TRANSCEND RESIDENTIAL PROPERTY FUND - The market leader in quality affordable housing in South Africa

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TRANSCEND RESIDENTIAL PROPERTY FUND - The market leader in quality affordable housing in South Africa
TRANSCEND
           RESIDENTIAL
          PROPERTY FUND

         The market leader in quality
             affordable housing
               in South Africa

Investor presentation – November 2018

                                        0
TRANSCEND RESIDENTIAL PROPERTY FUND - The market leader in quality affordable housing in South Africa
DISCLAIMER
This document has been compiled by Tenurey BSM Proprietary Limited (“Tenurey”) from information provided by the management of Transcend
Residential Property Fund Limited (“Transcend”) and from publicly available sources. Information contained herein involves elements of subjective
judgment and analysis which may or may not be correct and has not been independently verified.

While the information contained herein is believed to be accurate, Tenurey has not conducted any investigation with respect to such information. No
representation or warranty, express or implied is or will be given by Transcend or Tenurey or their respective directors, partners, employees or
advisors or any other person as to the accuracy, completeness or fairness of this document and, so far as permitted by law and except in the case
of fraud by the party concerned, no responsibility or liability whatsoever is accepted for the accuracy or sufficiency thereof or for any errors,
omissions or misstatements negligent or otherwise relating thereto.

Transcend shall only be bound by those particular representations and warranties set forth in definitive written transaction documents, when and if
such transaction documents are executed and subject to such restrictions and limitations as may be contained therein.

This document includes certain statements, estimates, targets, forecasts and projections provided by Transcend with respect to Transcend’s
anticipated future performance. Such statements, estimates, targets, forecasts and projections reflect significant assumptions and subjective
judgments and analysis by Transcend’s management concerning anticipated results which may or may not prove to be correct and there can be no
assurance that any estimates, targets, forecasts or projections are attainable or will be realised. Tenurey does not assume responsibility for
verifying any of such statements, targets, estimates, forecasts and projections. Nothing contained in this document is, or shall be relied upon as, a
promise or representation, whether as to the past or the future. Accordingly, neither Transcend nor Tenurey nor any of their respective directors,
partners, employees or advisors nor any other person, shall be liable for any direct, indirect or consequential loss or damage suffered by any
person as a result of relying on any statement in or omission from this document and any such liability is expressly disclaimed. In particular, but
without limitation, no representation or warranty is given as to the achievement or reasonableness of, and no reliance should be placed on, any
estimates, targets, forecasts or projections contained in this document (or otherwise provided by or on behalf of Transcend with respect to the
subject matter of this document). In all cases, addressees should conduct their own investigation and analysis of Transcend and the information
contained in this document.

This presentation and the documents provided with this presentation are confidential and may not be disclosed to any third party without the prior
written consent of Tenurey and Transcend.

                                                                                                       TRANSCEND RESIDENTIAL PROPERTY FUND              1
TRANSCEND RESIDENTIAL PROPERTY FUND - The market leader in quality affordable housing in South Africa
PRESENTERS

       Rob Wesselo               Solly Mboweni               Myles Kritzinger
 Chief Executive Officer –   Chief Operations Officer      Chief Financial Officer
        Transcend
 Managing Director – IHS

                                                        TRANSCEND RESIDENTIAL PROPERTY FUND   2
TRANSCEND RESIDENTIAL PROPERTY FUND - The market leader in quality affordable housing in South Africa
PRESENTATION OUTLINE
                                                                                Page
                       1. Executive summary                                        4
                       2. Transcend                                                7
                       2.1 Current group structure                                 8
                       2.2 Current portfolio overview                              9
                       2.3 Current board of directors                             10
                       2.4 Proposed board and management                          11
                       2.5 Role of IHS                                            12
                       2.6 Investment case – why Transcend                        14
                       3. Proposed Transactions                                   15
                       3.1 IHS Res 1 Transactions                                 16
                       3.2 Other Transactions                                     18
                       3.3 Funding and capital structure                          19
                       4. Financials                                              20
                       4.1 Pro forma effects – DPS                                21
                       4.2 Pro forma balance sheet                                22
                       5. Conclusion                                              23
                       Annexures                                                  26
                       I Transcend existing portfolio                             27
                       II IHS Res 1 Properties, Protea Glen & Silverleaf          44
                       III Portfolio post Proposed Transactions                   55
                       IV Transcend vs MSCI Residential Benchmark                 57
                       V IHS and MMA (Hunt)                                       59

                                                  TRANSCEND RESIDENTIAL PROPERTY FUND   3
TRANSCEND RESIDENTIAL PROPERTY FUND - The market leader in quality affordable housing in South Africa
1. EXECUTIVE SUMMARY
                          Transcend at a glance (status quo)                                                                     Current market metrics
                                                                                                                                                                                    Rmil
                                                                                                      Closing share price (R)                                                       5,60
                                  •   Listed on the Altx in December 2016 at R6.75 (21%               Shares outstanding (mil)                                                      73.6
                                      discount to NAV)                                                Market capitalisation                                                        412,2
 Listing                          •   Intention to migrate to the Main Board (speciality              Net interest bearing debt                                                    509.3
                                      REIT sector) post implementation of the Proposed                Enterprise value                                                             921,5
                                      Transactions                                                    Investment property                                                          1 252
                                  •   A residential REIT, focused on affordable housing               Gearing (LTV)                                                                 42%
                                      that is lifestyle enhancing and well located in high            Net asset value (NAV) as at 30 June 2018                                     764.8
 Profile                              growth urban areas                                              NAV per share (R)                                                            10,39
                                  •   Exposure to Gauteng, Mpumalanga* and the                        Interim DPS (Cents)                                                          30.10
                                      Western Cape                                                    Discount to NAV                                                              -46%
                                                                                                      Forward yield                                                               12,2%
                                  •   14 properties comprising 2,532 units*
                                  •   128,915m² GLA                                                                         Share price since listing (R)
                                  •   Portfolio value of R1.25bn                                                                Volume traded since listing: 226,082 shares
 Portfolio overview^
                                  •   Occupancy: 96%^                                                  8,00                     Value traded since listing: R1,393,907
                                                                                                                                                                          1,981 shares
                                  •   Avg gross rental per unit: R5,576
                                                                                                       7,00                                                               traded at R5.60
                                  •   90% of portfolio comprising 2 bed, 1 bath units
                                                                                                       6,00
                                  •   Transcend = 2nd largest residential focused listed
                                      property fund, with high quality assets, safe and                5,00
                                      secure lifestyle complexes and a focus on

                                                                                                                                    Jun-17

                                                                                                                                                                        Jun-18
                                                                                                              Dec-16

                                                                                                                                                      Dec-17
                                                                                                                       Mar-17

                                                                                                                                             Sep-17

                                                                                                                                                               Mar-18

                                                                                                                                                                                 Sep-18
                                      greening
 Investment case                  •   Properties are +/- 5 years old
                                  •   Defensive asset class                                                            Geographic spread of properties
                                  •   Residential fund expertise through International
                                      Housing Solutions’ (“IHS”) – a market leader in
                                      residential real estate investment

                                  •   Access to a future R6.4bn asset pipeline consisting
 Pipeline
                                      of 9,900 units through IHS

*Includes Acacia Place (sale agreement signed in Sep 2018 to dispose of Acacia Place for R127.5mil)                                                                                       4
^As at 1 Nov 2018. Occupancy includes Acacia Place with a 10% vacancy                                                    TRANSCEND RESIDENTIAL PROPERTY FUND                                  4
TRANSCEND RESIDENTIAL PROPERTY FUND - The market leader in quality affordable housing in South Africa
1. EXECUTIVE SUMMARY
                                                             Proposed Transactions and Capital Raise

                                        •   Res 1 Properties: 1,983 units spread across 7 properties from IHS Res 1 Fund for R1.21bn (9.76% yield and
                                            13.4% discount to independent valuation);
                                        •   Protea Glen: 176 units from a wholly owned subsidiary of South Africa Workforce Housing Fund (“SAWHF”) for
Acquisitions                                R60mil (10.3% yield and 2.1% discount to independent valuation);
                                        •   Silver Leaf: 76 units for R44.5mil (9.6% yield); and
                                        •   Vanguard: 60 units for R33.3mil (9.8% yield) (transferred in Aug 2018)
                                        •   Total purchase consideration: ±R1.35bn at an average acquisition yield of 9.78%

                                        •   Purchase consideration (including transaction costs) funded by: debt of ±60% (R825mil) and equity of ±40%
Funded by
                                            (R551mil)

                                        •   R6.29 per share (ex-div), c. R6.44 cum dividend (as at 1 Dec 2018)
Equity raise                            •   Forward yield of 10.5% (post Proposed Transactions)
                                        •   Discount to NAV of 31% (post Proposed Transactions)

                                        •   Emira Property Fund: up to R337mil of equity (max 34.9% shareholding and a min 25.1% shareholding) and a SH
Pre-commitments and
                                            loan facility of R105mil
underwrite                              •   MMA Capital Management (“MMA”): Underwrite of R105mil

                                        •   SAWHF: 38.4% (intention is for SAWHF to dilute over time, as Transcend pipeline is executed)
Shareholding post
                                        •   Emira: 25.1% (minimum)
Proposed Transactions                   •   Public: 36.5%^ (assuming no underwrite take-up)

                                        •   Investors meetings (12 – 21 Nov)
                                        •   Site visit (22 Nov)
Timing                                  •   Final CPs (expected to be received by 30 Nov)
                                        •   Equity commitments (by 30 Nov)
                                        •   Effective date – targeting 1 Dec and issue of new shares – 1st week of Dec

^Includes SA Corporate Real Estate Limited (4.3%), who has communicated that they will dispose of their stake as part of the new equity raise or post the Proposed Transactions

                                                                                                                                                                                  5
                                                                                                                                TRANSCEND RESIDENTIAL PROPERTY FUND                   5
TRANSCEND RESIDENTIAL PROPERTY FUND - The market leader in quality affordable housing in South Africa
1. EXECUTIVE SUMMARY
                                                    Rationale of Proposed Transactions

✓ Ability to secure portfolio at deep discount to fair value, despite scarcity value of large residential portfolios
✓ Lifestyle enhancing properties in well located, high growth urban areas
✓ Stable income stream at an attractive yield
✓ Highly sought after properties of superior quality to comparable portfolios in the market
✓ Favourable arrangement with IHS provides ability to access significant future pipeline
✓ Benefits of institutional knowledge of assets, which also ensures efficient handover
✓ Adds critical scale providing portfolio efficiency benefits
✓ Facilitates increased free float, liquidity and Main Board migration

                                           Snapshot of Transcend post the Proposed Transactions

                                                                         81% Gauteng,
   Market Cap                                                                                     31% discount         10.5% forward
                                  22 properties   254,201m2 GLA          19% Western                                       yield
    R970m                                                                                            to NAV
                                                                            Cape*

Portfolio value                                                                                    R6,406 avg           9,900 units
                                                       LTV of
      of                           4,442 units                           5.99% vacancy            gross monthly          (R6.4bn)
                                                       46.0%
  R2.63bn                                                                                          rental / unit^         pipeline

                                                                                                                                  6
*Based on value
^ For forecast period of FY2019
                                                                                                   TRANSCEND RESIDENTIAL PROPERTY FUND   6
TRANSCEND RESIDENTIAL PROPERTY FUND - The market leader in quality affordable housing in South Africa
2. TRANSCEND

               TRANSCEND RESIDENTIAL PROPERTY FUND   7
TRANSCEND RESIDENTIAL PROPERTY FUND - The market leader in quality affordable housing in South Africa
2.1 CURRENT GROUP STRUCTURE
      IHS Property                                                                                           SA Workforce                              IHS Asset
      Management                        Other          SA Corporate                    Emira                   Housing                                Management
       (“IHSPM”)3                                                                                             Fund SA 1                                (“Manco”)

                                                                                                                        100%

                                              0.9%               9.0%              9.9%           80.2%       SAWHF PVE
                                                                                                              (“SAWHF”)

               Property Management                                                                                                       Asset Management
                    Agreement                                                                                                               Agreement
                                                                                                                          •   Fee: annual asset management fee of 0.50% of
           •   Avg collection fee of 6.5% (+ VAT)
                                                                                                                              company EV (+ VAT)
           •   3 month’s notice to cancel
                                                                                                                          •   Term: 10 years from Dec 2016 and option for
                                                                          100% ownership of 14                                Transcend to renew for further 5 years (every 5 years)
                                                                              properties1                                 •   Option: Transcend has option to purchase equity or
                                                                                                                              business of Manco at fair value (to be negotiated)
                                                                                                                              once market cap reaches R4bn

Acacia         67 on 7th                    Alpine   Ekhaya       Ekhaya Jackalberry Kensington            Molware                    Village        Terenure     Theresa        Trade-
                         Vanguard(2)                                                                                   Parklands      Seven
Place(1)       Edenvale                     Mews     Fleurhof     Jabulani Close       Place                Estate                                    Estate        Park         winds
                                                                                                                                    Stone Arch                     Estate
                                                                                                                                      Estate

 Notes
 1. Acacia Place: As announced on 18 September 2018, Transcend has concluded a sale agreement to dispose of Acacia Place (325 units) for R127.5mil
 2. Vanguard: A fully-let rental enterprise comprising 60 sectional title units was acquired for R33.3 million on 23 August 2018                                             8
 3. Wholly owned by MMA Capital Management. The intention is for IHSPM to become a wholly owned subsidiary of IHS in 2019

                                                                                                                          TRANSCEND RESIDENTIAL PROPERTY FUND                          8
TRANSCEND RESIDENTIAL PROPERTY FUND - The market leader in quality affordable housing in South Africa
2.2 CURRENT PORTFOLIO OVERVIEW
 •       Transcend’s current property portfolio comprises 2,532 units (across 14 properties) with a valuation of R1.25bn
 •       Transcend concluded a sale agreement in September to dispose of Acacia Place (325 units) for R127.5mil. Acacia Place had exposure of 39%
         to bulk leases (which expired) for the interim period ending 30 June 2018, resulting in a 42% vacancy (based on units)
 •       The rest of the portfolio has no exposure to bulk leases and is defensive in nature

                                                                                                                                                                                Weighted
                                                                                                               Total number                                                       average
                                                                                                Total number                                                     Independent                     Current
                                                                                                                     of units                       Total GLA                   rental per
No.       Property name                  Location                                                  of units in                                                      Valuation                Vacancy (%
                                                                                                                  owned by                                (m²)                    unit per
                                                                                                     complex                                                            R’000                   of units)
                                                                                                                 Transcend                                                         month
                                                                                                                                                                                 (R/units)
     1    67 on 7th                      Edenvale, Gauteng                                                     204                   157                8,478         97,500        5,942          0.60%
     2    Acacia Place(2)                Witbank, Mpumalanga                                                   325                   325               17,891        127,500        6,853        10.00%
     3    Alpine Mews                    Eersterivier, Western Cape                                             90                     90               4,005         36,200        4,659          1.00%
     4    Ekhaya Fleurhof                Fleurhof, Gauteng                                                     162                   162                6,642         69,500        4,336          1.23%
     5    Ekhaya Jabulani                Jabulani, Gauteng                                                     244                   244               10,004         90,600        4,112          2.46%
     6    Jackalberry Close              Jansen Park, Gauteng                                                  252                   208               10,713        112,300        5,589          6.35%
     7    Kensington Place               Ferndale, Gauteng                                                      56                     56               2,376         35,100        6,233          1.79%
     8    Molware                        Kosmosdal, Gauteng                                                    252                   252               11,937        138,500        5,542          3.57%
     9    Parklands                      Parklands, Western Cape                                               187                   187               10,044         98,100        6,092          4.28%
          Village Seven,
 10                          Castleview, Gauteng                                                               114                   114                6,039         55,100        5,414          4.39%
          Stone Arch Village
 11 Terenure Estate                      Terenure, Gauteng                                                     350                   350               22,028        214,200        6,380          4.00%
          Theresa Park
 12                                      Theresa Park, Gauteng                                                 242                   242               12,388         98,000        4,346          5.79%
          Estates
 13 Tradewinds                           Ferndale, Gauteng                                                      85                     85               3,730         46,000        6,119          0.00%
 14 Vanguard                             Heideveld, Western Cape                                                60                     60               2,640         33,300        6,057          1.49%
          Total                                                                                               2,623               2,532               128,915       1,251,900      5,5763         4.34%4

Notes:
1.     Refer to Annexure I on slide 27 for further detail on all the above properties                    3.    As at 1 Nov 2018
2.     As referred to on slide 8, Transcend has signed an agreement to sell Acacia Place for R127.5mil   4.    Vacancy excl Acacia Place is 3.45%            TRANSCEND RESIDENTIAL PROPERTY FUND            9
2.3 CURRENT BOARD OF DIRECTORS
Name                               Background

Rob Wesselo (54)                   Rob is responsible for the South African operations of International Housing Solutions, a post he has held since 2010. In this role, he is
Chief Executive Officer            responsible for sourcing investments, structuring, and negotiating deals with developers and managing the operations of IHS in South
LLB from WITS
                                   Africa. Before joining Transcend, Rob was the Head of Commercial Property Finance (Property Investments) at ABSA. He has held
                                   other property-focused positions such as Commercial Director at Pangbourne Properties and Head of Listed Property Funding at RMB.

Solly Mboweni (49)                 Prior to joining Transcend, Solly was at ABSA for 4 years in a number of senior positions. He has also managed the asset
Chief Operations Officer           management and property development departments at Liberty Properties. Solly recently served as the Vice President of SAIBPP
BCom and PGDip in
Property Studies (WITS)            (South African Institute of Black Property Practitioners). Solly is also Head of Housing Operations at IHS, with direct responsibility for
                                   the activities of New Business and the Asset Management of the Rental Portfolio Since 2014.

Myles Kritzinger (34)
Chief Financial Officer            Myles was appointed as CFO for Transcend on 9 March 2018. He has experience in the affordable housing market and new fund
BCom(Acc)(Hons)                    development as former Dealmaker at IHS. Former Manager at Deloitte & Touche, former Financial Analyst at Absa Capital and Absa
CA(SA), Diploma in
Insolvency Law (SARIPA)            Retail banks and former Consultant at Nimble Risk Services.

Robert Emslie (59)
Chairman, independent              Robert is an independent non-executive director of Finbond Group Limited, the independent chairman at Silverbridge Holdings Limited
non-exec director                  and an independent director of New Europe Property Investments Plc. He is also on the boards of a number of unlisted companies.
Undergraduate &
Graduate degree from RAU

Faith Khanyile (50)
Independent non-exec director      Faith is the CEO of WDB Investment Holdings (WDBIH) and has been associated with WDBIH for over 18 years. She spent 12 years
BA (Economics) Wheaton, USA        with Standard Bank, Corporate & Investment Bank from 2001 to 2013 in various senior management and executive roles.
MBA (Finance) Bentley, USA

Michael Aitken (58)
                                   Michael has been a non-executive director of Strategic Real Estate Managers (Pty) Ltd and Emira Property Fund Limited since April
Independent non-exec
                                   16, 2007. He also served as a non-executive director of Hyprop Investments Limited from August 2000 to June 2013, acting as
director
                                   chairman from August 2007 to June 2013.
BA and LLB

Michael Falcone (55)
Non-executive director             Mike is the chief executive officer and president of MMA Capital Management, a position he has held since January 1, 2005. Prior to
BA (Economics) (Dartmouth)         his involvement with MMA Capital Management, Mike served as senior vice president and partner at the Shelter Group.
and MBA from Harvard

Cathal Conaty (53)
Non-executive director             In various positions in the past 15 years, he has set up and managed private investment funds, served as a Regional Vice President of
BA (University College) (Dublin)   property management, and represented investors’ interests in a variety of market-rate and subsidised properties.
MBA (IESE) (Barcelona, Spain)

                                                                                                                    TRANSCEND RESIDENTIAL PROPERTY FUND 10
2.4 PROPOSED BOARD AND MANAGEMENT
                             Proposed management and board composition (post Proposed Transactions)

•   A process is underway through Transcend’s nominations committee to change the Board and appoint key personnel to the Manco (anticipated to
    take place in early FY19 post implementation of the Proposed Transactions)

•   It is Transcend’s intention to implement a share incentive scheme for the executive directors and management team in FY2019

                                      Executive directors and key management (to be employed by Manco)

•   Solly Mboweni and Myles Kritzinger currently serve as executive directors of Transcend

•   Vanessa Perfect is currently the Head of Rental Asset Management at IHS

•   It is intended that Solly, Myles and Vanessa will be dedicated exclusively to Transcend following the management restructure to be determined by
    the nominations committee

                                                             Non-executive directors

•   It is anticipated that certain of the non executive board directorships will be reconstituted to take into account the prevailing JSE Main Board
    requirements as well as to enhance capacity and the requisite skill set of Transcend

                                                                                                        TRANSCEND RESIDENTIAL PROPERTY FUND 11
2.5 ROLE OF IHS
                                                                      Focus:       Affordable housing                 Focus:      Green housing
                                                                      Equity:      Private Equity Fund                Equity:     Private Equity Fund
                                                                      Deals:       Develop & Rental                   Location:   SA
                                                                      Size:        R1.8bn (raised)                    Deals:      Develop & Rental
     Focus:           Property Management                             Units:       28,000 (committed)                 Size:       R2.1bn (raised)
     Focus:           SA & SSA                                        End Life:    Apr 2019 (ext.)                    Units:      11,591 (committed)
     Deals:           Rental                                                                                          End Life:   Jul 2024
     Size:            9,138 units under mgmt.
     Employees:       175
                                                                                                                      Focus:      Affordable Green housing
     Name:            Development Fund                                              SAWHF                             Equity:     Private Equity Fund
     Location:        SA                                                                                              Location:   SSA (Nam & Bots)
     Deals:           Develop units for REIT’s                                                             IHS        Deals:      Develop & Rental
     Size:            $150m (target)                            IHS PM                                   FUND II      Size:       R1.02bn (raised)
     Units:           17,500 (projected units)                                                            (SA)        Units:      942 (committed)
                                                                                                                      End Life:   Jul 2024

     Name:
     Location:
     Deals:
                      Kenya Rental Fund
                      Kenya
                      Green Rental
                                                                                   IHS                                Focus:
                                                                                                                      Equity:
                                                                                                                                  Mid Mkt Rental
                                                                                                                                  Private Equity JV
     Size:            $250m (target)                                                                                  Location:   SA
                                                                                                           IHS
     Units:           7,500 (projected units)                    NEW                                                  Deals:      Rental
                                                               BUSINESS                                  FUND II
                                                                                                                      Size:       R796m (committed)
                                                                                                          (SSA)
                                                                                    RES I*                            Units:      2,093 (committed)
                                                                                                                      End Life:   N/A

•     Established in 2007, a real estate fund manager focused on development and management of affordable housing communities
•     Recognise the need to both create viable housing investments and provide broader community infrastructure with easy access to schools,
      shops and work opportunities
•     Owned by MMA – a subsidiary of Hunt Company (private US family company – 7th largest US Multifamily Owner)
•     212 employees (37 in IHS and 175 in IHS PM)
•     Based on the current size of Transcend, the external Manco is a more cost effective approach than performing this function internally. Ability for
      Transcend to leverage off IHS’ resources, network and pipeline of opportunities

    Notes: *The units in Res 1 are in the process of being acquired by Transcend                                   TRANSCEND RESIDENTIAL PROPERTY FUND 12
2.5 ROLE OF IHS
                                                                            Highlights of IHS include:

36 900 units / stands                             29 800 units / stands                    21 000 units / stands                   7 100 units under
      commenced since
                                                   completed since 2007                         sold since 2007                        construction
          2007

    9 138 units in rental                         3 300 units approved                       R5.8bn of investor                    76  investments in
                                                                                             equity commitments                  residential real estate
               portfolio                                 and fully funded
                                                                                             managed under IHS                           projects

                                 Local pipeline                                                              Potential US Multifamily strategy

•     Transcend will leverage off of IHS’ strong network and deal
      making capability for future external acquisitions – access to:
      - an existing pipeline of 9,900 units (R6.4bn) through the IHS
         managed funds
      - An existing pipeline from 3rd party developers of ±760 units
         R653mil                                                                                •   Transcend has the ability to leverage off IHS’ network and
                                                                                                    relationship with MMA, which in turn has access to the Hunt
                                                                                                    Company
                                                                                                    - 105,018 Multifamily housing units developed
                                                                                                    - Hunt is the 7th largest Multifamily owner in the US

    Notes: *The units in Res 1 are in the process of being acquired by Transcend                                    TRANSCEND RESIDENTIAL PROPERTY FUND 13
2.6 INVESTMENT CASE – WHY TRANSCEND
                      •   Management team has extensive track record in residential property investment and management
Track record
                      •   IHS has become a market leader and has been a driver of the institutional residential rental market in SA

                      •   Transcend focuses on medium density, secure estates with lifestyle amenities
                      •   The affordable market, is one of the few in which demand exceeds supply with strong fundamentals, given the
Unique defensive          ever increasing trend in South Africa towards urbanisation
market segment
                      •   The affordable market has the lowest vacancy rate of the residential rental market
                      •   Counter cyclical nature of residential property

                      •   In addition to the Transcend portfolio, IHS currently manages approximately 9,138 quality affordable rental properties
                          and Transcend is well placed to acquire these units from the respective funds (upon exit)
                      •   Transcend will leverage off IHS’ strong network and deal making capability for future acquisitions
Pipeline and growth   •   IHS is experienced in sourcing and stabilising properties, which will be used to the benefit of Transcend
strategy              •   Transcend is gaining increased exposure to off-market transactions given its rapidly increasing profile within the SA
                          market
                      •   Transcend can also leverage off IHS’ shareholder – MMA (Hunt) (which specialises in investing in affordable housing
                          and clean energy) and gain access to Hunt’s US portfolio

                      •   Focus on greening
                      •   High quality assets
                      •   Lifestyle complexes
                      •   Safe and Secure
                      •   Internal amenities
                      •   +/- 5 years old
Competitive edge      •   Low maintenance
                      •   Close to work and
                          transport
                      •   Community friendly

                                                                                                                                            14
                                                                                                    TRANSCEND RESIDENTIAL PROPERTY FUND 14
3. PROPOSED TRANSACTIONS

                           TRANSCEND RESIDENTIAL PROPERTY FUND 15
3.1 IHS RES 1 TRANSACTIONS
                                                      Key transaction details

                         •   1,983 units spread across seven properties comprising Midrand Village, De Velde, Birchwood Village, Southgate
Units acquired
                             Ridge, Urban Ridge (West), Urban Ridge (East) and Urban Ridge (South)
                         •   International Housing Solutions Residential Partners 1 (RF) Proprietary Limited (“IHS Res 1”) - currently managed
Seller                       by IHS. IHS Res 1 is 95% owned by PSP (Public Sector Pension Investment Board – one of Canada’s largest
                             pension investment managers). PSP has a 45% stake in SAWHF
                         •   R1.21 billion at a weighted average yield of 9.76%, subject to subject to an escalation of 6% per annum (pro-rated
Purchase consideration       accordingly) from 1 December 2018 (price determination date) until the date of transfer of each of the respective
                             units

Settlement               •   To be settled 100% in cash

                         •   Gearing of 60% (c. R742 million), with the intention to settle the balance of the purchase consideration by raising
Funding
                             c. R495 million of new equity by way of a Vendor Placement
                         •   Emira has provided an irrevocable commitment to subscribe for a minimum 25.1% of Transcend shares and a
                             maximum of 34.9% of the Transcend shares in issue post implementation of the Proposed Transactions
Underwriting and
                             − MMA Capital has provided an underwrite of R105mil
commitments
                             − Emira has also provided an underwrite of R105mil in the form of a shareholder loan to the extent that there is a
                               shortfall in the equity raise
                         •   Shareholder approvals (by 30 Nov 2018)
                             − Related party transaction (IHS Res 1 is a related party) (50% +1) of independent Transcend shareholders
                             − Issue greater than 30% of shares in issue (75% +1) of all Transcend shareholders
Conditions precedent     •   JSE approval – Category 1 related party transaction and Reverse Takeover
                         •   Debt (by 21 Nov 2018)
                         •   Competition Commission (approved on 14 Nov 2018)
                         •   Raising the equity amount (by 14 Dec 2018)
                         •   Effective date: First day of the month following the last CP being fulfilled - expected to be 1 December 2018
                         •   Closing date:
Effective date and           − 1 Dec 2018 (if CPs are met by 23 Nov 2018); or
closing date
                             − 14 Dec (if CPs are met between 24 Nov and 30 Nov); or
                             − 31 Jan (if CPs are met between 1 Dec and 14 Dec 2018)

                                                                                                   TRANSCEND RESIDENTIAL PROPERTY FUND 16
3.1 IHS RES 1 TRANSACTIONS (continued)
                                                                                                     Valuation
                                                                                                                      1 Dec ’18 – 30
                        No of                                                   Independent         exceeding
Property                         Location                   Purchase price                                                Nov ‘19           Cap Rate
                        units                                                     valuation          purchase
                                                                                                                       forecast NOI
                                                                                                   consideration
Midrand Village          225     Clayville, Gauteng          R139,295,212        R153,300,000        R14,004,788        R12,525,642           8.99%
                                 De Velde, Western
De Velde                 310                                 R289,144,251        R337,700,000        R48,555,749        R23,681,581           8.19%
                                 Cape
Birchwood Village        360     Chartwell, Gauteng          R266,463,076        R288,300,000        R21,836,924        R25,866,036           9.71%

Southgate Ridge          412     Naturena, Gauteng           R170,420,202        R216,600,000        R46,179,798        R19,751,200           11.59%

Urban Ridge (West)       260     Midrand, Gauteng            R127,516,812        R153,100,000        R25,583,188        R13,674,100           10.72%

Urban Ridge (East)       184     Midrand, Gauteng             R98,783,206        R109,600,000        R10,816,794        R10,394,953           10.52%

Urban Ridge (South)      232     Midrand, Gauteng            R118,277,360        R138,800,000        R20,522,640        R12,219,568           10.33%

Total                   1,983                               R1,209,900,119      R1,397,400,000      R187,499,881       R118,113,079           9.76%

 •   Transcend is acquiring the IHS Res 1 units at a 13% discount to their independent market valuation

 •   The IHS Res 1 units offer stable and secure income streams and are located in well-situated, high growth urban areas

 •   Three of the properties – Midrand Village, De Velde and Birchwood Village are well suited to a sectional title sales program and could generate
     greater value for Transcend if Transcend disposes of the individual units at market value over a period of time vs. keeping the units as rental stock

 •   Transcend will re-invest such proceeds and acquire additional rental units by leveraging off IHS’ network and pipeline of managed funds and
     making 3rd party acquisitions

                                                                                                            TRANSCEND RESIDENTIAL PROPERTY FUND 17
3.2 OTHER TRANSACTIONS
               •   On 3 April 2018 it was announced that Transcend is in the process of acquiring the Silverleaf Portfolio
                   − Agreement entered into between De Facto Investments 264 Proprietary Limited and Transcend on 28 March
                      2018 – Transcend will acquire 76 sectional title units
Silverleaf
                   − For an aggregate purchase consideration of R44.5 million
               •   Due to delays in the finalisation of town-planning amendments, It is expected that Silverleaf should transfer to
                   Transcend by 1 December 2018

               •   On 12 June 2018 Transcend announced that it has entered into an agreement with SAWHF SA Rental 4 Trust
               •   Transcend acquired 60 sectional title units in the scheme known as Vanguard Residential Village 3 for an aggregate
Vanguard           purchase consideration of R33.3 million
                   − The Vanguard transaction has been successfully concluded, with Vanguard transferring to Transcend on 23 August
                      2018

               •   On 8 October 2018 Transcend announced it has concluded a legal agreement with Sunnyshore Trade and Invest 105
                   Proprietary Limited (“Sunnyshore”) (owned by SAWHF) to acquire 176 residential sectional title units in two
                   sectional schemes known as Protea Glen for R60 million
               •   The Protea Glen Transaction is subject to fulfilment of inter alia the following suspensive conditions, as set out in the
                   Protea Glen Sale Agreements:
Protea Glen        − Transcend complying with the applicable JSE Listings Requirements
                   − Approval from the shareholders of Sunnyshore
                   − Approval from Transcend shareholders (included with IHS Res 1 Transaction)
                   − Transcend conducting a technical due diligence
                   − Transcend raising the required funding to settle the purchase consideration
               •   The effective date (transfer) of the Protea Glen Transaction is estimated to be on or about 1 December 2018

               •   On 18 September 2018 Transcend announced that it has entered into a sale agreement with Instratin Properties
                   Proprietary Limited (“Instratin”) to:
Acacia Place       − dispose of all 325 units comprising Acacia Place located in Duvha, eMalahleni (Witbank), Mpumalanga, to Instratin
                   − for a cash price of R392,308 per unit amounting to a total cash price of R127.5 million
                   − the proceeds of which will be used to reduce interest-bearing liabilities until required for new acquisitions

                                                                                              TRANSCEND RESIDENTIAL PROPERTY FUND 18
3.3 FUNDING AND CAPITAL STRUCTURE
         Analysis of total funding requirement                                         Salient terms of private placement

                                                                      ▪ Quantum
Proposed Transactions (at cost)                 R1.348bn
                                                                            ▪ Excluding Emira’s total subscription of 25.1%, approximately
                                                                              R308mil is available for issue to the public
Transaction costs (incl. VAT)                        R28m
                                                                      ▪ Pricing
                                                                             ▪ Indicative clean pricing range of R6.29 per share, (cum price of
Total funding requirement                           R1.38bn
                                                                                R6.44, assuming an issue date of 1 December 2018)
                                                                             ▪ Forward yield of 10.5%
Equity requirement: maximum (40%)                   R551m
                                                                      ▪ Timing
                                                    (R243m)                 ▪ To be completed after the last of the conditions precedent being
Less: Emira (Assume Emira take up 25.1%)
                                                                               fulfilled, which is expected to be met by 30 November 2018

Private Placement                                   R308m

Utilisation of SBSA and Nedbank facilities          R825m

LTV ratio post the Proposed Transactions             46%

                                                         Salient terms of debt funding

Standard Bank & Nedbank           Facility amount           Terms             Interest rate                   Profile

Facility (1) & (A)                R295m                     3 years           3-month JIBAR +190 bps          Interest quarterly

Facility (2) & (B)                R295m                     5 years           3-month JIBAR +225 bps          Interest quarterly

Facility (3) (RCF)                R150m         R857m 3 years                 Prime less 1%                   Interest monthly

Facility (4)                      R107m                     3 years           3-month JIBAR +215 bps          Interest quarterly

Facility (5)                      R10m                      3 years           Prime less 1%                   Interest quarterly

                                                                                                       TRANSCEND RESIDENTIAL PROPERTY FUND 19
4. FINANCIALS

                TRANSCEND RESIDENTIAL PROPERTY FUND 20
4.1 PRO FORMA EFFECTS – DISTRIBUTION PER SHARE
Transcend financial effects based on the implementation of the Proposed Transactions, being funded with 40% equity and 60% debt

Pre Proposed Transactions                                                                                                                   31-Dec-19
Forecast distribution (pre Proposed Transactions)1                            ZAR                                                           49 396 760
# shares in issue                                                               #                                                           73 605 662
DPS                                                                           Cents                                                              67,11
Growth                                                                                                                                          ±5,0%
Pro forma adjustments                                                          ZAR
Net income from Proposed Transactions2                                                                                                     128 706 605
Increase in Manco fee3                                                                                                                      -6 288 342
Increase in interest cost4                                                                                                                 -73 219 573
Net return on re-investment of proceeds5                                                                                                     2 698 871
Net increase in distributable income                                                                                                        51 897 561
Distributable income post Proposed Transactions                                                                                            101 294 321
New shares issued                                                                #                                                          80 096 999
Total shares in issue post Proposed Transactions                                                                                           153 702 661
DPS post Proposed Transactions                                                Cents                                                              65.90
Dilution in DPS (from current forecast)                                                                                                          -1,8%
Forward yield (at issue price of R6.29)                                                                                                         10,5%

 Notes:
 1. Already takes into account the Vanguard and Acacia Place transactions as well as the issue of 7.3mil shares to Emira
 2. Assumes effective date of 1 Dec 2018 and included 12 months net income at acquisition yields
 3. Manco fee at 0.5% + VAT
 4. Interest at a weighted average cost of 9.1%
 5. Assumes re-investment of proceeds from sale of sectional title units relating to Midrand Village, De Velde and Birchwood Village

                                                                                                                 TRANSCEND RESIDENTIAL PROPERTY FUND 21
4.2 PRO FORMA BALANCE SHEET
Balance sheet                                         FY 31 December 2017                    Interim 30 June 2018          Post Proposed Transactions

Assets

Investment property                                            1,218,640,000                         1,219,201,000                         2,630,519,090

Other                                                             51,243,000                             47,254,000                          174,754,000

Total assets                                                   1,269,883,000                         1,266,455,000                         2,805,273,090

Liabilities

Interest bearing                                                 555,324,000                           555,377,000                         1,379,984,548

Other liabilities                                                 25,730,000                             23,134,000                            23,134,000

Total liabilities                                                581,054,000                           578,511,000                         1,403,118,548

NAV                                                              688,829,000                           687,944,000                         1,402,154,542

Number of shares in issue                                         66,305,662                             66,305,662                          153,704,448

NAV per share                                                           10.39                                 10.38                                   9.12

Gearing ratio (net cash)                                               45.6%                                  42.2%                                 46.0%

 •    Post implementation of the Proposed Transactions, Transcend’s total property value will be R2.63bn

 •    Total interest bearing debt of R1.38bn will exist with an all-in weighted average debt cost of 9.1%. It is the intention to fix a minimum of 50% of
      the debt post implementation of the Proposed Transactions

 •    The LTV will be c. 46% and it is Transcend’s intention to reduce this to a market average of 30-40% post rolling out its pipeline

                                                                                                           TRANSCEND RESIDENTIAL PROPERTY FUND 22
5. CONCLUSION

                TRANSCEND RESIDENTIAL PROPERTY FUND 23
5.1 CONCLUSION AND TIMING
Opportunity to        •   Implementation of the Proposed Transactions will result in significantly enhanced scale; and
double portfolio
                      •   Significant increase in market capitalisation
size and migrate to
                          − providing a solid platform to scale further and increase its shareholder base and liquidity
Main Board of JSE

                      •   IHS Asset Management performs the asset management function of Transcend
Scalable portfolio    •   IHS currently manages R5.8bn in assets across 3 Funds & 1 JV and has made investments in 76 real estate projects
with access to IHS        − Currently operates a rental portfolio of approximately 9 138 units
managed funds             − Properties located in 5 provinces in SA
                          − High quality property portfolio with critical mass at attractive yields in a challenging South African economy

                      •   Provides investors with exposure to a geographically diverse, well-managed and well-maintained portfolio of properties
                          that are well-located and good quality, which are expected to appreciate in value over time
Transcend
                      •   Residential housing a unique defensive investment - potential to act as an inflation hedge over the long term,
investment case           returning real growth in distributions
and outlook
                      •   Growth profile of underlying portfolio earnings attractive
                      •   Conservative outlook on balance sheet gearing to remain in place post the Proposed Transactions

                      •   Transcend is seeking irrevocable funding commitments from investors for up to R308mil
                      •   Timing of calling on such commitments is expected by 10 December 2018

                           Deliverable                                               Timing

                           Investors meetings                                        12 – 21 November 2018
Irrevocable
commitments and            Site visit                                                22 November 2018
timing                     Final CP                                                  Expected to be received by 30 November 2018
                           Equity commitments                                        By 30 November 2018

                           Effective date                                            Targeting 1 December 2018

                           Closing date and issue of new shares                      1st week of Dec 2018

                                                                                                    TRANSCEND RESIDENTIAL PROPERTY FUND 24
5.2 CONTACT DETAILS

              Rob Wesselo           083 290 3868      rwesselo@ihsinvestments.co.za

              Solly Mboweni         072 821 7261      smboweni@ihsinvestments.co.za

              Vanessa Perfect       079 496 9409      vperfect@ihsinvestments.co.za

              Myles Kritzinger      072 440 0072     mkritzinger@ihsinvestments.co.za

              Panico Theocharides   082 412 0542         panico@tenureybsm.com

              Shaun Stewart         082 479 7147          shaun@tenureybsm.com

              Jacques Russouw       083 269 0310         jacques@tenureybsm.com

                                                   TRANSCEND RESIDENTIAL PROPERTY FUND 25
ANNEXURES

            TRANSCEND RESIDENTIAL PROPERTY FUND 26
1. TRANSCEND EXISTING PORTFOLIO

                           TRANSCEND RESIDENTIAL PROPERTY FUND 27
TRANSCEND PORTFOLIO – CURRENT
Johannesburg                          Cape Town

                          9

                                           12
                      6

                              8
                                                13      11
             5
                 10
         2            1

                                  4

                              7
     3

                                                     TRANSCEND RESIDENTIAL PROPERTY FUND 28
TRANSCEND PORTFOLIO – GAUTENG
    1                                              67th on 7th (Edenvale, Gauteng)

                                       Key facts                                      Photographs

 • 67 on 7th is located along Van Riebeeck Avenue, in
   Edenvale, Ekurhuleni, Gauteng
 • The site is well-located close to a central business
   district along Van Riebeeck Avenue, and easily
   accessible from major routes, specifically the N12 and
   N3 highways
 • All units are 2-bedroom, 1 bathroom and 55m2

 Property valuation                                     R97.5mil*
 Age of property                                        2.8 years
 Total # of units in complex                                 204
 # of units owned by Transcend                               157
 Size                                                    8,478m2
 Historic occupancy rate                                 95.54%*
 Current occupancy rate                                  99.40%#
 Average lease term                                  16.3 months*
 Average gross rental per unit                           R5,942#
 Cap rate                                                 8.25%*

* *As
    Asper
       perthe
            the2017
                2017Annual
                     AnnualIntegrated
                             IntegratedReport
                                        Report
# As at 1 November 2018                                                              TRANSCEND RESIDENTIAL PROPERTY FUND 29
TRANSCEND PORTFOLIO – GAUTENG
    2                                              Ekhaya Fleurhof (Fleurhof, Gauteng)

                                       Key facts                                     Photographs

 • The property is located on Main Reed Road in Fleurhof,
   Johannesburg, which has good access to the Joburg
   CBD, transit routes, and forms part of the Fleurhof
   development which is owned by Calgro M3

 • Ekhaya Fleurhof consists of 162 units in 4-storey walk-
   up blocks. All units are 2-bedroom, 1 bathroom at an
   average size of 43m2

 Property valuation                                        R69.5mil*
 Age of property                                           5.8 years
 Total # of units in complex                                    162
 # of units owned by Transcend                                  162
 Size                                                       6,642m2
 Historic occupancy rate                                    98.15%*
 Current occupancy rate                                     99.00%#
 Average lease term                                    20.06 months*
 Average gross rental per unit                              R4,336#
 Cap rate                                                    9.50%*

* *As
    Asper
       perthe
            the2017
                2017Annual
                     AnnualIntegrated
                             IntegratedReport
                                        Report
# As at 1 November 2018                                                            TRANSCEND RESIDENTIAL PROPERTY FUND 30
TRANSCEND PORTFOLIO – GAUTENG
    3                                              Ekhaya Jabulani (Soweto, Gauteng)

                                       Key facts                                   Photographs

 • The property is located in the CBD of Soweto, directly
   behind the Jabulani Mall, near to the Soweto theatre

 • Ekhaya Jabulani consists of 243 residential units (of 4
   storey walk-up), which are all 2-bedroom, 1 bathroom,
   of average size of 43m2

 • The units were completed for occupation in February
   2014

 Property valuation                                       R90.6mil*
 Age of property                                          4.8 years
 Total # of units in complex                                   244
 # of units owned by Transcend                                 244
 Size                                                     10,004m2
 Historic occupancy rate                                   94.67%*
 Current occupancy rate                                    98.77%#
 Average lease term                                   17.64 months*
 Average gross rental per unit                             R4,112#
 Cap rate                                                   9.50%*

* *As
    Asper
       perthe
            the2017
                2017Annual
                     AnnualIntegrated
                             IntegratedReport
                                        Report
# As at 1 November 2018                                                           TRANSCEND RESIDENTIAL PROPERTY FUND 31
TRANSCEND PORTFOLIO – GAUTENG
    4                                              Jackalberry Close (Boksburg, Gauteng)

                                       Key facts                                     Photographs

 • Jackalberry Close is located in Jansen Park, Boksburg
   of the East Rand, and consists of a total of 252
   residential units, of which Transcend owns 208 units. All
   units are 2-bedroom, 1 bathroom units, of 51.5m2 in 3
   storey walk-ups

 • The developer was Bluegate Properties, the same
   developer of Molware Estate. Construction began in
   May 2013 with occupation completed in mid April 2014

 Property valuation                                        R112.3mil*
 Age of property                                            4.6 years
 Total # of units in complex                                     252
 # of units owned by Transcend                                   208
 Size                                                       10,713m2
 Historic occupancy rate                                     86.06%*
 Current occupancy rate                                      97.54%#
 Average lease term                                     15.84 months*
 Average gross rental per unit                               R5,589#
 Cap rate                                                     8.50%*

* *As
    Asper
       perthe
            the2017
                2017Annual
                     AnnualIntegrated
                             IntegratedReport
                                        Report
# As at 1 November 2018                                                             TRANSCEND RESIDENTIAL PROPERTY FUND 32
TRANSCEND PORTFOLIO – GAUTENG
    5                                              Kensington Place (Randburg, Gauteng)

                                       Key facts                                    Photographs

 • The property is located near the CBD of the Randburg
   suburb in Johannesburg, West of Sandton. A number of
   large employers are based in the area, including Multi
   Choice and Sasol. The area has a strong demand for
   quality rental stock

 • Kensington Place consists of 56 residential units (4
   storey walk-ups). All units are 2-bedroom, 1 bathroom
   units of 50m2

 Property valuation                                         R35.1mil*
 Age of property                                            6.6 years
 Total # of units in complex                                      56
 # of units owned by Transcend                                    56
 Size                                                        2,376m2
 Historic occupancy rate                                     96.43%*
 Current occupancy rate                                      93.65%#
 Average lease term                                     15.95 months*
 Average gross rental per unit                               R6,233#
 Cap rate                                                     9.00%*

* *As
    Asper
       perthe
            the2017
                2017Annual
                     AnnualIntegrated
                             IntegratedReport
                                        Report
# As at 1 November 2018                                                            TRANSCEND RESIDENTIAL PROPERTY FUND 33
TRANSCEND PORTFOLIO – GAUTENG
    6                                              Molware (Midrand, Gauteng)

                                       Key facts                                 Photographs

 • The property is located between the central business
   district of Midrand and Centurion, off Samrand Road
   which allows for easy access to and from the N1
   motorway

 • Molware Estate consists of 252 residential units (3
   storey walk-ups), all 2-bedroom, 1 bathroom, with an
   average size of 46m² and a crèche located adjacent to
   the site

 Property valuation                                   R138.5mil*
 Age of property                                       5.2 years
 Total # of units in complex                                252
 # of units owned by Transcend                              252
 Size                                                  11,937m2
 Historic occupancy rate                                98.41%*
 Current occupancy rate                                 98.21%#
 Average lease term                                 18.9 months*
 Average gross rental per unit                          R5,542#
 Cap rate                                                8.50%*

* *As
    Asper
       perthe
            the2017
                2017Annual
                     AnnualIntegrated
                             IntegratedReport
                                        Report
# As at 1 November 2018                                                         TRANSCEND RESIDENTIAL PROPERTY FUND 34
TRANSCEND PORTFOLIO – GAUTENG
    7                                 Village Seven Stone Arch Estate (Germiston, Gauteng)

                                       Key facts                                Photographs

 • Stone Arch Village 7 is located in Castleview, within the
   greater Stone Arch estate, which was developed by
   Cosmopolitan between 2011 to 2012

 • The property consists of 114 units, which are all 2-
   bedroom, 1 bathroom units, of size of 54m2 in 3 storey
   walk-ups

 Property valuation                                    R55.1mil*
 Age of property                                       6.7 years
 Total # of units in complex                                114
 # of units owned by Transcend                              114
 Size                                                   6,039m2
 Historic occupancy rate                                98.25%*
 Current occupancy rate                                 95.72%#
 Average lease term                                22.39 months*
 Average gross rental per unit                          R5,414#
 Cap rate                                                8.25%*

* *As
    Asper
       perthe
            the2017
                2017Annual
                     AnnualIntegrated
                             IntegratedReport
                                        Report
# As at 1 November 2018                                                        TRANSCEND RESIDENTIAL PROPERTY FUND 35
TRANSCEND PORTFOLIO – GAUTENG
    8                                            Terenure Estate (Kempton Park, Gauteng)

                                       Key facts                                    Photographs

 • Terenure consists of 350 sectional title units, which is
   held 100% by Transcend. The units were developed by
   Cosmopolitan, the same developer as for Stone Arch

 • There is a good mix of two bedrooms, one bath stack
   units and three bedrooms, 2-bathroom simplex units.
   There is a crèche, gate house, clubhouse with braai
   facilities, jungle gym and pool available

 Property valuation                                       R214.2mil*
 Age of property                                           6.1 years
 Total # of units in complex                                    350
 # of units owned by Transcend                                  350
 Size                                                      22,028m2
 Historic occupancy rate                                    92.86%*
 Current occupancy rate                                     95.61%#
 Average lease term                                     30.7 months*
 Average gross rental per unit                              R6,380#
 Cap rate                                                    8.75%*

* *As
    Asper
       perthe
            the2017
                2017Annual
                     AnnualIntegrated
                             IntegratedReport
                                        Report
# As at 1 November 2018                                                            TRANSCEND RESIDENTIAL PROPERTY FUND 36
TRANSCEND PORTFOLIO – GAUTENG
    9                                              Theresa Park Estate (Pretoria, Gauteng)

                                       Key facts                                       Photographs

 • Theresa Park is located in Pretoria North, Gauteng

 • Consists of 242 residential units (2 storey walk-ups)
   with an average size of 50m², both 1 bedroom, 1
   bathroom and 2-bedroom, 1 bathroom units

 Property valuation                                          R98.0mil*
 Age of property                                             6.4 years
 Total # of units in complex                                      242
 # of units owned by Transcend                                    242
 Size                                                        12,388m2
 Historic occupancy rate                                      95.04%*
 Current occupancy rate                                       96.00%#
 Average lease term                                      23.79 months*
 Average gross rental per unit                                R4,346#
 Cap rate                                                      8.50%*

* *As
    Asper
       perthe
            the2017
                2017Annual
                     AnnualIntegrated
                             IntegratedReport
                                        Report
# As at 1 November 2018                                                               TRANSCEND RESIDENTIAL PROPERTY FUND 37
TRANSCEND PORTFOLIO – GAUTENG
   10                                              Tradewinds (Randburg, Gauteng)

                                       Key facts                                    Photographs

 • The property is located near the central business
   district of the Randburg suburb in JHB, West of
   Sandton. A number of large employers are based in the
   area, including Multi Choice and Sasol

 • Trade Winds consists of 85 residential units in a five
   storey building, with an average unit size of 43m². The
   property has a swimming pool, underground parking
   and a lift. All units are 1 bedroom, 1-bathroom units

 Property valuation                                      R46.0mil*
 Age of property                                         7.2 years
 Total # of units in complex                                   85
 # of units owned by Transcend                                 85
 Size                                                     3,730m2
 Historic occupancy rate                                 100.00%*
 Current occupancy rate                                   94.21%#
 Average lease term                                  16.49 months*
 Average gross rental per unit                            R6,119#
 Cap rate                                                  9.00%*

* *As
    Asper
       perthe
            the2017
                2017Annual
                     AnnualIntegrated
                             IntegratedReport
                                        Report
# As at 1 November 2018                                                         TRANSCEND RESIDENTIAL PROPERTY FUND 38
TRANSCEND PORTFOLIO – WESTERN CAPE
   11                                              Alpine Mews (Cape Town, Western Cape)

                                       Key facts                                     Photographs

 • Alpine Mews is located in Eersterivier in Western Cape.
   The site is in a popular area for affordable rental and is
   well positioned within walking distance of a train station
   and other important amenities

 • The property consists of 90 units, all of which are 2-
   bedroom, 1 bathroom units in 3 storey walk-ups. The
   property attracts tenants with features such as secure
   access control, parking for tenants and visitors, as well
   as an exclusive use playground

 Property valuation                                          R36.2mil*
 Age of property                                             5.5 years
 Total # of units in complex                                       90
 # of units owned by Transcend                                     90
 Size                                                         4,005m2
 Historic occupancy rate                                      98.89%*
 Current occupancy rate                                       90.00%#
 Average lease term                                      18.58 months*
 Average gross rental per unit                                R4,659#
 Cap rate                                                      9.25%*

* *As
    Asper
       perthe
            the2017
                2017Annual
                     AnnualIntegrated
                             IntegratedReport
                                        Report
# As at 1 November 2018                                                            TRANSCEND RESIDENTIAL PROPERTY FUND 39
TRANSCEND PORTFOLIO – WESTERN CAPE
   12                                              Parklands (Eersterivier, Western Cape)

                                       Key facts                                      Photographs

 • Parklands is located in circa. 15km north/north east of
   Cape Town and consists of 187 units

 • This property remains very popular and has historically
   performed well

 Property valuation                                         R98.1mil*
 Age of property                                            5.9 years
 Total # of units in complex                                     187
 # of units owned by Transcend                                   187
 Size                                                       10,044m2
 Historic occupancy rate                                     97.86%*
 Current occupancy rate                                      96.43%#
 Average lease term                                     32.17 months*
 Average gross rental per unit                               R6,029#
 Cap rate                                                     9.00%*

* *As
    Asper
       perthe
            the2017
                2017Annual
                     AnnualIntegrated
                             IntegratedReport
                                        Report
# As at 1 November 2018                                                              TRANSCEND RESIDENTIAL PROPERTY FUND 40
TRANSCEND PORTFOLIO – WESTERN CAPE
   13                                              Vanguard (Heideveld, Western Cape)

                                       Key facts                                   Photographs

 • Vanguard consists of 60 two bedroomed, one-bathroom
   residential units of 44m2 each and located at 29 Jade
   Street, off Klipfontein Road, Heideveld, Cape Town

 Property valuation                                       R33.3mil#
 Age of property                                          3.3 years
 Total # of units in complex                                    60
 # of units owned by Transcend                                  60
 Size                                                      6,640m2
 Historic occupancy rate                                   97.00%*
 Current occupancy rate                                   100.00%#
 Average lease term                                      27 months#
 Average gross rental per unit                             R6,057#
 Cap rate                                                   9.00%#

* *As
    Asper
       perthe
            the2017
                2017Annual
                     AnnualIntegrated
                             IntegratedReport
                                        Report
# As at 1 November 2018                                                           TRANSCEND RESIDENTIAL PROPERTY FUND 41
PORTFOLIO OVERVIEW
                                                  30 June 2018 Portfolio Highlights

  GEOGRAPHIC PROFILE BY REVENUE (%)                                                           UNIT PROFILE (%)
  Gauteng            Western Cape          Mpumalanga                         2 Bed 1 Bath      1 Bed 1 Bath      2 Bed 2 Bath   3 Bed 2 Bath

                                                                                                              3
                      16                                                                             6

                                                                                                          2
              11

                                         72
                                                                                                                  89

        LEASE EXPIRY PROFILE (%)                                               AVERAGE MONTHLY PROPERTY EXPENSES (%)
    Monthly                         Prior to 31.12.2018                                      Utilities    Operational    Admin
    Prior to 30.06.2019             Prior to 31.12.2019
    Vacancy

                       10,5
                                                                                              28
              14,2                                                                                                       36
                       0,1

                                           56,6

              18,6

                                                                                                         36

                                                                                                TRANSCEND RESIDENTIAL PROPERTY FUND 42
PERFORMANCE OVERVIEW
                           12 months to 31 Dec 2017                                                  6 months to 30 June 2018

   NAV per share (Rand)                                                         NAV per share (Rand)
   31 Dec 2017                                         10,39                    30 Jun 2018                        10,38

   31 Dec 2016* 9,78                                                            30 Jun 2017   9,93

   LTV (%)                                                                      LTV (%)
   31 Dec 2017        42                                                        30 Jun 2018    42

   31 Dec 2016*                                                44               30 Jun 2017                         43

   Net cost-to-income ratio (%)                                                 Net cost-to-income ratio (%)

   31 Dec 2017                                                   32             30 Jun 2018                       31

   31 Dec 2016*     28                                                          30 Jun 2017   30

 DIVIDEND per share (cents)                         OCCUPANCY average            DIVIDEND per share (cents)            OCCUPANCY average
 2017 ACTUAL                                        2017 ACTUAL                                                        2018 ACTUAL
                                                                                 2018 ACTUAL
 64.04                                              92.7%                        30.10                                 88.9% / (94.9%)#
 2016 ACTUAL                                        2016 ACTUAL                  2017 ACTUAL                           2017 ACTUAL

 5.61*                                              96%*                         29.81                                 95.9%

 DISTRIBUTABLE INCOME                              EARNINGS per share (cents)    DISTRIBUTABLE INCOME                  EARNINGS per share (cents)
 (Rm)                                              2017 ACTUAL                   (Rm)                                  2018 ACTUAL
 2017 ACTUAL                                                                     2018 ACTUAL
                                                   102.5                                                               32.89
 42.5                                                                            20.3
                                                   2016 ACTUAL                                                         2017 ACTUAL
 2016 ACTUAL                                                                     2017 ACTUAL
                                                   51.7*                                                               27.26
 3.7*                                                                            19.8
* For the 6 months ended 31 December 2016
# Occupancy rate if Acacia Place (with vacancy rate of 11%) is excluded                                   TRANSCEND RESIDENTIAL PROPERTY FUND 43
2. IHS RES 1 PROPERTIES, PROTEA GLEN
& SILVERLEAF

                            TRANSCEND RESIDENTIAL PROPERTY FUND 44
IHS RES 1 PORTFOLIO, PROTEA GLEN AND SILVER LEAF
Gauteng                     Western Cape
                        9

                    2
                8
          1   4 5
              6

                                             7

          3

                                       TRANSCEND RESIDENTIAL PROPERTY FUND 45
IHS RES 1 PORTFOLIO – GAUTENG
   1                                                   Birchwood (Johannesburg, Gauteng)

                                     Key facts                                        Photographs

 • Situated on Erf 92 Chartwell Extension 14 & Erf 93
   Chartwell Extension 15, located at the corner of Cedar
   Road & 3rd Street, Chartwell, Johannesburg

 • The complex comprises 360 units (consisting of 108
   one-bedroomed units, 224 two-bedroomed units and 28
   three-bedroomed units), with an average size of 73m²
   and monthly gross rentals ranging from R6,200 –
   R11,000 per unit

 Property valuation                                                    R288mil#
 Age of property                                                      2.25 years
 Total # of units in complex                                                360
 # of units owned by Transcend                                              360
 Size                                                                 26,232m2
 Historic occupancy rate                                               55.00%*
 Current occupancy rate                                                82.00%#
 Average lease term                                              13.52 months#
 Average gross rental per unit                                          R7,950$
 Cap rate                                                               9.71%^

# *As
    Asatper the 2017 Annual
         1 November   2018 Integrated^Report
                                       At acquisition
* Occupancy a result of lease up     $ Forecasted 2019 gross rental                  TRANSCEND RESIDENTIAL PROPERTY FUND 46
IHS RES 1 PORTFOLIO – GAUTENG
   2                                                     Midrand Village (Midrand, Gauteng)

                                     Key facts                                            Photographs

 • Situated on Erven 4472 to 4809 Clayville Extension 46,
   Porcelain Road, Clayville, Gauteng. Transcend is
   acquiring 225 units which vary from two-bedroomed
   units with one bathroom, measuring 55m² to three-
   bedroomed units with two bathrooms, measuring 80m²

 • New lettings currently range from monthly gross rentals
   of R6,500 for the two-bedroomed units up to R7,900 for
   the three-bedroomed units

 Property valuation                                                R153mil#
 Age of property                                                  5.33 years
 Total # of units in complex                                            305
 # of units owned by Transcend                                          225
 Size                                                              14,280m2
 Historic occupancy rate                                            89.00%*
 Current occupancy rate                                             97.00%#
 Average lease term                                            18.78 months#
 Average gross rental per unit                                      R7,313$
 Cap rate                                                            8.99%^

# *As
    Asatper the 2017 Annual
         1 November   2018 Integrated Report
                              ^ At acquisition
* Project was held for sale   $ Forecasted 2019 gross rental                             TRANSCEND RESIDENTIAL PROPERTY FUND 47
IHS RES 1 PORTFOLIO – GAUTENG
   3                                                    Southgate Ridge (Midrand, Gauteng)

                                     Key facts                                           Photographs

 • Situated on Erven 3030 and 3031 Naturena Extension
   16, 5 Duin Place, Naturena, Gauteng. The complex
   comprises 412 units, all of them being two-bedroomed
   units with one bathroom, measuring approximately
   53m². The units are accommodated in 62 two-storey
   blocks, all of which are north facing

 • New lettings currently range from monthly gross rentals
   of R5,400 for first floor units to R5,600 for ground floor
   units

 Property valuation                                                 R216mil#
 Age of property                                                      5 years
 Total # of units in complex                                             412
 # of units owned by Transcend                                           412
 Size                                                               21,972m2
 Historic occupancy rate                                              98.04%
 Current occupancy rate                                              91.50%#
 Average lease term                                             16.59 months#
 Average gross rental per unit                                       R5,874$
 Cap rate                                                            11.59%^

# *As
    Asatper the 2017 Annual
         1 November   2018 Integrated Report2019 gross rental
                              $ Forecasted
^ At acquisition                                                                       TRANSCEND RESIDENTIAL PROPERTY FUND 48
IHS RES 1 PORTFOLIO – GAUTENG
   4                                                  Urban Ridge (East) (Midrand, Gauteng)

                                     Key facts                                          Photographs

 • Situated on Erven Erf 1397 Halfway Gardens Extension
   79, 77 Fifth Road, Midrand, Gauteng. The complex
   comprises 184 units, consisting of 170 two-bedroomed
   units with one bathroom and measuring approximately
   53m² and 14 three bed-bedroomed units with two
   bathrooms measuring approximately 77m². The units
   are accommodated in 13 four-storey blocks
 • New lettings currently range from monthly gross rentals
   of R6,300 for the one-bedroomed units to R6,700 for
   the two-bedroomed units

 Property valuation                                                 R110mil#
 Age of property                                                   5.08 years
 Total # of units in complex                                             184
 # of units owned by Transcend                                           184
 Size                                                               10,140m2
 Historic occupancy rate                                              96.04%
 Current occupancy rate                                              91.00%#
 Average lease term                                             16.84 months#
 Average gross rental per unit                                       R7,084$
 Cap rate                                                            10.52%^

# *As
    Asatper the 2017 Annual
         1 November   2018 Integrated Report2019 gross rental
                              $ Forecasted
^ At acquisition                                                                       TRANSCEND RESIDENTIAL PROPERTY FUND 49
IHS RES 1 PORTFOLIO – GAUTENG
   5                                                Urban Ridge (South) (Midrand, Gauteng)

                                     Key facts                                         Photographs

 • Situated on Erf 1386 Halfway Gardens Extension 54, at
   the corner of Smuts and 3rd Road, Midrand, Gauteng.
   The complex comprises 232 units, all of them being
   two-bedroomed units with one bathroom, measuring
   approximately 54m². The units are accommodated in 8
   four-storey blocks, all of them north facing

 • New lettings currently range from monthly gross rentals
   of R6,300 for the upper floor units to R6,500 for the
   ground floor units

 Property valuation                                                 R139mil#
 Age of property                                                   3.92 years
 Total # of units in complex                                             232
 # of units owned by Transcend                                           232
 Size                                                               12,472m2
 Historic occupancy rate                                              96.66%
 Current occupancy rate                                              91.81%#
 Average lease term                                             17.19 months#
 Average gross rental per unit                                       R6,642$
 Cap rate                                                            10.33%^

# *As
    Asatper the 2017 Annual
         1 November   2018 Integrated Report2019 gross rental
                              $ Forecasted
^ At acquisition                                                                      TRANSCEND RESIDENTIAL PROPERTY FUND 50
IHS RES 1 PORTFOLIO – GAUTENG
   6                                                 Urban Ridge (West) (Midrand, Gauteng)

                                     Key facts                                         Photographs

 • Situated on Erf 1399 Halfway Gardens Extension 35,
   81 Fifth Road, Midrand, Gauteng. The complex
   comprises 260 units, all of them being two-bedroomed
   units with one bathroom, measuring approximately
   57m². The units are accommodated in 4 four-storey
   blocks, all of them north facing

 • New lettings currently range from monthly gross rentals
   of 6,100 for first floor units to R6,300 for ground floor
   units

 Property valuation                                                 R153mil#
 Age of property                                                   5.92 years
 Total # of units in complex                                             260
 # of units owned by Transcend                                           260
 Size                                                               14,907m2
 Historic occupancy rate                                              96.28%
 Current occupancy rate                                              91.92%#
 Average lease term                                             17.25 months#
 Average gross rental per unit                                       R6,546$
 Cap rate                                                            10.69%^

# *As
    Asatper the 2017 Annual
         1 November   2018 Integrated Report2019 gross rental
                              $ Forecasted
^ At acquisition                                                                      TRANSCEND RESIDENTIAL PROPERTY FUND 51
IHS RES 1 PORTFOLIO – WESTERN CAPE
   7                                               De Velde (Somerset Wes, Western Cape)

                                     Key facts                                       Photographs

 • Known as Sectional Schemes De-Velde 1, 2, 4 and 5,
   located on Portions 128, 131, 132 and 134 of the Farm
   794 Stellenbosch RD, De Velde, Western Cape. The
   complex comprises 310 units varying from one-
   bedroomed units with one bathroom, measuring 38m²
   to three-bedroomed units with two bathrooms,
   measuring 104m²
 • New lettings currently range from monthly gross rentals
   of R6,600 for the one-bedroomed units up to R12,000
   for the three-bedroomed units

 Property valuation                                                    R139mil#
 Age of property                                                      5.08 years
 Total # of units in complex                                                232
 # of units owned by Transcend                                              232
 Size                                                                 29,330,m2
 Historic occupancy rate                                               88.00%*
 Current occupancy rate                                                94.00%#
 Average lease term                                              16.33 months#
 Average gross rental per unit                                         R10,555$
 Cap rate                                                               8.19%^

# *As
    Asatper the 2017 Annual
         1 November   2018 Integrated ^Report
                                        At acquisition
* Occupancy a result of lease up     $ Forecasted 2019 gross rental                 TRANSCEND RESIDENTIAL PROPERTY FUND 52
IHS RES 1 PORTFOLIO – OTHER
   8                                                            Protea Glen (Midrand, Gauteng)

                                     Key facts                                                    Photographs

 • Situated on Erf 1399 Halfway Gardens Extension 35,
   81 Fifth Road, Midrand, Gauteng. The complex
   comprises 260 units, all of them being two-bedroomed
   units with one bathroom, measuring approximately
   57m². The units are accommodated in 4 four-storey
   blocks, all of them north facing

 • New lettings currently range from monthly gross rentals
   of 6,100 for first floor units to R6,300 for ground floor
   units

 Property valuation                                                    R61mil#
 Age of property                                                    10.1 years
 Total # of units in complex                                              176
 # of units owned by Transcend                                            176
 Size                                                                 8,480m2
 Historic occupancy rate                                               94.08%
 Current occupancy rate                                               92.00%#
 Average lease term                                                 29 months#
 Average gross rental per unit                                        R4,675$
 Cap rate                                                             10.34%^

# *As
    Asatper the 2017 Annual
         1 November   2018 Integrated Report2019 gross rental
                              $ Forecasted
^ At acquisition                                                                                 TRANSCEND RESIDENTIAL PROPERTY FUND 53
IHS RES 1 PORTFOLIO – OTHER
   9                                                            Silverleaf (Pretoria, Gauteng)

                                     Key facts                                                    Photographs

 • The Property consists of 76 two bedroomed residential
   units located at 649 Krige Street, Silverton, Pretoria.

 • The average rental income per unit is R5,900 per
   month

 Property valuation                                                  R46mil#
 Age of property                                                    9 months
 Total # of units in complex                                             76
 # of units owned by Transcend                                           76
 Size                                                                5,364m2
 Historic occupancy rate                                                N/A
 Current occupancy rate                                              97.00%#
 Average lease term                                                     N/A#
 Average gross rental per unit                                       R6,038$
 Cap rate                                                            9.87%^

# *As
    Asatper the 2017 Annual
         1 November   2018 Integrated Report2019 gross rental
                              $ Forecasted
^ At acquisition                                                                                 TRANSCEND RESIDENTIAL PROPERTY FUND 54
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