Announcements

Emira Property Fund Senior Secured Notes – Ratings Affirmed

Johannesburg, 31 October 2014 — Global Credit Rating Co. (“GCR”) has affirmed the final, public ‘AA(ZA)’ long term rating and Stable Outlook accorded to the Senior Secured Floating Rate Notes (the ‘Senior Notes’) issued by Emira Property Fund (the ‘Issuer’) on 19 August 2011:

Secured Term Notes

R500,000,000

EPF001

due 19 August 2015

AA(ZA)

Stable Outlook

RATING RATIONALE

The rating of the Senior Notes is derived by applying a notching approach, starting with the long term corporate credit rating of the Issuer. Based on fundamentals and prospects of Emira, GCR accorded a long term ‘A(ZA)’ national scale corporate credit rating to the Issuer, which was affirmed in May 2014. A rating uplift of three notches was deemed appropriate for this Transaction at Transaction closing and GCR still deems this to be appropriate.

RATINGS HISTORY

Class Notes

Stock code

Initial Rating

Long Term Rating

Short Term Rating

Outlook

Secured Term Notes

EPF001

25 August 2011

AA(ZA)

n.a

Stable

Class Notes

Stock code

Last Rating

Long Term Rating

Short Term Rating

Outlook

Secured Term Notes

EPF001

31 October 2013

AA(ZA)

n.a

Stable

ANALYTICAL CONTACTS

Corné Els
Structured Finance Analyst
CorneE@globalratings.net
+27 11 784 1771

Committee Chairperson
Emma-Jane Fulcher
Head: Structured Finance Ratings
fulcher@globalratings.net
+27 11 784 1771

APPLICABLE METHODOLOGIES AND RELATED RESEARCH

Global Structurally Enhanced Corporate Bonds Rating Criteria – Oct ’14;
Global Master Criteria for Rating Corporate Entities – Aug ’14;
Global Summary Criteria for Rating Property Funds – Jul ’14;
Emira Property Fund Corporate Analysis Report – May ’14
Emira Property Fund R500m Secured Notes Surveillance Report – Oct ’13

RATING LIMITATIONS AND DISCLAIMERS

ALL GCR CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS, TERMS OF USE OF SUCH RATINGS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS, TERMS OF USE AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://GLOBALRATINGS.NET/UNDERSTANDING-RATINGS. IN ADDITION, RATING SCALES AND DEFINITIONS ARE AVAILABLE ON GCR’S PUBLIC WEB SITE AT HTTP://GLOBALRATINGS.NET/RATINGS-INFO. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. GCR’S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, COMPLIANCE, AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE UNDERSTANDING RATINGS SECTION OF THIS SITE.

SALIENT FEATURES OF ACCORDED RATINGS

GCR affirms that a.) no part of the rating was influenced by any other business activities of the credit rating agency; b.) the rating was based solely on the merits of the rated entity, security or financial instrument being rated; c.) such rating was an independent evaluation of the risks and merits of the rated entity, security or financial instrument; and d.) the validity of the rating is for a maximum of 12 months, or earlier as indicated by the applicable credit rating document.

The Issuer and the Arranger participated in the rating process via face-to-face meetings, teleconferences and other written correspondence. Furthermore, the quality of info received was considered adequate and has been independently verified where possible.

The rating/s above were solicited by the Issuer of the Transaction; GCR has been compensated for the provision of the ratings.

The credit rating/s has been disclosed to the Issuer and the Arranger with no contestation of the rating.

The information received from the Issuer:
• 6 Year Trading Forecast;
• Tenancy Schedules as at October 2014;
• Rent Roll as at October 2014;
• Updated Property Valuations as at June 2014;
• Property Vacancies as at July 2014; and
• The Issuer’s Integrated Report for the year ended 30 June 2014.

Corporate Credit Rating

A credit rating accorded to a corporate entity.

Credit Rating

A rating accorded to the performance of either ultimate or timely payment of obligations.

Credit Rating Agency

A party that provides an opinion on the credit quality of assets, debt securities and companies.

Credit Risk

The probability or likelihood that a borrower will not meet its debt obligations. Credit Risk can further be separated between current credit risk (immediate) and potential credit risk (deferred).

Floating Rate Notes

Debt securities that have a periodic interest rate reset in relation to the reference rate, i.e. JIBAR.

JIBAR

Johannesburg Interbank Agreed Rate. A reference rate.

Lien

A right of retention of someone else’s property due to expensed money or labour on property acquires a lien until payment is made.

Liquidity Risk

The risk that a financial instrument cannot be traded on its market price due to the size of the market.

Long Term Rating

A credit rating based on the opinion of the ability to repay long term (more than a year) obligations.

Property

Movable or immovable asset.

Reference Rate

A rate that is the basis of the calculation such as JIBAR.

Short Term Rating

A credit rating based on the opinion of the ability to honour short term (less than a year) obligations.

Stock Code

A unique code allocated to a publicly listed security.

Structured Finance

A method of raising funds in the capital markets. A Structured Finance transaction is established to accomplish certain funding objectives whist reducing risk.

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ALL GCR CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS, TERMS OF USE OF SUCH RATINGS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS, TERMS OF USE AND DISCLAIMERS BY FOLLOWING THIS LINK:HTTP://GCRRATINGS.COM. IN ADDITION, RATING SCALES AND DEFINITIONS ARE AVAILABLE ON GCR’S PUBLIC WEB SITE AT WWW.GCRRATINGS.COM/RATING_INFORMATION. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. GCR's CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, COMPLIANCE, AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THIS SITE.

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