeem Ebrahim, B.Soc.Sc., B.Proc. (50) Asset Management. Designation and function: Executive Director Nazeem Ebrahim was educated at the University Yousuf Mahomed, MD, FACS, FACC (62) of Cape Town and received B.Soc.Sc. and B.Proc. Designation and function: Non-executive Director degrees. He serves as an executive director of the Dr. Mahomed has excelled in the medical profession Oasis Group. His professional experience includes and has proven himself to be an experienced over twenty-ﬁve years of business and legal businessman and at present is a member of the practice. Indianapolis Chamber of Commerce and the Business Diversity Council. He has built up a vast Michael Swingler, CA(SA), CFA (37) knowledge in the property sector, being involved Designation and function: Executive Finance in ﬁve successful real estate businesses based Director in Indianapolis. Besides Oasis Crescent Property Michael Swingler is a Chartered Accountant and Fund Managers Limited, he is also a non-exec- Chartered Financial Analyst. He has been with utive director on the board of Oasis Crescent the Oasis Group since its inception and his profes- Management Company Limited and an associated sional experience includes all aspects of property company in Dubai. research and analysis. Michael is also an executive director of the Oasis Group.

Haroon Jeena, B.Com. B.Acc. CA(SA), H.Dip Tax (44) Designation and function: Non-executive Director Haroon Jeena was educated at the University of Witwatersrand where he received Bachelor of Commerce and Bachelor of Accountancy degrees. Haroon subsequently received a Higher Diploma in Tax Law from Rand Afrikaans University. He has extensive experience in the Property Industry both as ﬁnancial manager and alternate director to various listed property companies under the administration of Anglo American Property Services (Ampros) with whom he had spent 8 years and recently with Airports Company of South Africa where he is Group Manager: Property with the responsibility for asset management and growth of the property portfolio.

OASIS CRESCENT PROPERTY FUND | Annual Report 2008 5 FINANCIAL HIGHLIGHTS

2008 2007

Distribution per unit including non-permissible 101.6 100.9 income (cents) Non-permissible rental per unit (cents) (4.4) (3.3)

Non-permissible interest per unit (cents) (6.6) (11.5)

Distribution per unit excluding non-permissible 90.6 86.1 income (cents)

Property portfolio valuation (Rm) 297.1 264.2

Cash and cash equivalents (Rm) 12.6 14.3

Net asset value per unit (cents) 1254 1154

Listed market price at year end (cents) 1200 1201

Comment

Since listing the focus of OCPFM has been primarily on investing to improve:

• The quality of properties in the portfolio • The quality of the tenant mix • The quality of the operating environment • Investment in listed global property fund for scalability, geographical and currency diversiﬁcation

As a result of this the portfolio is exceptionally well positioned to beneﬁt from the strong fundamentals in the property market in terms of net asset value and income generation.

The Ridge@Shallcross (“The Ridge”) in particular has received a lot of attention in improving the tenant mix and positioning the centre for sustainable long term growth. The total turnover of tenants at The Ridge increased from R148 million during the year 2007 to R177 million in 2008 this shows a turnover growth of 20% increase on a year on year basis, which signiﬁcantly outperformed the average turnover growth for South African shopping centres over this period.

In the industrial component of the portfolio current rentals are signiﬁcantly below market rentals and this will come through as leases are renewed.

The successful introduction of offshore investment provides scalability, geographical and currency diversification to the portfolio which significantly reduces the risk of the portfolio. The cost of investment in the Oasis Crescent Global Property Equity Fund amounted to R42.9m as at 31 March 2008 and the market value was R45 million. It is our objective to increase the offshore exposure at an appropriate time to take advantage of the recent announcements by the Minister of Finance to increase the offshore exposure of CIS management companies. The investment in the global fund has also resulted in a dilution in distribution of 4 cents per unit which is temporary and negligible as compared to the benefits of geographical and currency diversification which the fund now enjoys.

6 OASIS CRESCENT PROPERTY FUND | Annual Report 2008 MANAGER’S REPORT

Overview of performance

The fund has continued to deliver a competitive return relative to inﬂation and the average for the property unit trust sector.

2008 2007 Oasis Crescent Property Fund actual return 7.5% 11.8% Inﬂation 7.5% 4.8% Property Unit Trust sector (8.1%) 11.9%

Notes: 1. Performance based on total return (capital and distribution excluding non-permissible income). 2. The return was realised at low risk due to no debt.

Property portfolio

Sectoral Proﬁle based on gross rental 2008 2007 Retail 54% 52% Ofﬁce 16% 19% Industrial 30% 29% 100% 100%

There were no acquisitions or disposals of properties during the year ended 31 March 2008.

Tenant proﬁle %

A – Large nationals, large listeds, large franchisees, multi-nationals and government 68 B – Nationals, listeds, franchisees and medium to large professional ﬁrms 14 C – Other 18

100

% by rentable % by Lease expiry proﬁle area revenue March 2009 16 15 March 2010 -3 March 2011 22 41 March 2012 11 March 2013 onwards 61 40 100 100

OASIS CRESCENT PROPERTY FUND | Annual Report 2008 7 MANAGER’S REPORT

Vacancies based on rentable area 2008 2007 Retail 5.6% 7.9% Ofﬁce - - Industrial - 14.9%

As at 31 March 2008 the vacancy at the portfolio level is 1% (2007: 12%). At The Ridge@Shallcross 891m² (2007: 1263m²) was vacant due to ongoing efforts to improve the tenant mix.

Avg rental per m² Avg rental Avg rental per m² Avg rental 2008 escalation 2007 escalation (R) 2008 (R) 2007

Retail 82 7.0% 77 7.0% Ofﬁce 64 8.5% 59 8.5% Industrial 16 8.0% 13 8.0%

Outlook Strong demand, combined with supply constraints, increasing replacement and land cost provides a positive outlook for rental growth. Going forward, the outlook for the fund is to deliver distribution growth in line with the growth in rentals and growth in distribution from Oasis Crescent Global Property Equity Fund subject to any dilutions.

Service charge The service charge is equal to 0.5% per annum of the fund’s market capitalisation and borrowing facilities based on the average daily closing prices of the units. The amount paid to OCPFM was R1.6 million (2007: R1.4 million).

Property management Property management is outsourced to OCPFM and external service providers. The amount paid to OCPFM was R685,778 (2007: R529, 499).

Units in issue At year-end the number of units in issue was 27,055,000 (2007: 22,975,000). During this period, the fund issued 4,080,000 units at an issue price of R12,25 per unit in terms of a private placement under general authority.

Shareholding in OCPFM OCPFM is 100% owned by Oasis Group Holdings (Pty) Ltd.

8 OASIS CRESCENT PROPERTY FUND | Annual Report 2008 MANAGER’S REPORT

Unitholders Unitholders holding more than 5% of issued units as at 31 March 2008:

Name Number of units % holding Crescent Balanced Progressive 6,735,999 24.9 Fund of Funds Crescent Preservation Pension Fund 2,558,614 9.5 Crescent Retirement Annuity Fund 2,303,414 8.5 Eden Court Trust 2,133,941 7.9 Oasis Crescent Global Equity Fund 1,805,000 6.7 Oasis Crescent Global Property Equity Fund 1,496,600 5.5

Unitholders spread as at 31 March 2008:

Number of unitholders Holding in units % of total Non-Public 4 2,253,941 8.3% Public 279 24,801,060 91.7% Total 283 27,055,001 100.0%

Number of unitholders Holding in units % of total Directors 2 304,526 13.5% Associates of directors 2 1,949,415 86.5% Total 4 2,253,941 100.0%

Directors’ interests

Beneﬁcial Director Direct Indirect Total

MS Ebrahim 10,000 142,263 152,263 N Ebrahim 10,000 142,263 152,263 Total 20,000 284,526 304,526

The indirect interests of the OCPFM directors are held by Eden Court Trust.

OASIS CRESCENT PROPERTY FUND | Annual Report 2008 9 MANAGER’S REPORT

Corporate governance The OCPFM directors endorse the Code of Corporate Practices and Conduct as set out in the King II Report on Corporate Governance. By supporting the code, the OCPFM directors have recognised the need to conduct the affairs of the fund with integrity and in accordance with generally accepted corporate practices.

The trust is not a legal entity and OCPFM manages its affairs in terms of CISCA, therefore several of the requirements of the code are not directly applicable but OCPFM has adopted the principles of the code including fairness, accountability, responsibility and transparency.

The following departures from the Code should be noted based on the speciﬁc nature and size of OCPFM:

• OCPFM has no employees and has not formed a remuneration committee • The Chairperson also assumes an executive role and carries strategic and operational responsibilities.

Board of directors The Board of OCPFM consists of three non-executive directors and three executive directors.

Name Attendance MS Ebrahim 4/4 N Ebrahim 4/4 M Swingler 4/4 H Jeena 4/4 Z Ismail Kara 4/4 Dr Y Mahomed (appointed on 09 March 2007) 4/4

Audit committee The audit committee consists of the non-executive directors and the designated advisor.

Name Attendance H Jeena 4/4 Z Ismail Kara 4/4 Dr Y Mahomed 4/4 Designated advisor 4/4

10 OASIS CRESCENT PROPERTY FUND | Annual Report 2008 PROPERTY PORTFOLIO

Market Market Cost value Cost value Property Lettable Acquisition 2008 2008 2007 2007 Region Sector name Location area (m²) date R’000 R’000 R’000 R’000

Western Industrial Sacks Circle 34 Sacks 20,088 Nov 2005 R22,639 R36,000 R22,639 R27,800 Cape Bellville Circle, Bellville Western Industrial Moorsom 13-19 20,842 Nov 2005 R23,419 R41,100 R21,627 R30,715 Cape Avenue Moorsom Epping Avenue, Epping Western Industrial Nourse 27 Nourse 9,698 Nov 2006 R18,432 R19,850 R12,867 R13,600 Cape Avenue Avenue Epping Epping Western Industrial Waltex Drukkery 14,290 Nov 2005 R17,412 R18,000 R17,412 R17,000 Cape Goodwood Street, Elsies River Western Ofﬁce/ Protea 98 St 7,261 Nov 2005 R44,144 R64,000 R44,144 R57,200 Cape Retail Assurance Georges Cape Town Mall, Cape Town Western Retail Mica Parklands 2,109 Nov 2005 R11,606 R13,700 R11,598 R13,400 Cape Parklands Main Road, Milnerton Kwa-Zulu Retail The Ridge@ 90 13,288 Jul 2006 R103,851 R104,450 R102,464 R104,475 Natal Shallcross Shallcross Road, Durban

Total 87,576 R241,503 R297,100 R232,751 R264,190

Property criteria Consistent with the tried and tested investment philosophy of the Oasis Group, the focus on quality, value and capital protection is apparent when looking at the portfolio in more detail. The portfolio has a high exposure to quality national, multi-national and government tenants with a preference for leases with a long duration. This tenant quality and certainty of cash ﬂows are the key drivers of capital protection and delivering sustainable income.

OASIS CRESCENT PROPERTY FUND | Annual Report 2008 11 DIRECTORS’ RESPONSIBILITY

The directors of OCPFM are responsible for the The directors have responsibility for ensuring that preparation, integrity, and fair presentation of the accounting records are kept. The accounting financial statements of the fund and the company. records should disclose with reasonable accuracy The financial statements have been prepared in the financial position of the fund and the company accordance with International Financial Reporting to enable the directors to ensure that the financial Standards (“IFRS”) and the requirements of the statements comply with the relevant legislation. Collective Investment Schemes Control Act of 2002, The fund and the company operated in a well-es- and include amounts based on judgements and tablished control environment, which incorporates estimates made by management. risk management and internal control procedures, which are designed to provide reasonable, but not The directors consider that in preparing the financial absolute, assurance that assets are safeguarded statements they have used the most appropriate and the risks facing the business, are being accounting policies, consistently applied and controlled. supported by reasonable and prudent judgements and estimates. The directors are satisfied that the The going-concern basis has been adopted in information contained in the financial statements preparing the financial statements. The directors fairly presents the results of operations for the have no reason to believe that the fund and period and the financial position of the fund and the company will not be going concerns in the of the company at year-end. The directors also foreseeable future, based on forecasts and available prepared the other information in the report and are cash resources. These financial statements support responsible for both its accuracy and its consistency the viability of the fund and the company. with the financial statements. There is no directors report as OCPFM is a wholly owned subsidiary of a company incorporated in South Africa.

The fund’s external auditors, PricewaterhouseCoo- pers Inc., audited the ﬁnancial statements, and their report is presented on page 17.

Mohamed Shaheen Ebrahim Michael Swingler Executive Chairman Executive Finance Director

12 OASIS CRESCENT PROPERTY FUND | Annual Report 2008 SHARI’AH ADVISORY BOARD

Principles Shaykh Yusuf DeLorenzo serves as an advisor to the In addition to its responsibilities in terms of compliance Dow Jones Islamic Market Index and is a leading with all conventional regulation that apply to the Islamic scholar in the United States. He has translated fund, the manager has a duty towards its socially over twenty books from Arabic, Persian and Urdu for responsible investors to provide information to and publication in English. Shaykh DeLorenzo compiled comply with the Oasis Group Shari’ah Advisory the first English translation of legal rulings issued by Board. This process includes the following: Shari’ah supervisory boards on the operations of Islamic banks. Since 1989 he has served as secretary - initial property selection based on tenant of the Fiqh Council of North America. He is also a activity and identifying core business Shari’ah consultant to several Islamic financial insti- activities that are not acceptable. tutions and was an advisor on Islamic education to - removing non-permissible income from the government of Pakistan. the income distribution which will consist mainly of interest earned on cash held for acquisition and distribution. Although the manager has and will continue to Shaykh Nizam Yaquby received an MSc in Finance endeavour to avoid or limit investments that will from McGill University (Canada) and has studied produce non-permissible income, it remains an Shari’ah law in Morocco, India and Saudi Arabia. inevitable part of investing in conventional markets. He is an active scholar in Islamic finance and has The non-permissible income component to be been the Professor of Tafsir, Hadith and Fiqh in dispersed will be separately disclosed and dispersed Bahrain since 1976. Shaykh Yaquby is a member of to registered charitable organisations with a focus the Shari’ah Board of the Accounting and Auditing on the areas of healthcare, education and disaster Organisation for Islamic Financial Institutions and relief. also works as an independent Shari’ah consultant in Bahrain. He currently sits on the Islamic supervisory Oasis Group Shari’ah Advisory board boards of the Dow Jones Islamic Index and several In accordance with the provisions of Shari’ah Law Islamic financial institutions, which include HSBC for investing, the Oasis Group Shari’ah Advisory Amanah Finance; Abu Dhabi Islamic Bank; Bahrain Board is appointed to provide advice and ensure Islamic Bank; Citi Islamic Investment Bank and compliance with the ethical mandate. others.

Dr Daud Bakar is a respected academic who was awarded a doctorate in philosophy from the University of St. Andrews in Scotland and has presented numerous papers and publications regarding Islamic banking and investment. Dr Bakar is a member of the Shari’ah Board of the Accounting and Auditing Organisation for Islamic Financial Institutions, the Shari’ah Advisory Council of the Securities Commission of Malaysia and Bank Negara Malaysia (Central Bank of Malaysia) and the Dow Jones Islamic Market Index. In addition he is a Shari’ah consultant to numerous respected investment committees throughout the world.

OASIS CRESCENT PROPERTY FUND | Annual Report 2008 13 SHARI’AH COMPLIANCE CERTIFICATE

14 OASIS CRESCENT PROPERTY FUND | Annual Report 2008 CRESCENT FUND TRUST

Non-permissible income (of the fund is dispersed to the Crescent Fund Trust which is a registered non-proﬁt organisation with a focus on the areas of healthcare, education and disaster relief. The NPO number of the trust is 930002681 and SAB&T Inc, Chartered Accountants are the Auditors of the Trust.

APPROVAL OF ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2008

The annual ﬁnancial statements of the fund and OCPFM for the year ended 31 March 2008 as set out on pages 19 to 58 were approved by the board of directors of OCPFM on 20 May 2008 and are signed on its behalf by:

Mohamed Shaheen Ebrahim Michael Swingler Executive Chairman Executive Finance Director

COMPANY SECRETARY’S CERTIFICATE for the year ended 31 March 2008

I hereby certify that for the year ended 31 March 2008, the company has lodged with the Registrar of Companies all such returns as are required of a public company in terms of Section 268G(d) of the Companies Act, 1973, as amended, and all such returns are true, correct and up to date.

Nazeem Ebrahim Company Secretary

OASIS CRESCENT PROPERTY FUND | Annual Report 2008 15 REPORT OF THE INDEPENDENT AUDITORS for the year ended 31 March 2008

INDEPENDENT AUDITOR’S REPORT TO THE SHARE- An audit involves performing procedures to obtain HOLDERS OF OASIS CRESCENT PROPERTY FUND audit evidence about the amounts and disclosures MANAGERS LIMITED, AND TO THE UNITHOLDERS OF in the financial statements. The procedures selected THE OASIS CRESCENT PROPERTY FUND depend on the auditor’s judgement, including the assessment of the risks of material misstatement of We have audited the annual financial statements the financial statements, whether due to fraud or of Oasis Crescent Property Fund Managers Limited error. In making those risk assessments, the auditor (“the Company”) and the Oasis Crescent Property considers internal control relevant to the entity’s Fund (“the Fund”), which comprise the directors’ and preparation and fair presentation of the financial trustee’s reports, the balance sheets as at 31 March statements in order to design audit procedures that 2008, the income statements, the statements of are appropriate in the circumstances, but not for changes in equity and the cash flow statements for the purpose of expressing an opinion on the effec- the year then ended, and a summary of significant tiveness of the entity’s internal control. An audit accounting policies and other explanatory notes, also includes evaluating the appropriateness of as set out on pages 19 to 58. accounting policies used and the reasonableness of accounting estimates made by management, Directors’ Responsibility for the Financial as well as evaluating the overall presentation of the Statements financial statements. The Company’s directors are responsible for the We believe that the audit evidence we have preparation and fair presentation of these financial obtained is sufficient and appropriate to provide a statements in accordance with International basis for our audit opinion. Financial Reporting Standards and in the manner required by the Companies Act of South Africa and Opinion the Collective Investment Schemes Control Act, In our opinion, the financial statements present 2002. This responsibility includes: designing, imple- fairly, in all material respects, the financial position menting and maintaining internal control relevant of Oasis Crescent Property Fund Managers Limited to the preparation and fair presentation of financial and Oasis Crescent Property Fund at 31 March 2008, statements that are free from material misstate- and their financial performance and their cash ment, whether due to fraud or error; selecting and flows for the year then ended in accordance with applying appropriate accounting policies; and International Financial Reporting Standards and making accounting estimates that are reasonable in the manner required by the Companies Act of in the circumstances. South Africa and the Collective Investment Scheme Control Act, 2002. Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Inter- national 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. PricewaterhouseCoopers Inc Director: DG Malan Registered Auditor Cape Town Date: 20 May 2008

16 OASIS CRESCENT PROPERTY FUND | Annual Report 2008 REPORT OF THE TRUSTEE for the year ended 31 March 2008

In terms of Section 70(1)(f) of the Collective Investments Schemes Control Act of 2002

To the unitholders of Oasis Crescent Property Fund

During the period as set out above during which the Collective Investment Schemes Control Act of 2002 has been in effect the Trust has been administered in accordance with: i) the limitations imposed on the investment and borrowing powers of the Manager by the Act; and ii) the provisions of the Act and the deed.

ABSA Bank Limited Trustee Johannesburg 23 May 2008

OASIS CRESCENT PROPERTY FUND | Annual Report 2008 17 BALANCE SHEET for the year ended 31 March 2008

2008 2007 Notes R '000 R '000 ASSETS Non-current assets 342,087 264,190

Investment properties 2 291,263 261,152 Straight line lease accrual 2 5,837 3,038 Available-for-sale ﬁnancial assets 3 44,987 -

Current assets 15,635 17,068

Trade receivables 4 2,337 2,433 Other receivables 5 536 324 Trade receivables from related parties 20 123 63 Cash and cash equivalents 6 12,639 14,248

Total assets 357,722 281,258

UNITHOLDERS’ FUNDS AND LIABILITIES

Unitholders’ funds 339,298 265,150

Capital of the fund 7 281,629 233,711 Non-distributable reserve 2.1 55,597 31,439 Available -for-sale reserve 3 2,072 -

Current liabilities 18,424 16,108

Trade payables 8 2,571 2,400 Provisions 9 257 105 Other payables 10 1,122 1,442 Trade payables to related parties 20 263 191 Unitholders for distribution 12,574 10,899 Non-permissible income for dispensation 1,637 1,071

Total unitholders' funds and liabilities 357,722 281,258

NAV (per unit) 1 254 cents 1 154 cents

18 OASIS CRESCENT PROPERTY FUND | Annual Report 2008 INCOME STATEMENT for the year ended 31 March 2008

2008 2007 Notes R '000 R '000

Revenue 42,157 32,341

Rental and related income 38,073 30,200 Income from investments 11 1,285 - Straight-lining of lease income 2 2,799 2,141

Expenses 12 15,093 10,302

Property expenses 12,702 8,085 Service charges 1,571 1,356 Other operating expenses 820 861

Net income from rental operations 27,064 22,039

Fair value adjustment to investment properties excluding straight-lining of lease income 21,359 10,307

Fair value adjustment to investment properties 24,158 12,448 Straight-lining of lease income (2,799) (2,141)

Operating proﬁt 48,423 32,346

Net ﬁnance income 1,669 2,542

Interest received 1,681 2,557 Interest paid (12) (15)

Net proﬁt for the year 50,092 34,888

Basic earnings per unit including non-permissible 13 196.2 156.9 income (cents) Distribution per unit including non-permissible income 13 101.6 100.9 (cents) Distribution per unit excluding non-permissible income 13 90.6 86.1 (cents)

OASIS CRESCENT PROPERTY FUND | Annual Report 2008 19 STATEMENT OF CHANGES IN UNITHOLDERS’ FUNDS for the year ended 31 March 2008

Capital Non- Available- Retained Total of the fund distributable for-sale income reserve reserve R ’000 R ’000 R ’000 R ’000 R ’000

Balance at 01 April 2006 198,458 18,991 - - 217,449 Issue of units 35,253 - - - 35,253 Transfer to non-distributable - 12,448 - (12,448) - reserve Net proﬁt for the year ended 31 - - - 34,888 34,888 March 2007 Distribution to unitholders - - - (19,152) (19,152) Dispensation of non-permissible - - - (3,288) (3,288) income

Balance at 01 April 2007 233,711 31,439 - - 265,150 Issue of units 49,980 - - - 49,980 Transaction costs for issue of new (34) - - - (34) units Fair value gain on available-for- - - 2,072 - 2,072 sale ﬁnancial assets Distribution received in advance (2,028) - - 1,386 (642)

Transfer to non-distributable - 24,158 - (24,158) - reserve Net proﬁt for the year ended 31 - - - 50,092 50,092 March 2008 Distribution to unitholders - - - (24,511) (24,511) Dispensation of non-permissible - - - (2,809) (2,809) income Balance at 31 March 2008 281,629 55,597 2,072 - 339,298

20 OASIS CRESCENT PROPERTY FUND | Annual Report 2008 CASH FLOW STATEMENT for the year ended 31 March 2008

2008 2007 Notes R '000 R '000 CASH FLOWS FROM OPERATING ACTIVITIES Net proﬁt for the year 50,092 34,888 Adjusted for: Interest received (1,681) (2,557) Interest paid 12 15 Bad debt provision 4 132 - Straight-line lease accrual 2 (2,799) (2,141) Fair value adjustment to investment properties excluding straight-lining of lease income 2 (21,359) (10,307)

(Increase)/decrease in current assets 24,397 19,898 Trade receivables (36) (2,201) Other receivables (212) (195) Trade receivables from related parties (60) 4

Increase/(decrease) in current liabilities Trade payables 171 2,670 Provisions 152 1 Other payables (320) 1,114 Trade payables to related parties 72 62

Cash generated from operations 24,164 21,353 Interest paid (12) (15) Interest received 1,681 2,557 Unitholders for distribution 15 (23,478) (12,303) Non-permissible income dispensed 15 (2,243) (4,313)

Net cash inﬂow from operating activities 112 7,279 CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of available-for-sale ﬁnancial assets (42,915) - Acquisition of investment properties (8,752) (117,441)

Net cash ﬂow from investing activities (51,667) (117,441) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of units 49,980 35,253 Transaction cost on issue of new units (34) -

Net cash inﬂow from ﬁnancing activities 49,946 35,253 NET DECREASE IN CASH AND CASH EQUIVALENTS (1,609) (74,909) CASH AND CASH EQUIVALENTS At beginning of the year 14,248 89,157 At end of the year 6 12,639 14,248

OASIS CRESCENT PROPERTY FUND | Annual Report 2008 21 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2008

1. Accounting policies • IFRIC 8,’Scope of IFRS 2’ (Effective 1 May The principal accounting policies applied in the 2006) preparation of these financial statements are set • IFRIC 9, ‘Re-assessment of embedded out below. derivatives’ (Effective 1 June 2006) • IFRIC 10, ‘Interim financial reporting and 1.1 Basis of accounting impairment’ (Effective 1 November 2006) The financial statements of Oasis Crescent Property • IFRIC 11, ‘IFRS 2 – Group and treasury share Fund have been prepared in accordance with In- transactions’ (Effective 1 March 2007) ternational Financial Reporting Standards (IFRS) and the requirements of the Collective Investment (c) Standards, amendments and interpretations to Schemes Control Act of 2002. existing standards that are not yet effective, but relevant to the fund’s operations The financial statements are prepared on the historical cost basis as modified by the revaluation • IFRS 8, ‘Operating segments ‘ (effective from 1 of investment properties and the revaluation of January 2009) available-for-sale financial assets. (d) Standards, amendments and interpretations to (a) Standards, amendment and interpretations existing standards that are not yet effective in 2008 effective and not relevant to the fund’s operations:

• Amendment to IAS1 presentation of financial The following standards, amendments and interpre- statements - Capital Disclosures tations to existing standards have been published and are mandatory for the fund’s accounting The amendment to IAS 1 introduces disclosures periods beginning on or after 1 April 2008 or later about the level of an entity’s capital and how it periods, but not relevant to the fund’s operations: manages its capital. • IAS 23, (Amendment), ‘Borrowing costs’ • IFRS 7 - Financial Instruments: Disclosure, and (effective from 1 January 2009) complementary amendment to IAS 1 - Presen- • IFRIC 12, ‘Service concession arrangements’ tation of financial statements - capital disclosure (effective from 1 January 2008) (effective 1 January 2007) • IFRIC 13, ‘Customer loyalty programmes’ (effective from 1 July 2008) IFRS 7 introduces new disclosure relating to • IFRIC 14, ‘IAS 19 – The limit on a defined benefit financial instruments and the complemen- asset, minimum funding requirements tary amendment to IAS 1 introduces new and their interaction’ (effective from 1 January disclosure relating to capital management. 2008) The fund applied IFRS 7 and the complemen- • IAS 1 (AC 101), Amendments to IAS 1 ‘Presenta- tary amendment to IAS 1 from 1 April 2007. This tion of financial instruments - Puttable standard will not have any impact on the clas- Financial Instruments and Obligations arising on sification and valuation of the fund’s financial Liquidation’ (Effective 1 January 2009) instruments. • IAS 27 (AC 132), (Revised) ‘Consolidated financial statements and accounting for (b) Standards, amendments and interpretations investments in subsidiaries’ (Effective 1 July effective in 2008 but not relevant 2009) • IAS 32 (AC 125) Amendments to IAS 32 ‘Financial The following standards, amendments and inter- Instruments: Presentation - Puttable pretations to published standards are mandatory Financial Instruments and Obligations arising on for accounting periods beginning on or after 1 Liquidation’ (Effective 1 January 2009) April 2007 but they are not relevant to the fund’s • IFRS 3 (AC 140) (Revised) ‘Business Combina- operations: tions’ (Effective 1 July 2009)

22 OASIS CRESCENT PROPERTY FUND | Annual Report 2008 1.2 Tangible assets Management fees payable to Oasis Crescent Property Fund Managers Limited represent 0.5% of Investment properties the enterprise value of the fund which consists of Investment properties are held to earn rental the total market capitalisation and any long term income and for capital appreciation and are initially borrowings of the fund. The management fee is recorded at cost, including the transaction cost on calculated and payable monthly based on the acquisition. Additional expenditure on investment average daily closing price of the fund as recorded properties is capitalised when it is probable that by the JSE Limited and the average daily extent of future economic benefits will flow to the fund. All any long term borrowings. Management fees are other subsequent expenditure on the properties recognised monthly as and when the services are is expensed in the period in which it is incurred. performed. Investment properties are not occupied by the fund. 1.4 Financial instruments The fund classifies its financial assets in the following Investment properties are subsequently measured categories: loans and receivables and available- at fair value, representing open market value, as for-sale financial assets. The classification depends determined by registered external valuers as at the on the purpose for which the financial assets were financial year end. Any surplus or deficit is included acquired. Management determines the classifica- in net income. As required by the trust deed, tion of its financial assets at initial recognition. surpluses are transferred from retained income to a non-distributable reserve, which is not available for distribution. Likewise, deficits are transferred Loans and receivables from retained income and set off against existing Loans and receivables are non-derivative financial non-distributable reserves to the extent that such assets with fixed or determinable payments that are reserves are available for the particular investment not quoted in an active market. They are included property. On the disposal of an investment property in current assets, except for maturities greater than any realised accumulated surplus included in the 12 months after the balance sheet date. These are non-distributable reserve is transferred to a capital classified as non-current assets. The fund’s loans and reserve, which is not available for distribution. receivables comprise “trade receivables”, “other receivables’’, ‘‘trade receivables from related 1.3 Revenue and expense recognition parties’’ and “cash and cash equivalents” in the Revenue comprises gross rental and related balance sheet (note 4, 5, 6 and 20). income excluding Value Added Tax. Where a lease has a fixed escalation clause the rental income is recognised on a straight line basis over the period of Available-for-sale financial assets the lease. Related income from lessees is recognised Available-for-sale financial assets are non-deriva- as it falls due for payment. tives that are either designated in this category or not classified in any of the other categories. They are Interest income is recognised using the effective included in non-current assets unless management interest rate method. intends to dispose of the investment within 12 months of the balance sheet date. Dividend income is recognised when the right to receive payment is established.

OASIS CRESCENT PROPERTY FUND | Annual Report 2008 23 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2008

Regular purchases and sales of financial assets are Financial assets and liabilities are set-off and the recognised on the trade-date – the date on which net balance is reported in the balance sheet where the fund commits to purchase or sell the asset. there is a legally enforceable right to set off and the Investments are initially recognised at fair value plus fund intends to settle on a net basis or to realise the transaction costs for all financial assets not carried at asset and settle the liability simultaneously. fair value through profit or loss. Financial assets are derecognised when the rights to receive cash flows 1.5 Trade receivables from the investments have expired or have been Trade receivables are recognised initially at fair transferred and the fund has transferred substan- value and subsequently measured at amortised cost tially all risks and rewards of ownership. Available- using the effective interest method, less provision for-sale financial assets are subsequently carried for impairment. A provision for impairment of trade at fair value. Loans and receivables are carried at receivables is established when there is objective amortised cost using the effective interest method. evidence that the fund will not be able to collect all amounts due according to the original terms of When securities classified as available-for-sale the receivables. Significant financial difficulties of are sold or impaired, the accumulated fair value the debtor, probability that the debtor will enter adjustments recognised in equity are included in bankruptcy or financial reorganisation, and default the income statement as ‘gains and losses from or delinquency in payments (more than 60 days investment securities’. overdue) are considered indicators that the trade receivable is impaired. The amount of the provision is Dividends on available-for-sale equity instruments the difference between the asset’s carrying amount are recognised in the income statement as part of and the present value of estimated future cash income from investments when the fund’s right to flows, discounted at the original effective interest receive payments is established. rate net of any deposit. The carrying amount of the asset is reduced through the use of an allowance The fair values of quoted investments are based on account, and the amount of the loss is recognised in current bid prices. If the market for a financial asset the income statement within ‘‘property expenses”. is not active (and for unlisted securities), the fund When a trade receivable is uncollectible, it is establishes fair value by using valuation techniques. written off against the allowance account for trade These include the use of recent arm’s length transac- receivables. Subsequent recoveries of amounts tions, reference to other instruments that are substan- previously written off are credited against “property tially the same and discounted cash flow analysis. expenses’’. The fund assesses at each balance sheet date 1.6 Cash and cash equivalents whether there is objective evidence that a financial Cash and cash equivalents comprise cash on asset or a group of financial assets is impaired. In hand, deposits held on call with banks and other the case of equity securities classified as available- short-term highly liquid investments with original for-sale, a significant or prolonged decline in the maturities of three months or less. fair value of the security below its cost is considered as an indicator that the securities are impaired. 1.7 Capital of the fund If any such evidence exists for available-for-sale Capital of the fund consists of unitholders’ capital financial assets, the cumulative loss – measured as net of any directly attributable transaction cost on the difference between the acquisition cost and issue of units, and is classified as equity. the current fair value, less any impairment loss on that financial asset previously recognised in profit or 1.8 Trade payables loss – is removed from equity and recognised in the Trade payables are recognised initially at fair value income statement. Impairment losses recognised in and subsequently measured at amortised cost using the income statement on equity instruments are not the effective interest rate method. reversed through the income statement. Impairment testing of trade receivables is described in note 1.5

24 OASIS CRESCENT PROPERTY FUND | Annual Report 2008 1.9 Deposits Industrial – industrial buildings such as warehouses Deposits represent amounts received from the and factories tenants as a security against any unpaid rentals and Retail – comprising retail outlets are classified as trade payables. Initially the liability Corporate – comprising items not attributable to is measured at its fair value plus transaction costs. the other segments Subsequent to initial measurement, the liability is measured at amortised cost using the effective The secondary segmentation is the geographical interest method. location of properties. The fund has not presented secondary segment information, as the risks and 1.10 Provisions returns are similar across the various geographical A provision is recognised when there is a present locations. legal or constructive obligation as a result of past events, it is probable that an outflow of economic Segment results include revenue and property resources will be required to settle the obligation and expenses that are directly attributable to a segment a reliable estimate of the amount of the obligation and the relevant portion of enterprise revenue and can be made. expenses that can be allocated on a reasonable basis to that segment whether from external trans- 1.11 Taxation actions or transactions with other segments. No income taxation is accounted for in the fund as all income is distributed to unitholders and is taxable Segment assets and liabilities comprise those in their hands. Likewise, no Capital Gains Tax is operating assets and liabilities that are directly at- accounted for in the fund as these gains will vest tributable to a segment or can be allocated on a with the participatory interest holders on disposal of reasonable basis. their interests. 1.14 Distributions to unitholders 1.12 Deferred taxation The fund has an obligation to distribute the income The fund is not liable for capital gains on the sale of per unit for distribution as calculated. Distributions directly held investment properties and accordingly to unitholders are recognised as a liability once the no deferred taxation is provided on the revaluation amount for distribution has been calculated. The of the properties. fund is obliged to distribute income bi-annually for the 6 months to 30 September and the 6 months 1.13 Segment reporting to 31 March. Distributions exclude income arising A business segment is a group of assets and from: operations engaged in providing services that are subject to risks and returns that are different from • unrealised fair value adjustments to investment those of other business segments. A geographical properties segment is engaged in providing services within a • realised capital gains and losses on disposal of particular economic environment that are subject investment properties to risks and returns that are different from those of • non-permissible activities as prescribed by the segments operating in other economic environ- Oasis Group Shari’ah Advisory Board ments. • unrealised gains and losses on available-for-sale financial assets The fund operates in the following primary business • realised gains and losses on available-for-sale segments: financial assets

Office – comprising office buildings and office parkings

OASIS CRESCENT PROPERTY FUND | Annual Report 2008 25 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2008

1.15 Use of estimates, assumptions and judgements The preparation of the ﬁnancial statements necessitates the use of estimates, assumptions and judgements. The estimates and assumptions affect the reported amounts of assets, liabilities and contingent liabilities at the balance sheet date as well as affecting the reported income and expenses for the period. Although estimates are based on management’s best knowledge and judgement of current facts as at the balance sheet date, the actual outcome may differ from these estimates, possibly signiﬁcantly.

1.16 Leases

Operating leases Properties leased out under operating leases are included in investment properties in the balance sheet as per note 2. Lease income is recognised over the term of the lease on a straight-line basis.

1.17 Leasing arrangements The period of leases whereby the fund leases out its investment property under operating leases is 2 to 10 years or more. Leases generally contain ﬁxed escalation rates of approximately 6% to 12% except for Carnaud lease on Sacks Circle property where it is the higher of CPIX or 4.5%.

26 OASIS CRESCENT PROPERTY FUND | Annual Report 2008 2008 2007 R '000 R '000

2. Investment properties At valuation 297,100 264,190 Straight line lease accrual (5,837) (3,038)

291,263 261,152

Movement in investment properties Carrying value at the beginning of the year 261,152 133,404 Additions 8,752 117,441 Fair value adjustment to investment properties excluding 21,359 10,307 straight-lining of lease income Revaluation 24,158 12,448 Change in straight line lease accrual (2,799) (2,141)

Carrying value at the end of the year 291,263 261,152

The investment properties were independently valued by Mills Fitchet Magnus Penny (Pty) Ltd on 31 March 2008. The fund generally values its properties using the capitalisation of net income approach which requires the valuer to establish the current net income of the existing leases to which a market derived capitalisation rate is applied. However, 3 out of the 7 properties have been valued using the discounted cashﬂow approach. The market capitalisation rates and discount rates used were in the range of 9,75% to 15.50% (2007: between 9.5% and 15.5%).

The principal assumptions underlying estimation of fair value are those related to the receipt of contractual rentals, expected future market rentals, void periods ranging from 0% to 5%, maintenance requirements and appropriate discount rates. These valuations are regularly compared to actual market yield data, actual transactions by the fund and those reported by the market.

OASIS CRESCENT PROPERTY FUND | Annual Report 2008 27 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2008 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2008 2.1 As at 31 March 2008, the following investment properties are included in the property portfolio : Property name Market Cost Non- Market Cost Non- value 2008 distributable value 2007 distributable 2008 reserve 2007 reserve 2008 2007 R’000 R’000 R'000 R’000 R’000 R'000

Sacks Circle Bellville 36,000 22,639 13,361 27,800 22,639 5,161 Moorsom Avenue 41,100 23,419 17,681 30,715 21,627 9,088 Epping Nourse Avenue 19,850 18,432 1,418 13,600 12,867 733 Epping Waltex Goodwood 18,000 17,412 588 17,000 17,412 (412) Protea Assurance 64,000 44,144 19,856 57,200 44,144 13,056 Cape Town Mica Parklands 13,700 11,606 2,094 13,400 11,598 1,802 The Ridge@Shallcross 104,450 103,851 599 104,475 102,464 2,011 Total 297,100 241,503 55,597 264,190 232,751 31,439

2008 2007 R '000 R '000 3. Available-for-sale ﬁnancial assets Carrying value at the beginning of the year - - Additions 42,915 - Revaluation 2,072 - Carrying value at the end of the year 44,987 -

3.1 As at 31 March 2008, 560,034 units (2007: Nil) were held in Oasis Crescent Global Property Equity Fund at an ex-dividend price of USD9.88 (R80.33) per unit. 4. Trade receivables Accrued interest 110 8 Accrued dividends 945 - Accounts receivable: Municipal charges - Ridge 314 146 Net accounts receivable 831 851 Accounts receivable 963 851 Provision for bad debts (Note 19.1) (132) - Receivables from seller - Nourse (adjustment account) 137 137 Receivables from seller - Ridge (rental guarantee) - 1,291 2,337 2,433 4.1 Due to the short term nature of the trade receivables, the book value represents the fair value of trade receivables. All trade receivables are expected to be received within 12 months.

28 OASIS CRESCENT PROPERTY FUND | Annual Report 2008 2008 2007 R '000 R '000 5. Other receivables Deposits 51 51 Prepayments: - Alternative Exchange fees (ALTx) 14 14 - Letting commission 361 135 - South African Musical Rights Organisation fees 2 2 (SAMRO) - Securities Regulation Panel fees (SRP) - 3 - Municipal charges - Waltex 27 24 - Close Circuit Television costs (CCTV) 81 95 536 324

5.1 Due to the short term nature of the other receivables, the book value represents the fair value of other receivables.

6 Cash and cash equivalents For the purposes of the cash ﬂow statement, cash and cash equivalents comprise the following: Deposits at banks 12,639 14,248

6.1 The cash is held on call as per the requirements of the trust deed.

7. Capital of the fund Balance as at 31 March 281,629 233,711 Units in issue at 31 March 2008- 27,055,000 (2007:22,975,000)

8. Trade Payables - Advertisement and promotions 2 63 - Municipal charges 1,646 275 - Accruals 185 - - Designated advisory fees 117 112 - Seller - Ridge@Shallcross 46 - - Deposits 520 886 - Others 55 1,064 2,571 2,400

OASIS CRESCENT PROPERTY FUND | Annual Report 2008 29 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2008

2008 2007 R '000 R '000

8.1 Deposits include an amount of R63,537 received from Oasis Group Holdings (Pty) Limited. 9. Provisions

- Audit fees 95 90 - Listing fees - 4 - Trustee's fees 10 11 - Valuation costs 25 - - Printing and publishing costs 127 - 257 105

10. Other payables Income in advance 735 1,014 VAT payable 387 428 1,122 1,442

11. Income from investments

Dividend received 1,206 - Service fee rebate 87 - Foreign exchange loss (8) - 1,285 - 12. Operating proﬁt - expenses by nature Operating proﬁt is stated after charging: Property expenses 12,702 8,085 - Property management fees 996 822 - Municipal charges 6,053 3,647 - Salaries 733 451 - Cleaning 296 247 - Bad debts (Note 19.1) 212 - - Insurance 411 332 - Security 1,149 744 - Advertising and promotions 1,105 820 - Repairs & maintenance 1,138 633 - Others 609 389

30 OASIS CRESCENT PROPERTY FUND | Annual Report 2008 2008 2007 R '000 R '000

Service charge (Note 12.1) 1,571 1,356 Other operating expenses 820 861

- Audit fee 120 123 - Designated advisor fee 150 150 - Trustee fee 121 105 - Printing & publishing 240 87 - Other operating expenses 189 396

Total Expenses 15,093 10,302

12.1 The service charge is equal to 0.5% per annum of the fund’s market capitalisation and borrowing facilities and a pro rata portion is payable on a monthly basis. The market capitalisation is based on the average daily closing price of the units as quoted on the Alternative Exchange (ALTx) of South Africa.

13. Basic and headline earnings per unit

Basic earnings per unit Basic earnings per unit was 196.2 cents for the year ended 31 March 2008 (2007: 156.9 cents). The calculation of the basic earnings per unit is based on 25,525,000 (2007: 22,231,250) weighted average units in issue at the end of the year and net proﬁt of R50.0 million (2007: R34.9 million).

Headline earnings per unit Headline earnings per unit was 112.6 cents for the year ended 31 March 2008 (2007: 110.6 cents). The calculation of the headline earnings per unit is based on 25,525,000 (2007: 22,231,250) weighted average units in issue during the year and headline earnings of R28.7 million (2007: R24.6 million).

Other Headline earnings and headline earnings per unit for the 12 months ended 31 March 2007 were adjusted for the effect of the straight lining of lease income adjustment. This resulted in headline earnings for the year ended 31 March 2007 increasing to R24.6 million (previously R22.4 million) and headline earnings per unit of 110.6 cents (previously 100.9 cents), in accordance with the guidelines contained in Circular 8/2007 from the South African Institute of Chartered Accountants.

OASIS CRESCENT PROPERTY FUND | Annual Report 2008 31 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2008

2008 2007 R '000 R '000

Headline earnings and distribution income reconciliation Net proﬁt for the year 50,092 34,888 Adjusted for: Fair value adjustment to investment properties (21,359) (10,307)

Headline earnings 28,733 24,581 Less: Straight line lease accrual (2,799) (2,141) Distribution including non-permissible income 25,934 22,440

Non-permissible rental income (1,128) (731) Non-permissible interest income (1,681) (2,557)

Distribution excluding non-permissible income 23,125 19,152 Distribution received in advance 1,386 - Total permissible distribution for the period 24,511 19,152

Basic earnings per unit including non-permissible 196.2 156.9 income (cents)

Headline earnings per unit including non-permissible 112.6 110.6 income (cents)

Distribution per unit including non-permissible 101.6 100.9 income (cents)

Distribution per unit excluding non-permissible 90.6 86.1 income (cents)

Weighted average units in issue 25,525,000 22,231,250

32 OASIS CRESCENT PROPERTY FUND | Annual Report 2008 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2008

2008 2007 R '000 R '000

14. Operating lease rentals

Future contractual rental income due from tenants can be analysed as follows: Within one year 34,312 28,300 Within two to five years 91,312 69,972 More than five years 23,381 32,186 149,005 130,458 15. Notes to cash flow statement - Distribution

Amounts unpaid at the beginning of the year 11,970 6,146 Amounts declared during the year 27,320 22,440 Distribution received in advance 642 - Amounts unpaid at the end of the year (14,211) (11,970) Distribution including non-permissible income 25,721 16,616 Non-permissible income dispensed (2,243) (4,313) Distribution excluding non-permissible income 23,478 12,303

16. Capital Commitments As at 31 March 2008, there were no capital commitments (2007: R4.2million) to be funded from existing cash resources

17. Contingent Liabilities The fund has no contingent liabilities

18. Events after the balance sheet date The directors are not aware of any events subsequent to 31 March 2008 which are likely to have a material effect on the ﬁnancial information contained in this report. The commitments reﬂected in note 16 are in the ordinary course of business.

OASIS CRESCENT PROPERTY FUND | Annual Report 2008 33 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2008

19. Financial risk management Sensitivity analysis The fund’s activities expose it to a variety of financial At 31 March 2008, if interest rates at that date risks: market risk (including foreign currency risk, cash had been 1% lower/higher, with all other variables flow interest rate risk and price risk), credit risk and held constant, net profit for the year would have liquidity risk. been R166,000 (2007: R327,000) lower/higher, arising mainly as a result of lower/higher interest income on Risk management is carried out by the Oasis Group cash deposits at banks. This sensitivity analysis for Central Risk Committee under policies approved currency risk includes the effect of non- monetary by the board of directors. The board provides the financial instruments, denominated in a currency principles for overall risk management, as well as other than the entity’s functional currency. the policies covering specific areas, such as interest rate risk, credit risk, use of non-derivative financial The fund manages interest rates risk by monitoring instruments, and investment of excess liquidity. interest rates on a regular basis. There were no significant borrowings or loans outstanding during Market risk: Foreign currency risk the period under review which attract interest The fund’s financial assets and liabilities are exposure to the entity. denominated in South African Rands (ZAR) except for the investments and the related investment income in Oasis Crescent Global Property Equity Market risk: Price risk Fund which is denominated in US Dollars (USD) and The fund is exposed to property price and market translated to ZAR at each balance sheet date at rental risks. the closing rate of exchange between ZAR and USD. Market price risk arises mainly from uncertainty about future prices of financial instruments held. It Sensitivity analysis represents the potential loss the fund might suffer As of 31 March 2008, if the Rand had weakened/ through holding market positions in the face of strengthened by 5% against the US Dollar (and price movements. assuming all other variables remained constant), the available-for-sale reserve would have been The fund is exposed to market price risk via the R2.2 million (2007 : Nil) higher /lower than as stated quoted investment disclosed in note 3, namely units in the balance sheet and statement of changes in held in the Crescent Global Property Equity Fund. equity. Price risk is managed by only investing in highly rated well diversified collective investment schemes, with The foreign currency risk is managed by close outstanding track records. monitoring of foreign currency rates on a regular basis. Sensitivity analysis As at 31 March 2008, if the closing market prices Market risk: Cash flow interest rate risk of the equity investments that the fund holds had The fund has cash on call (denominated in ZAR) been 10% higher/lower, with all other variables held which attracted an average variable interest rate of constant, the available-for-sale reserve would have 10.41 % during the year under review (2007: 7.81%). been R4.5 million higher/lower. The sensitivity analysis The sensitivity analysis is based on the average cash for price risk excludes the effect of movements in balances. foreign currency exchange rates. Interest expenses incurred is primarily on the municipal charges.

34 OASIS CRESCENT PROPERTY FUND | Annual Report 2008 In accordance with the fund’s policy, the The fund has formal policies and procedures in executive directors of Oasis Crescent Property place to ensure management of credit risk. A Fund Managers Limited monitor the fund’s overall formal credit risk assessment is performed for all exposure to market price risk on a daily basis, new tenants and tenancy contracts are made and the full board of directors review it on a half with tenants with an appropriate credit history. yearly basis. Crescent Global Property Equity Cash is invested with high credit quality financial Fund operates in a highly regulated environment institutions. Furthermore, trade receivables consist with a well diversified portfolio. This has provided of a spread of good quality tenant receivables scalability, geographical and currency diversifica- and adequate provision is made for bad debts tion to the fund and has significantly reduced the where applicable. risk of the portfolio. The fund does not consider significant credit risk to Credit risk arise from its trade receivables to related parties. The fund is exposed to credit risk on its financial assets such as trade receivables, trade receivables from The fund’s maximum exposure to credit risk at 31 related parties and cash and cash equivalents. This March 2008 and 31 March 2007 is represented by risk arises due to change in the credit rating of the the carrying amounts of trade receivables, trade counter party subsequent to the fund obtaining receivables from related parties and cash and the financial assets. cash equivalents at the respective dates. The fund holds deposits which will be applied towards arrear rentals in the event of default by a tenant.

OASIS CRESCENT PROPERTY FUND | Annual Report 2008 35 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2008

The executive directors of Oasis Crescent Property Fund Managers Limited monitor the fund’s exposure to the concentration of credit risk on a monthly basis.

The following table provides information regarding the aggregated risk exposure for ﬁnancial assets with external ratings as at 31 March 2008:

Credit rating Carrying value in Balance sheet A3 (BCA rating) Not rated R '000 Trade receivables - 2,337 2,337 Trade receivables from related parties - 123 123 Cash and cash equivalents 12,639 - 12,639

The following table provides information regarding the aggregated risk exposure for ﬁnancial assets with external ratings as at 31 March 2007 :

Credit rating Carrying value in Balance sheet A3 (BCA rating) Not rated R '000 Trade receivables - 2,433 2,433 Trade receivables from related parties - 63 63 Cash and cash equivalents 14,248 - 14,248

The fund holds deposits with a carrying value of R519, 000 (2007: R886,000) which may be applied towards the arrear rentals set out above.

The counter parties included in the trade receivables and trade receivables from related parties are ﬁnancial institutions, tenants, listed entities and related entities namely, Oasis Group Holdings (Pty) Limited, Eden Court Property Fund (Pty) Limited and Oasis Crescent Property Fund Managers Limited. Historically the default rates of the above entities are Nil except for the trade receivables from the tenants where the default rate was 0.68% on rental and related income.

36 OASIS CRESCENT PROPERTY FUND | Annual Report 2008 Impairment history

The following table provides information regarding the carrying value of ﬁnancial assets that have been impaired and the ageing of ﬁnancial assets that are past due but not impaired:

Neither past due Financial assets Financial assets Impairment Carrying nor impaired that are past due that have been value in (0-60 days) but not impaired impaired (61-120 Balance (61-120 days) days) sheet

2008 R ‘000 R ‘000 R ‘000 R ‘000 R ‘000 Trade receivables 1,840 497 132 (132) 2,337 Trade receivables 123 - - - 123 from related parties

Cash and cash 12,639 - - - 12,639 equivalents

2007 R ‘000 R ‘000 R ‘000 R ‘000 R ‘000 Trade receivables 512 1,921 - - 2,433 Trade receivables 63 - - - 63 from related parties

Cash and cash 14,248 - - - 14,248 equivalents

OASIS CRESCENT PROPERTY FUND | Annual Report 2008 37 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2008

19.1 Outstanding balances that relate to the acquisition of The Ridge@Shallcross property were guaranteed by the seller to a maximum of R3 million provided that the property generates a minimum of R16.3 million rental income for the period 01 June 2006 to 30 June 2007. The rental guarantee income had covered any bad debts that arose up to 30 June 2007. Accordingly no provision or write-off was made against trade receivables as at 31 March 2007; had there been no rental guarantee in place, a provision of R493,000 would have been made.

The provision for impairment of trade receivables are as follows:

2008 2007 R '000 R '000

Opening balance - - Provision for receivables impairment 212 - Receivables written off during the year as un- (80) - collectible Unused amounts reversed - -

Closing balance 132 -

Liquidity risk Proper liquidity risk management implies that sufﬁcient investments in cash and marketable securities are maintained, and that funding is available from an adequate amount of committed credit facilities. The following are the contractual maturities of ﬁnancial liabilities, including interest payments and excluding the impact of netting arrangements.

Carrying Contractual Payable within More than one More than three amount cash ﬂows 1 month or on month but not months but not demand exceeding exceeding one three months year

As at 31 March 2008 R’000 R’000 R’000 R’000 R’000 Non-derivative ﬁnancial liabilities Trade payables 2,571 2,571 2,571 - - Trade payables to related 263 263 263 - - parties Unitholders for distribution 12,574 12,574 - 12,574 - Non-permissible income 1,637 1,637 - 1,637 - for dispensation 17,045 17,045 2,834 14,211 -

38 OASIS CRESCENT PROPERTY FUND | Annual Report 2008 Carrying Contractual Payable within More than one More than three amount cash ﬂows 1 month or on month but not months but not demand exceeding three exceeding one months year At 31 March 2007 R ‘000 R ‘000 R ‘000 R ‘000 R ‘000 Non-derivative ﬁnancial liabilities Trade payables 2,400 2,400 2,400 - - Trade payables to 191 191 191 - - related parties Unitholders for distribution 10,899 10,899 - 10,899 - Non-permissible income 1,071 1,071 - 1,071 - for dispensation 14,561 14,561 2,591 11,970 -

Capital risk management Eden Court Property Fund (Pty) Limited is the entity The fund’s objectives when managing capital is to that owns any property that is not Shari'ah compliant. safeguard the fund’s ability to continue as a going Rentals are collected by Eden Court Property Fund concern and to provide an adequate return to the (Pty) Limited and expenses are paid and recovered unitholders by pricing the rentable units proportion- by Oasis Crescent Property Fund Managers Limited ately with the level of risk. on behalf of the fund from Eden Court Property Fund (Pty) Limited. Management considers capital to be equivalent to Oasis Group Holdings (Pty) Limited is a tenant at the the amount reﬂected as “Unitholders funds” on the Ridge@Shallcross. face of the balance sheet. As disclosed in the prospectus of Crescent Global The fund’s policy is to distribute its entire permissible Property Equity Fund a management fee is charged income as calculated to the unitholders and for investing in Crescent Global Property Equity Fund dispense the non-permissible income for the year to by Oasis Global Management Company (Ireland) Crescent Fund Trust, a recognised charitable trust, Limited, the manager of the fund. as required by the Collective Investments Schemes Control Act. There are common directors to Oasis Crescent Property Fund Managers Limited, Eden Court 20. Related party transactions and balances Property Fund (Pty) Limited, Oasis Group Holdings 20.1 Identity of the related parties with whom (Pty) Limited, and Oasis Global Management material transactions have occurred. Company (Ireland) Limited. Transactions with related Oasis Crescent Property Fund Managers Limited is parties are executed on terms no less favourable the management company of the fund in terms of than those arranged with third parties. the Collective Investment Schemes Control Act.

OASIS CRESCENT PROPERTY FUND | Annual Report 2008 39 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2008

20.2 Type of related party transactions The fund pays a service charge and a property management fee on a monthly basis to Oasis Crescent Property Fund Managers Limited.

2008 2007 R '000 R '000 20.3 Related party transactions

Service charge paid to Oasis Crescent Property 1,571 1,356 Fund Managers Limited Property management fees paid to Oasis 686 529 Crescent Property Fund Managers Limited Expense recoveries from Eden Court Property 999 554 Fund (Pty) Limited Rental, related income and deposit from Oasis Group Holdings (Pty) Limited at the Ridge@ Shallcross 322 146

Related party balances Trade receivables from Eden Court Property Fund (Pty) Limited 123 56 Trade receivables from Oasis Group Holdings (Pty) Limited - 7 123 63

Trade payables to Oasis Group Holdings (Pty) 38 - Limited Trade payables to Oasis Crescent Property Fund 225 191 Managers Limited 263 191

40 OASIS CRESCENT PROPERTY FUND | Annual Report 2008 Retail Ofﬁces Industrial Corporate Total 21. Segmental analysis-2008 R ‘000 R ‘000 R ‘000 R ‘000 R ‘000 Segment revenue Rental and related income 20,418 6,247 11,408 - 38,073 Income from investments - - - 1,285 1,285 Straight-lining of lease income 496 1,248 1,055 - 2,799 20,914 7,495 12,463 1,285 42,157

Segment expense Property expenses 9,341 1,718 1,643 - 12,702 Service charges - - - 1,571 1,571 Other operating expenses - - - 820 820 9,341 1,718 1,643 2,391 15,093

Fair value adjustment to investment properties excluding straight-lining of lease income 540 3,395 17,424 - 21,359

Segment result Operating proﬁt 12,113 9,172 28,244 (1,106) 48,423

Segment assets Investment properties 137,465 41,488 112,310 - 291,263 Straight-line lease accrual 985 2,212 2,640 - 5,837 Available-for-sale ﬁnancial assets - - - 44,987 44,987 Trade receivables 999 - 283 1,055 2,337 Other receivables 183 47 292 14 536 Trade receivables from related parties 123 - - - 123 Cash and cash equivalents - - - 12,639 12,639 139,755 43,747 115,525 58,695 357,722

Segment liabilities Trade payables 2,035 104 315 117 2,571 Provisions - - - 257 257 Other payables 309 390 36 387 1,122 Trade payables to related parties 81 - 26 156 263 Unitholders for distribution - - - 12,574 12,574 Non-permissible income for dispensation - - - 1,637 1,637 2,425 494 377 15,128 18,424 Capital expenditure 1,395 - 7,357 - 8,752

OASIS CRESCENT PROPERTY FUND | Annual Report 2008 41 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2008

Segmental analysis-2007 Retail Ofﬁces Industrial Corporate Total R ‘000 R ‘000 R ‘000 R ‘000 R ‘000 Segment revenue Rental and related income 15,766 5,586 8,848 - 30,200 Straight-lining of lease income 360 670 1,111 - 2,141 16,126 6,256 9,959 - 32,341

Segment expense Property expenses 5,205 1,667 1,213 - 8,085 Service charges - - - 1,356 1,356 Other operating expenses - - - 861 861 5,205 1,667 1,213 2,217 10,302

Fair value adjustment to investment properties excluding straight-lining of lease income 3,527 2,579 4,201 - 10,307

Segment result Operating proﬁt 14,448 7,168 12,947 (2,217) 32,346

Segment assets Investment properties 133,704 39,918 87,530 - 261,152 Straight-line lease accrual 489 964 1,585 - 3,038 Available-for-sale ﬁnancial assets - - - - - Trade receivables 2,240 - 185 8 2,433 Other receivables 126 17 163 18 324 Trade receivables from related parties 63 - - - 63 Cash and cash equivalents - - - 14,248 14,248 136,622 40,899 89,463 14,274 281,258

Segment liabilities Trade payables 984 144 1,161 111 2,400 Provisions - - - 105 105 Other payables 328 612 74 428 1,442 Trade payables to related parties 41 - 19 131 191 Unitholders for distribution - - - 10,899 10,899 Non-permissible income for dispensation - - - 1,071 1,071 1,353 756 1,254 12,745 16,108

Capital expenditure 102,500 39 14,902 - 117,441

42 OASIS CRESCENT PROPERTY FUND | Annual Report 2008 OASIS CRESCENT PROPERTY FUND MANAGER’S LIMITED

BALANCE SHEET for the year ended 31 March 2008

Notes 2008 2007 R '000 R '000

ASSETS

Non-current assets 1,321 1,201 Available-for-sale ﬁnancial asset 2 1,200 1,201 Property, plant & equipment 3 121 -

Current assets 1,648 1,695 Receivables 4 7 11 Trade receivables from related parties 12.3 729 914 Cash and cash equivalents 5 912 770

Total assets 2,969 2,896

EQUITY AND LIABILITIES Capital and reserves 597 550 Share capital 6 1 1 Fair value reserve 7 172 172 Retained income 424 377

Non-current liabilities 2,028 2,029 Subordinated loan 8 2,000 2,000 Deferred taxation 9 28 29

Current liabilities 344 317 Trade payables 34 47 Other payables 12 15 Provisions 60 55 Trade payables to related parties 12.3 137 80 Taxation 10 101 120

Total equity and liabilities 2,969 2,896

OASIS CRESCENT PROPERTY FUND MANAGERS| Annual Report 2008 43 OASIS CRESCENT PROPERTY FUND MANAGER’S LIMITED INCOME STATEMENT for the year ended 31 March 2008

2008 2007 Notes R '000 R '000

Revenue 2,415 1,998

Service charges 1,649 1,412 Property management fees 766 586

Other income 97 58 Dividend income 95 56 Other 2 2

Operating expenses 2,106 1,702

Audit fee 60 55 Management fees 1,725 1,315 Directors' remuneration 13 177 166 Other operating expenses 144 166

Operating proﬁt 406 354

Group ﬁnance income 83 60 Interest received 83 60

Proﬁt before taxation 489 414

Taxation 10 (142) (120) Net proﬁt for the year 347 294

44 OASIS CRESCENT PROPERTY FUND MANAGERS | Annual Report 2008 STATEMENT OF CHANGES IN EQUITY for the year ended 31 March 2008

Share Fair value Retained Total capital reserve income R' 000 R' 000 R' 000 R’ 000

Balance at 31 March 2006 1 129 83 213 Net proﬁt for the year ended 31 March 2007 - - 294 294 Revaluation of investments - 50 - 50 Deferred taxation thereon - (7) - (7)

Balance at 31 March 2007 1 172 377 550

Net proﬁt for the year ended 31 March 2008 - - 347 347 Dividend paid - - (300) (300) Revaluation of investments - (1) - (1) Deferred taxation - rate change - 1 - 1

Balance at 31 March 2008 1 172 424 597

OASIS CRESCENT PROPERTY FUND MANAGERS| Annual Report 2008 45 OASIS CRESCENT PROPERTY FUND MANAGER’S LIMITED CASH FLOW STATEMENT for the year ended 31 March 2007

Notes 2008 2007 R '000 R '000 CASH FLOWS FROM OPERATING ACTIVITIES Proﬁt before taxation 489 414 Adjusted for: Interest received (83) (60) Dividend received (95) (56) Depreciation 18 - 329 298 (Increase)/decrease in current assets Receivables decrease 4 3 Trade receivables from related parties decrease (116) (726)

Increase/(decrease) in current liabilities Trade payables decrease (13) - Other payables decrease (3) (5) Provisions increase 5 5 Trade payables to related parties increase 57 80

Cash generated/(utilised) 263 (345) Interest received 83 60 Dividend received 95 56 Taxation paid 10 (161) (34) Net cash inﬂow/(utilised) from operating activities 280 (263)

CASH FLOWS IN INVESTING ACTIVITIES Additions and replacement of property plant & (138) - equipment Net cash utilised in investing activities (138) -

CASH FLOWS FROM FINANCING ACTIVITIES -- Net cash ﬂow from ﬁnancing activities -- NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 142 (263)

CASH AND CASH EQUIVALENTS At beginning of the year 770 1,033 At end of the year 5 912 770

46 OASIS CRESCENT PROPERTY FUND MANAGERS | Annual Report 2008 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2008

Accounting policies • IFRIC 8,’Scope of IFRS 2’ (Effective 1 May The principal accounting policies applied in the 2006) preparation of these financial statements are set • IFRIC 9, ‘Re-assessment of embedded out below. These policies have been consistently derivatives’ (Effective 1 June 2006) applied to all the years presented. • IFRIC 10, ‘Interim financial reporting and impairment’ (Effective 1 November 2006) 1.1 Basis of accounting • IFRIC 11, ‘IFRS 2 – Group and treasury share The financial statements of Oasis Crescent Property transactions’ (Effective 1 March 2007) Fund Managers Limited have been prepared in accordance with International Financial Reporting (c) Standards, amendments and interpretations to Standards (IFRS) and the Companies Act (Act 61 of existing standards that are not yet effective and not 1973). They have been prepared under the historical relevant to the company’s operations: cost convention, as modified by the revaluation of available-for-sale financial assets. The following standards, amendments and interpretations to existing standards have been published The preparation of financial statements in conformity and are mandatory for the company’s accounting with IFRS requires the use of certain critical periods beginning on or after 1 April 2008 or accounting estimates. It also requires management later periods, but not relevant to the company’s to exercise its judgement in the process of applying operations: the company’s accounting policies. • IAS 23, (Amendment), ‘Borrowing costs’ (a) Standards, amendments and interpretations (effective from 1 January 2009). effective in 2008 • IFRS 8, ‘Operating segments ‘ (effective from 1 • Amendment to IAS1 presentation of financial January 2009). statements - Capital Disclosures • IFRIC 14, ‘IAS 19 – The limit on a defined benefit The amendment to IAS 1 introduces disclosures asset, minimum funding requirements and their about the level of an entity’s capital and how it interaction’ (effective from 1 January 2008). manages its capital. • IFRIC 12, ‘Service concession arrangements’ (effective from 1 January 2008). • IFRS 7 - Financial Instruments: Disclosure, and • IFRIC 13, ‘Customer loyalty programmes’ complementary amendment to IAS 1 - Presen- (effective from 1 July 2008). tation of financial statements - capital disclosure • IAS 1 (AC 101) ‘Amendments to IAS 1 Pre- (effective 1 January 2007) sentation of financial instruments - Puttable Financial Instruments and Obligations arising on IFRS 7 introduces new disclosure relating to Liquidation’ (Effective 1 January 2009) financial instruments and the complemen- • IAS 27 (AC 132), ‘ (Revised) Consolidated financial tary amendment to IAS 1 introduces new statements and accounting for investments in disclosure relating to capital management. subsidiaries’ (Effective 1 July 2009) The company applied IFRS 7 and the comple- • IAS 32 (AC 125), ‘Amendments to IAS 32 mentary amendment to IAS 1 from 1 April 2007. Financial Instruments: Presentation - Puttable This standard will not have any impact on the Financial Instruments and Obligations arising on classification and valuation of the company’s Liquidation’ (Effective 1 January 2009) financial instruments. • IFRS 3 (AC 140), (Revised) ‘Business Combina- tions’ (Effective 1 July 2009) (b) Standards, amendments and interpretations effective in 2008 but not relevant The following standards, amendments and interpretations to published standards are mandatory for accounting periods beginning on or after 1 April 2007 but they are not relevant to the company’s operations:

OASIS CRESCENT PROPERTY FUND MANAGERS| Annual Report 2008 47 OASIS CRESCENT PROPERTY FUND MANAGER’S LIMITED NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2008

1.2 Portfolio management fees 1.6 Financial instruments Portfolio management fees are earned from The company classifies its financial assets in the property fund management and administration following categories: loans and receivables and activities, and are recognised as revenue when the available-for-sale financial assets. The classification related services have been performed. depends on the purpose for which the financial assets were acquired. Management determines 1.3 Interest income the classification of its financial assets at initial Interest income is recognised using the effective recognition. interest rate method. Loans and receivables 1.4 Provisions Loans and receivables are non-derivative financial A provision is recognised when there is a present assets with fixed or determinable payments that are legal or constructive obligation as a result of past not quoted in an active market. They are included events, it is probable that an outflow of economic in current assets, except for maturities greater than resources will be required to settle the obligation and 12 months after the balance sheet date. These are a reliable estimate of the amount of the obligation classified as non-current assets. The company’s can be made. loans and receivables comprise “receivables”, “trade receivables from related parties” and “cash 1.5 Property, plant and equipment and cash equivalents” in the balance sheet (note Property, plant and equipment is stated at historical 4 and 12.3). cost less depreciation. Historical cost includes expenditure that is directly attributable to the Available-for-sale financial assets acquisition of the items. Available-for-sale financial assets are non-derivatives that are either designated in this category or Subsequent costs are included in the asset’s not classified in any of the other categories. They are carrying amount or recognised as a separate included in non-current assets unless management asset, as appropriate, only when it is probable intends to dispose of the investment within 12 months that future economic benefits associated with the of the balance sheet date. item will flow to the company and the cost of the item can be measured reliably. All other repairs Regular purchases and sales of financial assets are and maintenance are charged to the income recognised on the trade-date – the date on which statement during the financial period in which they the company commits to purchase or sell the asset. are incurred. Investments are initially recognised at fair value plus transaction costs for all financial assets not carried Depreciation is calculated using the straight line at fair value through profit or loss. method to allocate their cost to their residual values over their estimated useful lives as follows: Financial assets are derecognised when the rights - Motor vehicles : 5 years to receive cash flows from the investments have expired or have been transferred and the company The asset’s residual values and useful lives are has transferred substantially all risks and rewards reviewed, and adjusted if appropriate, at each of ownership. Available-for-sale financial assets balance sheet date. are subsequently carried at fair value. Loans and receivables are carried at amortised cost using the An asset’s carrying amount is written down effective interest method. immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated When securities classified as available-for-sale recoverable amount. are sold or impaired, the accumulated fair value adjustments recognised in equity are included in Gains and losses on disposals are determined by the income statement as ‘gains and losses from comparing proceeds with carrying amounts. These investment securities.’ are included in the income statement.

48 OASIS CRESCENT PROPERTY FUND MANAGERS | Annual Report 2008 Dividends on available-for-sale equity instruments Significant financial difficulties of the debtor, are recognised in the income statement as part of probability that the debtor will enter bankruptcy or other income when the company’s right to receive financial reorganisation, and default or delinquency payments is established. in payments (more than 60 days overdue) are considered indicators that the trade receivable is The fair values of quoted investments are based impaired. on current bid prices. If the market for a financial asset is not active (and for unlisted securities), the The amount of the provision is the difference company establishes fair value by using valuation between the asset’s carrying amount and the techniques. present value of estimated future cash flows, discounted at the original effective interest rate The company assesses at each balance sheet date net of any deposit. The carrying amount of the whether there is objective evidence that a financial asset is reduced through the use of an allowance asset or a group of financial assets is impaired. In account, and the amount of the loss is recognised the case of equity securities classified as available- in the income statement within ‘‘other operating for-sale, a significant or prolonged decline in the expenses”. When a trade receivable is uncollect- fair value of the security below its cost is considered ible, it is written off against the allowance account as an indicator that the securities are impaired. for trade receivables. Subsequent recoveries of If any such evidence exists for available-for-sale amounts previously written off are credited against financial assets, the cumulative loss – measured as “other operating expenses’’. the difference between the acquisition cost and the current fair value, less any impairment loss on 1.8 Cash and cash equivalents that financial asset previously recognised in profit or Cash and cash equivalents comprise cash on hand, loss – is removed from equity and recognised in the deposits held on call with banks and other short-term income statement. Impairment losses recognised in highly liquid investments with original maturities of the income statement on equity instruments are not three months or less. reversed through the income statement. Impairment testing of trade receivables is described in note 1.7 1.9 Trade payables Trade payables are recognised initially at fair value Financial assets and liabilities are set-off and the and subsequently measured at amortised cost using net balance reported in the balance sheet where the effective interest rate method. there is a legally enforceable right to set off and the company intends to settle on a net basis or to realise 1.10 Share Capital the asset and settle the liability simultaneously. Ordinary shares are classified as equity net of any directly attributable transaction cost incurred on 1.7 Trade receivables issue. Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision 1.11 Taxation for impairment. A provision for impairment of trade Current tax comprises tax payable calculated on receivables is established when there is objective the basis of the expected income for the period, evidence that the fund will not be able to collect using the tax rates enacted or substantively enacted all amounts due according to the original terms of at the balance sheet date. the receivables.

OASIS CRESCENT PROPERTY FUND MANAGERS| Annual Report 2008 49 OASIS CRESCENT PROPERTY FUND MANAGER’S LIMITED NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2008

Deferred tax is provided using the balance sheet 1.12 Use of estimates, assumptions and judgements liability method, based on temporary differences. Temporary differences are differences between The preparation of the financial statements ne- the carrying amounts of assets and liabilities for cessitates the use of estimates, assumptions and financial reporting purposes and their tax bases. judgements. The estimates and assumptions affect The amount of deferred tax provided is based on the reported amounts of assets, liabilities and the expected manner of realisation or settlement contingent liabilities at the balance sheet date as of the carrying amount of assets and liabilities using well as affecting the reported income and expenses tax rates enacted or substantively enacted at the for the period. Although estimates are based on balance sheet date. The effect on deferred tax of management’s best knowledge and judgement any changes in tax rates is recognised in the income of current facts as at the balance sheet date, the statement. actual outcome may differ from these estimates, possibly significantly.

50 OASIS CRESCENT PROPERTY FUND MANAGERS | Annual Report 2008 2008 2007 R '000 R '000

2. Availabe-for-sale ﬁnancial assets 100,000 units in Oasis Crescent Property Fund at fair value 1,200 1,201 Schedule of movement Carrying value at the beginning of the year 1,201 1,151 Unrealised (loss)/gain for the year (1) 50

Carrying value at the end of the year 1,200 1,201

2.1 The above quoted investment represents seed capital in the Oasis Crescent Property Fund. The fair value of investments in listed closed ended collective investment schemes is determined by reference to current bid prices.

3. Property, plant & equipment Motor Vehicles Cost 139 - Accumulated depreciation (18) - Net book amount 121 -

4. Receivables Prepayments 7 11 7 11

4.1 Due to the short term nature of the trade receivables, the book value represents the fair value of trade receivables.

5 Cash and cash equivalents For the purpose of the cash ﬂow statement, cash and cash equivalents comprise the following: Deposits at banks 34 33 Money market investments 878 737 912 770

OASIS CRESCENT PROPERTY FUND MANAGERS| Annual Report 2008 51 OASIS CRESCENT PROPERTY FUND MANAGER’S LIMITED NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2008

2008 2007 R '000 R '000

6 Share capital

Authorised and issued 1,000 ordinary shares of R1 each 1 1

7 Fair value reserve

Balance at the beginning of the year 172 129 Revaluation of investments - 43 Balance at end of the year 172 172

8 Subordinated loan Oasis Group Holdings (Pty) Limited 2,000 2,000

8.1 The subordinated loan is a requirement for the registration of the Oasis Crescent Property Trust Scheme. The loan is unsecured, bears no interest and has no ﬁxed repayment terms.

9 Deferred taxation Balance at the beginning of the year 29 22 Movement during the year - 7 Rate Change (1) -

Balance at the end of the year 28 29

Schedule of movement Comprising - Available-for-sale ﬁnancial assets 28 29

10 Taxation South African normal tax Current - current year 142 120 Reconciliation of tax rate % % Company tax rate 29 29 Effective tax rate 29 29

52 OASIS CRESCENT PROPERTY FUND MANAGERS | Annual Report 2008 2008 2007 R '000 R '000

Taxation Balance due at the beginning of the year 120 34 Tax charged in the income statement 142 120 Tax paid (161) (34) Balance due at the end of year 101 120

11. Financial risk management There are no significant borrowings / loans The company’s activities expose it to a variety outstanding during the period under review of financial risks: market risk (including cash flow which attracts interest exposure to the company. interest rate risk and price risk), credit risk and The subordinated loan from Oasis Group Holdings liquidity risk. (Pty) Limited is repayable upon termination of the Risk management is carried out by Oasis Group agreement between Oasis Crescent Property Central Risk Committee under policies approved Fund Managers Limited and Oasis Group Holdings by the board of directors. The board provides the (Pty) Limited. principles for overall risk management, as well as policies covering specific areas, such as interest Sensitivity analysis rate risk, credit risk, non-derivative financial instruments, and investment of excess liquidity. At 31 March 2008, if interest rates at that date had been 1% lower / higher, with all other variables Market risk: Foreign currency risk held constant, net profit after tax for the year The majority of the Company’s financial assets would have been R6,428 (2007: R1,487) lower / and liabilities are denominated in South African higher, arising mainly as a result of lower/ higher Rand (ZAR). As a result the Company is not subject interest income on cash deposits at banks. The to significant amounts of risk due to fluctuations company manages interest rate risk by monitoring in foreign currency movements. In accordance interest rates on a regular basis. with IFRS 7, currency risk is not considered to arise from financial instruments that are non-monetary Market risk: Price risk items. Market price risk arises mainly from uncertainty about future prices of financial instruments held. Market risk: Cash flow interest rate risk It represents the potential loss the company Cash and cash equivalents are exposed to might suffer through holding market positions in interest rate risk. Deposits at banks attract a the face of price movements. variable interest rate of 6.7% (2007: 6.3%)

The company has investments in Money Market The company is exposed to market price risk Investments (denominated in ZAR) which attracts via the quoted investment disclosed in note 2, a variable annualised yield of 10.6% (2007: 8.9 %). namely units held in the Oasis Crescent Property To the extent that this interest expense is based on Fund, which represents seed capital as required a variable rate, the entity will be exposed to cash by the Collective Investment Schemes Control ﬂow interest rate risk resulting from the underlying Act, 2002. The Company is not involved in trading ﬁnancial liability. of marketable securities, other than the seed The sensitivity analysis is based on average cash capital it holds in Oasis Crescent Property Fund. balances.

OASIS CRESCENT PROPERTY FUND MANAGERS| Annual Report 2008 53 OASIS CRESCENT PROPERTY FUND MANAGER’S LIMITED NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2008

Sensitivity analysis The company does not hold any collateral in respect If the market in which the Oasis Crescent Property of these financial assets. Fund is invested increased / decreased by 10%, with At 31 March 2008 and 31 March 2007 there are no all other variables being constant, the fair value financial assets that are either past due or impaired. reserve would have been R103,000 (2007: R103,000) higher/lower. The counterparties included in this class of financial In accordance with the company’s policy, the assets are Oasis Crescent Property Fund, Oasis Group executive directors monitor the company’s overall Holdings (Pty) Limited and Eden Court Property Fund exposure to market price risk on a daily basis, and (Pty) Limited. Historically the default rates for these the full board of directors review it on a quarterly conterparties has been nil. basis. Liquidity risk Credit risk Prudent liquidity risk management implies maintaining Financial assets which potentially subject the sufficient cash and the availability of funding through company to credit risk consist of trade receivables, an adequate amount of committed credit facilities. trade receivables from related parties and cash The company monitors cash flows on a regular basis and cash equivalents. The company’s excess cash to ensure that cash resources are adequate to meet is invested in Oasis Money Market Unit Trust Funds. funding requirements. The company’s maximum exposure to credit risk at 31 March 2008 and 31 March 2007, is represented by the carrying amounts of trade receivables, trade receivables from related entities and cash and cash equivalents at the respective dates.

The following are the contractual maturities of financial liabilities, including interest payments and excluding the impact of netting arrangements: Carrying Contractual Payable More than one amount cash flows within 1 month but not month or on exceeding demand three months At 31 March 2008 R ‘000 R ‘000 R ‘000 R ‘000 Non-derivative financial liabilities Subordinated loan 2,000 2,000 2,000 - Trade payables 34 34 - 34 Other payables 12 12 12 - Trade payables to related parties 137 137 137 - 2,183 2,183 2,149 34 At 31 March 2007 Non-derivative financial liabilities Subordinated loan 2,000 2,000 2,000 - Trade payables 47 47 - 47 Other payables 15 15 15 - Trade payables to related parties 80 80 80 - 2,142 2,142 2,095 47

The subordinated loan is payable on the date of termination of the loan agreement by mutual consent of the parties involved.

54 OASIS CRESCENT PROPERTY FUND MANAGERS | Annual Report 2008 Capital risk management (b) seed capital of R1 million to be invested by Capital consists of capital and reserves as disclosed the manager in each portfolio administered by on the face of the balance sheet as well as the the manager: Provided that - (i) the prescribed subordinated loan.The company’s objectives when amount may be reduced by 10 percent for every managing capital are to safeguard the company’s R1million invested by investors in a portfolio which ability to continue as a going concern in order to investors may not be connected to but must be provide returns for shareholders and beneﬁts for independent from the manager; and (ii) if the sum other stakeholders and to maintain an optimal of R1 million has been reduced to nil in terms of sub- capital structure. paragraph (i) and disinvestment from a portfolio causes the investment in the portfolio to reduce to In order to maintain or adjust the capital structure, less than R10 million, a manager need not reinvest the company may adjust the amount of dividends any further sum in terms of this paragraph ; plus paid to shareholders or sell assets. The company is required to maintain a capital balance equivalent (c) position risk capital of a sum equivalent to a to the statutory capital adequacy requirement percentage of the amount paid for participato- (“CAR”). The CAR is determined in accordance ry interests in a portfolio determined as follows in with section 88(1) of the Collective Investments respect of each type of portfolio:Money Market Schemes Control Act, 2002. portfolio 10 per cent; income portfolio 15 per cent ; The required capital to be maintained is: and all other portfolios 25 per cent.

(a) a basic capital which must be the greater of Fixed costs are deﬁned in section 88(1) of the an amount of R600,000 or a sum equivalent of 13 Collective Investments Schemes Control Act, 2002. weeks’ of ﬁxed cost for the whole of the collective investment scheme business of a manager or such other amount as the registrar may determine in a particular case.

Summary of the company’s CAR requirements is shown in the table below: 2008 2007 R '000 R '000 Required Capital 600 600 Actual Capital 2,575 2,231

12. Related party transactions and balances

12.1 Identity of the related parties with whom material transactions have occurred. The company is controlled by Oasis Group Holdings (Pty) Limited, which owns 100% of the issued share capital. The ultimate holding company is Eden Court Holdings (Pty) Limited.

Oasis Group Holdings (Pty) Limited charges a monthly management fee which represents a recovery of routine overhead costs incurred in connection with the administration of the business.

Eden Court Property Fund (Pty) Limited is the vehicle that accumulates the properties carrying the non- Shari'ah compliant tenants. Oasis Crescent Property Fund Managers Limited received service charges and property management fees from Eden Court Property Fund (Pty) Limited.

OASIS CRESCENT PROPERTY FUND MANAGERS| Annual Report 2008 55 OASIS CRESCENT PROPERTY FUND MANAGER’S LIMITED NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2008

There are common directors to Oasis Crescent Property Fund Managers Limited, Eden Court Property Fund (Pty) Limited and Oasis Group Holdings (Pty) Limited. Transactions with related parties are executed on terms no less favourable than those arranged with third parties.

2008 2007 R '000 R '000

12.2 Related party transactions Service charge paid to Oasis Group Holdings (Pty) Limited 1,725 1,315 Service charge received from Oasis Crescent Property Fund 1,571 1,356 Service charge received from Eden Court Property Fund (Pty) Limited. 78 56 Property management fees received from Oasis Crescent Property Fund 686 529 Property management fees received from Eden Court Property Fund (Pty) Limited 81 57

12.3 Related party balances Trade and other receivables from 489 710 Oasis Group Holdings (Pty) Limited Service charge receivable from Oasis Crescent Property Fund 158 131 Property management fee receivable from Oasis Crescent Property Fund 67 60 Service charge receivable from Eden Court Property Fund (Pty) Limited 7 7 Property management fee receivable from Eden Court Property Fund (Pty) Limited 8 6 729 914 Trade payables to Oasis Group Holdings (Pty) Limited 137 80

13. Directors' remuneration Fees due to directors during the year ended 31 March 2008 were as follows: Non-executive (for services as directors) H Jeena 59 54 Z I Kara 59 54 B A Khumalo - 54 Dr. Y Mahomed 59 4 177 166

56 OASIS CRESCENT PROPERTY FUND MANAGERS | Annual Report 2008 At year end, directors hold the following direct and indirect interests in the units of Oasis Crescent Property Fund respectively :

2008 Director Direct Indirect Total MS Ebrahim 10 142 152 N Ebrahim 10 142 152 20 284 304

2007 Director Direct Indirect Total MS Ebrahim 10 135 145 N Ebrahim 10 135 145 20 270 290

The indirect interests of the Oasis Crescent Property Fund Managers Limited directors are held by Oasis Group Holdings (Pty) Limited and Oasis Crescent Land Developers (Pty) Limited.

14. Additional information required in terms of the Collective Investment Schemes Control Act of 2002

In terms of the Collective Investment Schemes Control Act the manager is required to have a minimum capital of R600,000. At 31 March 2008 the available capital including the subordinated loan was in excess of R 2.4million.

15. Note on directors report There is no directors report as Oasis Crescent Property Fund Managers Limited is a wholly owned subsidiary of a company incorporated in South Africa.

OASIS CRESCENT PROPERTY FUND MANAGERS| Annual Report 2008 57 NOTICE OF GENERAL MEETING

Notice is hereby given that a general meeting of unitholders of Oasis Crescent Property Fund (“OCPF”) will be held at the registered office of OCPF, 20th Floor, Triangle House, 22 Riebeek Street, Cape Town on Wednesday, 16 July 2008, commencing at 10:00 for the purpose of considering and, if deemed fit, passing with or without modification, the following ordinary resolutions:

ORDINARY RESOLUTION NUMBER 1 Issuing of units for cash “Resolved that in terms of the JSE Limited (“JSE”) Listings Requirements, the directors of Oasis Crescent Property Fund Managers Limited, the manager of OCPF as approved by the Registrar of Collective Investment Schemes (“the Manager”), are hereby authorised to allot and issue for cash without restrictions to any public unitholder (as defined by the JSE Listings Requirements), as and when suitable opportunities arise, in their discretion, units in the capital of OCPF, subject to the following conditions: (a) this authority shall only be valid until the next general meeting of OCPF but shall not extend beyond 15 months from the date of this resolution; (b) the issues for cash in the aggregate in any one financial year shall not exceed 50% of the issued capital of OCPF, on a fully diluted basis; (c) in determining the price at which an issue of units for cash will be made in terms of this authority, the maximum discount permitted shall be 10% of the weighted average traded price of OCPF’s units on the JSE (adjusted for any dividend declared but not yet paid or for any capitalisation award made to unitholders), over the 30 business days prior to the date that the price of the issue is determined or agreed by the directors of the Manager; (d) this authority includes the issue of units arising from any options or convertible securities issued by OCPF for cash; and (e) this authority requires a 75% majority of the votes cast in favour of this resolution by all unitholders present or represented by proxy at the general meeting convened to approve this resolution.” ORDINARY RESOLUTION NUMBER 2 General authority to the directors of the Manager “Resolved that any executive director of the Manager of OCPF, be and are hereby authorised to do all such things and sign all documents and take all such action as they consider necessary to carry into effect these resolutions.” VOTING AND PROXIES An OCPF unitholder entitled to attend and vote at the general meeting is entitled to appoint one or more proxies to attend, speak and vote in his/her stead. For the convenience of registered certificated unitholders or unitholders who have dematerialised their linked units with own name registration, a form of proxy (blue) is attached hereto. Duly completed forms of proxy must be received by the transfer secretaries at their registered office, Ground Floor, 70 Marshall Street, Johannes- burg, 2001 (PO Box 61051, Marshalltown, 2107), by no later than 10:00 on Monday, 14 July 2008. Unitholders who have dematerialised their units and have not selected own name registration must advise their Central Securities Depository Participant (“CSDP”) or broker of their voting instructions should they be unable to attend the general meeting but wish to be represented thereat. Dematerialised unitholders without own name registration should contact their CSDP or broker with regard to the cut-off time for their voting instructions. If, however, such members wish to attend the general meeting in person, then they will need to request their CSDP or broker to provide them with the necessary authority in terms of the custody agreement entered into between them and their CSDP or broker. By order of the directors of the Manager N Ebrahim Company secretary of the Manager Cape Town 20 June 2008 Registered office of OCPF Registered office of Transfer Secretaries 20th Floor, Triangle House Computershare Investor Services 2004 (Proprietary) Limited 22 Riebeek Street (Registration number 2004/003647/07) Cape Town, 8001 Ground Floor (PO Box 1217, Cape Town, 8000) 70 Marshall Street Johannesburg, 2001 (PO Box 61051, Marshalltown, 2107)

58 OASIS CRESCENT PROPERTY FUND MANAGERS | Annual Report 2008 OASIS CRESCENT PROPERTY FUND A property fund created under the Oasis Crescent Property Trust Scheme registered in terms of the Collective Investment Schemes Control Act (Act 45 of 2002) (“CISC Act”) JSE code: OAS ISIN: ZAE000074332 (“OCPF”) FORM OF PROXY

For the use by certiﬁcated unitholders in OCPF or dematerialised unitholders in OCPF registered with own name registration only, at the general meeting of the Oasis Crescent Property Fund to be held at 10:00 on Wednesday, 16 July 2008, at 20th Floor, Triangle House, 22 Riebeek Street, Cape Town or at any adjournment thereof. Dematerialised unitholders in OCPF who are not own name unitholders, must inform their CSDP or broker of their intention to attend the general meeting and request their CSDP or broker to issue them with the necessary authorisation to attend the general meeting in person and vote or provide their CSDP or broker with their voting instructions should they not wish to attend the general meeting in person. Dematerialised unitholders in OCPF, who are not own name unitholders, must not use this form of proxy but must contact their CSDP or broker as OCPF will take no responsibility for unitholders in OCPF who do not contact their CSDP or broker timeously.

I/We (name/s in BLOCK LETTERS) of (address) being the holder(s) of Oasis Crescent Property Fund units hereby appoint (see note 2):

1. or failing him/her,

2. or failing him/her,

3. the Chairperson of the general meeting, as my/our proxy to act for me/us on my/our behalf at the general meeting which will be held for the purpose of considering and, if deemed ﬁt, passing, with or without modiﬁcation, the ordinary resolutions to be proposed thereat and at any adjournment thereof; and to vote for and/or against the ordinary resolutions and/or abstain from voting in respect of the OCPF units registered in my/our name(s), in accordance with the following instructions:

Number of units in OCPF voted

For Against Abstain Ordinary resolution number 1 Issuing of units for cash

Ordinary resolution number 2 General authority to the directors of the Manager

Please indicate instructions to the proxy in the appropriate space provided above by the insertion therein of the relevant number of units in OCPF. Each unitholder is entitled to appoint one or more proxies (who need not be a unitholder of OCPF) to attend, speak and vote in place of that unitholder at the general meeting. If you return this form of proxy duly signed, without any speciﬁc directions, the proxy shall be entitled to vote as he/she thinks ﬁt.

Signed at on 2008

Signature(s)

Capacity and authorisation

Assisted by me (if applicable)

Please read the notes on the reverse hereof. FORM OF PROXY

Notes:

1. The form of proxy should only be used by unitholders in OCPF who hold units in OCPF that are not dematerialised or who hold dematerialised units in OCPF in their own name.

2. A unitholder in OCPF entitled to attend and vote at the general meeting may insert the name of a proxy or the names of two alternative proxies of the unitholder’s choice in the space provided, with or without deleting “the Chairperson of the general meeting”. A proxy need not be a unitholder of OCPF. The person whose name stands ﬁrst on this form of proxy and who is present at the general meeting will be entitled to act as proxy to the exclusion of those whose names follow.

3. A unitholder is entitled to one vote on a show of hands and, on a poll, one vote in respect of each unit held. A unitholder’s instructions to the proxy must be indicated by inserting the relevant number of votes exercisable by that unitholder in the appropriate box. Failure to comply with this instruction will be deemed to authorise the proxy to vote or to abstain from voting at the general meeting as he/she deems ﬁt in respect of all the unitholder’s votes. 4. A vote given in terms of an instrument of proxy shall be valid in relation to the general meeting, notwithstanding the death of the person granting it, or the revocation of the proxy, or the transfer of the units in OCPF in respect of which the vote is given, unless an intimation in writing of such death, revocation or transfer is received by the transfer secretaries not less than 48 hours before the commencement of the general meeting. 5. If a unitholder in OCPF does not indicate on this form of proxy that his or her proxy is to vote in favour of or against any ordinary resolution(s) or to abstain from voting, or gives contradictory instructions, or should any further resolution(s) or any amendment(s) which may properly be put before the general meeting be proposed, the proxy shall be entitled to vote as he thinks ﬁt. 6. The completion and lodging of this form of proxy will not preclude the relevant unitholders from attending the general meeting and speaking and voting in person to the exclusion of any proxy appointed in terms hereof, should such unitholder wish to do so. 7. The Chairperson of the general meeting may reject or accept any form of proxy which is completed and/or received, other than in compliance with these notes. 8. Any alteration to this form of proxy, other than the deletion of alternatives, must be signed, not initialled, by the signatory/(ies). 9. Documentary evidence establishing the authority of a person signing this form of proxy in a representative capacity must be attached to this form of proxy, unless previously recorded by OCPF or unless this requirement is waived by the Chairperson of the general meeting.

10. A minor or any other person under legal incapacity must be assisted by his/her parent or guardian, as applicable, unless the relevant documents establishing his/her capacity are produced or have been registered by the transfer secretaries of OCPF. 11. Where there are joint holders of units in OCPF: • any one holder may sign the form of proxy; and • the vote(s) of the senior unitholder(s) (for that purpose seniority will be determined by the order in which the names of unitholders in OCPF appear in the register of unitholders) who tenders a vote (whether in person or by proxy) will be accepted to the exclusion of the vote(s) of the other joint unitholder(s). 12. Forms of proxy should be lodged with or mailed to: Hand deliveries to: Postal Deliveries to: Computershare Investor Services 2004 (Pty) Limited Computershare Investor Services 2004 (Pty) Limited Ground Floor, 70 Marshall Street PO Box 61051 Johannesburg, 2001 Marshalltown, 2107 to be received by no later than 10:00 on Monday, 14 July 2008.