CONTENTS DEFINITIONS ............................................................................................................................................................ 3 CORPORATE DIRECTORY .......................................................................................................................................... 5 ABRIDGED INDICATIVE TIMETABLE ........................................................................................................................... 6 SUMMARY OF THE RIGHTS ISSUE .............................................................................................................................. 7 THE RIGHTS ISSUE .................................................................................................................................................. 10 DIRECTORS, AUDIT COMMITTEE MEMBERS, COMPANY SECRETARY AND PARTIES TO THE ISSUE .............................. 11 THE CHAIRMAN’S LETTER ....................................................................................................................................... 14 OVERVIEW OF THE NIGERIAN REAL ESTATE SECTOR ................................................................................................ 16 OVERVIEW OF UACN PROPERTY DEVELOPMENT COMPANY PLC .............................................................................. 20 1. HISTORICAL OVERVIEW ........................................................................................................................... 20 2. BUSINESS OVERVIEW .............................................................................................................................. 20 3. GROUP STRUCTURE: .............................................................................................................................. 21 4. OVERVIEW OF PROJECTS: ......................................................................................................................... 22 5. KEY STRENGTHS: ................................................................................................................................... 29 6. STRATEGY: .......................................................................................................................................... 29 7. BOARD OF DIRECTORS: ........................................................................................................................... 30 8. MANAGEMENT TEAM: ............................................................................................................................ 32 9. RISK FACTORS ...................................................................................................................................... 33 10. FUTURE PLANS ..................................................................................................................................... 35 BOARD RESOLUTION AUTHORIZING THE ISSUE ....................................................................................................... 37 LETTER FROM THE DIRECTORS ON THE GOING CONCERN STATUS ............................................................................ 38 LETTER FROM THE AUDITORS ON THE GOING CONCERN STATUS ............................................................................. 40 LETTER FROM THE AUDITORS ON THE GOING CONCERN STATUS ............................................................................. 41 INCORPORATION BY REFERENCE ............................................................................................................................ 42 CONSOLIDATED FINANCIAL INFORMATION ............................................................................................................. 43 STATUTORY AND GENERAL INFORMATION ............................................................................................................. 47 1. INCORPORATION AND SHARE CAPITAL HISTORY ............................................................................................... 47 2. SHAREHOLDING STRUCTURE ...................................................................................................................... 47 3. DIRECTORS’ BENEFICIAL INTERESTS .............................................................................................................. 48 4. INDEBTEDNESS ..................................................................................................................................... 48 5. OFF BALANCE SHEET ITEMS ...................................................................................................................... 48 6. SUBSIDIARIES AND ASSOCIATED COMPANIES ................................................................................................... 48 7. CLAIMS AND LITIGATION .......................................................................................................................... 48 8. PURPOSE OF ISSUE AND USE OF PROCEEDS..................................................................................................... 49 9. IMPORTANT NOTE TO THE USE OF PROCEEDS .................................................................................................. 49 10. COSTS AND EXPENSES ............................................................................................................................. 49 11. MATERIAL CONTRACT ............................................................................................................................. 50 12. UNCLAIMED DIVIDENDS .......................................................................................................................... 50 13. OVERVIEW OF CORPORATE GOVERNANCE ...................................................................................................... 50 14. RESEARCH AND DEVELOPMENT: ................................................................................................................. 52 15. MERGERS AND TAKEOVERS ....................................................................................................................... 53 16. RELATIONSHIP BETWEEN THE COMPANY AND ITS ADVISERS .................................................................................. 53 17. RELATED PARTY TRANSACTIONS : ................................................................................................................ 53 18. DECLARATIONS ..................................................................................................................................... 53 19. CONSENTS .......................................................................................................................................... 54 20. DOCUMENTS AVAILABLE FOR INSPECTION ...................................................................................................... 54 PROVISIONAL ALLOTMENT LETTER ......................................................................................................................... 55 RECEIVING AGENTS ................................................................................................................................................ 58 ACCEPTANCE/RENUNCIATION FORM ...................................................................................................................... 59 UACN Property Development Company Plc | Rights Issue 2 DEFINITIONS In this document, unless otherwise stated or clearly indicated by the context, the following words have the meanings stated opposite them. Terms Definitions “CAMA” Companies and Allied Matters Act Cap C20 Laws of the Federation of Nigeria 2004 “Company”or “UPDC” UACN Property Development Company Plc “Council” Council of The Nigerian Stock Exchange “CSCS” Central Securities Clearing System “Daily Official List” Daily Official List of The Nigerian Stock Exchange “Directors” The members of the Board of Directors of UACN Property Development Company Plc who at the date of this document are those persons whose names are set out on page 11 of this Rights Circular “FBN Capital” FBN Capital Limited “FGN” Federal Government of Nigeria “FMBN” Federal Mortgage Bank of Nigeria “FSDH” FSDH Merchant Bank Limited “Group” UACN Property Development Company Plc and its subsidiaries “GDP” Gross Domestic Product “IFRS” International Financial Reporting Standards “Issue” or “Rights Issue” The Rights Issue by way of provisionally allotting 1,718,750,000 Ordinary Shares of 50 kobo each in the Company to its members whose names appear on the Register of Members as at the close of business on January 19 2017, on the basis of 1 new Ordinary Share for every 1 Ordinary Share held on that date “Issuing Houses” FBN Capital Limited, FSDH Merchant Bank Limited, LeadCapital Plc and Stanbic IBTC Capital Limited “LeadCapital” LeadCapital Plc “Management” Management of UACN Property Development Company Plc “MPR” Monetary Policy Rate "NEFT" Nigeria Electronic Funds Transfer “NIBOR” Nigerian Inter-Bank Offered Rate “NMRC” Nigeria Mortgage Refinance Company Plc “Ordinary Shares” Ordinary shares of 50 kobo each in the share capital of the Company “Qualification Date” January 19, 2017 “Receiving Agents” Any of the institutions listed on Page 58 of this Rights Circular to which shareholders may return their completed Acceptance/Renunciation Forms together with payment/evidence of payment “Receiving Banks” First Bank of Nigeria Limited and Stanbic IBTC Bank Plc UACN Property Development Company Plc | Rights Issue 3 DEFINITIONS Terms Definition “Register of Members” The register that records the names and addresses of the ordinary