ACCELERATE PROPERTY FUND LIMITED – Announcement of new rental price and verification of background information – SENS

                            

Announcement Of Dividend Re-Investment Price And Confirmation Of Finalisation Information

ACCELERATE PROPERTY FUND LIMITED
Incorporated in the Republic of South Africa
Registration number 2005/015057/06
Share code: APF ISIN: ZAE000185815
(“Accelerate” or “the Company”)
(Approved as a REIT by the JSE)

ANNOUNCEMENT OF DIVIDEND RE-INVESTMENT PRICE AND CONFIRMATION OF
FINALISATION INFORMATION

1. Introduction

Accelerate’s results for the 12-month financial period ended 31 March 2022 were released on SENS
on 27 June 2022. Accelerate shareholders (“Shareholders”) were advised in these results that the
directors of Accelerate have declared a cash dividend of 21.98051 cents per Share for the 12
months ended 31 March 2022 (“Cash Dividend”). Shareholders have been provided with the
election to reinvest the Cash Dividend in return for Shares (“Share Re-Investment Alternative”).

Shareholders are also referred to the circular dated 5 July 2022 which included full details of the
Cash Dividend and Share Re-Investment Alternative (“Circular”).

The price applicable to Shareholders electing the Share Re-Investment Alternative and recorded in
the register on Friday, 22 July 2022 (“Record Date”), is R0,70, as resolved by the board of directors
of Accelerate (“Re-Investment Price”).

2. Tax implications

In accordance with Accelerate’s status as a Real Estate investment Trust (“REIT”) with effect from
12 December 2013, Shareholders are advised that the dividend meets the requirements of a
“qualifying distribution” for the purposes of section 25BB of the Income Tax Act, No 58 of 1962
(“Income Tax Act”). The dividends on the Shares will be deemed to be dividends for South African
tax purposes in terms of section 25BB of the Income Tax Act.

Tax implications for South African resident Shareholders Dividends received by or accrued to South
African tax residents must be included in the gross income of such Shareholders and will not be
exempt from income tax in terms of the exclusion to the general dividend exemption contained in
section 10 (1)(k)(i)(aa) of the Income Tax Act because they are dividends distributed by a REIT.
These dividends are however exempt from dividend withholding tax (“Dividend Tax”) in the hands
of South African resident Shareholders provided that the South African resident Shareholders have
provided to the CSDP or broker, as the case may be, in respect of uncertificated Shares, or the
Company, in respect of certificated Shares, a DTD (EX) (Dividend Tax: Declaration and undertaking
to be made by the beneficial owner of a dividend) form to prove their status as South African
residents.

If resident Shareholders have not submitted the abovementioned documentation to confirm their
status as South African residents, they are advised to contact their CSDP, or broker, as the case
may be, to arrange for the documents to be submitted prior to the payment of the dividend.

Tax implications for non-resident Shareholders

Dividends received by non-resident Shareholders from a REIT will not be taxable as income and
instead will be treated as ordinary dividends which are exempt from income tax in terms of the
general dividend exemption in section 10(1)(k)(i) of the Income Tax Act. It should be noted that up
to 31 December 2013 dividends received by non-residents from a REIT were not subject to Dividend
Tax. With effect from 1 January 2014, any dividend received by a non-resident from a REIT was
subject to Dividend Tax at 20%, unless the rate is reduced in terms of any applicable agreement
for the avoidance of double taxation (“DTA”) between South Africa and the country of residence of
the non-resident Shareholder. Assuming Dividend Tax will be withheld at a rate of 20%, the net
dividend amount due to non-resident Shareholders is 17.58441 cents per Share. A reduced
dividend withholding rate in terms of the applicable DTA may only be relied on if the non-resident

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Shareholder has provided the following forms to their CSDP or broker, as the case may be, in
respect of uncertificated Shares, or the Company, in respect of certificated Shares:

• A declaration that the dividend is subject to a reduced rate as a result of the application of a
DTA; and
• A written undertaking to inform the CSDP, broker or the Company, as the case may be, should
the circumstances affecting the reduced rate change or the beneficial owner cease to be the
beneficial owner, both in the form prescribed by the Commissioner for the South African
Revenue Service.

If applicable, non-resident Shareholders are advised to contact the CSDP, broker or the Company,
as the case may be, to arrange for the abovementioned documents to be submitted prior to payment
of the dividend if such documents have not already been submitted.

Due to the fact that the Cash Dividend or Share Re-Investment Alternative may have tax
implications for resident and non-resident Shareholders, Shareholders are encouraged to consult
their professional advisors should they be in any doubt as to the appropriate action to take.

3. Other information:

A dividend withholding tax of 20% will be applicable on the dividend portion to all Shareholders who
are not exempt.

The issued share capital entitled to receive the Cash Dividend at the finalisation date is
1,002,245,195 ordinary shares of no par value before any election to re-invest the Cash Dividend.

4. Trading of Accelerate shares

As published in the Circular, Shareholders electing the Share Re-Investment Alternative are
requested to note that the new shares will be listed on LDT + 3 and that these new shares can only
be traded on LDT + 3, being Wednesday, 27 July 2022, as settlement of the shares will be three
days after the Record Date, which differs from the conventional one day after Record Date
settlement process.

Shareholders are reminded that the record date to elect to receive the Share Re-Investment
Alternative is 12:00 (South African time) on Friday, 22 July 2022.

The salient dates, timetable and all other information relating to the Cash Distribution and Share
Re-Investment Alternative previously announced and disclosed in the Circular, remain unchanged.

Fourways
12 July 2022

Sponsor:
The Standard Bank of South Africa Limited

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Date: 12-07-2022 10:47:00
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