Emira Annual Report Highlights Growth and Diversification

a n n u a l r ep o r t 2 0 1 0
innovation diversification rejuvenation

www.emira.co.za
Strategic focus 1
Emira Property Fund’s principal objective is to
Major achievements 2
Five-year financial review 5
grow earnings from a quality-based property
Portfolio of top 10 properties portfolio.
by value 6
Portfolio summary 8 Growth will be sought by making strategic
Chief Executive Officer’s message 10 investments where yields are enhancing in the
Manager’s report 15
medium to long term.
Directorate 32
Corporate governance 34 Management will further maintain the quality
Sustainability 40
of the portfolio by disposing of assets, which
Annual financial statements 45
Participatory interest holders’
no longer meet the strategic objectives of the
analysis 83 Fund.
Property listing 85
Strategic Real Estate Managers (Pty)
Limited – Financial statements 97
Notice of annual general meeting 108
Administration information 110
Form of proxy 111
Discovery
Health
Technohub
Dalefern
A property fund created under the

Emira Property Scheme, registered in terms
of the Collective Investment Schemes Control
Act No 45 of 2002
Share code: EMI
ISIN: ZAE000050712
(“Emira”)
Front cover – Wonderpark Shopping Centre, Boundary

Terraces, Southern Sentrum, RTT Acsa Park
Page 1
R527,2 million
Distributable income
108,08 cents + 6,8%

Distribution per participatory interest (PI)
1 133 cents
Net asset value per PI
+ 32,8%
12-month total return
Strategic focus
• Optimise net income and growth in distributions;
• pply gearing to the portfolio to the extent that it enhances
A
returns, limited to 40% of total assets as provided for in the
Collective Investment Schemes Control Act;
• I ncrease market capitalisation, liquidity and spread of
investors through selective acquisitions and capital raising;
• Selectively recycle assets;
• roaden the Fund’s geographic exposure to KwaZulu-Natal
B
and the Western and Eastern Cape;
• aintain a balanced exposure to the office, retail and
M
industrial property sectors;
• ispose of non-performing or potentially under-performing
D
properties;
• educe vacancies and manage the lease expiry profile of
R
the portfolio; and
• eet the requirements
M of the Property Sector
Transformation Charter.
Imfundo House UNDP House
Annual Report 2010 Emira Property Fund

Page 2
Major achievements
Amending the management

structure to unlock benefits for all
The announcement in July 2010 that Emira would amend the terms of its
asset management fee structure was the culmination of extended

negotiations between the Fund, the shareholders of the Manager, Strategic
Real Estate Managers (STREM) and the regulatory authorities. It will bring
short- and long-term benefits for participatory interest (PI) holders of

the Fund.
When PI holders voted in favour of the change to the Trust Deed of the Fund,
Emira became the first Collective Investment Scheme in Property (CISP) to
align management and PI holders’ interests by introducing a cost only related
fee structure.
Under the terms of the agreement the Manager, STREM, agreed to amend the
terms of its service charge arrangement to a monthly fee based on
STREM’s actual operating costs rather than the historical arrangement

whereby the monthly charge was based on enterprise value. A once-off
cancellation payment of R197,4 million was paid in September 2010.
PI holders will benefit from a more effective cost structure as the new
arrangement will be tangibly earnings enhancing from the first year.
Simultaneously, the Trust Deed was changed to allow the Fund to invest in a
broader class of assets and to increase the gearing limit from the
current limit of 30% to 40% of the value of its underlying assets.
The changes were overwhelmingly positively received with between 94%
and 98% of eligible PI holders who responded, voting in favour of the
amendments.

Page 3
Geographic diversification provides

further balance to portfolio
In May 2010 the Fund acquired an effective 6,4% interest in Growthpoint
Properties Australia (GOZ) for a total consideration of A$18,0 million
(R116,9 million).
The investment represents Emira’s first investment in an offshore jurisdiction.
It was motivated by the opportunity to diversify the portfolio by acquiring a

small, passive stake in a high quality listed Australian REIT. GOZ is backed by
extremely secure, long-term leases with blue-chip tenants at a higher yield
than that which is achievable by buying South African commercial property.
Facts and Figures: Growthpoint Properties Australia

• The Trust is listed on the Australian Stock Exchange.
• It beneficially owns interests in 25 industrial properties across Australia,
which are valued at A$756,9 million.
• Of its 25 properties, 23 are single tenanted and two are dual tenant
properties.
• Quality tenants, including Woolworths, Coles Group and Star Track
Express, represent more than 75% of overall rental streams.
• T he Trust has a total lettable area of 731 798 m2 and its average lease
expiry is 10,6 years.
• T he properties are located in Victoria (44%), Queensland (22%), Western
Australia (14%), New South Wales (11%) and South Australia (9%).
The transaction will be earnings enhancing from the date of purchase.
In August 2010, GOZ announced the acquisition of seven direct properties

for a total consideration of A$171,5 million with some A$101 million being
funded by a rights offer and the balance from existing syndicated debt
facilities. Emira subscribed for A$17,5 million (R117,3 million) of additional
stapled securities bringing its total holding to 9,1% of GOZ.
Northcorp Boulevard, Broadmeadows, Sharps Road, Tullamarine,

Victoria, Australia Melbourne, Australia

Page 4
Continued active asset management

to enhance property portfolio
The Fund extended its track record of investing to enhance the quality of its
property portfolio in 2010, as has been the case in recent years.
During the past three years, the Fund has:

• Acquired 10 properties with a total value of R394,9 million;
• Invested R88,6 million in upgrading eight office properties;
• R
efurbished and extended 14 shopping centres with a capital value of
R358,1 million;
• Spent R21,4 million on enhancing two industrial properties; and
• D
isposed of 12 non-core buildings for a total consideration
of R258,5 million and four sectional title units worth R9,0 million.
Facts and Figures: Property investments in 2010

• T wo new properties were purchased for R98,0 million, being a single
tenanted industrial warehouse let to Taylor Blinds and a 50% undivided
share in a multi-tenanted office and retail building located at 80 Strand
Street in the Cape Town CBD.
• C
apital investments of some R181,4 million to refurbish and extend
12 properties were completed and ongoing. Seven projects are ongoing
at year-end including a R126,2 million refurbishment and extension of
Randridge Mall.
• T he board approved two projects to demolish and rebuild prime office
space to the order of R291,8 million at Podium House in Menlyn, Pretoria
and FNB Heerengracht in the Cape Town CBD which will commence
once a predetermined level of pre-letting has been achieved.
Randridge Mall
Rigel Park

Page 5
Five-year financial review
Distribution statement
for the year ended 30 June (R’000) 2006 2007 2008 2009 2010
Operating lease rental income and tenant recoveries excluding
straight-lining of leases 433 167 613 134 924 783 1 059 866 1 152 167
Property expenses excluding amortised upfront lease costs (140 668) (187 101) (285 197) (357 597) (386 478)
Net property income 292 499 426 033 639 586 702 269 765 689
Asset management expenses (15 259) (21 949) (33 431) (31 843) (36 171)
Administration expenses (13 855) (22 641) (32 976) (39 023) (43 214)
Depreciation (7 532) (9 966) (9 902) (11 198) (9 704)
Operating profit 255 853 371 477 563 277 620 205 676 600
Net finance costs (42 176) (64 268) (110 808) (126 280) (149 356)
Interest paid and amortised borrowing costs (43 593) (65 462) (115 273) (121 844) (143 219)
Interest capitalised to the cost of developments 7 635 1 728 3 065
Preference share dividends paid (2 934) (8 213) (16 424) (13 351)
STC on preference share dividends paid (367) (821) (1 642) (1 335)
Finance income 1 417 4 495 5 864 11 902 5 484
Distribution payable to participatory interest holders 213 677 307 209 452 469 493 925 527 244
Distribution per participatory interest (cents) 74,50 82,35 92,04 101,25 108,08
Portfolio valuation analysis
Market value (R’000) 3 092 259 7 314 742 7 491 436 7 718 077 7 882 930
Net asset value per participatory interest (cents) 866 1 148 1 169 1 135 1 133
Listed market price per participatory interest (cents) 850 1 090 819 1 015 1 244
Premium/(discount) to net asset value (%) (1,8) (5,1) (29,9) (10,6) 9,8
Salient features
Participatory interests in issue 286 828 772 488 514 461 492 818 989 487 827 654 487 827 654
Market capitalisation (R’000) 2 438 044 5 324 808 4 036 188 4 951 451 6 068 576
Long-term borrowings (R’000) 458 330 1 287 050 1 327 204 1 573 316 1 791 663
Long-term borrowings to total assets (%) 14,8 17,4 17,0 20,1 22,9
Number of properties 85 168 164 167 167
Vacancy factor (%) 4,0 5,9 6,8 7,5 9,2

Page 6
Portfolio of top 10 properties by value

o f f i c e , r e ta i l a n d i n d u s t r i a l s e c t o rs
1. Wonderpark Shopping Centre Retail

Located in middle-LSM market of Akasia, north-west of Pretoria between the
Pretoria CBD and Rosslyn/Soshanguve
Value at 30 June 2010: R601,5 million Major tenants:
Size: 63 360 m2 Pick n Pay (14 000 m²)
Number of tenants: 144 Game (3 992 m²)
Average net rentals: R78,32/ m2 Builders Express (3 950 m²)
Footcount: 9,2 million p.a. Virgin Active Gym (3 500 m²)
Edgars (3 450 m²)
Chevron (3 461 m²)
2. Fuel Group Acsa Park Industrial

Located in Jet Park adjacent to OR Tambo International Airport just off the N12 and R21
Value at 30 June 2010: R298,4 million Single, triple-net tenant:
Size: 59 594 m2 Fuel Logistics Group
Number of tenants: 1
Average net rentals: R45,61/ m2
3. Quagga Centre Retail

Located in Pretoria West, within close proximity to Church Street and the Pretoria CBD
Size: 29 748 m2 Shoprite Checkers (5 715 m²)
Number of tenants: 75 Pick n Pay (4 880 m²)
Average net rentals: R72,92/ m2 Woolworths (1 800 m²)
Footcount: 4,45 million p.a. First National Bank (1 367 m²)
1
Absa (1 155 m²)
4. Randridge Mall Retail

Located in Randpark Ridge, just off Beyers Naudé Drive in a primarily residential area
Size: 22 624 m2 Pick n Pay (4 470 m²)
Number of tenants: 86 Dis-Chem (1 400 m²)
Average net rentals: R65,55/ m2 Pep Stores (600 m²)
Footcount: Not available due to refurbishments Truworths (412 m²)
2
5. Hyde Park Lane Office
Located in Hyde Park, corner of Jan Smuts Avenue and William Nicol Drive
opposite Hyde Park Shopping Centre
Size: 15 334 m2 Standard Bank (1 900 m²)
Number of tenants: 44 Tag Travel (1 073 m²)
Average net rentals: R82,23/ m2 Lufthansa (730 m²)
WDB Investment Holdings (723 m²)
Willis RE (700 m²)
3
4 5

Page 7
6. Woodmead Office Park Office

Located within the Woodmead office node with exposure to the M1 highway
Size: 17 514 m2 DB Thermal (2 400 m²)
Number of tenants: 42 ECI Africa Consulting (1 600 m²)
Average net rentals: R59,41/ m2 Mine Health and Safety Council
t/a SIMPROSS (1 440 m²)
Cummins SA (691 m²)
7. Lynnridge Mall Retail

Located in Lynnwood Ridge, in the eastern suburbs of Pretoria
Size: 14 220 m2 Pick n Pay (3 930 m²)
Number of tenants: 59 Mr Price Home (1 700 m²)
Average net rentals: R106,06/ m2 Absa (1 190 m²)
Footcount: 3,26 million p.a. Lion Bridge Hardware (915 m²)
Jimnetts Arts and Crafts (792 m²)
Pep Home (556 m²)
8. Faerie Glen Office Park Office

Situated east of Pretoria close to Menlyn overlooking Atterbury Drive, a short drive
from Menlyn Shopping Centre
Size: 10 324 m2 Softline VIP (5 755 m²)
Number of tenants: 10 FirstRand Bank (1 300 m²)
Average net rentals: R91,56/ m2 SA Local Government Association (960 m²)
6
Wesbank (600 m²)
9. Southern Sentrum Retail

Located between Benade Drive and Charlie Sutton Road in Fichardt Park,
Bloemfontein, south of the CBD
Size: 21 224 m2 Pick n Pay (13 950 m2)
Number of tenants: 59 Shell SA Marketing (1 700 m²)
Average net rentals: R49,80/ m2 First National Bank (613 m²)
7 Footcount: 4,37 million p.a. Cash Crusaders (495 m²)
10. Braamfontein Centre Office

Located near the CBD of Johannesburg, in close proximity to the University of the Witwatersrand
Size: 20 776 m2 Pick n Pay (2 180 m²)
Number of tenants: 65 CTH Legal Admin Trust (1 333 m²)
Average net rentals: R57,70/ m2 Centre for the Study of Violence
and Reconciliation (1 210 m²)
The Ford Foundation (822 m²)
8
9 10

Page 8
Portfolio summary
Portfolio value by sector Portfolio value by region Portfolio GLA by sector

1%
11%
17% 1%
11%
4% 31% 31%
4% 37% 37%
11%
11%
47% 73%
73%
36%
32% 32%
Office Gauteng Office Office

Retail Western Cape Gauteng Retail Retail
Industrial Free State Western Cape Industrial Industrial
KwaZulu-Natal Free State
Eastern Cape KwaZulu-Natal
Eastern Cape
Portfolio GLA by region Tenant profile by GLA*

3%
13% 3%
13%
4% 35% 35%
4%
44% 44%
10% 70%
10% 70%
21% 21%
Gauteng Grade A Grade A

Western Cape Gauteng Grade B Grade B
Free State Western Cape Grade C Grade C
KwaZulu-Natal Free State
Eastern Cape KwaZulu-Natal
Eastern Cape
* Tenants have been graded as follows:
“A” grade: Large national tenants, large listed tenants, government and major franchisees. These include, inter alia, Absa Bank,
Afrox, the Department of Labour, Edgars, FirstRand Bank, JD Group, Pepkor, Pick n Pay Stores, Shell, the Standard Bank
Group, Ster-Kinekor, Truworths International and Virgin Active.
“B” grade: National tenants, listed tenants, franchisees and medium to large professional firms. These include, inter alia, Afgri,
Builders Express, Debonairs Pizza, Fishaways, John Dory’s, Mikes Kitchen, Postnet, Rage Distribution, Torga Optical,
UCS Group, Vodacom, Young & Rubicam and Wimpy.
“C” grade: Other tenants comprise all other tenants that do not fall into the above two categories.

Page 9
Lease expiry profile (% of GLA) Lease expiry profile by sector (% of GLA)

Vacant 9,2 Vacant 5,9 1,7 1,6 9,2
Year 1 28,2 Year 1 12,2 7,2 8,8 28,2
Year 2 18,6 Year 2 7,5 5,5 5,6 18,6
Year 3 16,9 Year 3 6,5 5,2 5,2 16,9
Year 4 11,8 Year 4 2,1 3,8 5,9 11,8
Year 5+ 15,3 Year 5+ 2,7 7,9 4,7 15,3
■ Office ■ Retail ■ Industrial
Lease expiry profile by sector (% of revenue) Weighted average lease escalation (%)
Year 1 16,1 9,7 4,6 Office 9,3
Year 2 10,6 7,0 2,9

Retail 8,0
Year 3 16,9 7,2 2,9
Year 4 3,0 3,5 2,1

Industrial 8,9
Year 5+ 3,5 6,8 3,2

Vacancy profile (% of GLA) Vacancy profile by sector (% of GLA)

June 2009 7,5 June 2009 13,6 5,0 3,0
September 2009 8,6 September 2009 14,7 4,8 5,3
December 2009 9,2 December 2009 15,3 5,9 5,5
March 2010 9,0 March 2010 15,8 4,9 5,2
June 2010 9,2 June 2010 16,2 5,3 5,1

5,1

Page 10
Chief Executive Officer’s message
R527,2 million questions arose with regard to the fundamentals for global
Distributable income economic growth once stimulus packages in developed
economies come to an end. Accordingly, economists’ trimmed
108,08 cents + 6,8% their local GDP growth expectations, now ranging between 2%
Distribution per participatory interest (PI) and 3%.
1 133 cents On the downside, the market has been highly sensitised to
Net asset value per PI negative newsflow and the Greek credit crisis which started in
March 2010 unleashed concerns that the global economy could
+ 32,8% revert back into recession, with a resultant contagion in global
12-month total return equity and bond markets.
Rental arrears, a lagging indicator of economic activity, continued

to increase. At the same time vacancies took time to respond to
The directors of STREM (“the Manager”) are pleased to
the improved economy as tenants waited for confirmation of
present their report on Emira’s performance for the year
sustainable economic recovery before committing to additional
ended 30 June 2010.
rental space. These have now stabilised with letting interest
improving since December 2009.
CHIEF EXECUTIVE OFFICER’S MESSAGE
Business environment
The tighter credit environment has been associated with higher
The financial year was characterised by two very distinct
debt margins which in turn led to more demanding return
halves. In the six months to December 2009, the market was
requirements on new investments, be they improvements to
uncertain and tenants operated under highly challenging
existing properties or acquisitions of new buildings. As a result,
conditions, resulting in pressure on rentals. The South African
economy came out of recession early in 2010, which provided the occurrence of feasible brownfields projects has slowed,
some relief to tenants in the second half of the financial year. especially given the current downward rental pressures. In the
wake of limited building opportunities, contractors slashed their
As the economic climate in South Africa and globally improved, prices to support waning utilisation levels. In evaluating the
Emira observed definite signs of recovery in the domestic feasibility of new projects, this dampened some of the impact
property market, but progress has been slower than from lower rentals when evaluating returns on potential new
anticipated. projects. Unrealistic expectations of sellers have also made
acquisitions difficult.
Although the South African consumer remains highly indebted,
lower interest rates and the end of the domestic recession led to A benefit of the tighter property market has been a marked
some improvement in consumer sentiment in the second half of reduction in speculative activity and a slower rate of new
the financial year when new vehicle sales, a leading indicator of development. This has stemmed the risk of oversupply from
the economy, showed a strong turnaround. Following the uptick new properties as the number of developers with the
in economic activity during the first quarter of the calendar year, financial wherewithal to commit to new investments
Admiral House
Granada Square

Page 11
declined substantially. Accordingly, the supply and demand The Fund delivered 6,8% growth in distributions per participatory
dynamics are now more balanced. interest (PI) which amounted to 108,08 cents as it reaped the
rewards of consistent year-on-year progress towards its strategic
By way of evidence, the real growth of investment by value in objectives. The management team’s conservative yet consistent
non-residential property moderated to 1,9% in 2009, compared and proactive approach to managing the portfolio over the long
to 7,8% in 2008 and was flat in the second half of the financial term is clearly reflected in these results.
year. The number of square metres approved for new non-
residential construction fell by 35,8% year on year in the first Revenue from operating lease rentals and tenant recoveries
quarter of 2010 although activity in the renovations segment increased 8,7% to R1,2 billion (2009: R1,1 billion). Net income
increased. from property rental operations showed a 9% increase to
R765,7 million because of good cost control.
Retailer and wholesaler confidence improved during the first
quarter of 2010. Retailer confidence rose from 41 to 51 index Net asset value per PI remained virtually stable at 1 133 cents
points (RMB/BER Business Confidence) due to a stabilising labour from 1 135 cents. It was impacted by a marginal reduction in the
market, lower interest rates and better affordability while fair value of derivative financial instruments amounting to
wholesaler confidence jumped from 27 to 50 index points. This R63,8 million. Excluding the provision for deferred tax, net asset
provides further evidence of improving market conditions. value per PI declined by 4% from 1 232 cents to 1 186 cents.
Performance The price of Emira PIs on the JSE Limited continued its strong
Emira once again delivered a solid performance despite the performance, increasing by 23% to 1 244 cents at 30 June
tighter prevailing market conditions. The more stable operating 2010 from 1 015 cents the previous year. This compares
environment which emerged in the second half underpinned favourably to a return of 19% on the listed property sector.
the Fund’s performance for the full year. It continued to deliver Emira’s closing price at year-end reflected a premium of 10%
against its strategic objectives, investing to enhance the quality to its net asset value of 1 133 cents per PI. The PIs reached a
of its portfolio, however the availability of value accretive maximum level of 1 270 cents on 3 April 2010, recovering
opportunities was lower than in previous years. from a low of 980 cents on 3 July 2009. The total returns of PIs
DISTRIBUTION STATEMENT
for the year ended 30 June 2010
%
R’000 2009 2010 change
Operating lease rental income and tenant recoveries excluding straight-lining of leases 1 059 866 1 152 167 8,7
Property expenses excluding amortised upfront lease costs (357 597) (386 478) 8,1
Net property income 702 269 765 689 9,0
Asset management expenses (31 843) (36 171) 13,6
Administration expenses (39 023) (43 214) 10,7
Depreciation (11 198) (9 704) (13,3)
Net finance costs (126 280) (149 356) 18,3
Interest paid and amortised borrowing costs (121 844) (143 219) 17,5
Interest capitalised to the cost of developments 1 728 3 065 77,4
Preference share dividends paid (16 424) (13 351) (18,7)
STC on preference share dividends paid (1 642) (1 335) (18,7)
Finance income 11 902 5 484 (53,9)
Distribution payable to participatory interest holders 493 925 527 244

Number of units in issue 487 827 654 487 827 654
Distribution per participatory interest (cents) 101,25 108,08 6,8

Page 12
Chief Executive Officer’s message (continued)
were boosted to 33% with the payment of distributions 80 Strand Street in the Cape Town CBD with a GLA of 12 500 m2.
amounting to 104,3 cents which were actually paid to PI Major tenants include De Vries Inc, CK Friedlander and Medway
holders during the year. Holdings. Its share of the purchase price was R62,0 million on
a forward yield of 10,4%. Transfer was pending at year-end.
As a result of a rising Emira PI price, the Fund did not engage in • The Fund completed projects to the value of some
any PI buybacks during the year, preserving its capital resources R20,0 million to enhance the quality of five properties.
for opportunities to enhance its positioning in terms of its long- Extensions were carried out for existing blue-chip and long-
term strategic objectives and provide incremental yield standing tenants at Southern Sentrum, Wonderpark Shopping
improvements. Centre, Ingwavuma Shopping Centre, One Highveld and the
creation of additional parking at Tuinhof in Centurion.
The challenging environment in the first half of the year led to • Progress is underway on seven projects valued at approximately
pressure on rentals and rising vacancies which increased from R161,4 million. These include a R126,2 million refurbishment
7,5% in June 2009 to 9,2% in December 2009. The market and extension of Randridge Mall to accommodate additional
improved in the second half of the year buoying Emira’s national tenants. A R14,7 million project was initiated at Rigel
performance for this period, as evidenced by the stabilisation in Park after the previous tenant vacated the property. A general
vacancies. upgrade valued at R11,0 million is in progress at WesBank
House in the Cape Town CBD to capitalise on higher rentals.
Emira came under less pressure on rental negotiations to secure The Market Square Shopping Centre in Plettenberg Bay is
tenants in areas of high demand during the second half of the being extended to accommodate additional space for
financial year. However in secondary nodes, the Fund became Woolworths, at a cost of R4,0 million.
more amenable to negotiating more favourable terms in order • The board approved two projects comprising the complete
to retain tenants and let vacant space, thus sustaining the growth demolition of the existing building and reconstruction of
of its long-term distributions. Accordingly, the rental reversions 15 600 m2 of prime office space at Podium House in Menlyn,
of the Fund on renewals and new leases combined slowed to an Pretoria (R255,6 million) and the refurbishment of 6 745 m2 of
increase of 3,2% from 6,8% in 2009. office space at FNB Heerengracht in the Cape Town CBD
(R36,2 million). However, in line with the Fund’s conservative
Emira continued to pursue projects to enhance the overall investment philosophy, these projects will not commence
quality of its property portfolio, but opportunities meeting its until a predetermined level of pre-letting has been achieved.
return requirements were less prevalent than in previous years. Marketing of the space continues and, although letting has
However, the Fund continually evaluates prospects and been slower than expected, the Manager is confident that
proceeded with the following projects during the year: given the buildings’ exceptional locations and attractive rental
• The Fund acquired two new properties for a total consideration levels, tenants will be secured.
of R98,0 million. Taylor Blinds, which was purchased for • The disposal of non-core buildings continued during the
R36,0 million on a forward yield of 10,8%, was transferred in period, with three sectionalised units at Georgian Place being
September 2009. The Fund also purchased a 50% undivided transferred out of the Fund as well as Rinaldo Park, a small
share in a multi-tenanted office and retail building located at industrial unit located in KwaZulu-Natal. Four buildings,
Lincoln Wood Office Park

Bradenham Hall

Page 13
namely Nampak, Howick Gardens, QD House and Standard marginally to 22,7% from 20,4% in 2009, in line with its strategic
Bank, Glenwood were sold for R62,8 million and all with the objectives.
exception of the Nampak Building were transferred out of the
Fund after year-end. A total of nine non-core properties with a POST year-end EVENTS
total value of R288,9 million remain on the disposal list. After year-end, Emira announced a proposed amendment to its
• In May 2010 the Fund acquired 10,25 million stapled securities* management fee structure, becoming the first Collective
or an effective 6,4% interest in Growthpoint Properties Investment Scheme in Property (CISP) on the JSE Limited to do
Australia (GOZ) for a total consideration of A$18,0 million so. Emira and the Manager, Strategic Real Estate Managers
(R116,9 million). This represents Emira’s first investment in an (STREM), agreed to amend the terms of its service charge
offshore jurisdiction and was motivated by the opportunity to arrangement to a monthly fee based on STREM’s actual operating
diversify the portfolio by acquiring a small, passive stake in a costs as announced to PI holders on 14 July 2010. The change in
high quality listed Australian REIT, backed by extremely secure, management fee structure will result in the calculation of the
long-term leases with blue-chip tenants at a yield higher than existing service charge arrangement changing from a monthly
that which is achievable by buying South African commercial charge based on enterprise value to a monthly charge equal to
property. It has a high quality portfolio consisting of the actual operating costs incurred by the Manager in
25 properties which are mainly situated in Brisbane and administering the Fund and a once-off cancellation payment of
Melbourne, with a few properties in Perth and Sydney. The R197,4 million to the Manager.
transaction will be earnings enhancing from the date of
purchase. The Manager and the Trustee agreed to enter into supplemental
deeds to amend the Trust Deed and approval was received from
* A stapled security is security that is contractually bound to one or more the regulatory authorities with effect from 15 September 2010. The
other securities to form a single saleable unit. Trust Deed was also amended to allow the Fund to invest in a
broader class of assets and to increase the limit of borrowing by the
The long-term debt facility which Emira secured from Rand Emira Property Scheme from the current limit of 30% to 40% of the
Merchant Bank in the previous year continued to provide the value of its underlying assets.
Fund with a relative advantage in the current market, especially
against the context of higher prevailing lending margins. These In August 2010, GOZ announced the acquisition of seven
have settled at lower levels of between 160 and 170 basis points, direct properties comprising two office buildings, a car park
compared to 200 basis points at the peak of the economic crisis. and four industrial properties for a total price of
A$171,5 million at a weighted average yield of 8,4%. The
As at June 2010 Emira had a total debt facility (including
preference shares) available of R2 257 million, of which
R1 799 million had been accessed. Of the Fund’s total debt,
94,2% has been fixed for periods of between three and thirteen
years. At 30 June 2010, the weighted average cost of debt
equated to 9,51% and the Fund’s overall gearing level increased
Highway Business Park

Brandwag
The Tramshed

Page 14
Chief Executive Officer’s message (continued)
acquisition will diversify the 100% industrial portfolio of GOZ Prospects and outlook
into the office sector. The properties are located in the During the year under review, Emira has been highly proactive in
attractive Brisbane property market in Queensland with initiating positive changes to ensure the Fund’s ability to deliver
quality tenants and good lease covenants. The acquisition will long-term benefits to PI holders and to continue delivering on its
be funded by a 1-for-3 pro rata renounceable rights offer at strategic objectives.
A$1,90 per stapled security, providing approximately
A$101 million, and the balance from existing syndicated debt Not only was it one of the first JSE-listed CISPs to diversify its
facilities. Emira has subscribed for A$17,5 million (R117,3 million) assets by investing offshore, but it is also the pioneer in effectively
worth of additional stapled securities bringing its total holding to restructuring the fee payable to its Manager, both of which hold
9,1% of GOZ. significant potential to provide value for PI holders. Over and
above the cost benefits for PI holders, the new structure will also
The Fund also purchased a 50% undivided share in a multi- result in the greater alignment of the interests of the management
tenanted office and retail building located at 80 Strand Street in company, while creating a vehicle to incentivise management
the Cape Town CBD with a GLA of 12 500 m2. Transfer into Emira and staff, which was not possible under the previous structure. In
had not taken place at time of going to print. line with its strategic objectives, the Fund once again delivered
above average growth in distributions as the underlying
The transfer of Howick Gardens, QD House and Standard Bank, portfolios continued to perform well.
Glenwood which were disposed of during the year, took place
after year-end. In the year ahead, the portfolio is positioned to continue
showing good growth in distributions underpinned by its
BOARD OF DIRECTORS diversified pool of long-term tenants and contractual
Mr BH Kent, an independent non-executive director of STREM escalations. While the economic recovery has been confirmed
since April 2007, was appointed as lead independent director on with several consecutive quarters of GDP growth, the recent
20 May 2010. Eskom price hikes and future escalation rates are certain to
limit the affordability of higher rentals and curtail tenants’
On 24 June 2010, Mr V Mahlangu was appointed to the board of propensity to commit to new leases.
STREM as an independent non-executive director. Mr Mahlangu
qualified as a chemical engineer at UCT and has an MBA from Throughout its office, retail and industrial property portfolio,
Harvard. He has extensive experience in structured finance and Emira has a good pipeline of capital projects to continue
investment banking, as well as mezzanine funding and currently improving the quality of its asset base. The board has approved
manages his own investment company. Mr Mahlangu was also several projects which the Fund will initiate once it has achieved
appointed to the audit committee. the requisite levels of pre-letting.

Page 15
Manager’s report
PERFORMANCE South African listed Property Index

South African listed property sector
360
Total returns to June 2010 350
The overall equity markets, which had trended strongly up since 340
early in 2009, corrected sharply after the Greek credit crisis which 330
started in 2010 and sent global and domestic equities into a 320
correction. 310
300
290
The JSE All Share Index and the JSE FINDI 30 Index showed total
280
returns of 21,5% and 22,7% respectively for the 12 months ended 270
30 June 2010. However, in the fourth quarter of the financial year, Jul 09 Aug 09 Sep 09 Oct 09 Nov 09 Dec 09 Jan 10 Feb 10 Mar 10 Apr 10 May 10 Jun 10
they lost -9,5% and -8,4% respectively. PLSs and PUTs continued Source: Inet-Bridge
to perform well despite the volatility which affected the general
equity markets in the fourth quarter, with an annualised return of South African
Africanlisted
listedProperty
PropertyIndex
Indexrelative
relative
South
26,5% and 27,3% respectively over the same time horizon. to All Share Index
to All Share Index
0,0135
Compound annual total returns to 30 June 2010 (pretax) (%)
0,0130
All
Period Share FINDI 30 PLSs PUTs R153
0,0125
1 year 21,5 22,7 26,5 27,3 7,4
3 year 0,6 1,9 8,5 7,1 6,5 0,0120
5 year 14,8 13,4 17,2 12,2 5,5

0,0115
10 year 14,0 9,8 17,4 14,6 8,3
Source: Inet-Bridge 0,0110
Jul 09 Aug 09 Sep 09 Oct 09 Nov 09 Dec 09 Jan 10 Feb 10 Mar 10 Apr 10 May 10 Jun 10
The listed property sector and bond yield differential Source: Inet-Bridge
The listed property sector continued to perform well although its

R157 andyield
R157 and yielddifferential
differential(%)*
(%)*
performance lagged general equities until December 2009.
However with the European credit issues in April 2010, investors 3,5 16
sought out the relative security of the listed property sector 15
2,5
which showed a strong outperformance compared to general 14
1,5 13
equities. Indications that domestically the market is moving
12
towards a low inflation environment have also been positive for 0,5
11
long bond and property yields. -0,5 10
9
-1,5
The capital growth of the listed property sector for the year 8
ended 30 June 2010 was in line with the previous year at 19,1%. -2,5 7
Most South African listed property funds continued to show 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
positive distribution growth albeit at a slower pace during the Differential Long bond (R157)
Source: Inet-Bridge
period under review, as a result of more challenging conditions
in the local property sector.
* South African listed property yield less the R157 yield.

Over the 12 months ended 30 June 2010, the yield differential
between the historic listed property yield and the R153 traded in
a narrow band ranging from 0,25% to -0,25%, indicating that
market expectations for growth were positive but not at levels
experienced in recent years.

Page 16
Manager’s report (continued)
Physical property market The IPD South Africa Annual Property Index, which measures
In 2007, the South African property sector produced the highest ungeared total returns in respect of direct property investments,
returns of all the countries analysed by the Investment Property showed that total returns remained in a downward trend in
Databank (IPD). The UK was already showing signs of a downturn 2009, declining to 8,7% from 12,9% in 2008, and 27,7% the year
with negative returns, the only country to be doing so. In 2008, before. This reflects a 1,6% real return when adjusting for the
South Africa once again showed the strongest returns but 2009 CPI metro average of 7,1%.
according to IPD analyses no countries were experiencing
accelerated returns. In 2009 some countries once again started While income returns across all property sectors have
showing higher returns. trended down during the last three years, reflecting the
rising capital values, they showed signs of stabilising in 2009.
There are signs that the global property sector is recovering with The retail sector continued to lead the overall property sector
the UK, Ireland, Denmark, and Sweden having seen an with an income return of 7,9% (reflecting higher capital
improvement in returns since 2008 while in South Africa, values) while the office and industrial sectors lagged with
Australia, New Zealand, Canada, USA, Netherlands and Finland, income yields of 9,3% and 9,4% respectively.
results are still deteriorating. South Africa remains the strongest
performer even though it has been in a slowing trend. Long-term leases with contractual escalations of between
8% and 9% are prevalent in South Africa as a result of the relatively
Total return % per annum
Total return % per annum high interest rate environment compared to global norms. This
40,0
has enabled the property sector to continue showing strong
returns despite the tight economic conditions in the past two
20,0
years.
0 Capital values across all property sectors grew marginally by

0,3% in 2009, showing a further slowdown from the positive
-20,0 returns of 4,2% and 17,6% in 2008 and 2007 respectively. The
retail sector recorded positive capital returns of 0,9% (2008: 3,0%)
-40,0 while the value of industrial property declined by -0,6% in 2009
after producing the highest sector capital growth of 8,4% in
ica
Au and
No lia
Fra y
Sw da
Po n
d
A
E
Po ain
Jap l
an
the nd
w Z Korea
De nds
Ca ce
Ire rk
Be nd
um
itze ly
Au d
Ge stria
y
UK
ga
a
an
CE
e
lan
n
US
Sw Ita
a
a
rw
n
na
ed
Ne Finla
la
rla
Afr
nm
Sp
rtu
str
lgi
rm
rla
eal
2008. In the office sector negative capital returns of -1,2% were

uth
So
Ne
recorded (2008: 4,5%). Capital growth, which is a function of

■ 2007 ■ 2008 ■ 2009
Source: IPD property valuation, has been under severe pressure in the past
year due to the combined impact of increased vacancies and
According to the IPD, a synchronised downturn occurred in lower rentals.
many property markets around the world because of common
factor risks, but the severity varied from country to country, The overall property market showed a slowing in total return, as
reflecting country-specific risk. a result of capital growth which declined during the year.

Page 17
IPD total returns for 2009 (2008) (%) 164,8 million PIs traded during the year ended 30 June 2010,
Total Income Capital representing 33,4% of the weighted average number of PIs.
return return growth
All property 8,7 (12,9) 8,4 (8,5) 0,3 (4,2) Performance relative to the IPD index
Retail 8,8 (11,1) 7,9 (7,9) 0,9 (3,0) The 2009 IPD index survey, which aggregates the capital and
Office 8,0 (13,9) 9,3 (9,1) -1,2 (4,5) income of listed and unlisted portfolios to provide a measure of
Industrial 8,7 (18,1) 9,4 (9,1) -0,6 (8,4) total annual performance, reported that Emira achieved a total
Other 11,9 (18,8) 7,8 (10,3) 3,8 (7,8) return of 6,1%, an improvement from the 5,6% return in 2009.
Source: IPD
At 9,3%, the Fund’s income return was 0,4% higher than the
benchmark income return of 8,9% for the period and was
Total returns annualised (%)
accordingly ranked second out of the seven listed property
All
Period Retail Office Industrial Property funds constituting the IPD South African Benchmark. As a result
of its cautious stance on valuations, the Fund was ranked fifth
One year 8,8 8,0 8,7 8,7
Three year 15,0 17,1 20,2 16,2 out of the seven listed funds in the universe using total returns.
Five year 20,8 20,2 25,0 21,0
Ten years 18,2 15,0 18,8 17,3 Despite the Manager’s conservative approach to property
Source: IPD valuations given the current economic climate, the Fund has
outperformed the benchmark on a three and five year time
horizon:
The property market started showing signs of stabilisation as
increasing vacancy rates started levelling out towards the end of
the financial year. In a market characterised by increasing arrears, Total return to 2009 (%)
rental pressure and higher vacancies, landlords nevertheless Emira Benchmark
need to remain amenable to innovative ways to retain existing One year 6,1 8,6
tenants and attracting new tenants. Three year 15,7 15,6
Five year 24,5 21,7
Overall vacancies increased to 7,1% at the end of 2009 (2008: Source: IPD
4,3%) according to the IPD annual survey.

Portfolio exposure
An IPD survey of participants in the South African property At 30 June 2010, Emira’s portfolio consisted of 167 properties,
market indicates that 75% are expecting that 2010 returns will with a total GLA of 1 217 990 m2, which was valued at
exceed 2009 levels. R7,9 billion, translating into an average value of R47,2 million
per property.
Emira’s performance and property portfolio
Emira’s performance and tradability on the JSE
Reflecting the continued strength of the listed property sector
during the year ended 30 June 2010, the price of Emira’s PIs
increased by 22,6% to 1 244 cents from 1 015 cents at 30 June
2009. The total return on PIs for the year increases to 32,8% if the
total distributions paid during the year, amounting to 104,3 cents
are included.

Page 18
Refurbishments and extensions for R6,0 million and transferred in June 2010. The Fund
Emira continued to actively evaluate opportunities to improve accepted offers for the sale of four properties, two industrial
the quality of its properties throughout the year. However, given properties being the Nampak Building (Denver,
the current environment where tenants’ appetite to pre-commit Johannesburg) and QD House (Kyalami); the Howick Gardens
to the higher rentals associated with upgraded premises or Office Park (Midrand) and the Standard Bank retail property
increased rental area has been low, fewer projects have met the in Glenwood (Durban). The properties were sold for a total
Fund’s return threshold requirements. consideration of R62,8 million and all but the Nampak
Building were transferred out of the Fund after year-end.
Emira invested a total of R181,4 million in its property portfolio
during the year under review, which was focused predominantly Nine non-core properties remain on the disposal list, with a total
in its office and retail portfolios and includes both ongoing and value of R288,9 million.
completed projects. The most substantial project is a
refurbishment and extension to the Randridge Mall amounting Acquisitions
to R126,2 million, which will be completed in October 2010. Although the Fund continued to actively evaluate prospective
purchases, prevailing asking prices were not in line with its return
Disposals threshold. One property was purchased during the year, namely
An important component of Emira’s active asset management a 50% undivided share in 80 Strand Street a multi-tenanted office
approach is to continually evaluate properties to ensure that building in the Cape Town CBD which has a GLA of 12 500 m2 for
they enhance the overall quality and total value of the property R62 million, but was yet to be transferred into Emira at time of
portfolio, contributing to higher returns and thereby improving going to print.
the Fund’s investor appeal.
A single tenanted industrial warehouse in Montague Gardens
At the end of the 2009 financial year, the Manager had which is occupied by Taylor Blinds was transferred into Emira in
14 non-core properties identified for sale. In 2010, three September 2009.
sectionalised units at Georgian Place were sold for R6,6 million
and transferred out of the Fund as well as Rinaldo Park, a A detailed breakdown of Emira Property Fund’s portfolio is
small industrial unit located in KwaZulu-Natal which was sold disclosed on pages 85 to 96.

Page 19
Notes to the financial statements (continued)

OFFICE
Optimising on an excellent
location to upgrade building Office case study:
Rigel Park
to A-grade specifications
Value at June 2010: The property:

R45,1 m Rigel Park consists of two multi-level, face brick office buildings and parking facilities. It was
developed in the late 1980s for the Financial Services Board and has a total lettable area of 4 417m².
Gross lettable area: The Financial Services Board relocated to new premises in November 2009.
4 417 m² The property is well located next to the improved Rigel Road/N1 intersection and is highly visible
from the adjacent routes and the highway. In its previous state prior to the refurbishment, the
building was classified as B-grade which could command gross rentals of R70/m² to R80/m².
The opportunity:
An opportunity was identified to upgrade the building into an A-grade property which would attract
better quality tenants and higher rentals based on its location close to major access routes and it
being less than 5 km from the important Menlyn node.
The upgrade:
The board approved a R14,7 million proposal on risk in November 2009 to substantially refurbish the
property. The new design included internal upgrades and modernising the facades which are
exposed to the national road. The aesthetics of the building were cost effectively updated using a
combination of plaster and paint. All brick balconies were replaced with steel balustrades to improve
the visual impact of the building and give it a modern finish.
All common areas of the building received a face lift by introducing new floor finishes, ceiling lay-
outs, down lighters and wall finishes. All toilet facilities and kitchenettes were renovated and lifts
were upgraded, both aesthetically and mechanically.
The updated configuration of the buildings also allowed more flexibility in letting to new tenants as
they can either be leased to a single tenant, one tenant per block or the two blocks can be configured
to accommodate a maximum of 12 tenants.
The outcome:
The renovation was completed subsequent to year-end and the buildings are being marketed at
market related rentals of R110/m² to R115/m² gross. Two tenants committed to leases for some 70%
of the lettable area in August 2010. The incremental yield on the project is some 12,9%, based on
100% occupancy. The investment enabled the Fund to take full advantage of the location of the Rigel
Park office building, upgrading it into an A-grade property which has enhanced its lettability in the
current competitive market.
The board’s decision to proceed with the project on risk has been justified by the successful letting of
the majority of the office space at budgeted rentals.

Page 20

OFFICE
Revenue of R510,2 million

which represents an increase of 5%
Operating profit of R320,0 million

showing an increase of 5%
Office portfolio valued at R3,7 billion

comprising 47% of the Fund’s total portfolio by value
office Market conditions

The fundamentals for the office property segment started turning in
2010 as the financial services industry which represents about one fifth
of South Africa’s GDP and provides a similar proportion of the country’s
non-agricultural formal employment started showing signs of a
rebound. As a major tenant class in the office sector, this had a positive
impact on the sector. Of the eight industries surveyed in SAPOA’s
Property Market Trends Report for 2009 five showed increased turnover,
but mining and quarrying and real estate and other business services
were still in decline.
According to the IPD, office vacancies, which generally lag the

economy, continued to increase during the year, reflecting the highest
vacancy rate in the property sector at 10,6% for 2009 (2008: 7,2%). As a
result of the tighter market, the lower availability of credit and a more
cautious approach, fewer new office developments came to market in
2009 although activity levels have started recovering since the
beginning of 2010.
The oversupply of office space persisted in 2009, although the excess is

lower than in the late 1990s when vacancies increased to more than
20%. Accordingly the recovery, when it takes place, is expected to be
quicker than in the previous cycle.
The main office hubs of Johannesburg and Cape Town have been
worst affected by the current downturn.
Prime grade offices continue to outperform and the volatility of their

returns has been more favourable than the second grade offices over
the last 15 years.
According to the Rode’s Report on the SA Property Market, the overall

Dorbyl Parktown
growth in office rentals to the end of 2009 was weak and a
decentralisation trend was in evidence. The rental market in Cape Town
Century Gate
and Johannesburg declined by -6% and -4% respectively while Pretoria
100 on Armstrong
and Durban showed growth of 9% and 10% respectively over the same
period.

Page 21
Despite the tougher markets, according to the IPD, the office Office vacancy rates and total new development
sector showed an improvement in net income growth of 14,6% m2 %
800 000 16
in 2009 (2008: 10,5%). Office landlords experienced an above
700 000
inflation increase in operating costs per m2 of 13% taking the 14
600 000
average monthly costs to R31,5 per m (2008: R27,9 per m ). In 2 2
12
500 000
recent years, the growth in operating costs has exceeded net 400 000 10
income growth, growing to 36,7% of gross rent received, 300 000
8
although relatively high this is still lower than the long-term 200 000
6
average. 100 000
0 4
2002 2003 2004 2005 2006 2007 2008 2009 2010
The IPD South Africa Annual Property Index disclosed that the
Total development Total vacancies
office sector total return in 2009 was 8,0% (2008: 13,9%). Income Source: SAPOA
returns rose marginally to 9,3% (2008: 9,1%) and negative capital
growth of -1,2% was recorded (2008: growth of 4,5%) as vacancies Emira’s portfolio
increased and overall rental escalations were under pressure. Exposure and performance
At 30 June 2010, Emira’s office portfolio was valued at
Office vacancy rates and net income growth (%) R3,7 billion and comprised 47% of the Fund’s total investment
properties by value. The Fund owns 74 office buildings, with
25 23,6 16
22,2
14 total GLA of 447 289 m2 and an average value of R50,0 million.
20 18,8
12
16,9 17,0 10
8 The Fund’s office property portfolio reported a 5% increase in
15 14,0
6 revenue to R510,2 million (2009: R485,1 million). The office portfolio
11,3
10,2 10,6 10,3 10,6 4
10
7,7 2 contributed 44% of Emira’s total revenue for the year, in line with
5,4 0 the previous year. Operating profit in the office sector increased by
5 -2
3,0
2,5
-4 5% to R320,0 million (2009: R305,8 million).
0 -6
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Emira’s office portfolio comprises the following grades of
Office vacancy rates Net income growth
Source: IPD
property, with the majority being B-grade office space:
SAPOA office vacancies which trended up during 2009, reached Number of

their maximum of 9,0% or 1 288 898 m² in March 2010. These Grade buildings GLA (m2)
declined marginally to a level of 8,8% (1 262 592 m²) at the end of A-grade 23 120 015
June 2010, although this is markedly higher than the 6,8% B-grade 48 304 680
(927 000 m²) reported in June 2009. C-grade 3 22 594
The SAPOA Office Vacancy Survey for the second quarter of Emira has consistently made incremental capital investments in
2010 showed that vacant office space in Sandton reached a its B-grade property portfolio since its listing. With its significant
five year high of 10,7% at the end of June 2010, from 7,2% a number of well located buildings in the Northern suburbs of
year ago. Johannesburg, the Fund has good opportunities to invest in

Page 22

OFFICE
order to upgrade and extend these into A-grade office buildings Major office vacancies include the following:
which command higher rentals and are less impacted by • The FNB Building Heerengracht in the Cape Town CBD is
economic downturns. In addition, B-grade properties which are 100% unoccupied as its 6 745m² GLA has been vacated in
centrally located in the Northern suburbs and which have good anticipation of a refurbishment. The project will commence
access to major arterial routes will increase in value over time. once there is sufficient commitment from tenants to take
This has been the case with properties close to Gautrain stations up space in the completed building. It is currently being
and along its bus routes. Buildings which cannot be turned held vacant in anticipation of the project going ahead
around or generate income which meets the Fund’s required in 2011.
rate of return, will be earmarked for sale. • Vacancies at the Hurlingham Office Park (total GLA 16 159 m2)
remain high at 6 264 m2, but space is mainly available in the
While the Fund did not embark on any substantial upgrade refurbished blocks and letting is expected to improve as the
projects in its office portfolio during the year, it obtained board market recovers.
approval for two refurbishment projects which will commence • A major redevelopment is planned at Podium House
once sufficient commitment from new tenants has been (GLA 4 832 m²) which is 100% vacant and marketing is under
achieved. The properties are Podium House in Menlyn, Pretoria way to initiate work on the new building.
which will be demolished and completely rebuilt, at a cost of • The Rigel Park (GLA 4 417 m²) refurbishment is nearing
R255,6 million to build 15 600 m2 of prime office space and FNB completion and two tenants have already committed to
Heerengracht in the Cape Town CBD where a R36,2 million leases on some 70% of the office space.
project will comprise the refurbishment of 6 745 m of office
2
space. Marketing of the space continues and, although letting Prospects and outlook
has been slower than expected, management is confident that The fortunes of the office portfolio are linked to the speed of the
given the buildings’ exceptional locations and attractive rental domestic recovery. Office vacancies are off their peak of 9,2%,
levels, occupancies will be secured. and fortunately there are no indications that the office sector
could be faced with the vacancies of some 20% which plagued
New parking facilities were completed at the Tuinhof building in the sector in the late 1990s and early 2000s. Accordingly, the
Centurion at a cost of R750 000 with a high incremental yield of uplift and speed of the recovery is expected to be more
20,0%. favourable this time around. With GDP growth forecasts of
between 2,0% and 3,0% for the next 12 months, there are signs
Refurbishments with total investments of R25,7 million were still that vacancies will start trending down, although the recovery is
in progress at the end of the financial year: fragile at this stage.
• The R14,7 million refurbishment of the Rigel Park office
building in Pretoria East (see case study on page 19); and Continual improvement is essential to sustainable success and
• WesBank House in the Cape Town CBD was being Emira has identified two capital projects which it expects to start
refurbished at year-end. The installation of more efficient work on in 2011 once sufficient pre-letting is in place to mitigate
air conditioning will reduce the operating costs of the the risks.
property. The R11,0 million project has an incremental
yield of 11,0% with completion in September 2010.
Vacancies and letting

Emira’s office vacancies increased to 16,2% (2009: 13,6%) in line
with the tighter rental market.

Page 23
R e ta i l
Capitalising on existing
anchor tenants and central Retail case study:
Randridge Mall
location to enhance return

R207,8 m Randridge Mall is located in the Western suburbs of Johannesburg and was built in 1983 with
a GLA of 18 957 m2. Its national tenants include Pick n Pay (4 500 m2), Woolworths (2 140 m2)
Gross lettable area: and Dis-Chem (1 400 m2) among others. The centre was acquired by Emira in 2003 as part of its
22 624 m² original listing.
The opportunity:
Weighted average rental/ m2:
In order to capitalise on the current trend among retailers to increase the size of successful
R65,28 stores instead of opening new stores which is seen as more risky, the Manager embarked on an
extension of the Randridge Mall. The feasibility of the project was backed by strong tenant
demand. The centre also had demand for space from new national retail tenants which
enhanced the feasibility of the project.
The upgrade:
The board approved a R126,2 million refurbishment and extension of the mall with a projected
yield of 9,4% in August 2009.
The project was split into two phases to minimise disruption and income loss.
Certain tenants were relocated to more suitable positions which also allowed for the
enlargement of several larger tenants’ stores. At the same time, floor tiles, ceilings and air
conditioners were upgraded to give the centre a more modern atmosphere. An external
addition was built onto the existing centre into the parking area to accommodate new tenants,
adding 3 667 m² in rentable space and bringing the total GLA to 22 624 m². Foschini Group has
taken up 1 700 m2 to open several new branded stores in the centre, while Woolworths has
committed to an extension of trading area measuring some 500 m2.
Both Pick n Pay and Dis-Chem have refurbished their stores.
The outcome:
The upgrade and extension has rejuvenated the centre while renewing its ability to attract
better quality tenants such as the Foschini Group. It has also secured the ongoing commitment
of existing nationals such as Truworths, Woolworths, Ackermans and Mr Price.
Historically 48% of the retail area has been rented to national tenants, but this is set to increase
to 79% once the project has been completed.
The upgrade has ensured that the Randridge Mall is a compelling destination in the face of
increasing competition from more recently developed centres in the area.
Cost savings have been realised on the project, which will increase the yield to Emira PI holders.
Major tenants
• Pick n Pay
• Dis-Chem
• Pep Stores
• Foschini Group
• Ackermans
• Mr Price
• Truworths
• Woolworths

Page 24

r e ta i l

Operating profit of R266,5 million

showing an increase of 3%
Retail portfolio valued at R2,9 billion

retail Market conditions

There are indications of good news in the retail sector which had led
the downward cycle. South Africa’s retail sales recorded its sixth
consecutive month of improvement in June 2010, reflecting a year-on-
year increase of 7,4% compared to a year ago although the impact of
the 2010 FIFA Soccer World CupTM was lower than anticipated. Recent
retail sales data suggests a gradual improvement in consumption. This
is a key contributor to the economy but has lagged the rest of the
economy’s recovery. Consumer spending remains under pressure due
to high levels of household debt and unemployment.
Performance has been mixed across the sector. Shopping centres

targeted at higher and very low income brackets are performing well
but centres targeted at middle income consumers are under more
pressure in line with their target market’s limited discretionary income
and higher levels of personal debt. Accordingly the rate of rental
growth has also varied from one centre to another. Foot traffic is stable
with some improvement in places.
During 2009, the retail sector, traditionally the least volatile commercial
property category, continued to be the most resilient class, with an
annual total return of 8,8% (2008: 11,1%) according to the IPD South
Africa Annual Property Index.
The retail sector reported an income return of 7,9% (2008: 7,9%) which
was the lowest of the three property classes (reflecting higher capital
value). Retail property was the only category to show a positive capital
growth of 0,9% (2008: 3,0%).
Retailers are faced with increasing operating costs, especially with the
recent electricity tariff hikes. Landlords are finding it difficult to pass all
of these increases on to tenants. According to SAPOA, operating costs
have reflected a 27,6% year-on-year increase per square metre to
Epsom Downs R49,3 per m2 (2008: R38,7 per m2). These account for 41,7% of average
Shopping Centre
gross rental received which is the highest recorded level by SAPOA in
Dundee Boulevard the history of its index.
Market Square

Page 25
Retail vacancy rates and net income growth (%) includes one major refurbishment and several other smaller
projects:
7 25
6,2
6,5 • An investment of R126,6 million at the Randridge Mall which
5,9
6 20 will be completed in October 2010 (see case study on page 23).
5,2
5 4,6
4,8
15
• Extensions to the Market Square Shopping Centre in
4,3
4 3,8
3,5 3,6
Plettenberg Bay to accommodate a Woolworths store valued
10
3 2,9 at R4,0 million which were still in progress at year-end.
2,3 2,3
5 • A 950 m2 extension at the Southern Sentrum in Bloemfontein
2
0 valued at R14,9 million which was completed in May 2010.
1 0,6
0,4
0 -5
Vacancies and letting
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Emira’s retail vacancies increased marginally to 5,3% at 30 June
Retail vacancy rates Net income growth
Source: IPD
2010 (2009: 5,0%), confirming that the retail sector is showing
signs of stabilising as the consumer outlook slowly improves.
Major retail vacancies include the following:
The organisation further reports that in 2009 retail centres in the • The Montana Value Centre which has vacancies measuring
traditional economic hubs of the country produced the lowest 4 507 m² as it has been affected by the tight consumer
retail returns, while the smaller provincial markets performed at a environment in the middle income bracket resulting in slow
higher level. This could be attributable to a slight lag in smaller uptake of the 12 retail units currently available. The centre is
regional markets compared to the overall national economy. well placed to benefit from improving retail sales with its
Emira has evidenced this trend with its portfolio of small regional location in a growing residential hub.
shopping centres which once again reported good rental • Cresta Corner has vacant space measuring 2 574 m² with six
growth with low vacancies and minimal arrears. Spending in retail units vacant as well as office space. Subsequent to year-
rural areas has been buoyed by the proportion of consumers end, Emira agreed to redevelop the building and construct a
benefiting from government grants. new motor dealership for Audi Northcliff.
• Vacancies increased to 2 206 m² at the WorldWear Fashion Mall
The IPD reported that industry wide vacancies in the retail sector and the Manager continues to explore all avenues to improve
increased to 4,8% in 2009 from 3,6% in the previous year and in the take-up of space.
line with the constrained consumer spending environment. • The Manager continues to negotiate with tenants to take up
the 1 809 m² of available space at Gift Acres.
Emira’s portfolio • Kokstad Shopping Centre has three vacant shops measuring
Exposure and performance 1 229 m² with a potential tenant showing interest in more
At 30 June 2010, Emira’s retail portfolio was valued at R2,9 billion than half of this space.
and comprised 36% of the Fund’s total investment properties by
value. The Fund owns 42 shopping centres, with total GLA of Prospects and outlook
384 640 m2 and an average value of R67,8 million. Retail sales, the driver of activity in retail property, are showing
signs of improvement although consumer debt levels remain
The Fund’s retail property portfolio delivered a 9% increase in high.
revenue to R463,8 million (2009: R423,8 million). The retail
portfolio contributed 40% of Emira’s total revenue for the year, in In order to generate growth, the Fund will maintain its more
line with 2009. The retail sector produced a 3% increase in conservative growth strategy, investing to improve its existing
operating profit of R266,5 million (2009: R258,1 million). portfolio of properties in order to generate higher incremental
returns while also increasing the value of the portfolio without
Emira invested R149,8 million to improve the quality of six unnecessarily increasing the risks.
shopping centres in its retail portfolio during the year, which

Page 26

industrial
Taking advantage of opportunity

to create a modern, sought-after Industrial case study:
lettable industrial building
Admiral House
R23,6 m Admiral House is an industrial property located in Corporate Park South, Midrand comprising
four adjoining warehouse units attached to a double storey office building. The property
Gross lettable area: historically measured 5 116 m² with 42% being office space which had led to challenges in
4 460 m² letting the property. The site measures 10 000 m2, has excellent exposure to the M1 highway
and is zoned Special for industrial use.
The opportunity:
The property was identified as non-core by the Manager because it did not meet the Fund’s
rental growth or capital return hurdles. It had been earmarked for sale, but following a fire in
2009 which started on the tenants’ premises and caused extensive damage, the Manager
re-evaluated the potential of the property. A proposal was put forward to unlock the value
inherent in its good location to redesign and rebuild the building in such a manner as to
improve the asset for Emira in the long term. The capital expenditure was fully covered by the
proceeds of the insurance claim.
The upgrade:
While the office portion of Admiral House was deemed to have value, the new building was
designed to be more efficient by reducing the office space to 20% of GLA, in line with current
tenant demand in the industrial sector and in order to enhance the rental appeal of the
industrial property.
The warehouse portion of the building was increased from its original GLA of 2 981 m² to
3 571 m². In addition, a courtyard which previously separated the offices and the warehouse
was removed to allow better vehicle access to the warehouse.
As a result of these changes, the renovated building’s GLA decreased but its new design is
more generic. It should therefore attract the interest of a broader range of potential tenants at
better rentals and thereby exceed Emira’s income streams from the old building prior to
demolition even though the total GLA has decreased from GLA 5 116 m² to 4 460 m². The project
was completed in August 2010 and letting is currently in progress.
The outcome:
The redevelopment design has improved the quality of the asset and therefore Emira’s overall
portfolio while strengthening its lettability. The refurbishment has also taken full advantage of
the location by offering an A-grade building.
Projected monthly rentals for the industrial space which has been upgraded from B-grade to
A-grade should increase by between 6% and 14%.

Page 27

Net income of R136,8 million

increased by 11%
Industrial portfolio valued at R1,3 billion

industrial Market conditions

According to the IPD, the industrial sector was also faced with slowing
total returns in 2009 which dropped to 8,7% (2008: 18,1%). This was due
to capital growth moving into negative territory after having shown the
strongest capital growth in the property sector for the past decade. A
negative capital return of -0,6% was recorded for industrial properties
(2008: growth of 8,4%). Income returns rose to 9,4% in 2009 (2008:
9,1%), reflecting a capital value decline.
The industrial sector has been relatively resilient in the market downturn
partly because it did not attract the same speculative development
activity in the height of the property boom which came to an end in
2008. As a result, the sector has not been as severely affected by
oversupply as the office and retail sectors.
Vacancies in the sector increased to 6,7% in 2009 (2008: 2,6%), as a

result of the economic downturn.
Industrial vacancy rates and net income growth (%)
14 15
12,3
12
10,9
10,4
10
10 9,3
79
8
6,5
6,7 5
6 5,3
4 3,3 3,1 0
2,6 2,6
2,2
2
0,7
0,4
0 -5
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Industrial vacancy rates Net income growth

Source: IPD
Industrial Village Jet Park

Mitek South Africa
Freeway Park

Page 28

industrial
Emira’s portfolio The Technohub industrial property in Midrand which was

Exposure and performance purchased in the previous financial year with an 18-month rental
At 30 June 2010, Emira’s industrial portfolio was valued at warranty from the developer, Eris Property Group, has been fully
R1,3 billion and comprised 17% of the Fund’s total investment let. New leases were concluded with Vodacom and Paramount
properties by value. The Fund owns 51 industrial properties, with Logistics Corporation (Pty) Limited on more than 6 000 m2.
total GLA of 386 061 m2 and an average value of R26,3 million.
Major industrial vacancies at year-end included the following:
The Fund’s industrial property portfolio’s revenue totalled • A vacant unit measuring 4 970 m² at Isando-Unitrans which is
R188,2 million, which represents an increase of 8% (2009: being marketed.
R173,8 million). The industrial portfolio’s contribution to Emira’s • Approximately a third of Midline Business Park located in the
revenue increased slightly to 16%. Operating profit in the active business node in Midrand is currently vacant, comprising
industrial sector increased by 11% to R136,8 million (2009: 2 416 m² of offices and 1 727 m² of industrial space and is being
R122,7 million). marketed.
• Industrial Village Kya Sands has 3 851 m² of vacant
The Fund did not conclude the purchase of any new warehousing space, comprising five vacant units. The
properties during the year, but Taylor Blinds in Montague industrial node has been affected by the downturn and
Gardens in Cape Town (GLA 7 794 m2) which was purchased letting has been slow although interest has picked up
in the previous financial year for R36,0 million, was transferred subsequent to year-end as a result of various incentives
in September 2009. Investments to improve the quality of being put in place by Emira.
the industrial portfolio during the year amounted to • Cambridge Park where a 1 957 m² unit is currently vacant.
R5 million. In addition, Admiral House (see case study on • One Highveld which has vacant units measuring 1 106 m² but
page 26) which suffered extensive damage after a fire which leases are currently under negotiation.
started in the tenants’ premises, was rebuilt using the
proceeds of the insurance claim. Prospects and outlook
Given the relatively low vacancy levels in the industrial sector,
Vacancies and letting combined with the difficulty in bringing new developments
Emira’s industrial vacancies increased to 5,1% as at 30 June 2010 on stream at prevailing rentals, the fundamentals for the
(2009: 3,0%), but the figure was slightly down from vacancies of sector are in place. The priority for Emira is to retain its
5,2% reported at the end of March 2010. existing tenants and attract new tenants to maximise the
occupancy of its portfolio.

Page 29
Acquisitions and capital projects

Acquisitions and capital projects totalling R243,4 million were concluded during the year.
Capital expenditure projects completed

Capital
consideration Effective Key
Project Sector Location GLA (m2) (Rm) date tenants
One Highveld Industrial Centurion 5 932 0,9 Nov-09 V Custom
Motorcycles
Wonderpark Shopping Centre Retail Karenpark, 63 360 2,0 Nov-09 Incredible
Pretoria Connection,
Maxis
Ingwavuma Shopping Centre Retail Ingwavuma 4 886 1,3 Dec-09 Spar, Build-It
Southern Sentrum Retail Bloemfontein 21 224 14,9 May-10 Pick n Pay
and Various
Tuinhof Office Centurion 9 182 0,8 May-10 Various
Capital expenditure projects in progress

Capital Expected
consideration completion Key
Project Sector Location GLA (m2) (Rm) date tenants
Randridge Mall Retail Randpark 22 624 126,2 Oct-10 Pick n Pay,
Ridge Dis-Chem,
Woolworths,
Foschini
Group
Admiral House Industrial Midrand 4 460 17,1* Aug-10 –
Tin Roof Retail Umtata 2 175 1,4 Jul-10 Various
Rigel Park Office Pretoria 4 417 14,7 Jul-10 –
WesBank House Office Cape Town 8 693 11,0 Sep-10 WesBank,
Department
of Labour
Market Square Shopping Centre Retail Plettenberg 13 425 4,0 Oct-10 Woolworths
Bay
Epping Warehouse (WGA) Industrial Epping 25 076 3,4 Sep-10 Nampak,
Santam
One Highveld Industrial Centurion 5 932 0,8 Aug-10 Ontap
Plumbing
* Funded from proceeds of insurance claim and not considered as new capital expenditure.
Disposals
The disposal of non-core buildings continued during the period, with three sectionalised units at Georgian Place being transferred out
of the Fund as well as Rinaldo Park, a small industrial unit located in KwaZulu-Natal. The sale of four buildings, Nampak Building, Howick
Gardens, QD House and Standard Bank, Glenwood – are all unconditional. All buildings with the exception of the Nampak Building were
transferred after year-end.
Transferred out of Emira

Selling Yield
Property Sector Location GLA (m2) price (Rm) %
Georgian Place (sections 9, 16 and 19) Office Kelvin 1 578 6,6 3,9
Rinaldo Park Industrial Durban North 1 650 6,0 9,8

Page 30
Yet to be transferred out of Emira

Selling Yield
Property Sector Location GLA (m2) price (Rm) %
Howick Gardens* Office Midrand 3 075 20,7 9,4
Standard Bank, Glenwood* Retail Durban 368 5,0 11,6
Nampak Building Industrial Denver 24 880 20,5 8,5
QD House* Industrial Kyalami 3 470 16,6 11,7
* Transferred out of the Fund after year-end.
Nine non-core properties remain on the disposal list with a total value of R288,9 million at 30 June 2010.
Valuations and net asset value

Excluding acquisitions and capital expenditure, Emira’s property valuations were marginally higher for the year.
One-third of Emira’s portfolio is valued by independent valuers at the end of every financial year, with the balance being valued by the
directors.
June 2009 June 2010 Difference Difference

Sector (R’000) R/m² (R’000) R/m² (%) (R’000)
Office 3 679 586 8 193 3 696 931 8 265 0,5 17 345
Retail 2 732 279 7 185 2 846 316 7 400 4,2 114 037
Industrial 1 306 212 3 430 1 339 683 3 470 2,6 33 471
Total 7 718 077 7 882 930 164 853
Net asset value per PI remained virtually stable during the year from 1 135 cents (1 186 cents excluding the deferred tax provision)
to 1 133 cents (1 182 cents), largely as a result of a reduction in the fair value of derivative financial instruments of R63,8 million.
This is, in effect, a mark-to-market accounting entry and is not a liability to Emira. The adjustment reflects the variance between
the interest rates payable in terms of the interest rate swaps entered into by Emira and prevailing market interest rates. It has no
impact on the distribution payable by the Fund.
Gearing
Emira has a relatively low level of gearing, with available debt facilities at attractive margins which will enable the Fund to acquire good
quality properties with sustainable income streams.

Page 31
As at 30 June 2010 Emira had a total debt facility (including preference shares) available of R2 257 million, of which R1 799 million
had been accessed. Emira has entered into various swap agreements as set out below. As a result, 94,2% of the Fund’s debt has
been fixed for periods of between three and thirteen years. As at 30 June 2010, the weighted average cost of debt equated
to 9,51%.
Rate Amount % of
% Term (Rm) debt
Debt – swap 9,43 September 2011 110,0 6,1
– extended 9,79 September 2021
Debt – swap 9,78 April 2013* 650,0 36,1
Debt – swap 9,20 June 2013 500,0 27,8
– extended (R200 million) 9,80 June 2022
Debt – swap 10,25 October 2013 84,6 4,7
Debt – swap 9,25 June 2014 60,0 3,3
Debt – swap 9,66 December 2014 100,0 5,6
Debt – swap 10,11 April 2019 40,0 2,2
Debt – swap 9,87 March 2020 90,0 5,0
1 694,6 94,2
Debt – floating 8,15 January 2019 104,9 5,8
9,51 1 799,5 100,0
Less: Costs capitalised not yet amortised (7,8)
Per balance sheet 1791,7
* Existing debt swaps that were in place have been novated to Rmb. These revert back to Emira in April 2013 and continued until expiry, ranging between
October 2013 and November 2018.
The Collective Investment Schemes Control Act prescribes gearing limits on collective investment schemes of 60%. To date Emira has
been limited to 30% gearing in terms of its Trust Deed, however PI holders gave their approval for the limit to be increased to 40% which
became effective on 15 September 2010. Based on total assets of R7,9 billion at 30 June 2010, Emira could increase its gearing levels to
a maximum of R3,8 billion, compared to R1,8 billion or 22,7% at year-end.

Page 32
Directorate
d i r e c t o rs o f t h e ma n ag e m e n t c o mpa n y,
s t rat e g i c r e a l e s tat e ma n ag e rs ( p t y ) L i m i t e d ( s t r e m )
1. Benedict James van der Ross (63) He was the top-ranked analyst in the real
(Non-executive Chairman) estate sector, according to the Financial Mail,
Qualifications: Dip Law in 2002 and 2003 and was appointed Chief
Occupation: Company director Executive Officer of STREM in July 2004.
Mr Van der Ross was admitted to the Cape Bar Mr Templeton currently also serves as the
as attorney in 1970 and practised law for his Deputy Chairman of the Association of the
own account until 1988. He has served as a Property Unit Trusts.
director of various companies including
Executive Director for the Urban Foundation 4. Peter John Thurling (55)
1
and Independent Development Trust. (Chief Financial Officer)
Qualifications: BCom, BAcc, CA(SA)
He was appointed Commissioner to the First Occupation: Chief Financial Officer of
Independent Electoral Commission by the Strategic Real Estate Managers (Pty) Limited
State President on the advice of the Mr Thurling, a chartered accountant, has over
Transitional Executive Council and 20 years’ experience in the property industry;
subsequently served as Deputy Chief in particular with listed property vehicles.
Executive Officer of the Independent Previously he was the Financial Director of
Development Trust and acting Chief Executive Corovest Property Group and the Chief
2 Officer of South African Rail Commuter Financial Officer of Freestone Property
Corporation. Holdings Limited.
He currently serves on a number of boards 5. Michael Simpson Aitken (53)

including those of FirstRand, Naspers, Distell, (Non-executive director)
Lewis Stores, Pick n Pay and Momentum Qualifications: BA, LLB
Group, and is the Chairman of RMB Asset Occupation: Company director
Management. Mr Aitken has over 20 years’ experience in
property-related activity, with specific
2. Warren Kirkwood Schultze (50) expertise in asset and fund management
3 (Executive director) related to directly held and listed property
Qualifications: BCom, BAcc, CA(SA) vehicles. He was previously an executive
Occupation: Chief Executive Officer of Eris director of Freestone Property Holdings
Property Group Limited. Currently he is Managing Director of
Prior to joining RMB Properties, Mr Schultze Corovest Property Group and the non-
served his articles with Arthur Young and was executive Chairman of Hyprop Investments
later appointed Financial Director for two Limited.
property financing and property trading
companies. During this time he gained 6. Bryan Hugh Kent (65)
4 extensive experience in property asset (Independent non-executive director)
management, property financing and Qualifications: BCom, FCMA, CA(SA)
property trading activities. Occupation: Company director
Mr Kent was previously a partner at Price
He was appointed Chief Operating Officer of Waterhouse. He is presently a financial
RMB Properties in 2000 and Chief Executive business consultant with considerable
Officer in 2004. He was appointed Chief experience in property matters and financial
Executive Officer of RMB Properties on 1 April structuring. He was also previously a non-
2004 and Chief Executive Officer of the Eris executive director of Freestone Property
Property Group on 1 April 2008. He was Holdings Limited and Chairman of its audit
5 President of SAPOA for the 2009/2010 year. and risk committee.
3. James William Andrew Templeton (37) He is currently a non-executive director of Set

(Chief Executive Officer) Point Group Holdings Limited and non-
Qualifications: BCom (Hons), CFA executive director of Cadiz Holdings Limited.
Occupation: Chief Executive Officer of
Strategic Real Estate Managers (Pty) Limited He is Chairman of CIC Holdings Limited
Mr Templeton joined RMB Properties in April (Namibia) and Country Bird Holdings.
2004 as Business Development Executive.
6 Previously he was employed at Barnard
Jacobs Mellet Securities as an Equities Analyst
for seven years.

Page 33
7. Vusumuzi Mahlangu (39) 9. Nocawe Eustacia Makiwane (51)

(Independent non-executive director) (Independent non-executive director)
Qualifications: BSc Eng (Chem), MBA Qualifications: BSocScience (UCT), BA (Hons)
(Harvard) Economics (Wits), Executive Leadership
Occupation: Company director Programme (Wharton Business School), MBA
Mr Mahlangu is a former investment banker (University of Exeter)
with over 11 years’ experience gained at Occupation: Managing Director of Avuka
Investec Bank as the Head of the bank’s Public Investments
Sector Finance department and at Makalani. Ms Makiwane was previously a portfolio 7
In 2005 he became the Chief Executive Officer manager at Stanlib Asset Management.
of Makalani where he pioneered mezzanine Currently she serves as a non-executive
funding in South Africa by launching the first director of National Housing Finance
specialised mezzanine fund, Makalani, which Corporation (“NHFC”), Advantage Asset
was listed on the JSE Limited. During his Management, AM Mfolozi Group Holdings
tenure at Makalani, he specialised in BEE companies, Xau Investments (Pty) Limited,
transactions across all sectors of the economy Women In Capital Growth (Pty) Limited,
including providing mezzanine finance for Pacific Breeze Trading (Pty) Limited and Strate
the Gautrain. Prior to joining Investec, he Limited.
worked for African Oxygen Limited for 8
four years, as a process engineer and later as a 10. Wayne McCurrie (50)
production manager. (Non-executive director)
Qualifications: BCompt (Hons), CA(SA)
In 2008 he established Tamela Holdings (Pty) Occupation: Senior Portfolio Manager
Limited, a black-owned and managed Mr McCurrie joined the RMB Asset
investment company. Management investment team as an
investment professional on 1 March 2008. He
8. Nkululeko Leonard Sowazi (47) started his career in the financial services
(Non-executive director) industry in 1988, when he joined Lifegro
Qualifications: BA, MA (UCLA) 9
Limited as a management accountant. Lifegro
Occupation: Executive Chairman of the was taken over by the Momentum Group in
Tiso Group 1989 where Mr McCurrie stayed until it was
Mr Sowazi is co-founder and the Executive incorporated into RMB Asset Management in
Chairman of the Tiso Group – a black 1994. He left RMB Asset Management for
empowerment investment company with Sage in 2002 and joined the FirstRand Group
interests in natural resources, industrial again in 2004 as Managing Director of
services and investment banking. He is Momentum International Multi-Managers. At
currently a member of the boards of JSE- RMB Asset Management, Mr McCurrie focuses
listed Exxaro Resources and Aveng Limited, on managing various retirement fund 10
and is a non-executive director of the boards portfolios.
of Grinaker-LTA, Trident Steel (Pty) Limited,
African Explosives Limited and Alstom SA. He 11. Matthys Stefanus Benjamin Neser (54)
is also Chairman of Eris Property Group (Independent non-executive director)
(formerly RMB Properties), Idwala Industrial Qualifications: BSc (Building Management),
Holdings, The Home Loan Guarantee MBA
Company and the Financial Markets Trust. Occupation: Company director
Mr Neser has been involved with the Abcon
Mr Sowazi was previously Executive Deputy group of companies since 1981 and is
Chairman of African Bank Investments 11
currently Executive Chairman for the various
Limited and prior to that Managing Director companies in the Group. He is active in the
of the Mortgage Indemnity Fund (Pty) Limited. residential and commercial property field as
He also served on the board of Kagiso Trust well as in other business ventures.
Investment Company, Kagiso Media and
Development Bank of Southern Africa.

Page 34
Corporate governance
INTRODUCTION The Fund is currently evaluating mechanisms to introduce a

The directors of STREM are committed to and support compliance whistleblowing hotline to report unethical behaviour.
with and applying best practice in terms of the JSE Limited’s
Listings Requirements and welcome the introduction of the King THE BOARD OF DIRECTORS
Report on Governance for South Africa 2009 (King III). Structure
As at 30 June 2010 the board consisted of 11 members:
The Fund acknowledges the importance of the principles of Attendance at meetings Board Audit
good corporate governance, and as such supports the Code of
Corporate Practices and Conduct (“the code”) contained in the Executive
King II and King III reports. The Fund complied in all material WK Schultze 6/6 4/4
respects with the recommendations of King II apart from the fact JWA Templeton (CEO) 6/6 4/4
that the Chairman is not independent. However, the company
PJ Thurling (CFO) 6/6 4/4
has appointed a lead independent director in terms of the JSE
Listings Requirements. Emira recognises its responsibility in Non-executive
conducting the affairs of the Fund with integrity, openness and BJ van der Ross (Chairman) 5/6
accountability in accordance with generally accepted corporate
MS Aitken 6/6
practices.
BH Kent* 5/6 4/4
In addition, the findings of a gap analysis which was conducted V Mahlangu** Appointed
of the practices and policies of the Fund against the 24 June 2010
recommendations of King III will be considered. The directors are NE Makiwane** 5/6 4/4
committed to a process whereby the new aspects introduced by W McCurrie 6/6
King III will be reviewed and relevant recommendations applied MSB Neser 5/6
where appropriate.
NL Sowazi 4/6
* Chairman of the audit committee.
Although Emira is listed on the JSE Limited (“JSE”) and is therefore ** Member of the audit committee.
subject to the code, it is not a legal entity and is regulated in
terms of the Collective Investments Schemes Control Act The capacity of the directors may be categorised as follows:
No 45 of 2002 (“CISC Act”). Certain requirements of the code are Executive directors
therefore not directly applicable to the Fund. However, the Messrs JWA Templeton and PJ Thurling are employed by STREM,
Managers have adopted the principles of the code, being and remunerated out of the service charge payable by the Fund
fairness, accountability, responsibility and transparency. to STREM. Mr WK Schultze is employed by Eris Property Group.
The Fund has a formal and transparent policy with regard to the Non-executive directors
appointment of directors to the board of STREM, the Manager of Mr BJ van der Ross is a director of FirstRand Limited, Naspers,
the Fund. Distell, Lewis Stores, Pick n Pay and Momentum Group, and is the
Chairman of RMB Asset Management (Pty) Limited.
The Fund has complied with the code, where applicable and to
the following extent: Mr MS Aitken is employed by Corovest Property Group Holdings
(Pty) Limited.
CODE OF ETHICS
The Fund’s ethical business practices are set down by the Code Mr NL Sowazi represents Emira’s BEE partners.
of Ethics which has been formally adopted and approved by the
board. Mr W McCurrie is employed by RMB Asset Management (Pty)
Limited.
In terms of the Code of Ethics, no issues of non-compliance, fines
or prosecutions have been levied against the Fund or the
Manager.

Page 35
Independent non-executive directors including the Companies Act, corporate governance and other
Messrs BH Kent (appointed as lead independent director on relevant legislation are communicated at board meetings.
20 May 2010), Ms NE Makiwane, Mr V Mahlangu (appointed
24 June 2010) and Mr MSB Neser are not significant holders of The board will ensure that it has the expertise, independence
Emira PIs, as defined in the Code. and diversity it needs to function independently.
Board of directors Independence of the board from the management team will be
achieved by:
• maintaining a non-executive chairperson;
27,5%
• maintaining a balance of executive and non-executive
directors;
45%
• the remuneration of the non-executive directors being
unrelated to the financial performance of Emira; and
• all directors being entitled to seek independent
professional advice concerning the affairs of Emira at the
27,5% Fund’s expense.
The board sets the strategic objectives of the Fund and

Executive directors
Independent non-executive directors determines the investment and performance criteria as well as
Non-executive directors being responsible for the proper management, control
compliance and ethical behaviour of the business under its
The roles of Chairman and Chief Executive Officer are completely direction.
separated. The performance of the Chairman and the Chief
The performance of the board committees is evaluated annually
Executive Officer is evaluated annually as part of the board
as part of the formal board evaluation.
evaluation.
Committees
The directors of STREM are appointed at the discretion of STREM
Audit committee
shareholders. The board schedules to meet at least four times per
Chairman: Mr BH Kent
year. In addition, 11 asset performance committee meetings
During the year, the audit committee comprised Mr BH Kent and
were held during the year and were attended by the executive
Ms NE Makiwane who are independent non-executive directors.
members of the board.
Mr V Mahlangu, who is also an independent non-executive
director, was appointed to the audit committee when he joined
The directors have a wide range of skills and the diversity,
the board on 24 June 2010. The committee met four times
demographics and size of the board are considered to be
during the year with the Fund’s external auditor and executive
adequate and relevant for Emira. management as well as the executives responsible for finance,
the compliance officer and internal auditors.
All directors have unrestricted access to the advice and services
of the Fund’s Company Secretary and to the Fund’s records, The primary objectives of the committee are to provide the
information, documents and property. Non-executive directors board with additional independent and objective assurance
also have unfettered access to management at any time. The regarding the efficacy and reliability of the financial
board has clear division of responsibilities to ensure a balance of information used by the directors, to assist them in the
power and authorities such that no director has unfettered discharge of their duties. The audit committee is required to
powers of decision making. provide reasonable assurance to the board that adequate
and appropriate financial and operating controls are in place;
The Fund ensures that new directors are provided with training. that significant business, financial and other risks have been
New directors are directed to the courses run by the JSE and IOD, identified and are being suitably managed; and that
at the Fund’s expense. In addition, relevant new developments satisfactory standards of governance, reporting and

Page 36
Corporate governance (continued)
compliance are in operation. The committee also monitors Remuneration and nomination committee
proposed changes in accounting policies, and discusses and Chairman: Mr BJ van der Ross
advises the board on the accounting implications of major The committee comprises the Chairman of the board of
transactions. directors and Mr BH Kent, an independent non-executive
director. The committee considers and recommends the
The board is responsible for the Fund’s system of internal and remuneration payable to non-executive directors by the
operational control. The executive directors are charged with the management company. The committee meets on an ad hoc
responsibility of ensuring that assets are protected, systems basis as required and met twice during the financial year.
operate effectively and all valid transactions are recorded
properly. Comprehensive reviews and testing of the effectiveness Risk committee
of the internal control systems in operation are performed by The Fund will establish the risk committee with effect from
internal auditors, who report to the audit committee. The internal November 2010. Mr PJ Thurling has been appointed as Emira’s
audit function co-ordinates with other internal and external chief risk officer.
providers of assurance to ensure proper coverage of financial,
operational and compliance controls. Management and financial control
During the year independent internal auditors performed a
The committee has the co-operation of all directors, management management and financial control review. No significant
and staff and is satisfied that controls and systems within the weaknesses were identified and the overall conclusion was that:
Fund have been adhered to and, where necessary, improved • the directors had maintained an adequate system of internal
during the period under review. controls and accounting records;
• the Fund’s assets are safeguarded and appropriately insured;
To date the external auditor has not performed any non-audit • the Fund should remain a going concern for the foreseeable
services and should these be required in the future, appropriate future; and
principles will be considered. The audit committee has • management understood the Fund’s policy and employed
considered and satisfied itself of the appropriateness of the the appropriate strategy.
expertise and experience of Peter Thurling, the Financial Director.
Directorate
The committee has fulfilled its responsibilities during the year. It Details of the directors are set out on pages 32 to 33 of this
has furthermore assured itself of the independence of the report. According to the articles of association of STREM,
external auditor and its suitability for reappointment for the 2011 one-third of the directors shall retire at the following annual
financial year. general meeting of STREM and will be eligible for re-
election.
During the year, the audit committee reviewed the aspects and
scope of risk which is to be expanded upon at the management Directors’ remuneration
operational level. It also established a separate subcommittee at The directors of STREM are remunerated from the management
board level. fee payable by the Fund.
Investment committee Directors’ dealings

Chairman: Mr JWA Templeton The board has adopted policies prohibiting dealings by
An investment committee comprises at least two executive directors and certain other managers in periods immediately
directors, and four senior staff employed by STREM with the preceding the announcement of its interim and year-end
appropriate skills and experience. The committee meets on an financial results and at any other time deemed necessary by
ad hoc basis to assess acquisitions and disposals, and makes the board or as required in terms of the JSE regulations.
recommendations to the board.

Page 37
SECRETARY OF THE FUND approved by the Registrar of Collective Investment Schemes to

Mr ME Harris is the Company Secretary who was appointed on manage the Fund.
16 February 2010 following the resignation of Ms D Isserow. His
business and postal addresses, which are also the Fund’s In terms of the CISC Act, the Fund is obliged to distribute all
registered and business addresses, are set out on page 110. income earned to its participatory interest holders. As a result of
its distribution obligations, no income tax or capital gains tax is
AUDITOR payable by the Fund.
The Fund’s auditor is PricewaterhouseCoopers Inc.
MANAGEMENT OF THE FUND
MAJOR INTEREST HOLDER STREM – Asset management
Momentum is the majority interest holder in Emira with a 20,8% STREM has been approved by the Registrar of Collective
holding of the PIs in issue. Investment Schemes to manage the Emira Property
Scheme.
MATERIAL CHANGES AND SUBSEQUENT EVENTS TO
THE year-end Up to 14 September 2010, STREM received an amount equal to
On 8 July 2010 the Fund reached an agreement with the 0,5% of the total market capitalisation of the Fund, calculated
Manager, STREM, to amend the terms of its service charge monthly on the average daily closing price of the Fund as
arrangement to a monthly fee based on STREM’s actual recorded by the JSE Limited, plus total long-term borrowings.
operating costs. The Manager and the Trustee agreed to enter
into supplemental deeds in order to amend the Trust Deed. Fees paid for the period amounted to R36,1 million (2009:
Approval was received from the regulatory authorities with R31,8 million).
effect from 15 September 2010. The Trust Deed was also
amended to allow the Fund to invest in a broader class of assets With the agreement referred to above, the monthly service
and to increase the limit of borrowing by the Emira Property fee in respect of the administration of the Fund will be equal
Scheme from the current limit of 30% to 40% of the value of its to the actual operating costs incurred by the Manager in
underlying assets. administering the Fund. Accordingly, the Manager will no
longer profit from administering the Fund but will recover its
In August 2010, GOZ announced the acquisition of seven actual costs and will be compensated with a cancellation
direct properties to be partly funded by a 1-for-3 pro rata payment amounting to R197,4 million. The implementation
renounceable rights offer at A$1,90 per stapled security. Emira date for the new fee structure was 15 September 2010.
has subscribed for 9,2 million additional stapled securities to
the amount of A$17,5 million. Property management
Property management of the Fund has been outsourced to Eris
The transfer of Howick Gardens, QD House and Standard Bank, Property Group, an associate of FirstRand.
Glenwood which were disposed of during the year, took place
after year-end. Property management fees and commissions paid for the period
were R53,4 million (2009: R58,6 million).
The Fund also purchased a 50% undivided share in a multi-
tenanted office and retail building located at 80 Strand Street in RISK MANAGEMENT
the Cape Town CBD with a GLA of 12 500 m2 which has not yet The STREM management philosophy on risk recognises that
been transferred into the Fund. managing risk is an integral part of generating sustainable
PI holder value and enhancing stakeholder interest. It also
STRUCTURE OF THE FUND recognises that an appropriate balance should be struck
Emira Property Fund (“the Fund”) is a portfolio established in between entrepreneurial endeavour and sound business
terms of the CISC Act. The Fund is managed by STREM, which is practice.

Page 38
Corporate governance (continued)
Participatory interest (PI) holders – effective ownership in property portfolio
Management Regulatory Bodies
Strategic Real Estate Managers (Pty) Limited JSE Limited

• Asset management • Ensures compliance with JSE requirements and
• Reports to PI holders provides a market for trading PIs
FirstRand Asset Registrar of Collective Investment Schemes

Management (Pty) Limited 70%** • Ensures compliance with Collective Investment
Schemes Control Act No 45 of 2002, and monitors the
Eris Investment Holdings (Pty)
operation of the collective of investment scheme
Limited (formerly RMB Properties
(Pty) Limited 15% )
Trustee: Absa Bank Limited
Corovest Property Group • Protects PI holders’ interests
Holdings (Pty) Limited 15% • Acts as custodian of Fund’s assets and securities
• Ensures compliance with Trust Deed and legislation
Eris Property Group (Pty) Limited
• Property Managers Auditor: PricewaterhouseCoopers Inc.
• Report on fair presentation of financial statements
Emira Property Fund*

487 827 654 PIs listed on the JSE Limited
Freestone Property Holdings Limited

Property loan stock company
Arnold Properties (Pty) Limited* Freestone Property Investments (Pty) Limited*
Azgold Investments (Pty) Limited
Backbone Investments (Pty) Limited*
Kenview Share Block (Pty) Limited*
No 9 Sturdee Holdings Share Block (Pty) Limited*
Paddy’s Pad (2091) (Pty) Limited
Surgate Share Block (Pty) Limited*
Windrifter Share Block (Pty) Limited*
The Colony Centre Share Block (Pty) Limited

* Property owning entities.
** In the process of being transferred to another FirstRand Group company.

Page 39
The management of STREM operates a risk management Financial risk factors

framework, which is based on COSO’s Enterprise Risk The financial instruments of the Fund consist mainly of deposits
Management Framework. The underlying premise of enterprise with banks, long-term borrowings, derivative instruments,
risk management is that every entity exists to provide value for accounts receivable and accounts payable. The Fund issues or
its stakeholders. All entities face uncertainty, and the challenge purchases financial instruments in order to finance operations and
for management is to determine how much uncertainty to to manage the interest rate risks that arise from these operations.
accept as it strives to grow stakeholder value.
The Fund’s credit, interest and liquidity risks are continually
Value is maximised when management sets strategy and monitored.
objectives to strike an optimal balance between growth and
return goals and related risks, and efficiently and effectively The main objective of using financial instruments is to reduce
deploys resources in pursuit of the entity’s objectives. the uncertainty over future cash flows arising principally as a
result of interest rate fluctuations. The Fund finances its
Enterprise risk management in STREM encompasses: operations through the combination of bank borrowings and
• Aligning risk appetite and strategy which considers the risk issue of additional units.
appetite in evaluating strategic alternatives, setting related
objectives, and developing mechanisms to manage related Interest rate risk management
risks; As at 30 June 2010, approximately 94,2% of total borrowing
• Enhancing risk response decisions by selecting alternative risk facilities were at fixed rates (in terms of the swap contracts).
response, which includes risk avoidance, reduction, sharing or
acceptance; Credit risk management
• Reducing operational losses by gaining enhanced capabilities The Fund has no significant concentration of credit risk due to a
to identify potential events and establish responses; large number of widespread tenants.
• Identifying and managing multiple cross-enterprise risks;
• Seizing opportunities by identifying a full range of potential The Fund has policies in place to ensure that lease agreements
events; and concluded are with tenants with an appropriate credit history.
• Improving deployment of capital by obtaining robust risk
information to allow management to effectively assess overall The Fund has policies that limit the amount of credit exposure to
capital needs and enhance capital allocation. any one financial institution, and cash transactions are limited to
high credit quality financial institutions. The debts are monitored
These capabilities inherent in enterprise risk management help on a continual basis in order to maintain a low default rate on
management achieve the Fund’s performance and profitability trade receivables.
targets and prevent loss of resources. Enterprise risk management
helps to ensure effective reporting and compliance with laws Liquidity risk management
and regulations, and helps avoid damage to the Fund’s reputation Cash flows are monitored on a monthly basis to ensure that cash
and associated consequences. resources are adequate to meet the funding requirements of the
Fund.
The Fund’s annual risk assessment was under way at time of
going to print.

Page 40
Sustainability
INTRODUCTION Investors
The Emira Property Fund recognises its responsibility to protect The Fund makes a presentation of its interim and annual results
the interests of all its stakeholders and believes that good to the investment community in both Johannesburg and Cape
governance and corporate citizenship is essential to the Fund’s Town and subsequently meets with significant PI holders on a
long-term sustainability and functioning. The objective of the one-to-one basis. The Fund’s commitment to transparent
Fund is to conform to its stringent requirement for transparency, disclosure to the investment community was recognised by the
while operating profitably and remaining accountable to the Investment Analyst Society of South Africa with the award of the
broader community which it serves and respecting the natural 2010 Best Presentation to the Society in 2009/2010 – companies
environment. with market capitalisation below R5 billion.
The Fund has embraced the King II report’s guidelines for socially enants
T
responsible reporting according to the “triple bottom line” – the Through its property management service provider, Eris, the
economic, social and environmental impacts of its properties. Fund engages with its base of more than 4 000 tenants on a daily
Going forward, the Fund is formalising its approach in order to basis. These tenants range from small owner-run enterprises, to
reflect its commitment to sustainable business practice, and blue-chip companies and government departments spanning
introduce measurable targets for the future, including an local, provincial and national government. The Fund also engages
evaluation of the implications of King III. with government departments in matters relating to properties,
for example zoning, planning permissions and rates.
STAKEHOLDER ENGAGEMENT
The STREM board considers it a duty to keep all the Fund’s Suppliers and property management service providers
stakeholders informed and up to date with regard to its practices, Suppliers include cleaning services, security, etc and the property
policies and financial results, while remaining accountable for managers are the main point of contact.
the sustainability of the Fund to its investors and tenants.
Communities
Direct discussions with stakeholders are always welcomed by As part of its duty as a South African corporate citizen, the
the Fund. In addition to communication at the annual results Fund is committed to its responsibility of engaging with local
presentation which is made to key PI holders and analysts, media communities where its operations have a potential
releases are published when appropriate as well as ad hoc environmental impact on their surroundings. The Fund aims
meetings with interested parties on request. to develop a positive working relationship with local
communities through organised committees. For example,
The Fund meets regularly with its PI holders and recognises its when the Fund engages in property development, where
fiduciary duty to maximise the value of its assets for their benefit. required, the impacts are fully evaluated with environmental
In addition, PI holders are encouraged to attend the Fund’s impacts assessments, which involve extensive consultation
annual general meeting to vote on resolutions and, where with the local communities.
appropriate, to enter into discussions with the STREM directors.
The Fund’s portfolio of shopping centres also actively engages
The Fund has defined its major stakeholders and communicates with their local communities, involving local residents in events
with them as follows: and corporate social investment initiatives. Prior to engaging in
Students of the Penreach Programme

Page 41
any redevelopment of retail properties, the Fund engages with objectives and the directors believe that the BEE shareholding
local communities to obtain the necessary approvals. is an important step in achieving the targets as set out in the
Charter.
Industry bodies
The Fund is an active participant in the industry and was a The empowerment credentials of the Fund and the management
participant on the Property Sector Transformation Council. It is company were verified by Empowerdex for the first time during
also a member of the Association of Property Unit Trust the year. The findings will form the baseline for both entities to
Management Companies and is represented on the board of set targets and start monitoring progress towards these targets
SAPOA. in order to improve their performance on each aspect of the
BBBEE scorecard. Emira Property Fund and STREM were rated at a
Government Level 7 and Level 6 respectively in terms of the Department of
The Fund engages with Government on a number of levels Trade and Industry’s Codes of Good Practice. Having achieved a
including its ongoing discussions with the National Treasury in good performance on the ownership, employment equity and
respect of the REIT legislation and the Department of Public procurement aspects of the scorecard, both Emira and STREM
Works with regard to the Property Sector Transformation Charter. are reviewing their skills development to enhance their ratings in
The Fund also engages regularly with the FSB on industry the future.
matters.
Emira Property Fund’s BEE holding in its PIs is 12,5%. The
ECONOMIC IMPACT shareholders include the following:
Transformation
The Fund is committed to empowering historically disadvantaged The Tiso Group (Pty) Limited
South Africans and considers this as an imperative to model Tiso is a leading black-owned, controlled and managed
corporate citizenship. investment company investing in infrastructure and engineering,
power, resources, industrial services, property and investments,
The underlying principles which define the STREM board’s employing in excess of 20 individuals with a diverse but
transformation agenda, and relating specifically to BEE ownership complementary set of business and entrepreneurial skills. Tiso is
are as follows: predominantly controlled by its management and staff (54,1%)
• Transferring ownership of land to people who were previously and the Tiso Foundation (18,27%), a registered public benefit
denied access to land through discriminatory policy and organisation created for the purpose of ensuring broad-based
legislation. equity participation in Tiso beyond that of its employees. Other
• Empowering previously disadvantaged individuals in order to
redress the imbalances of the past.
• Achieving a change in the racial and gender composition of
ownership, control and management within the property sector.
The Property Sector Charter entered into between

representatives of the South African property industry and the
Department of Public Works lists these reasons among its
OFS “Winter Warmer” Blanket Project

Golden Oldies at Wonderpark
Shopping Centre
Relocated monument of the
Nederlandse Stigting

Page 42
Sustainability (continued)
shareholders include Investec, Standard Bank and RMB (26,86%). Level 5 contributor. Eris and STREM employ approximately
Tiso is headed up by Nkululeko Sowazi and David Adomakoh. 113 black individuals, many of whom are responsible for the
Tiso is the single largest shareholder in Idwala Industrial Holdings, administration of the Fund and the day-to-day management on
while holding significant equity stakes in Aveng Limited, AECI, properties owned by Emira. The PIs issued in terms of the BEE
Exxaro, Alstom, Investec, ACT, Emira and Eris. transaction have been, and will be, utilised to retain and
incentivise existing black employees and to attract future black
The Shalamuka Foundation executives.
The Shalamuka Foundation (“Shalamuka”) is a trust registered to
create sustainable long-term funding for the Penreach Whole School Indirect impact
Development Programme (“Penreach”). Its inclusion as a BEE PI Emira, through its 167 properties, supports a large number of
holder in the Emira Property Fund creates sustainable long-term people who are employed either by Eris or by the tenants of
support and funding for the school-based outreach programme. these properties. Emira has therefore had a significant beneficial
impact on the lives of these people by providing them a high
For further information relating to Shalamuka see page 43. quality and safe workplace.
Avuka Investments (Pty) Limited ENVIRONMENTAL IMPACT

Avuka is a black-controlled company established in 2005. The Notwithstanding the Emira Property Fund’s classification as
company is wholly owned by the following black women: having a low environmental impact, the STREM directors
• Dr Lulu Gwagwa: ex-Deputy Director General in the acknowledge the importance of adopting sustainable
Department of Public Works and a non-executive director on environmental business practices to minimise the impact of the
the boards of FirstRand, the Development Bank of Southern Fund’s activities on all stakeholder groups.
Africa (“DBSA”) , Sun International Limited and Massmart.
• Ms Nocawe Makiwane: ex Portfolio manager at Stanlib Asset In support of the environmental policy which was approved in 2009,
Management. Currently she serves as a non-executive director the Fund continued the pilot study initiated in 2009 to evaluate its
of National Housing Finance Corporation (“NHFC”), Advantage options to minimise the existing carbon footprint of existing
Asset Management, AM Mfolozi Group Holdings companies, properties in an economically viable manner.
Xau Investments (Pty) Limited, Women In Capital Growth (Pty)
Limited, Pacific Breeze Trading (Pty) Limited and Strate Limited. Emira engaged with external consultants to evaluate an existing
• Ms Nhlanhla Mjoli Mncube: CEO of Mjoli Development office property for greening opportunities including reducing
Company. Obtained her Masters degree in city and regional the energy and water consumption, minimising the property’s
planning from the University of Cape Town and a Certificate in impact on the environment and improving the indoor quality for
Technology from Warwick University (UK). In addition, she occupants which included a full sustainability audit of the
obtained a fellowship at Massachusetts Institute of Technology property. The findings of the audit identified opportunities to
(USA), a Senior Executive Certificate from Harvard University reduce environmental impacts without capital investments as
(USA) and a Certificate in Finance from Wharton School of well as identifying potential investments to sustainably reduce
Business. Non-executive director of the following companies: its carbon footprint. The Fund is considering its options with
Capitec Bank Holdings Limited, Pioneer Foods, Tongaat Hulett regard to its industrial portfolio.
and Cadiz Holdings.
Having conducted this successful pilot, Emira has however
Mr Ben van der Ross maintained its conservative stance to making its buildings
Mr Ben van der Ross is the Chairman of STREM. Mr Van der greener. It has to date opted for operational initiatives rather
Ross also serves on the boards of FirstRand, Naspers, Distell, than incurring extensive capital expenditure, except where
Lewis Stores, Pick n Pay, and on those of various unlisted required by its tenants. These include supporting awareness
companies. campaigns to conserve water and reduce power consumption.
The Fund also engaged the services of a specialist environmental
The RMBP Broad-Based Empowerment Trust consultancy to encourage its tenants to adopt energy saving
In terms of the existing contracts between STREM and Eris activities such as using low voltage light bulbs. The initiative was
Property Group, all asset and property management functions piloted at an office property in the Johannesburg CBD but the
are currently outsourced to STREM and Eris Property Group, a uptake among tenants was disappointing. This demonstrated

Page 43
that tenants are unwilling to outlay cash to reduce their power The Fund also uses its infrastructure to benefit society and the
costs, even if long-term benefits exist. Accordingly, Emira is re- communities around its shopping centres. Within Emira’s
evaluating its approach to greening its properties. This could extensive retail portfolio is a rural property portfolio of
involve future capital spending to lower the environmental 15 shopping centres which are located in outlying areas that do
impact of its properties with a view to sharing the long-term not have large regional shopping centres. Many local inhabitants’
benefits between the landlord and the tenants. lives are improved by having good retail facilities in close
proximity to their homes. Through its properties, Emira has also
While the Fund continues to evaluate proposals and to develop played a role in uplifting local business by providing good
its strategy to reduce the environmental impact of its property facilities from which local business people can conduct and
portfolio, it always remains cognisant that the Fund’s long-term grow their businesses.
economic viability should not be compromised by extensive
investments to enhance the environmental sustainability of its Emira has indirectly contributed to several initiatives in the
properties. community through the retail centres that it owns and manages:
• The Randridge Mall hosted the FORA Awareness Day for the
SOCIAL IMPACT Friends of Rescued Animals at the shopping centre in July
Health and safety 2010. Cash and goods were donated to the charity including
The Emira Property Fund’s health and safety policy complies with donations of pet foods. The event also helped to enhance
the Occupational Health and Safety Act No 85 of 1993 (“the Act”) awareness of this worthy cause.
and other relevant legislation, regulations and codes of practice • The Wonderpark Shopping Centre hosted the “Love to live,
for South Africa. It aims to prevent and minimise work-related Love to be there!” initiative to raise funds for a toddler
and health impairments by applying international best practice diagnosed with Hutchinson-Gilford Progeria syndrome, a rare
and ensuring that all employees are supplied with adequate genetic condition wherein symptoms resembling aspects of
training and supervision for the role they undertake. ageing are manifested at an early age. The child’s parents are
frequent shoppers at the centre and R30 000 was raised over
The Fund, through its property management company, Eris, 30 days towards the cost of travelling abroad to engage in trial
strives to continuously improve its Occupational Health and tests to find a cure for the condition.
Safety progress which is monitored and regularly reported to the • During the 1950s the City of Pretoria erected a monument next to
STREM board of directors. the Tramshed to commemorate the role of the Dutch Community
in developing the City’s transport system. When the monument
This year management took the initiative to engage with a which was built in the form of a fountain fell into disrepair over
leading information solution provider, LexisNexis, to verify the time Emira approached the Dutch community, Stigting
level of its compliance with the Act with regards to its policy. Nederlanders, to relocate the monument to a more suitable
location and together they identified a site in Muckleneuk. As a
In line with its priority to ensure that efficient evacuation drills result of having relocated the monument to this more suitable
were in place, the Fund continued to implement these nationally location, with Emira having contributed to the costs, it was able to
at all its properties. Employees continued to be educated to enlarge the Tramshed Pick n Pay by 800 m².
heighten their awareness of risks.
Community involvement
Individual and company responsibilities were communicated to One of the beneficiaries of Emira’s BEE transactions in 2006 and
avoid and deal with any crises. Tenants are continually reminded 2007 is the Shalamuka Foundation (“Shalamuka”), a trust formed
of their OHS responsibilities. All tenants receive an Eris OHS in 2006 to raise long-term, sustainable funding for educational
manual as well as an Eris “House Rule” guide. development in South Africa.
Social initiatives As a Collective Investment Scheme in property, Emira is

As a Collective Investment Scheme in property, Emira is precluded from making direct corporate social investments by
precluded from making direct corporate social investments by the Collective Investments Schemes Control Act. However, as
the Collective Investments Schemes Control Act. However, as a a PI holder in the Emira Property Fund, participation by
shareholder in the Emira Property Fund, involvement with Shalamuka in its BEE transactions is regarded as an indirect CSI
Shalamuka is regarded as an indirect CSI initiative. initiative.

Page 44
Sustainability (continued)
Shalamuka acts solely as the funding vehicle for the highly more than 2 000 teachers a year, representing over
regarded Penreach Whole School Development Programme 900 schools. It is estimated that over 350 000 learners from
(“Penreach”). Penreach is a non-profit, skills development rural areas benefit from Penreach annually. Beneficiaries are
programme that strives to improve the teaching skills of qualified 100% black; more than 90% are women and over 50% are
and unqualified teachers and their schools in Mpumalanga and rural-dwelling.
the surrounding areas. It has resulted in the upliftment of local
communities through improved in education and the quality of Shalamuka participates in BEE deals and other investment
schools, and has received numerous awards in recognition of its opportunities in order to create long-term investments that will
work and results. The mission statement of Penreach is “To provide sufficient funds to sustain Penreach on an annual basis
improve the quality and accessibility of education in and allow room for planning, growth and important research.
underresourced schools in black rural communities”. Penreach is This will increase the number of educators, and consequently
striving to create functional, efficient schools where future learners who can be reached, thereby improving their standard
generations of young people can acquire the skills they will need of education.
to take South Africa to new heights as a nation.
It is the profound belief of the Shalamuka trustees that South
Penreach holds weekly workshops that provide skills training Africa will benefit from widespread, improved education.
to teachers. Workshops are supplemented by regular visits to
rural schools by experienced fieldworkers, and tutorial The Shalamuka trustees are respected members of the business
workshops are offered to mathematics and science learners community and have impressive socio-economic development
and their educators. track records. Some 85% of the trustees are black South Africans
and 71% are black women. The Shalamuka trustees are volunteers
The programme’s focus areas include the following: and do not benefit economically in any way from Shalamuka or
• Pre-primary school educators; Penreach.
• Primary school educators;
• High school educators (with a focus on mathematics and Shalamuka has Empowerdex certification, scoring maximum
science development); points. It is 100% compliant as a broad-based organisation, as per
• School governing bodies; the 2007 Department of Trade and Industry Codes, and it
• School management teams, including mentorship to school significantly enhances the CSI/BEE scorecard of investee
principals; companies.
• Tutorial lessons for Grade 10, 11 and 12 mathematics and
science learners; and Shalamuka has successfully participated in a number of BEE
• Early childhood development National Qualifications transactions to date. These include Emira Property Fund; Hulamin
Framework (“NQF”) courses. (Pty) Limited; Shalamuka Capital/RMB Corvest; Brimstone
Investment Corporation Limited; Sasol Inzalo; Barloworld Limited
Penreach began working with 40 teachers from 10 schools in and PPC Limited. Shalamuka has access to funding at favourable
1994. It has grown exponentially since then and now reaches rates.

Page 45
Annual financial statements

contents
Emira Property Fund
Statement of directors’ responsibilities 46
Approval of annual financial statements 46
Report of the independent auditor 47
Report of the Trustee 47
Statements of comprehensive income 48
Statements of financial position 49
Statements of cash flows 50
Statements of changes in equity 51
Notes to the financial statements 52
– Participatory interest holders’ analysis
– Property listing
Strategic Real Estate Managers (Pty) Limited 97
Notice of annual general meeting 108
Administration information 110
Form of proxy 111
Hyde Park Lane
Deloitte

Page 46
Statement of directors’ responsibilities
The directors of STREM are responsible for the preparation, integrity, and fair presentation of the financial statements of the Fund. The
financial statements presented on pages 48 to 96 have been prepared in accordance with International Financial Reporting Standards
(“IFRS”), and include amounts based on judgements and estimates made by management.
The directors consider that in preparing the financial statements they have used the most appropriate accounting policies, consistently
applied and supported by reasonable and prudent judgements and estimates, and that all statements of International Financial
Reporting Standards that they consider to be applicable have been followed.
The directors are satisfied that the information contained in the financial statements fairly presents the results of operations for the
period and the financial position of the Fund at year-end. The directors also prepared the other information included in the report and
are responsible for both its accuracy and its consistency with the financial statements.
The directors have responsibility for ensuring that accounting records are kept. The accounting records should disclose with reasonable
accuracy the financial position of the Fund to enable the directors to ensure that the financial statements comply with the relevant
legislation.
The Fund operated in a well-established control environment, which is well documented and regularly reviewed. This incorporates risk
management and internal control procedures, which are designed to provide reasonable, but not absolute, assurance that assets are
safeguarded and the risks facing the business, are being controlled.
The going-concern basis has been adopted in preparing the financial statements. The directors have no reason to believe that the Fund
will not be a going-concern in the foreseeable future, based on forecasts and available cash resources. These financial statements
support the viability of the Fund.
The Fund’s external auditor, PricewaterhouseCoopers Incorporated, audited the financial statements, and their report is presented on
the next page.
BJ van der Ross JWA Templeton

Chairman Chief Executive Officer
Approval of annual financial statements
The annual financial statements of the Fund, incorporating statutorily required information in respect of the Fund, for the year ended
30 June 2010 set out on pages 48 to 96 were approved by the board of directors of STREM on 30 September 2010 and are signed on its
behalf by:


Page 47
Report of the independent auditor
INDEPENDENT AUDITOR’S REPORT TO THE PARTICIPATORY INTEREST HOLDERS OF EMIRA PROPERTY FUND
We have audited the Group annual financial statements and annual financial statements of Emira Property Fund, which comprise the
consolidated and separate statements of financial position as at 30 June 2010, and the consolidated and separate statements of
comprehensive income, changes in equity and cash flows for the year then ended, and a summary of significant accounting policies and
other explanatory notes, as set out on pages 48 to 96.
Directors’ responsibility for the financial statements

Strategic Real Estate Managers (Proprietary) Limited’s directors are responsible for the preparation and fair presentation of these financial
statements in accordance with International Financial Reporting Standards and in the manner required by the Companies Act of South
Africa. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying
appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Auditor’s responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with
International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements present fairly, in all material respects, the consolidated and separate financial position of Emira
Property Fund as at 30 June 2010, and its consolidated and separate financial performance and its consolidated and separate cash flows
for the year then ended in accordance with International Financial Reporting Standards and in the manner required by the Companies
Act of South Africa.
PricewaterhouseCoopers Inc.
Director: N Mtetwa
Registered Auditor
Johannesburg
30 September 2010
Report of the Trustee

In terms of section 70(I)(f ) of the Collective Investment Schemes Control Act, No 45 of 2002
To the participatory interest holders of Emira Property Fund

During the period as set out above during which the Collective Investment Schemes Control Act, No 45 of 2002 has been in effect the
Trust has been administered in accordance with:
(i) The limitations imposed on the investment and borrowing powers of the Manager by the Act; and
(ii) The provisions of the Act and the Deed.
Absa Bank Limited

Trustee
Johannesburg
6 September 2010

Page 48
Statements of comprehensive income

FUND GROUP
2009 2010 2010 2009

R’000 R’000 Notes R’000 R’000
772 015 825 022 Revenue 1 162 179 1 082 688

Operating lease rental income from investment
575 008 783 895 properties 1 119 453 836 532
177 253 28 263 Recoveries of operating costs from tenants 32 714 223 334
19 754 12 864 Allowance for future rental escalations 10 012 22 822
(245 137) (276 418) Property expenses (391 807) (350 880)
(22 285) (25 598) Management expenses (36 171) (31 843)
(30 227) (32 071) Administration expenses (43 214) (39 023)
(10 071) (8 058) Depreciation (9 704) (11 198)
464 295 482 877 Operating profit 681 283 649 744
(84 454) 47 489 Net fair value adjustments 42 430 (83 511)
Net fair value gain/(deficit) on investment
(84 454) 44 720 properties 39 661 (83 511)
Change in fair value as a result of straight-lining
(19 754) (12 864) lease rentals 9 (10 012) (22 822)
Change in fair value as a result of amortising
(5 007) 3 309 upfront lease costs 10 5 329 (6 717)
Change in fair value as a result of property
(59 693) 54 275 appreciation/(depreciation) in value 44 344 (53 972)
Unrealised gain on fair valuation of listed property
— 2 769 investment 2 769 —
379 841 530 366 Profit before finance costs 723 713 566 233
(62 609) 8 010 Net finance costs (211 839) (307 774)
128 473 148 012 Finance income 5 484 11 902
118 694 143 842 Debenture interest received from subsidiary
9 779 4 170 Interest received on cash balances 5 484 11 902
(191 082) (140 002) Finance costs (217 323) (319 676)
(75 810) (97 155) Interest paid and amortised borrowing costs (143 219) (121 844)
1 728 3 065 Interest capitalised to cost of developments 3 065 1 728
Preference share dividends paid (13 351) (16 424)
(117 000) (45 912) Unrealised deficit on interest-rate swaps (63 818) (183 136)
317 232 538 376 Profit before income tax charge 5 511 874 258 459
Income tax charge 2 683 64 929
Deferred taxation 6 4 018 66 571
– Revaluation of investment properties 1 753 54 441
– Other timing differences including allowance
for future rental escalations 2 265 12 130
STC on preference share dividends paid (1 335) (1 642)
Profit for the year attributable to
317 232 538 376 equity holders 514 557 323 388
Total comprehensive income
317 232 538 376 attributable to equity holders 514 557 323 388
Earnings per participatory interest (cents) 7 105,48 65,84

Page 49
Statements of financial position

as at 30 June 2010
FUND GROUP
2009 2010 2010 2009

R’000 R’000 Notes R’000 R’000
Assets
6 389 340 6 700 809 Non-current assets 7 655 558 7 355 777
5 004 721 5 186 268 Investment properties 8 7 334 034 7 158 603
106 544 119 408 Allowance for future rental escalations 9 162 838 152 826
29 642 26 333 Unamortised upfront lease costs 10 39 019 44 348
5 140 907 5 332 009 Fair value of investment properties 7 535 891 7 355 777
1 248 433 1 249 133 Subsidiary companies 11
— 119 667 Listed property investment 12 119 667 —
65 889 74 141 Current assets 103 526 95 233
38 464 48 543 Accounts receivable 13 62 845 51 892
4 527 — Derivative financial instruments 14 — 6 817
22 898 25 598 Cash and cash equivalents 15 40 681 36 524
260 500 238 539 Non-current assets held for sale 8 347 039 362 300
6 715 729 7 013 489 Total assets 8 106 123 7 813 310
Equity and liabilities

5 443 205 5 454 337 Participatory interest holders’ capital and reserves 16 17 5 525 665 5 538 352
876 125 1 093 067 Non-current liabilities 1 535 150 1 819 417
Redeemable preference shares 18 200 000 200 000
876 125 1 093 067 Interest-bearing debt 18 1 093 067 1 373 316
Deferred taxation 19 242 083 246 101
396 399 466 085 Current liabilities 1 045 308 455 541
— — Short-term portion of interest-bearing debt 18 498 596 —
140 485 150 346 Accounts payable 20 215 357 199 627
— 41 385 Derivative financial instruments 21 57 001 —
255 914 274 354 Distribution payable to participatory interest holders 22 274 354 255 914
6 715 729 7 013 489 Total equity and liabilities 8 106 123 7 813 310

Page 50
Statements of cash flows

FUND GROUP
2009 2010 2010 2009

R’000 R’000 Notes R’000 R’000
Cash flows from operating activities

468 062 481 162 Cash generated from operations 22 691 269 664 501
128 473 148 012 Finance income 5 484 11 902
(75 810) (97 155) Interest paid (143 219) (121 844)
Preference share dividends paid (13 351) (16 424)
Taxation paid 22 (1 523) (1 228)
(473 086) (508 804) Distribution to participatory interest holders 22 (508 804) (473 086)
47 639 23 215 Net cash generated from operating activities 29 856 63 821
Cash flows from investing activities

(251 768) (128 572) Acquisition of investment properties (133 427) (302 963)
(4 310) (3 476) Acquisition of fixtures and fittings (5 910) (8 149)
20 914 12 189 Proceeds on disposal of investment properties 12 189 20 914
115 — Proceeds on disposal of fixtures and fittings — 115
70 554 (700) Loan to subsidiary
— (116 898) Acquisition of investment in listed property fund (116 898) —
(164 495) (237 457) Net cash utilised in investing activities (244 046) (290 083)
Cash flows from financing activities

(52 151) — Repurchase of participatory interests — (52 151)
134 707 216 942 Increase in interest-bearing debt 218 347 246 112
82 556 216 942 Net cash generated from financing activities 218 347 193 961
Net increase/(decrease) in cash and cash

(34 300) 2 700 equivalents 4 157 (32 301)
57 198 22 898 Cash and cash equivalents at the beginning of the year 36 524 68 825
22 898 25 598 Cash and cash equivalents at the end of the year 40 681 36 524

Page 51
Statements of changes in equity

Partici-
patory Fair value Other Retained
interest reserve reserve earnings Total
R’000 R’000 R’000 R’000 R’000
GROUP
2009
Balance at 1 July 2008 3 563 635 2 297 012 (98 262) (1 345) 5 761 040
Total comprehensive income for the year — — — 323 388 323 388
Distribution to participatory interest holders — — — (493 925) (493 925)
Repurchase of participatory interests (52 151) — — — (52 151)
Transfer to fair value reserve (net of deferred taxation) — (170 537) — 170 537 —
Balance at 30 June 2009 3 511 484 2 126 475 (98 262) (1 345) 5 538 352
2010
Balance at 1 July 2009 3 511 484 2 126 475 (98 262) (1 345) 5 538 352
Balance at 30 June 2010 3 511 484 2 113 788 (98 262) (1 345) 5 525 665
FUND
2009
Balance at 1 July 2008 3 563 635 2 208 187 (98 262) (1 511) 5 672 049
Repurchase of participatory interests (52 151) — — — (52 151)
Balance at 30 June 2009 3 511 484 2 031 494 (98 262) (1 511) 5 443 205
2010
Balance at 1 July 2009 3 511 484 2 031 494 (98 262) (1 511) 5 443 205
Transfer to fair value reserve (net of deferred taxation) — 11 132 — (11 132) —
Balance at 30 June 2010 3 511 484 2 042 626 (98 262) (1 511) 5 454 337

Page 52
Notes to the financial statements

1 General information
Emira Property Fund (“the Fund”) and its subsidiaries (together “the Group”) hold a major portfolio of investment properties in
South Africa.
The Fund is listed on the JSE Limited.
These consolidated financial statements have been approved for issue by the board of directors of Strategic Real Estate Managers
(Proprietary) Limited (STREM) on 30 September 2010.
The shareholders do not have the power to amend the consolidated financial statements after issue.
2 Summary of significant accounting policies

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These
policies have been consistently applied to all years presented, unless otherwise stated.
2.1 Basis of preparation

Statement of compliance
The consolidated financial statements of Emira Property Fund have been prepared in accordance with International Financial
Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).
Income and cash flow statements

The Group presents its statement of comprehensive income by nature of expense.
The Group reports cash flows from operating activities using the indirect method.
The acquisitions of investment properties are disclosed as cash flows from investing activities because this most appropriately
reflects the Group’s business activities.
Cash flows from investing and financing activities are determined using the direct method.
Preparation of the consolidated financial statements

The consolidated financial statements have been prepared under the historical cost convention as modified by the revaluation
of investment property.
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also
requires management to exercise its judgement in the process of applying the Group’s accounting policies. Changes in
assumptions may have a significant impact on the financial statements in the period the assumptions changed. Management
believes that the underlying assumptions are appropriate. The areas involving a higher degree of judgement or complexity, or
areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in note 3.
New and amended international financial reporting standards and interpretations

(a) Standards and amendments to existing standards effective in the current financial year.
The following standards, amendments and interpretations, which became effective in 2010, are of relevance to the Group:
Standard/ Applicable for financial years

interpretation Content beginning on/after
IAS 1 Presentation of Financial Statements 1 January 2009
IAS 23 Borrowing Costs 1 January 2009
IAS 27 Consolidated and Separate Financial Statements – Revised 1 July 2009
IFRS 3 Business Combinations – Revised 1 July 2009
IFRS 7 Amendment: Improving Disclosures about Financial Instruments 1 January 2009
IFRS 8 Operating Segments 1 January 2009
IFRIC 15 Agreements for the Construction of Real Estate 1 January 2009
IAS 40R Investment Property 1 January 2009

Page 53
IAS 1 Presentation of Financial Statements

A revised version of IAS 1 was issued in September 2007. The revised standard prohibits the presentation of items of income
and expenses (that is, ‘non-owner changes in equity’) in the statement of changes in equity, requiring ‘non-owner changes
in equity’ to be presented separately from owner changes in equity in a statement of comprehensive income. As a result,
the Group presents in the consolidated statement of changes in equity all owner changes in equity; all non-owner changes
in equity are presented in the consolidated statement of comprehensive income. The adoption of this revised standard
impacts only presentation aspects; therefore, it has no impact on profit or earnings per participatory interest.

IAS 23 Borrowing Costs
A revised version was issued in March 2007. Under the revised standard, an entity is required to capitalise borrowing costs
directly attributable to the acquisition, construction or production of a qualifying asset (one that takes a substantial period
of time to get ready for use or sale) as part of the cost of that asset. The option of immediately expensing those borrowing
costs was removed. The capitalisation is required for qualifying assets for which the commencement date for capitalisation
is on or after 1 January 2009. The Group has already been applying this standard.
Amendment: IFRS 7 Improving Disclosures about Financial Instruments

The IASB published amendments to IFRS 7 in March 2009. The amendment requires enhanced disclosures about fair value
measurements and liquidity risk. In particular, the amendment requires disclosure of fair value measurements by level of a
three-level fair value measurement hierarchy. In addition to that, the amendment clarifies that the maturity analysis of
liabilities should include issued financial guarantee contracts at the maximum amount of the guarantee in the earliest period
in which the guarantee could be called; and secondly requires disclosure of remaining contractual maturities of financial
derivatives if the contractual maturities are essential for an understanding of the timing of the cash flows. The entity has to
disclose a maturity analysis of financial assets it holds for managing liquidity risk, if that information is necessary to enable
users of its financial statements to evaluate the nature and extent of liquidity risk. The adoption of the amendment results
in additional disclosures but does not have an impact on profit or earnings per PI.
IFRS 8 Operating Segments

IFRS 8 replaces IAS 14 Segment Reporting, and is effective for annual periods beginning on or after 1 January 2009. The new
standard requires a ‘management approach’, under which segment information is presented on a similar basis to that used
for internal reporting purposes. There were no changes made to the segments that are reported on by the Group.
IAS 40 Investment Property, amendment (and consequential amendment to IAS 16 Property, Plant and Equipment)
The amendments are part of the IASB’s annual improvements project published in May 2008 and are effective from 1 January
2009. Property that is under construction or development for future use as investment property is brought within the scope
of IAS 40. Where the fair value model is applied, such property is measured at fair value. However, where fair value of
investment property under construction is not reliably determinable, the property is measured at cost until the earlier of the
date construction is completed and the date at which fair value becomes reliably measurable. As the Group does not have
any property under construction, there were no effects of adoption.
Improvements to IFRS (issued in May 2008)

The improvements project contains numerous amendments to IFRS that the IASB considers non-urgent but necessary.
“Improvements to IFRS” comprise amendments that result in accounting changes for presentation, recognition or
measurement purposes, as well as terminology or editorial amendments related to a variety of individual IFRS standards.
Most of the amendments are effective for annual periods beginning on or after 1 January 2009. No material changes to
accounting policies arose as a result of these amendments except to the amendments to IAS 40 Investment Property (see
above). The revision will not affect results as the current accounting policy is consistent with the revised standard.
IAS 27 Consolidated and Separate Financial Statements – Revised

IAS 27 (revised) requires the effects of all transactions with non-controlling interests to be recorded in equity if there is no
change in control and they will no longer result in goodwill or gains and losses. The standard also specifies when control is
lost any remaining interest in the entity is remeasured to fair value and a gain or loss is recognised in profit or loss.

Page 54

IFRS 3 Business Combinations – Revised

The new standard continues to apply the acquisition method to business combinations, with some significant changes for
example, all payments to purchase a business are to be recorded at fair value at the acquisition date, with some contingent
payments subsequently remeasured at fair value through income. Goodwill may be calculated based on the parent’s share
of net assets or it may include goodwill related to the minority interest. All transaction costs will be expensed.
(b) Interpretations and amendments to standards becoming effective in the current financial year but not relevant to the Group.

IAS 32 and IAS 1 Puttable Financial Instruments and Obligations arising on Liquidation 1 January 2009
Financial Instruments: Recognition and Measurement – Eligible Hedged
IAS 39* Items 1 July 2009
Cost of an Investment in a Subsidiary, Jointly-controlled Entity or
IFRS 1 and IAS 27 Associate 1 January 2009
IFRS 1* First-time Adoption of International Financial Reporting Standards 1 July 2009
IFRS 2 Share-based Payments – Vesting Conditions and Cancellations 1 January 2009
IFRIC 13 Customer Loyalty Programmes 1 July 2008
IFRIC 16 Hedges of a Net Investment in a Foreign Operation 1 October 2008
IFRIC 17 Distribution of Non-cash Assets to Owners 1 July 2009
IFRIC 18 Transfers of Assets from Customers 1 July 2009
(c) S tandards, amendments and interpretations that are not yet effective and not expected to have significant impact on the
Group’s financial statements.

Amendment: IFRS 1* Additional Exemptions for First-time Adopters 1 July 2010
IFRIC 19* Extinguishing Financial Liabilities with Equity Instruments 1 July 2010
IFRS 9 Financial Instruments: Classification and Measurement 1 January 2013
IAS 24* Related Party Disclosures 1 January 2011
IAS 32* Classification of Rights Issues 1 February 2010
Amendment: IFRS 2* Group Cash-settled Share-based Payment Transactions
Amendment: IFRIC 14* Prepayments of Minimum Funding Requirements 1 January 2011
*Not expected to be relevant to the Group.
IFRS 9 Financial Instruments: Classification and Measurement

In November 2009, the board issued the first part of IFRS 9 relating to the classification and measurement of financial assets.
IFRS 9 will ultimately replace IAS 39. The standard requires an entity to classify its financial assets on the basis of the entity’s
business model for managing the financial assets and the contractual cash flow characteristics of the financial asset, and
subsequently measures the financial assets as either at amortised cost or fair value. The new standard is mandatory for
annual periods beginning on or after 1 January 2013.
Improvements to IFRS (issued in April 2009)

The improvements project contains numerous amendments to IFRS that the IASB considers non-urgent but necessary.
“Improvements to IFRS” comprise amendments that result in accounting changes for presentation, recognition or
measurement purposes, as well as terminology or editorial amendments related to a variety of individual IFRS standards.
Most of the amendments are effective for annual periods beginning on or after 1 January 2010 respectively, with earlier
application permitted. No material changes to accounting policies are expected as a result of these amendments.
(d) Early adoption of standards

In 2010, the Group did not early adopt any new or amended standards and do not plan to early adopt any of the standards
issued not yet effective.

Page 55
2.2 Consolidation
Subsidiaries are all entities (including special purpose entities) over which the Group has the power to govern the financial and
operating policies generally accompanying a shareholding of more than one half of the voting rights. The existence and effect
of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls
another entity.
Joint control is the contractually agreed sharing of control over an economic activity. There are no jointly controlled entities
within the Group.
An associate is an entity, including an unincorporated entity such as a partnership, over which the investor has significant
influence and that is neither a subsidiary nor an interest in a joint venture. No consolidated entity holds interests in any associate.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the
date that control ceases.

Accounting for business combinations under IFRS 3 only applies if it is considered that a business has been acquired.
Under IFRS 3 Business Combinations, a business is defined as an integrated set of activities and assets conducted and managed
for the purpose of providing a return to investors or lower costs or other economic benefits directly and proportionately to
policyholders or participants. A business generally consists of inputs, processes applied to those inputs, and resulting outputs that
are, or will be, used to generate revenues. In the absence of such criteria, a group of assets is deemed to have been acquired. If
goodwill is present in a transferred set of activities and assets, the transferred set is presumed to be a business.
For acquisitions meeting the definition of a business, the purchase method of accounting is used. The cost of an acquisition is
measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of
exchange, plus costs directly attributable to the acquisition.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at
their fair values at the acquisition date, irrespective of the extent of any minority interest. The excess of the cost of acquisition
over the fair value of the group’s share of the identifiable net assets acquired is recorded as goodwill. If the cost of acquisition is
less than the fair value of the group’s share of the net assets acquired, the difference is recognised directly in the profit or loss for
the year as negative goodwill.
For acquisitions not meeting the definition of a business, the group allocates the cost between the individual identifiable assets
and liabilities in the Group based on their relative fair values at the date of acquisition. Such transactions or events do not give
rise to goodwill.
All the group companies have 30 June as their year-end. Consolidated financial statements are prepared using uniform
accounting policies for like transactions. Accounting policies of subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the group.
Intercompany transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised
losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
The group applies a policy of treating transactions with minority interests as transactions with parties external to the group.
Minority interests represent the portion of profit and net assets not held by the group. They are presented separately in the
statement of comprehensive income and in the consolidated statement of financial position separately from the amounts
attributable to the owners of the parent. At year-end, no minority interest exists.

Page 56

2.3 Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision
maker. The chief operating decision maker is the person or group that allocates resources to and assesses the performance of the
operating segments of an entity. The group has determined that its chief operating decision maker is the Chief Executive Officer
(CEO) of the Fund.
2.4 Foreign currency translation

(a) Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary
economic environment in which the entity operates (the ‘functional currency’). The consolidated financial statements are
presented in South African Rand, the Fund’s functional currency and the Group’s presentation currency.

(b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of
the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised
in the profit or loss for the year.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented net in the
statements of comprehensive income within finance income or finance costs. All other foreign exchange gains and losses
are presented net in the statements of comprehensive income within other losses or gains.
2.5 Investment property

Property comprising both freehold and leasehold land and buildings that is held for long-term rental yields or for capital
appreciation or both, is classified as investment property.
Borrowing costs incurred for the purpose of acquiring, developing or producing a qualifying investment property are capitalised
as part of its cost. Borrowing costs are capitalised while acquisition or development is actively underway and cease once the asset
is substantially complete, or suspended if the development of the asset is suspended.
After initial recognition, investment property is carried at fair value. Fair value is based on active market prices, adjusted, if
necessary, for any difference in the nature, location or condition of the specific asset. If this information is not available, the Group
uses alternative valuation methods, such as recent prices on less active markets or discounted cash flow projections. Valuations
are performed as of the financial position date by professional valuers who hold recognised and relevant professional
qualifications and have recent experience in the location and category of the investment property being valued. These valuations
form the basis for the carrying amounts in the financial statements. Investment property that is being redeveloped for continuing
use as investment property or for which the market has become less active continues to be measured at fair value.
Fair value measurement on property under development is only applied if the fair value is considered to be reliably measurable.
It may sometimes be difficult to determine reliably the fair value of the investment property under development. In order to
evaluate whether the fair value of an investment property under development can be determined reliably, management
considers the following factors, among others:
• The provisions of the development contract
• The stage of completion
• Whether the project/property is standard (typical for the market) or non-standard
• The level of reliability of cash inflows after completion
• The development risk specific to the property
• Past experience with similar developments.

Page 57
The fair value of investment property reflects, among other things, rental income from current leases and assumptions about
rental income from future leases in the light of current market conditions. The fair value also reflects, on a similar basis, any cash
outflows that could be expected in respect of the property.
Subsequent expenditure is capitalised to the asset’s carrying amount only when it is probable that future economic benefits
associated with the expenditure will flow to the Group and the cost of the item can be measured reliably. All other repairs and
maintenance costs are expensed when incurred.
When part of an investment property is replaced, the carrying amount of the replaced part is derecognised.
The fair value of investment property does not reflect future capital expenditure that will improve or enhance the property and
does not reflect the related future benefits from this future expenditure other than those a rational market participant would take
into account when determining the value of the property.

Changes in fair values are recognised in the statement of comprehensive income. Investment properties are derecognised either
when they have been disposed of or when the investment property is permanently withdrawn from use and no future economic
benefit is expected from its disposal.
Where the Group disposes of a property at fair value in an arm’s length transaction, the carrying value immediately prior to the
sale is adjusted to the transaction price, and the adjustment is recorded in the statement of comprehensive income within net
gain from fair value adjustment on investment property.
Gains or losses arising from the disposal of investment properties, being the difference between the net disposal proceeds and
the carrying value, are brought to account in the determination of the net income/loss for the year. The net gains or losses are
transferred from retained earnings to a fair value reserve and are not available for distribution in accordance with the Fund’s Trust
Deed.
2.6 Fixtures and fittings

Fixtures and fittings are stated at historical cost less accumulated depreciation and impairment charges. Cost comprises the
purchase price as well as all costs incurred in order to bring the asset to a working condition.

Depreciation is calculated at cost less expected residual value on the straight-line method, which is reviewed annually.

The useful lives of fixtures and fittings range between five and twenty years.

Repairs and maintenance are charged to the statement of comprehensive income during the financial period in which they are
incurred.
Fixtures and fittings are linked to specific properties. Consequently, any gains or losses on disposal are incorporated with the
gains or losses on the disposal of the investment property.

Page 58

2.7 Leases
(a) A Group company is the lessee
(i) Operating lease
Leases in which a significant portion of the risks and rewards of ownership are retained by another party, the lessor, are
classified as operating leases. Payments, including prepayments, made under operating leases (net of any incentives
received from the lessor) are charged to profit or loss on a straight-line basis over the period of the lease. Properties
leased out under operating leases are included in investment properties.
(ii) Finance lease

Leases of assets where the Group has substantially all the risks and rewards of ownership are classified as finance leases.
Finance leases are recognised at the lease’s commencement at the lower of the fair value of the leased property and
the present value of the minimum lease payments.
E ach lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the
finance balance outstanding. The corresponding rental obligations, net of finance charges, are included in current and
non-current borrowings. The interest element of the finance cost is charged to the income statement over the lease
period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
Investment properties recognised under finance leases are carried at their fair value.

(b) A Group company is the lessor in an operating lease
Properties leased out under operating leases are included in investment property in the statement of financial position.
(c) A Group company is the lessor – fees paid in connection with arranging leases and lease incentives
The Group makes payments to agents for services in connection with negotiating lease contracts with the Group’s lessees.
The letting fees are capitalised within the carrying amount of the related investment property and amortised over the lease
term.
Lease incentives are recognised as a reduction of rental income on a straight-line basis over the lease term.
2.8 Investment in subsidiaries

The investment in subsidiaries is recognised at cost.
2.9 Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of the net identifiable assets
of the acquired business at the date of acquisition (providing that the acquisition fulfils the definition of a business combination
in accordance with IFRS 3). Goodwill is tested annually for impairment and carried at cost less accumulated impairment losses.
Impairment losses on goodwill are not reversed. Gains and losses on the disposal of an entity include the carrying amount of
goodwill relating to the entity sold.
Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those cash-
generating units or groups of cash-generating units that are expected to benefit from the business combination in which the
goodwill arose identified according to operating segment.
The Group classifies its financial assets in the following categories: at fair value through profit or loss and loans and receivables.
The classification depends on the purpose for which the financial assets were acquired. Management determines the classification
of its financial assets at initial recognition.

Page 59
2.10 Impairment of non-financial assets

Assets that have an indefinite useful life – for example, goodwill – are not subject to amortisation and are tested annually for
impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s
carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell
and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately
identifiable cash flows (cash-generating units). Non-financial assets other than goodwill that suffered impairment are reviewed
for possible reversal of the impairment at each reporting date.
2.11 Financial instruments

(a) Financial assets at fair value through profit or loss
This category has two sub-categories: financial assets held for trading and those designated at fair value through profit or
loss at inception. A financial asset is classified as held for trading if acquired principally for the purpose of selling in the short
term, if it forms part of a portfolio of financial assets in which there is evidence of short-term profit-making or if so designated
by management. Derivatives are also classified as held for trading, unless they are designated as hedges.
A financial asset is designated as fair value through profit or loss because either it eliminates or significantly reduces a
measurement or recognition inconsistently that would otherwise arise from measuring the asset or recognising the gains or
losses on it on different bases; or a group of financial assets is managed and its performance is evaluated on a fair value basis,
in accordance with a risk management or investment strategy and information about the Group is provided internally on
that basis to key management personnel. Under this criterion, the main classes of financial assets designated at fair value
through profit or loss by the Group are listed property investments.
Subsequently to initial recognition, these assets are measured at fair value. All related realised and unrealised gains and
losses arising from changes in fair value are included in fair value gains on financial assets at fair value through profit and
loss.
(b) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an
active market. They are included in current assets, except for maturities greater than 12 months after the end of the reporting
period. These are classified as non-current assets. The Group’s loans and receivables comprise “accounts receivable” and cash
and cash equivalents in the statement of financial position.
2.12 Recognition and measurement

(a) Financial assets
Regular purchases and sales of financial assets are recognised on the trade-date – the date on which the Group commits to
purchase or sell the assets. Investments are initially recognised at fair value plus transaction costs for all financial assets not
carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognised at
fair value, and transaction costs are expensed in the statement of comprehensive income. Financial assets are derecognised
when the rights to receive cash flows from the investments have expired or have been transferred and the Group has
transferred substantially all risks and rewards of ownership. Available-for-sale financial assets and financial assets at fair value
through profit or loss are subsequently carried at fair value. Loans and receivables are subsequently carried at amortised cost
using the effective interest method.
Gains or losses arising from changes in the fair value of the “financial assets at fair value through profit or loss” category are
presented in the statement of comprehensive income within “net fair value adjustments” in the period in which they arise.
Dividend income from financial assets at fair value through profit or loss is recognised in the statement of comprehensive
income as part of other income when the Group’s right to receive payment is established.

Page 60

2.12 Recognition and measurement (continued)

(b) Financial liabilities
Liabilities within the scope of IAS 39 are classified as financial liabilities at fair value through profit or loss or other liabilities,
as appropriate.
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
All loans and borrowings are classified as other liabilities. Initial recognition is at fair value less directly attributable transaction
costs. After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the
effective interest method.
Financial liabilities included in trade and other payables are recognised initially at fair value and subsequently at amortised
cost. The fair value of a non-interest bearing liability is its discounted repayment amount. If the due date of the liability is less
than one year, discounting is omitted.
2.13 Accounts receivable

Accounts receivable are initially recognised at fair value and subsequently at amortised cost, using the effective interest rate
method. A provision for impairment of trade receivables is established when there is objective evidence that the Group will not
be able to collect all amounts due according to the original term of the receivables.
Prepayments are carried at cost less any accumulated impairment losses.
2.14 Cash and cash equivalents

Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with
original maturities of three months or less, and bank overdrafts.
2.15 Participatory interest (PI) capital

PIs are classified as equity when there is no obligation to transfer cash or other assets. Incremental costs directly attributable to
the issue of new PIs are shown in equity as a deduction, from the proceeds.
2.16 Accounts payable

Trade and other payables are recognised initially at fair value and subsequently measured at amortised cost using the effective
interest method.
The Group obtains deposits from tenants as a guarantee for returning the property at the end of the lease term in a specified
good condition or for the lease payments for a period ranging from 1 to 12 months. Such deposits are treated as financial
liabilities in accordance with IAS 39 and they are initially recognised at fair value. The difference between fair value and cash
received is considered to be part of the minimum lease payments received for the operating lease. The deposit is subsequently
measured at amortised cost.
2.17 Borrowings
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised
cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised as finance cost over
the period of the borrowings using the effective interest method.
Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable
that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there
is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for
liquidity services and amortised over the period of the facility to which it relates.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for
at least 12 months after the date of the statement of financial position.

Page 61
2.18 Derivative financial instruments

The Group uses derivative financial instruments to hedge its exposure to interest rate risks arising from financing and investment
activities. The Group does not hold or issue derivative financial instruments for trading purposes. However, derivatives that do
not qualify for hedge accounting are accounted for as financial instruments held for trading.
Derivative financial instruments are initially recognised and subsequently stated at fair value. The gain or loss on re-measurement
to fair value is taken immediately to profit or loss. The fair value of interest rate swaps is the estimated amount that the Group
would receive or pay to terminate the swap at the statement of financial position date, taking into account current interest rates
and the current creditworthiness of the swap counterparties.
2.19 Current and deferred income tax

The Fund is exempt from income tax and capital gains tax. Tax charge comprises current and deferred tax in respect of the Fund’s
subsidiaries. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised
directly, in other comprehensive income, in which case the tax is also recognised in other comprehensive income.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of
assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred income tax is not
accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at
the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates
(and laws) that have been enacted or substantially enacted by the date of the statement of financial position and are expected
to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled. Deferred income tax
assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary
differences can be utilised.
The carrying value of the Group’s investment property will generally be realised by a combination of income (rental stream during
the period of use) and capital (the consideration on the sale at the end of use). Where different tax rates exist for income and
capital gains, the Group considers the planned recovery of the asset and how that affects the tax rate used in the calculation of
the deferred tax.
The length of the period for which a property will be held prior to disposal is based on the Group’s current plans and recent
experience with similar properties. The capital gains tax rate applied is that which would apply on a direct sale of the property
recorded in the statement of financial position, regardless of whether the Group would structure the sale via the disposal of the
subsidiary holding the asset, to which a different tax rate may apply. The deferred tax is then calculated based on the respective
temporary differences and tax consequences arising from recovery through use and recovery through sale.
2.20 Provisions
Provisions for legal claims are recognised when: the Group has a present legal or constructive obligation as a result of past events;
it is probable that an outflow of resources will be required to settle the obligation; and the amount can be reliably estimated.
Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax
rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in
the provision due to passage of time is recognised as finance cost.
Where the Group, as lessee, is contractually required to restore a leased property to an agreed condition prior to release by a
lessor, provision is made for such costs as they are identified.
2.21 Revenue recognition

Revenue includes rental income, and operating cost recoveries from tenants, but excludes Value Added Tax. Rental income from
operating leases is recognised on a straight-line basis over the lease term. When the Group provides incentives to its tenants, the
cost of incentives is recognised over the lease term, on a straight-line basis.

Page 62

2.22 Distributions payable to participatory interest holders

Distributions payable to participatory interest holders are recognised in the period in which income is earned, in accordance with
the Trust Deed of the Fund. The accrued income arising as a result of the difference between actual cash rental received and the
amortised amount on a straight-line basis over the periods of the lease contracts is not distributable until realised. The additional
profit arising as a result of the Group amortising upfront lease costs over the period of the lease contracts is not distributable.
2.23 Income from listed property investment

Distribution income revenue from the listed property investment is recognised when the unit holder’s right to receive payment
has been established.
2.24 Interest income and expense

Interest income and expense are recognised within ‘finance income’ and ‘finance costs’ in profit or loss using the effective interest
rate method, except for borrowing costs relating to qualifying assets, which are capitalised as part of the cost of that asset. The
Group has chosen to capitalise borrowing costs on all qualifying assets irrespective of whether they are measured at fair value.
The effective interest method is a method of calculating the amortised cost of a financial asset or financial liability and of
allocating the interest income or interest expense over the relevant period. The effective interest rate is the rate that exactly
discounts estimated future cash payments or receipts throughout the expected life of the financial instrument, or a shorter period
where appropriate, to the net carrying amount of the financial asset or financial liability. When calculating the effective interest
rate, the Group estimates cash flows considering all contractual terms of the financial instrument (for example, prepayment
options) but does not consider future credit losses. The calculation includes all fees and points paid or received between parties
to the contract that are an integral part of the effective interest rate, transaction costs and all other premiums or discounts.
2.25 Other expenses

Expenses include legal, accounting, auditing and other fees. They are recognised as expense in profit or loss in the period in
which they are incurred (on an accruals basis).
2.26 Non-current assets held for sale

Non-current assets are classified as assets held for sale when their carrying amount is to be recovered principally through a sale
transaction and a sale is considered highly probable. They are stated at the lower of carrying amount and fair value less costs to
sell if their carrying amount is to be recovered principally through a sale transaction rather than through continuing use.
3 Critical accounting estimates and judgements

Estimates and judgements are continually evaluated and are based on historical experience as adjusted for current market
conditions and other factors.
3.1 Critical accounting estimates and assumptions

Management makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition,
seldom equal the related actual results. The estimates, assumptions and management judgements that have a significant risk of
causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are outlined in the
following:


Page 63
Investment properties – Note 8

The valuation of investment properties was determined principally using discounted cash flow projections, based on estimates
of future cash flows, supported by the terms of any existing lease contracts and by external evidence such as current market
rentals for similar properties in the same location and condition, and using discount rates that reflect current market assessments,
of the uncertainty in the amount and timing of the cash flows.
The future rental rates were estimated depending on the actual location, type and quality of the properties and taking into
account market data and projections at the valuation date, as well as the length of vacant periods following the expiry of existing
lease agreements.
Accounts receivable – Note 13

At each statement of financial position date, management considers each material debtor in respect of whom legal proceedings
have been instituted, in order to determine the level of recoverability. A provision is made for portion of those considered
irrecoverable.
Derivative financial instruments – Note 21

The valuation of derivative financial instruments was determined using discounted cash flow projections, based on estimates of
future cash flows, supported by the terms of the relevant swap agreements and external evidence such as the ZAR 0-coupon
perfect-fit swap curve (“the swap curve”). Future floating cash flows are determined using forward rates ranging from 6,37% to
8,92%, derived from the swap curve as at 30 June 2010. The net cash flows were discounted using the swap curve as at 30 June
2010, at rates which ranged between 6,19% and 8,25%.
3.2 Critical judgements in applying the Group’s accounting policies

The Group did not make any critical accounting judgements in 2010 and 2009.
4 Operating segments
The Group adopted IFRS 8 Operating Segments. This has not resulted in an increase in the number of reportable segments
presented.
The chief operating decision maker is the person or group that allocates resources to and assesses the performance of the
operating segments of an entity. The Group has determined that its chief operating decision maker is the Chief Executive Officer
(CEO) of the Fund.
Management has determined the operating segments based on the reports reviewed by the CEO in making strategic decisions.
The CEO considers the business based on the following operating segments:
• Office
• Retail
• Industrial
The operating segments derive their revenue primarily from rental income from lessees. All of the Group’s business activities and
operating segments are reported within the above segments.

Page 64

FUND GROUP
2009 2010 2010 2009

R’000 R’000 R’000 R’000
5 Profit for the year before income tax CHARGE

Profit for the year before income tax charge is arrived
at after taking into account the following items:
Expenses
1 029 1 248 Auditors’ remuneration 1 248 1 029
1 025 1 241 Audit fee 1 241 1 025
4 7 Expenses 7 4
3 398 4 579 Operating lease payments – leasehold properties 11 152 8 925
6 deferred taxation
Reconciliation of the taxation charge:
Profit for the year before income tax charge at 28%
88 825 150 745 (2009: 28%) 143 325 72 369
(88 825) (150 745) Exempt income (150 745) (88 825)
Non-allowable deductions 3 738 4 599
Fair value adjustments (336) (54 705)
Other timing differences 552 284
Utilisation of losses (552) (293)
— — (4 018) (66 571)
7 Earnings per participatory interest

Reconciliation between earnings and headline
earnings and distribution payable
Profit for the year attributable to equity holders 514 557 323 388
Adjusted for:
Net fair value (gain)/deficit on investment properties (39 661) 83 511
Change in fair value of investment properties as a result
of straightlining lease rentals 10 012 22 822
of amortising upfront lease costs (5 329) 6 717
of property (appreciation)/depreciation in value (44 344) 53 972
Deferred taxation on revaluation of investment
properties (1 753) (54 441)
Headline earnings 473 143 352 458

Page 65
FUND GROUP
2009 2010 2010 2009

R’000 R’000 R’000 R’000
7 Earnings per participatory interest (continued)

Headline earnings 473 143 352 458
Adjusted for:
Allowance for future rental escalations (10 012) (22 822)
Amortised upfront lease costs 5 329 (6 717)
Unrealised deficit on interest-rate swaps 63 818 183 136
Unrealised gain on listed property investment (2 769) —
Deferred taxation – other timing differences (2 265) (12 130)
Distribution payable to participatory
interest holders 527 244 493 925
Distribution per participatory interest

Interim (cents) 51,84 48,79
Final (cents) 56,24 52,46
108,08 101,25
Number of participatory interests in issue at the end

of the year 487 827 654 487 827 654
Weighted average number of participatory interests in issue 487 827 654 491 194 770
Earnings per participatory interest (cents) 105,48 65,84
The calculation of earnings per participatory interest is
based on net profit for the year of R514,6 million
(2009: R323,4 million), divided by the weighted average
number of participatory interests in issue during the year
of 487 827 654 (2009: 491 194 770).
Headline earnings per participatory interest (cents) 96,99 71,76
The calculation of headline earnings per participatory
interest is based on net profit for the year, adjusted
for the non-trading items, of R473,1 million
(2009: R352,5 million), divided by the weighted
average number of participatory interests in issue
during the year of 487 827 654 (2009: 491 194 770).

Page 66

FUND GROUP
Freehold Freehold
and and
leasehold Fixtures leasehold Fixtures
land and and land and and
buildings fittings Total buildings fittings Total
R’000 R’000 R’000 R’000 R’000 R’000
8 Investment properties
Net carrying value at 30 June 2010
3 583 901 71 708 3 655 609 Cost 4 828 608 84 139 4 912 747
(52 858) (52 858) Accumulated depreciation (56 331) (56 331)
1 822 056 1 822 056 Revaluation surplus 2 824 657 2 824 657
(238 539) (238 539) Non-current assets held for sale (347 039) (347 039)
5 167 418 18 850 5 186 268 7 306 226 27 808 7 334 034
Movement for the year

4 981 289 23 432 5 004 721 Valuation at 1 July 2009 7 127 001 31 602 7 158 603
36 000 — 36 000 Acquisitions 36 000 — 36 000
95 637 3 476 99 113 Additions 100 492 5 910 106 402
(12 189) — (12 189) Disposals (12 189) — (12 189)
(8 058) (8 058) Depreciation (9 704) (9 704)
44 720 44 720 Surplus on revaluation 39 661 39 661
Non-current assets held for sale
260 500 260 500 – prior year 362 300 362 300
(238 539) (238 539) – current year (347 039) (347 039)
5 167 418 18 850 5 186 268 Valuation at 30 June 2010 7 306 226 27 808 7 334 034
Reconciliation to independent
and directors’ valuations
Valuation at 30 June 2010
5 167 418 18 850 5 186 268 – as above 7 306 226 27 808 7 334 034
26 333 26 333 Unamortised upfront lease costs 39 019 39 019
238 539 238 539 Non-current assets held for sale 347 039 347 039
Independent and directors’
5 551 698 18 850 5 570 548 valuations at 30 June 2010 7 855 122 27 808 7 882 930

Page 67
FUND GROUP
Freehold Freehold
and and
leasehold Fixtures leasehold Fixtures
land and and land and and
buildings fittings Total buildings fittings Total
R’000 R’000 R’000 R’000 R’000 R’000
8 Investment properties
(continued)
Net carrying value at 30 June 2009
3 458 878 68 232 3 527 110 Cost 4 698 729 78 229 4 776 958
(44 800) (44 800) Accumulated depreciation (46 627) (46 627)
1 782 911 1 782 911 Revaluation surplus 2 790 572 2 790 572
(260 500) (260 500) Non-current assets held for sale (362 300) (362 300)
4 981 289 23 432 5 004 721 7 127 001 31 602 7 158 603
Movement for the year

5 074 819 29 515 5 104 334 Valuation at 1 July 2008 7 270 193 34 973 7 305 166
198 125 — 198 125 Acquisitions 198 125 198 125
55 371 4 310 59 681 Additions 106 566 8 149 114 715
(20 914) (137) (21 051) Disposals (20 914) (137) (21 051)
22 22 Disposals – accumulated depreciation 22 22
(10 071) (10 071) Depreciation (11 198) (11 198)
207 (207) — Reclassification 207 (207) —
(84 454) (84 454) Deficit on revaluation (83 511) (83 511)
18 635 18 635 – prior year 18 635 18 635
(260 500) (260 500) – current year (362 300) (362 300)
4 981 289 23 432 5 004 721 Valuation at 30 June 2009 7 127 001 31 602 7 158 603
Reconciliation to independent and

directors’ valuations
Valuation at 30 June 2009
4 981 289 23 432 5 004 721 – as above 7 127 001 31 602 7 158 603
29 642 29 642 Unamortised upfront lease costs 44 348 44 348
260 500 260 500 Non-current assets held for sale 362 300 362 300
Independent and directors’
5 377 975 23 432 5 401 407 valuations at 30 June 2009 7 686 475 31 602 7 718 077
Full details of freehold and leasehold investment properties owned by the Group are available for inspection at the registered office of the Group.
In terms of its accounting policy, one-third of the Group’s property portfolio is valued annually by independent valuers.
The properties were valued as at 30 June 2010 using a discounted cash flow approach based on future income streams, applying an appropriate capitalisation
rate to each property.
Independent valuations were carried out by Benchmark Valuation Group, CB Richard Ellis and DDP Valuers, all registered valuers in terms of section 19 of the
Property Valuers Profession Act (Act No 47 of 2000).
The balance of the portfolio was valued by the directors on a similar basis.
Investment properties classified as held for sale were valued at fair value.
Investment properties to the value of R7 512,2 (2009: R7 351,3 million) have been used to provide security for loans taken out. See note 18.

Page 68

FUND GROUP
2009 2010 2010 2009

R’000 R’000 R’000 R’000
9 Allowance for future rental escalations

86 790 106 544 Opening balance at 1 July 2009 152 826 130 004
19 754 12 864 Income recognised during the year 10 012 22 822
106 544 119 408 Closing balance at 30 June 2010 162 838 152 826
19 193 22 933 Current portion 37 693 31 444
10 Unamortised upfront lease costs

24 635 29 642 Opening balance at 1 July 2009 44 348 37 631
5 007 — Expense deferred during the year — 6 717
— (3 309) Expense recognised during the year (5 329) —
29 642 26 333 Closing balance at 30 June 2010 39 019 44 348
11 Subsidiary companies
1 339 187 1 339 187 Shares at cost
(90 754) (90 054) Amounts owed to subsidiary companies
1 248 433 1 249 133
The Group’s shares in Arnold Properties (Proprietary)
Limited have been pledged to Nedbank Limited as security
for the issue of preference shares to them.
The Group’s shares in Freestone Property Investments

(Proprietary) Limited have been pledged to Freestone
Mortgage Bond SPV Series 1 (Proprietary) Limited as
security for the issue of CMBS notes.
The directors’ valuation of the investment in subsidiaries at

30 June 2010 was R1 410 519 (2009: R1 434 336).
Investment in subsidiaries
Issued ordinary Proportion held by Amount due to/(by)

share capital holding company Shares at cost holding company
2010 2009 2010 2009 2010 2009 2010 2009

R’000 R’000 % % R’000 R’000 R’000 R’000
Subsidiaries directly held

Freestone Property Holdings Ltd 38 659 38 659 100 100 1 339 187 1 339 187 (90 054) (90 754)
Subsidiaries indirectly held
Arnold Properties (Pty) Ltd* — — 100 100 8 020 8 020 180 245 174 922
Freestone Property
Investments (Pty) Ltd* — — 100 100 — — 419 616 424 240
Azgold Investments (Pty) Ltd 10 382 10 382 100 100 3 247 3 247 (3 947) (3 947)
Backbone Investments (Pty) Ltd* — — 100 100 3 243 3 243 2 774 2 780
Kenview Share Block (Pty) Ltd* — — 100 100 (1 885) (1 885) 4 560 4 556
No. 9 Sturdee Holdings Share
Block (Pty) Ltd* — — 100 100 497 497 7 366 7 362
Paddy’s Pad (2091) (Pty) Ltd* — — 100 100 15 539 15 539 (16 715) (16 715)
Surgate Share Block (Pty) Ltd 1 1 100 100 (1 981) (1 981) 5 105 5 107
The Colony Centre
Share Block (Pty) Ltd 1 1 100 100 4 913 4 913 (11 057) (11 057)
Windrifter Share Block (Pty) Ltd* — — 100 100 20 192 20 192 59 359 57 972
* The zero balances represent nominal amounts under R1 000.

Page 69
FUND GROUP
2009 2010 2010 2009

R’000 R’000 R’000 R’000
12 Listed property investment

Growthpoint Properties Australia Limited
— 116 898 Cost 116 898 —
— 2 769 Fair value adjustment 2 769 —
— 119 667 Fair value at 30 June 2010 119 667 —
Exchange rate ZAR: 1 AUD 6,486
During May 2010 the Fund acquired 10 250 000 stapled
securities in Growthpoint Properties Australia Limited
(GOZ), which represented a 6,4% interest. GOZ is listed on
the Australian Stock Exchange (ASX).
The investment is designated as fair value through profit
and loss. The fair value is determined using the quoted bid
price at 30 June 2010 of AUD1,80.
13 Accounts receivable
29 109 44 884 Trade receivables 59 125 40 195
(11 452) (15 963) Less: Provision for non-recoverable receivables (24 705) (18 524)
17 657 28 921 Net trade receivables 34 420 21 671
1 547 3 010 Prepayments 3 887 3 514
19 260 16 612 Other receivables 24 538 26 707
38 464 48 543 62 845 51 892
38 464 48 543 Due within one year 62 845 51 892
The carrying values of accounts receivable approximate
their fair value.
The movement in the accumulated provision
for non-recoverable receivables is as follows:
8 038 11 452 Accumulated provision for non-recoverable 18 524 11 146
receivables at 1 July 2009
(4 814) (4 257) Amounts written off during the year as uncollectable (5 806) (5 603)
8 228 8 768 Additional provision recognised during the year 11 987 12 981
Accumulated provision for non-recoverable receivables at
11 452 15 963 30 June 2010 24 705 18 524
Ageing of receivables past due but not impaired

6 315 10 435 30 days 12 403 9 645
3 045 3 985 60 days 5 230 4 772
1 868 2 425 90 days 2 799 2 939
6 429 12 076 120+ days 13 988 4 315
17 657 28 921 34 420 21 671
Ageing of impaired receivables

— 1 030 30 days 1 557 —
— 1 282 60 days 2 463 —
— 1 172 90 days 1 686 —
11 452 12 479 120+ days 18 999 18 524
11 452 15 963 24 705 18 524

Page 70

FUND GROUP
2009 2010 2010 2009

R’000 R’000 R’000 R’000
14 Derivative financial instruments

Net fair values of derivative assets at the balance
sheet date were:
4 527 — Interest rate swap contracts — 6 817
4 527 — — 6 817
Interest rate swaps

The notional principal amount of the outstanding interest
rate swap contracts at 30 June 2010 was R1 694,6 million
(2009: R1 574,6 million)
Refer to note 18 for details of the swap contracts.
15 Cash and cash equivalents

22 898 25 598 Cash at bank 40 681 36 524
16 Participatory interest holders capital
Authorised and issued
3 563 635 3 511 484 Opening balance at 1 July 2009 3 511 484 3 563 635
(52 151) — Repurchased during the year — (52 151)
(4 991 335 PIs were repurchased in March 2009 in
terms of a special resolution passed on 18 November
2008. Emira has the right to re-issue the PIs at a later
date).
3 511 484 3 511 484 Closing balance at 30 June 2010 3 511 484 3 511 484
17 Reserves
Fair value reserve
2 208 187 2 031 494 Opening balance at 1 July 2009 2 126 475 2 297 012
(84 454) 47 489 Fair value adjustments 42 430 (83 511)
5 007 (3 309) Unamortised upfront lease costs (5 329) 6 717
(117 000) (45 912) Unrealised deficit on interest rate swaps (63 818) (183 136)
— — Deferred taxation 4 018 66 571
2 031 494 2 042 626 Closing balance at 30 June 2010 2 113 788 2 126 475
Other reserve
(98 262) (98 262) Opening balance at 1 July 2009 (98 262) (98 262)
(98 262) (98 262) Closing balance at 30 June 2010 (98 262) (98 262)

Page 71
FUND GROUP
2009 2010 2010 2009

R’000 R’000 R’000 R’000
17 Reserves (continued)
Retained earnings
(1 511) (1 511) Opening balance at 1 July 2009 (1 345) (1 345)
317 232 538 376 Profit before income tax charge 511 874 258 459
(493 925) (527 244) Distribution to participatory interest holders (527 244) (493 925)
84 454 (47 489) Fair value adjustments (42 430) 83 511
(19 754) (12 864) Allowance for future rental escalations (10 012) (22 822)
(5 007) 3 309 Unamortised upfront lease costs 5 329 (6 717)
117 000 45 912 Unrealised deficit on interest rate swaps 63 818 183 136
— — STC on preference share dividends paid (1 335) (1 642)
(1 511) (1 511) Closing balance at 30 June 2010 (1 345) (1 345)
1 931 721 1 942 853 Total reserves 2 014 181 2 026 868
The fair value reserve represents all fair value

adjustments made in respect of investment properties,
the listed property investment and derivative financial
instruments. In terms of the Trust Deed of the Fund this
reserve is not distributable to participatory interest
holders.
The other reserve represents the charge which was
made to the statement of comprehensive income in
respect of the discount at which participatory interests
were issued to the Fund’s BEE partners and vendors of
properties, in prior years.
18 Interest-bearing debt
120 000 160 000 FirstRand Bank 160 000 120 000
Floating seven-year access funding term with a capital
repayment on termination on 31 May 2014. Interest is
payable at prime less 225 basis points. This facility is
secured, together with the 10-year funding term loan
noted below, by a first mortgage bond over fixed
property with a carrying value of R3,416 million.
645 027 646 353 Freestone Finance Company 646 353 645 027
650 000 650 000 CMBS notes issued to Rand Merchant Bank (RMB) 650 000 650 000
repayable on 28 March 2013. Various interest rate swap
agreements held by the Fund were novated to RMB,
resulting in an effective rate of 9,81%, inclusive of
securitisation costs. The notes are secured by a first
mortgage bond over fixed property with a carrying value
of R1,936 million.
(4 973) (3 647) Less: Unamortised securitisation costs (3 647) (4 973)

Page 72

FUND GROUP
2009 2010 2010 2009

R’000 R’000 R’000 R’000
18 Interest-bearing debt (continued)

112 838 287 780 FirstRand Bank Limited 287 780 112 838
114 475 289 475 Floating rate 10-year funding term with a capital 289 475 114 475
repayment on termination, on 30 March 2019. Interest is
payable at three-month JIBAR plus 153 basis points. This
loan, together with the seven-year access funding term
loan noted above, is secured by a first mortgage bond
over fixed property with a carrying value of
R3,416 million.
(1 637) (1 695) Less: Unamortised structuring fee (1 695) (1 637)
(1 740) (1 066) Amortised borrowing cost (1 066) (1 740)
(2 393) (1 740) Opening balance (1 740) (2 393)
(27) — Costs capitalised to borrowings — (27)
680 674 Less: Amounts amortised 674 680
Preference shares issued to Nedbank Limited 90 000 90 000
redeemable up to five years after issue i.e. on
31 January 2012.
Preference shares issued to Nedbank Limited 110 000 110 000
redeemable up to five years after issue i.e. on
11 September 2013
Freestone Finance Company 498 596 497 191
CMBS notes repayable on 18 June 2011. An interest rate 500 000 500 000
swap has been entered into for seven years, which when
taking the securitisation costs into account, gives an
effective rate of 9,20% per annum. The notes are secured
by a first mortgage bond over fixed property with a
carrying value of R1,644 million.
Less: Unamortised securitisation costs (1 404) (2 809)
876 125 1 093 067 1 791 663 1 573 316

Less: Short-term portion of interest-bearing debt
Freestone Finance Company (498 596) —
CMBS notes repayable on 18 June 2011.
876 125 1 093 067 Total interest-bearing debt 1 293 067 1 573 316
The carrying amount of the interest-bearing debt

approximates its fair value.
Debt funding
In terms of the Trust Deed, the Fund’s aggregated
indebtedness may not exceed an amount equal to
30% of the gross value of the underlying assets of the
Fund. At 30 June 2010, the aggregate indebtedness
amounted to 22,1% of the gross value of the
underlying assets. As at 30 June 2010 Emira had a
total debt facility available of R2,257 million.

Page 73
18 Interest-bearing debt (continued)

Various swaps have been entered into. The breakdown is as follows:
Rate Amount % of
(%) Term (Rm) debt
Debt – swap 9,43 September 2011 110,0 6,1

– extended 9,79 September 2021
Debt – swap 9,78 April 2013* 650,0 36,1
Debt – swap 9,20 June 2013 500,0 27,8
Debt – swap 10,25 October 2013 84,6 4,7
Debt – swap 9,25 June 2014 60,0 3,3
Debt – swap 10,11 April 2019 40,0 2,2
Debt – swap 9,87 March 2020 90,0 5,0
1 694,6 94,2
Debt – floating 8,15 January 2019 104,9 5,8
9,51 1 799,5 100,0
Less: Costs capitalised not yet amortised (7,8)
1 791,7
* Existing debt swaps that were in place have been novated to RMB. These revert back to Emira in April 2013 and continue until expiry, ranging between October
2013 and November 2018.
FUND GROUP
2009 2010 2010 2009

R’000 R’000 R’000 R’000
19 Deferred taxation
The analysis of the deferred taxation balance is as follows:
Change in fair value of investment properties 241 447 243 200
Change in fair value of derivative financial instruments (4 372) 641
Allowance for future rental escalations 12 161 12 959
Amortising upfront lease costs 3 552 4 118
Building allowances 2 342 734
Pre-paid debtors (2 228) —
Taxation loss (10 819) (15 551)
242 083 246 101
Reconciliation of the movement in deferred

taxation liability
Opening balance 1 July 2009 246 101 312 672
Change in fair value of investment properties (1 753) (54 441)
Change in fair value of derivative financial instruments (5 013) (18 518)
Allowance for future rental escalations (798) 859
Amortising upfront lease costs (566) 479
Building allowances 1 608 734
Pre-paid debtors (2 228) —
Taxation loss 4 732 4 316
Closing balance 30 June 2010 242 083 246 101

Page 74

FUND GROUP
2009 2010 2010 2009

R’000 R’000 R’000 R’000
20 Accounts payable
11 282 1 545 Trade payables 1 895 14 899
31 889 34 433 Tenant deposits 53 679 47 914
59 684 72 366 Accrued expenses 101 984 87 748
17 466 18 782 Pre-paid debtors 26 740 22 740
5 396 3 336 Value added tax 6 226 8 226
14 768 19 884 Other payables 24 833 18 100
140 485 150 346 215 357 199 627
140 485 150 346 Current 215 357 199 627
21 Derivative financial instruments

Net fair values of derivative liabilities at the balance sheet
date were:
— 41 385 Interest rate swap contracts 57 001 —
— 41 385 57 001 —
Interest rate swaps
The notional principal amount of the outstanding interest
rate swap contracts at 30 June 2010 was R1 694,6 million
(2009: R1 574,6 million)
Refer to note 18 for details of the swap contracts.
22 Notes to the statements of cash flowS

Cash generated from operations
317 232 538 376 Profit before income tax charge for the year adjusted for: 511 874 258 459
84 454 (47 489) Fair value adjustments (42 430) 83 511
(19 754) (12 864) Allowance for future rental escalations (10 012) (22 822)
(5 007) 3 309 Unamortised upfront lease costs 5 329 (6 717)
75 810 97 155 Interest paid 156 570 138 268
(1 728) (3 065) Interest capitalised to cost of developments (3 065) (1 728)
117 000 45 912 Unrealised deficit on interest rate swaps 63 818 183 136
(128 473) (148 012) Finance income (5 484) (11 902)
10 071 8 058 Depreciation 9 704 11 198
449 605 481 380 Operating profit before working capital changes 686 304 631 403
(7 835) (10 079) Increase in accounts receivable (10 953) (10 219)
26 292 9 861 Increase in accounts payable excluding STC 15 918 43 317
468 062 481 162 Cash generated from operations 691 269 664 501
Distribution to participatory interest holders

(235 075) (255 914) Distribution payable at 1 July 2009 (255 914) (235 075)
(493 925) (527 244) Distribution for the year (527 244) (493 925)
255 914 274 354 Distribution payable at 30 June 2010 274 354 255 914
(473 086) (508 804) Distribution paid to participatory interest holders (508 804) (473 086)
Taxation paid
Taxation liability at 1 July 2009 (837) (423)
Movement in statement of comprehensive income – STC (1 335) (1 642)
Taxation liability at 30 June 2010 649 837
Taxation paid for the year (1 523) (1 228)

Page 75
FUND GROUP
2009 2010 2010 2009

R’000 R’000 R’000 R’000
23 Related parties and related party

transactions
Momentum Group (“Momentum”) is the major
participatory interest holder. At 30 June 2010, Momentum
held 20,8% of the Fund’s participatory interests and the
Fund’s BEE partners – The Tiso Group, The Shalamuka
Foundation, Avuka Investments, The RMBP Broad Based
Empowerment Trust and Mr B van der Ross – held 12,5%.
The remaining 66,7% were widely held.
The following transactions were carried
out with related parties:
Strategic Real Estate Managers (Proprietary) Limited
31 843 36 171 Expenditure comprising asset management fees 36 171 31 843
Relationship: Associated company of the FirstRand Group
Rand Merchant Bank a division of FirstRand
Bank Limited
884 475 1 099 475 Long-term interest-bearing debt 1 099 475 884 475
Net finance cost in respect of long-term
72 526 93 617 interest-bearing debt 93 617 72 526
6 000 5 000 Cash on call 5 000 6 000
1 000 1 000 Cash reserve 2 000 2 000
5 467 1 572 Finance income on cash on call 1 572 5 467
158 136 40 510 Eris Property Group (Proprietary) Limited 58 773 176 806
Expenditure comprising: property management fee and
40 798 35 751 letting commissions 53 409 58 620
90 100 — Purchase consideration of TIS Corporate Park — 90 100
Development fees relating to refurbishments and
27 238 4 759 extensions 5 364 28 086
Freestone Property Holdings Limited
1 339 187 1 339 187 Shares
(90 754) (90 054) Loan
9 558 10 573 Management fee received
118 694 143 842 Interest received
Relationship: Wholly-owned subsidiary
The above transactions were carried out on commercial
terms and conditions no more favourable than those
available in similar arm’s length dealings at market-related
rates.
24 Minimum contracted rental income

The Group has rental income receivable in terms
of operating lease contracts:
537 952 547 062 – Due within one year 793 500 768 601
1 024 800 953 124 – Due within two to five years 1 298 962 1 363 093
118 404 63 986 – Due beyond five years 97 735 148 866
1 681 156 1 564 172 2 190 197 2 280 560

Page 76

FUND GROUP
2009 2010 2010 2009

R’000 R’000 R’000 R’000
25 Commitments and contingencies

Authorised capital expenditure
164 703 160 100 – Committed 161 500 164 703
36 000 62 000 – Contracted for 62 000 36 000
Operating lease commitments

Commitments due in respect of leases entered into on
leasehold properties:
4 510 5 066 – Due within one year 12 252 10 531
22 362 23 239 – Due within two to five years 56 704 51 336
3 684 190 3 702 472 – Due beyond five years 4 528 296 4 432 677
3 711 062 3 730 777 4 597 252 4 494 544
Contingencies
The Fund had no material contingent liabilities
at 30 June 2010.
26 Post YEAR-END events

1. During August 2010, participatory interest holders
approved a change in the Trust Deed of the Fund, in
terms of which the service charge payable to the
manager of the Fund, Strategic Real Estate Managers
(Proprietary) Limited (STREM) was amended to a cost
recovery basis only, in return for a once-off lump
sum payment of R197,4 million.
In order to fund the lump-sum payment, 20 182 575
new participatory interests were issued at a price of
R12,88, which included distributions totalling 76,59
cents per participatory interest.
2. Other amendments to the Trust Deed, in respect of
extending the investment policy of the Fund and
increasing its borrowing capacity from 30% to 40%
of its underlying assets were approved with effect
from 15 September 2010.
3. Growthpoint Properties Australia Limited (GOZ),
a property trust listed on the Australian Stock
Exchange, conducted a rights issue in favour of the
holders in its stapled securities. The Fund, which
acquired a 6,4% interest in GOZ during May 2010,
participated in the rights issue and as a result
increased its interest in GOZ to 9,13% at a cost
of R117,3 million.
4. Howick Gardens, Standard Bank Glenwood and
QD House, which were included in properties held
for sale, were transferred after year-end.
5. 80 Strand Street, an office building in the Cape Town
CBD, which was purchased for R62 million prior to
the year-end, has not yet been transferred to the
Fund. Transfer is expected to take place during
October 2010.

Page 77
27 Segment Information
The Fund’s activities are divided into three main categories namely:
Office – Comprises commercial properties
Retail – Comprises shopping centres
Industrial – Comprises industrial properties
Adminis-
trative and
Office Retail Industrial corporate Total
Sectoral segments R’000 R’000 R’000 R’000 R’000
June 2010
Revenue 510 188 463 773 188 218 1 162 179
Revenue 511 019 455 785 185 363 1 152 167
Allowance for future rental escalations (831) 7 988 2 855 10 012
Segmental result
Operating profit 319 994 266 460 136 776 (41 947)* 681 283
Other information
Depreciation 7 152 1 930 622 9 704
Investment properties 3 696 931 2 846 316 1 339 683 7 882 930
Investment properties held for sale 227 100 69 739 50 200 347 039
Change in fair value of investment properties 18 137 21 631 (107) 39 661
June 2009
Revenue 485 109 423 794 173 785 1 082 688
Revenue 477 152 415 700 167 014 1 059 866
Allowance for future rental escalations 7 957 8 094 6 771 22 822
Segmental result
Operating profit 305 783 258 132 122 662 (36 833) 649 744
Other information
Depreciation 8 039 2 120 1 039 11 198
Investment properties 3 679 586 2 732 279 1 306 212 7 718 077
Investment properties held for sale 217 500 89 300 55 500 362 300
* Includes management expenses of R36,171 million and general Fund expenses of R5,776 million.
No segment analysis of liabilities and the related interest payable has been presented as liabilities cannot be linked to specific properties.

Page 78

27 Segment Information (continued)
Adminis-
trative and
Office Retail Industrial corporate Total
Geographical segments R’000 R’000 R’000 R’000 R’000
June 2010
Revenue
– Gauteng 381 718 306 847 142 276 830 841
– Western and Eastern Cape 63 235 40 480 19 134 122 849
– KwaZulu-Natal 44 347 76 512 26 808 147 667
– Free State 20 888 39 934 — 60 822
510 188 463 773 188 218 1 162 179
Investment properties
– Gauteng 2 794 049 1 906 016 1 036 783 5 736 848
– KwaZulu-Natal 283 100 454 100 147 400 884 600
– Free State 114 400 239 100 — 353 500
3 696 931 2 846 316 1 339 683 7 882 930
June 2009
Revenue
– Gauteng 361 584 288 445 134 567 784 596
– KwaZulu-Natal 43 218 65 513 26 164 134 895
– Free State 19 355 33 240 — 52 595
485 109 423 794 173 785 1 082 688
Investment properties
– Gauteng 2 763 004 1 868 800 1 040 500 5 672 304
– KwaZulu-Natal 275 800 431 113 147 212 854 125
– Free State 116 400 195 300 — 311 700
3 679 586 2 732 279 1 306 212 7 718 077
28 Financial risk management

The Group’s financial instruments consist mainly of deposits with banks, accounts receivable and prepayments, derivative
financial instruments, interest-bearing debt, accounts payable and distributions payable to participatory interest holders. In
respect of the aforementioned financial instruments, book values approximate fair value.
Exposure to interest rate, credit and liquidity risks occurs in the normal course of business.
Cash resources are monitored to meet working capital requirements and surplus cash is applied on an access basis against long-
term interest-bearing liabilities.
Capital risk management
The capital structure of the Fund is governed by the Trust Deed. The Group’s borrowings are limited to 30% of the value of the
Group’s property portfolio. (This has been amended to 40% with effect from 15 September 2010).
The Group’s utilised borrowing capacity at 30 June 2010 can be summarised as follows:
2010 2009
R’000 R’000
Valuation of property portfolio 7 882 930 7 718 077

Total borrowings 1 791 663 1 573 316
Utilised capacity 22,7% 20,4%

Page 79
28 Financial risk management (continued)

Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
prices. The Group’s market risks arise from changes in foreign currency exchange rates and interest rates. The Group enters into
interest rate swap agreements to mitigate the risk of rising interest rates as set out in note 18.
Foreign currency risk management
The Group’s exposure to exchange rate fluctuations arises through the investment in a listed foreign asset.
The following table details the Group’s sensitivity to a 10% increase and decrease in the rand against the Australian dollar. 10% is
the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents
management’s assessment of the reasonably possible change in foreign exchange rates.
Increase Decrease
2010 2009 2010 2009

R’000 R’000 R’000 R’000
Profit or loss 11 967 — (11 967) —

Investment in listed property investments 11 967 — (11 967) —
Interest rate risk management

The Group’s exposure to interest rates on financial instruments at the date of the statement of financial position set out in
note 21.
Interest rates are constantly monitored and appropriate steps are taken to ensure that the Group’s exposure to interest rate
fluctuations is limited. Interest rates have been fixed for extended periods ranging from 2013 to 2023. The average rate of interest
at 30 June 2010 (applicable to the fixed interest rate agreements) was 9,51% (2009: 9,61%).
At 30 June 2010, 5,8% of Emira’s debt was subject to a variable or floating interest rate and was not covered by an interest rate
swap agreement. An increase in the prime interest rate of 1% per annum would result in an increase in interest payable, of
R1,1 million per annum, in respect of the floating portion of the Group’s debt.
Credit risk management
Credit risk is limited to the carrying amount of financial assets at the balance sheet date.
Potential areas of credit risk consist of trade receivables and short-term cash investments. Trade receivables consist of a large,
widespread tenant base. All specific doubtful debts have been impaired and at year-end management did not consider there to
be any material credit risk exposure that was not already covered by an impairment adjustment.
The impairment adjustment at 30 June 2010 was R24,7 million (2009: R18,5 million) net of tenants’ deposits and
guarantees held as security. The Group held cash deposits and guarantees with a fair value of R92,3 million at 30 June 2010 (2009:
R79,6 million).
The specifically impaired receivables relate to tenants who have either been handed over for non-payment, or have vacated the
premises.
It is expected that a portion of the specifically impaired receivables will be recovered.
The allowance for impaired receivables and receivables written off are included in property expenses. Amounts charged to the
allowance will be written off when all avenues for recovery have been exhausted and there is no expectation that any further
cash will be received.
At 30 June 2010 no geographic area, rental sector or size of tenant had been identified as a specific credit risk.
Receivables past due but not impaired
Receivables are considered to be “past due” when they are uncollected one day or more beyond their contractual due date.
As at 30 June 2010, trade receivables of R34,4 million (2009: R21,7 million) were considered past due but not impaired.
These include varied tenants with no recent history of payment default.

Page 80


Liquidity risk management
Liquidity risk is the risk that the group will be unable to meet its financial commitments. The risk is minimised by holding cash
balances and by a floating loan facility.
The Group monitors liquidity risk by regularly monitoring forecast cash flows. The Group will utilise its undrawn loan facilities in
order to meet its short-term cash flow obligations. Negotiations are taking place regarding the financing of the repayment of the
CMBS notes, in June 2011, of R500 million.
The following table details the maturity of financial assets and liabilities and is used by management to manage liquidity risks.
The amounts disclosed in the below table are the contractual undiscounted cash flows. Undiscounted cash flows in respect of
balances due within one year or less generally equal their carrying amounts in the statement of financial position as the impact
of discounting is not significant.
The fair value of the derivative financial instruments fluctuates in line with interest rate movements. This value will reduce to nil
on expiry date.
Weighted
average
effective
interest 1 year 1 – 5 More than
rate or less years 5 years Total
% R’000 R’000 R’000 R’000
Year ended 30 June 2010

Financial assets
Listed property investment 119 667 119 667
Accounts receivable 62 845 62 845
Cash and cash equivalents 6,0 – 7,0 40 681 40 681
Total financial assets 103 526 119 667 — 223 193
Financial liabilities
Redeemable preference shares 9,19 200 000 200 000
Interest-bearing debt 9,51 500 000 1 091 663 1 591 663
Accounts payable 215 357 215 357
Derivative financial instruments 57 001 57 001
Distributions payable to participatory interest holders 274 354 274 354
Total financial liabilities 1 046 712 1 291 663 — 2 338 375

Financial assets
Accounts receivable 51 892 51 892
Derivative financial instruments 6 817 6 817
Cash and cash equivalents 7,0 – 11,5 36 524 36 524
Total financial assets 95 233 — — 95 233
Redeemable preference shares 9,69 200 000 200 000
Interest-bearing debt 9,61 1 373 316 1 373 316
Accounts payable 199 627 199 627
Distributions payable to participatory interest holders 255 914 255 914
Total financial liabilities 455 541 1 573 316 — 2 028 857

Page 81

Equity price risk
The listed property investment of R119 667 000 (2009: Rnil) is subject to equity price risk. It is reflected at fair value based on the
quoted bid price at 30 June 2010, of AUD1,80. The following table details the Group’s sensitivity to a 10% increase or decrease in
the quoted price of the listed property investment on the Australian Stock Exchange.
2010 2010 2009 2009

R’000 R’000 R’000 R’000
10% 10% 10% 10%
Increase Decrease Increase Decrease
Listed property investment 11,967 (11,967) — —
Cash and cash equivalents

It is Group policy to deposit short-term cash investments with FirstRand Bank Limited, which has been given an A2 rating by
Moody’s Investor Services.
Fair value estimation
Effective 1 July 2009, the Group adopted the amendment to IFRS 7 for financial instruments that are measured in the statement
of financial position at fair value, this requires disclosure of fair value measurements by level of the following fair value
measurement hierarchy:
– Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1).
– Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as
prices) or indirectly (that is, derived from prices) (level 2).
– Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3).
The following table presents the Group’s assets and liabilities that are measured at fair value at 30 June 2010.
Total
R’000 Level 1 Level 2 Level 3 balance
Assets
Financial assets at fair value through profit or loss
– Listed property investment 119 667 119 667
Total assets 119 667 — — 119 667
Liabilities
Financial liabilities at fair value through profit or loss
– Derivative financial instruments 57 001 57 001
Total liabilities — 57 001 — 57 001
The fair value of financial instruments traded in active markets is based on quoted market prices at the date of the statement of
financial position. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer,
broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market
transactions on an arm’s length basis. The quoted market price used for financial assets held by the Group is the current bid price.
These instruments are included in level 1. The instrument included in level 1 comprises an investment in a property trust, listed
on the Australian Stock Exchange (ASX), classified as trading security.
The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is
determined by using valuation techniques. These valuation techniques maximise the use of observable market data where
it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument
are observable, the instrument is included in level 2.
If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
Specific valuation techniques used to value financial instruments include:
– Quoted market prices or dealer quotes for similar instruments.
– The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on
observable yield curves.

Page 82

29 Portfolio summary
Sectoral profile
Office Retail Industrial Total
% of GLA 37,0 31,0 32,0 100,0

Weighted average lease escalation (%) 9,3 8,0 8,9
Lease expiry profile (% of revenue)
Year 1 16,1 9,7 4,6 30,4
Year 2 10,6 7,0 2,9 20,5
Year 3 16,9 7,2 2,9 27,0
Year 4 3,0 3,5 2,1 8,6
Year 5+ 3,5 6,8 3,2 13,5
50,1 34,2 15,7 100,0
Lease expiry profile (% of GLA)

Vacant 5,9 1,7 1,6 9,2
Year 1 12,2 7,2 8,8 28,2
Year 2 7,5 5,5 5,6 18,6
Year 3 6,5 5,2 5,2 16,9
Year 4 2,1 3,8 5,9 11,8
Year 5+ 2,7 7,9 4,7 15,3
36,9 31,3 31,8 100,0
Vacancy profile (% of GLA) 16,2 5,3 5,1 9,2
Geographical profile
Western
and
Eastern KwaZulu-
Gauteng Cape Free State Natal Total
% of GLA 70,1 12,4 4,5 13,0 100,0

Average annualised yield achieved by the
portfolio was 9,2%.
Tenant profile
Grade A Grade B Grade C Total
% of GLA 44,0 21,0 35,0 100,0

Tenants have been graded as follows:
"A" grade: Large national tenants, large listed tenants, government and major franchisees. These include, inter alia, Absa Bank,
Afrox, the Department of Labour, Edgars, FirstRand Bank, JD Group, Pepkor, Pick n Pay Stores, Shell, the Standard Bank
Group, Ster-Kinekor, Truworths International and Virgin Active.
"B" grade: National tenants, listed tenants, franchisees and medium to large professional firms. These include, inter alia, Afgri,
Builders Express, Debonairs Pizza, Fishaways, John Dory’s, Mikes Kitchen, Postnet, Rage Distribution, Torga Optical,
UCS Group, Vodacom, Young & Rubicam and Wimpy.
"C" grade: Other tenants comprise all other tenants that do not fall into the above two categories.

Page 83
30 PARTICIPATORY INTEREST (PI) HOLDERS’ analysis
Number of
Number of % of participatory % of
holders holders interests capital
Directors’ holdings 9 0,24 14 230 947 2,92

Strategic holdings (more than 10%) 1 0,03 101 425 215 20,79
Empowerment partners excluding directors’ holdings 5 0,13 48 372 686 9,91
Non-public 15 0,40 164 028 848 33,62
Public 3 758 99,60 323 798 806 66,38
Totals 3 773 100,00 487 827 654 100,00
Distribution of PI holders
Banks 22 0,58 6 115 134 1,25
Close corporations 34 0,90 1 183 437 0,24
Empowerment 5 0,13 60 880 955 12,48
Endowment funds 125 3,31 8 682 393 1,78
Individuals 2 383 63,16 17 959 385 3,68
Insurance companies 41 1,09 95 713 713 19,62
Investment companies 20 0,53 34 685 527 7,11
Medical schemes 8 0,21 511 289 0,11
Mutual funds 152 4,03 154 087 266 31,59
Nominees and trusts 731 19,38 17 228 403 3,53
Other corporations 22 0,58 731 930 0,15
Private companies 84 2,23 5 192 910 1,06
Public companies 1 0,03 120 000 0,03
Retirement funds 145 3,84 84 735 312 17,37
Totals 3 773 100,00 487 827 654 100,00
Range analysis at 30 June 2010

1 – 1 000 354 9,38 198 446 0,04
1 001 – 10 000 2 225 58,97 10 656 690 2,18
10 001 – 100 000 911 24,15 26 422 377 5,42
100 001 – 1 000 000 217 5,75 68 798 491 14,10
Over 1 000 000 66 1,75 381 751 650 78,26
Totals 3 773 100,00 487 827 654 100,00
The following holders of PIs hold, beneficially directly or
indirectly, at 30 June 2010, in excess of 5% of the issued
participatory interest capital:
Holder
Momentum Group 101 425 215 20,79
Tiso Group 42 271 468 8,67
List of managers managing in excess of 5% of the issued

participatory interest capital
Manager
STANLIB 54 618 482 11,20

Page 84

30 PARTICIPATORY INTEREST (PI) HOLDERS’ ANALYSIS AT 30 JUNE 2010 (continued)

The holdings of the directors of STREM in the participatory interests of the Fund at 30 June 2010 were:
Beneficial Beneficial Held by Beneficial Beneficial Held by

direct indirect associates Total direct indirect associates Total
Director 2010 2010 2010 2010 2009 2009 2009 2009
Executive directors
Warren Schultze 391 000 391 000 391 000 391 000
James Templeton 349 800 349 800 349 800 349 800
Peter Thurling 32 000 188 000 220 000 32 000 188 000 220 000
Non-executive directors
Michael Aitken 20 000 288 000 308 000 20 000 288 000 308 000
Liliane Barnard
(Resigned 5 August 2009) 2 049 950 2 049 950
Bryan Kent 413 878 413 878 413 878 413 878
Nocawe Makiwane 1 511 133 1 511 133 1 511 133 1 511 133
Thys Neser 20 000 20 000 40 000 20 000 20 000 40 000
Nkululeko Sowazi 7 820 221 7 820 221 7 820 221 7 820 221
Ben van der Ross 3 176 915 3 176 915 3 176 915 3 176 915
Totals 401 800 13 521 147 308 000 14 230 947 401 800 13 521 147 2 357 950 16 280 897
Since the end of the financial year to the date of this report, the interests of directors have remained unchanged.

Page 85
31 Property listing (including new acquisitions)
30 June Weighted
2010 average
GLA valuation gross rent/m² % of % of
Type Property Location Major tenant (m2) R (incl parking) sector portfolio
Office 100 on Armstrong# 100 Armstrong Avenue, Forest Imperial Bank (Pty) Limited, Nurturing 2 871 31 700 000 107,62 0,9 0,4
Park La Lucia Ridge, Durban Orphans of Aids for Humanity,
Momentum Group Limited,
Glaxosmithkline SA (Pty) Limited
Office 1059 Schoeman Street 1059 Schoeman Street, Hatfield SABC Limited, United Nations Office 6 047 55 500 000 96,83 1,5 0,7
for Drug Control & Crime Prevention,
The Embassy of Ireland, Khuthele
Projects (Pty) Limited
Office 12 Baker Street* 12 Baker Street, Rosebank Sasol Group Services (Pty) Limited 4 636 45 300 000 93,13 1,2 0,6
Office 122 Pybus Road# 122 Pybus Road, Sandton Rennies Travel (Pty) Limited, SBT Juul 5 340 33 209 000 62,64 0,9 0,4
South Africa, Cloudberry Investments
13 (Pty) Limited, Bombela Civils Joint
Venture (Pty) Limited, Gecamines
Office 2 Frosterley Park* 2 Frosterley Crescent, La Lucia Telesure Group Services (Pty) Limited 2 312 28 200 000 93,13 0,8 0,4
Ridge, Umhlanga Rocks, Durban
Office 2 Sturdee Avenue* 2 Sturdee Avenue, Rosebank Sasol Group Services (Pty) Limited 5 603 53 100 000 93,13 1,4 0,7
Office 267 West# 267 West Avenue, Centurion Afgri Capital, a division of Afgri 9 799 78 500 000 103,50 2,1 1,0
Operations Limited, FirstRand Bank
Limited, FNB Life
Office Albury Park Magalieszicht Avenue, Dunkeld The Resolve Group (Pty) Limited, 8 107 72 900 000 86,27 2,0 0,9
West, Sandton Northam Platinum Limited, Pin Point
One Human Resources (Pty) Limited,
Bouwers Intellectual Property
Attorney, Trilion Video Eight
(Pty) Limited
Office Bank Forum 337 Veale Street, New Muckleneuk Newtons Incorporated, Nedbank 7 466 70 200 000 92,39 1,9 0,9
Pretoria Limited, Bild Architects, VFS Visa
Processing (SA) (Pty) Limited, Finbond
Property Finance Limited, Afrilink
Leisuretainment (Pty) Limited,
SA Home Loans
Office Boundary Terraces 1 Mariendahl Lane, Newlands ASISA, Pinnacle Point Investments 8 211 106 000 000 98,15 2,9 1,3
Cape Town (Pty) Limited, Resafrica (Pty) Limited,
RMB Asset Management (Pty) Limited,
Dayspring Holdings SA (Pty) Limited
Office Braamfontein Centre 23 Jorissen Street, Braamfontein Pick n Pay, Centre for the Study of 20 776 121 600 000 69,41 3,3 1,5
Violence & Reconciliation, The Ford
Foundation, T & T Appointments,
Spectrium Consulting (Pty) Limited
Office Bradenham Hall# Mellis Avenue, Rivonia Millward Brown SA (Pty) Limited, 4 569 42 169 000 73,99 1,1 0,5
QAD Software South Africa
(Pty) Limited, Strats Solutions CC,
IFS Consulting (Pty) Limited
Office Brooklyn Office Park# 105 Nicolson Street, Brooklyn Mazars Moores Rowland, Discovery 5 364 40 191 000 74,52 1,1 0,5
Health, KMG and Associates Inc,
Austrian Embassy, Mosela Rating
Agency, Pracmed, Cassells
Accountants Incorporated
* Single tenant – weighted average for all single-tenant buildings in office sector – R93,13/m².
#
Independently valued at 30 June 2010.

Page 86

31 Property listing (including new acquisitions) (continued)
30 June Weighted
2010 average
Office Century Gate# Cnr Bosmandam Road and Med-e-Mass (Pty) Limited, Imperial 1 366 8 200 000 49,54 0,2 0,1
Century Drive, Century City Online, Academy of Advanced
Technology (Pty) Limited
Office Chiappini House 26 Chiappini Street, Cape Town Icicle Investments (Pty) Limited, 1 020 10 300 000 84,26 0,3 0,1
Diamond’s Discount Liquor
(Pty) Limited, The Big Picture
Company, Hey Papa Legend CC
Office Ciros House 41A Homestead Avenue, Vacant 1 838 8 700 000 — 0,2 0,1
Edenburg
Office CRB House Cnr Kramer & Desmond Streets St Leger & Viney (Pty) Limited, XDSL 5 940 25 500 000 44,79 0,7 0,3
Kramerville Trading 561 (Pty) Limited, Woodlam
(Pty) Limited, Sol Danka (Pty) Limited
Office Dalefern# 284 Oak Avenue, Ferndale Only the Best (Pty) Limited, Primedia 3 787 20 500 000 66,33 0,6 0,3
@ Home (Pty) Limited, Population
Council, Health Science Academy
(Pty) Limited, Orica South Africa
(Pty) Limited, Khetha Staffing
Services (Pty) Limited
Office Deloitte*# Cnr Fehrsen Street & Waterkloof Deloitte and Touche 4 094 42 108 000 93,13 1,1 0,5
Road, Brooklyn
Office Derby Downs# 9 Derby Place and 4 Sookhai Place Lafarge South Africa (Pty) Limited, 2 205 19 800 000 87,37 0,5 0,3
Derby Downs McCarthy Limited, Tarsus
Technologies (Pty) Limited,
Tradebridge (Pty) Limited
Office Discovery Health PTA* Oak Road, Centurion Discovery Health (Pty) Limited 3 863 42 600 000 93,13 1,2 0,5
Office Dorbyl Parktown# 16 Jan Smuts Avenue, Parktown Pyromet (Pty) Limited 2 346 27 978 000 99,34 0,8 0,4
Office Dresdner House 2 North Road, Dunkeld West Interact Research Design and 834 9 500 000 63,24 0,3 0,1
Training CC
Office East Coast Radio House# 314/7 Umhlanga Rocks Drive East Coast Radio (Pty) Limited, Strauss 6 804 54 300 000 81,01 1,5 0,7
Umhlanga Rocks Daly Inc, Absa Bank Limited,
Dimension Data (Pty) Limited,
IT Careers (Pty) Limited
Office East Rand Junction# Cnr Pond & Frank Streets, Hammond Pole Inc, Afgri Operations 6 710 47 000 000 73,95 1,3 0,6
Boksburg Limited, WesBank, Virtual Card
Aquiring (Pty) Limited
Office Epsom Downs Office 13 Sloane Street, Bryanston Angor Property Specialists 9 552 81 813 000 69,05 2,2 1,0
Park# (Pty Limited, Modernarch Offices
(Pty) Limited, Davbel CC, WBHO
Construction (Pty) Limited,
Foster-Mellar (Pty) Limited, Pra
Pharmaceuticals SA
Office Faerie Glen 291 Sprite Avenue, Faerie Glen Softline VIP, FirstRand Bank Limited, 10 324 131 200 000 120,67 3,5 1,7
South Africa Local Government
Association, WesBank, Sportron
International
Office Fleetway House 17 Martin Hammerschlag Way Management Computer Services, Print 7 103 36 300 000 47,62 1,0 0,5
Cape Town Active CC, The Property Administrators
Cape (Pty) Limited, M & S Shipping,
Cape Star Diamond CC, Academy of
Maritime Medicine CC
#
Page 87
30 June Weighted
2010 average
Office Fluor Building* 1 Kikuyu Street, Sunninghill Fluor SA (Pty) Limited 7 845 76 900 000 93,13 2,1 1,0
Office FNB Building 33-39 Heerengracht Street Mariams Kitchen (rest of the 6 745 19 182 000 – 0,5 0,2
Cape Town property vacant)
Office FNB Midrand Corner Douglas Rd & Old Pretoria
First National Bank of SA Limited, 2 532 14 000 000 60,47 0,4 0,2
Road, Randjiespark, Midrand Healthtech Laboratories (Pty) Limited
Office Gateview 3 Sugar Close, Umhlanga Dimension Data (Pty) Limited, Almar 2 727 25 700 000 99,43 0,7 0,3
Agencies, Private Property Listing,
CP De Leeuw Durban
Office Georgian Place 18 Southway Road, Kelvin The Heaven Group (Pty) Limited, 10 402 41 600 000 26,82 1,1 0,5
Infinex Financial Services (Pty)
Limited, TMS Group Industrial, Sean
Williams Contractors (Pty) Limited
Office Hamilton House 30 Chiappini Street, Cape Town Berry Bush /BBDO (Pty) Limited, Cape 3 449 35 000 000 78,60 0,9 0,4
Ceramics CC, Project Concern
International
Office Harbour Place 7 Martin Hammerschlag Way Noordhoek Motors (Pty) Limited, 5 395 43 200 000 67,40 1,2 0,5
Cape Town Megafreight Services Cape (Pty)
Limited, Metal & Engineering
Industries Bargaining Council, Tracker
Network (Pty) Limited
Office Harrogate Park Pretorius Street, Hatfield, Pretoria Strachan & Crouse, KPMG Services 1 711 13 900 000 63,56 0,4 0,2
(Pty) Limited, Naidu Incorporated
Office Herdbuoys Building* 6 Kikuyu Road, Sunninghill, Herdbuoys McCann-Erickson 5 370 57 000 000 93,13 1,5 0,7
Sandton (Pty) Limited
Office Howick Gardens 17 Howick Close, Waterfall Park Cipla Medpro Pty Limited, Minco 3 075 20 700 000 73,32 0,6 0,3
Midrand Mineral Holdings (Pty) Limited, S1
Global Limited Incorporated, Advtech
Resourcing (Pty) Limited
Office Hurlingham Office Park Cnr Republic Road & William Nicol Hurlingham Office Suites CC, Tsebo 16 159 110 000 000 61,53 3,0 1,4
Drive, Hurlingham Holdings (Pty) Limited, Consumer
Goods Council of SA, Pambili
Document Solutions (Pty) Limited,
Computer Software Consultants
(Pty) Limited
Office Hyde Park Lane Cnr Jan Smuts Avenue & William The Standard Bank of SA, Willis RE 15 334 175 800 000 94,44 4,8 2,2
Nicol Drive, Hyde Park (Pty) Limited, Tag Travel (Pty) Limited,
Eezee Dex Industrial Procurement
Services (Pty) Limited, Lufthansa
Office Imfundo House 261 Surrey Avenue, Ferndale Advtech Resourcing (Pty) Limited 1 752 8 800 000 49,76 0,2 0,1
Randburg
Office Iustitia Building Cnr St Andrews & Aliwal Streets Society of Advocates, Mutual & 5 360 22 200 000 59,75 0,6 0,3
Bloemfontein Federal, W & R Seta, Golden Mile
Trading
Office Knightsbridge Manor # 33 Sloane Street, Bryanston Ext 4 Norilsk Nickel Africa (Pty) Limited, 10 194 90 500 000 63,60 2,4 1,1
Kingfisher Resorts Management SA,
TLC Engineering Solutions, Core
Freight Systems, Axis House
Office Lake Buena Vista 1* Gordon Hood Avenue, Centurion FirstRand STI Administration 6 894 79 700 000 93,13 2,2 1,0
(Pty) Limited t/a Outsurance
#

Page 88

30 June Weighted
2010 average
Office Lincoln Wood Office 6 & 8 Woodlands Drive, African Legend Indigo (Pty) Limited, 10 911 109 690 000 83,87 3,0 1,4
Park# Woodmead Intersite Property Management
Services (Pty) Limited, ZTE
Corporation SA, Reunert Management
Services Limited
Office Linkview 260 Kent Avenue, Ferndale Aqua Engineering SA (Pty) Limited, 1 524 7 200 000 62,97 0,2 0,1
Randburg Aqua Earth Consulting CC, Siyaka
Holdings (Pty) Limited
Office Lone Creek# 21 Mac Mac Road & Howick Close Cement and Concrete Institute, End 5 659 40 500 000 65,81 1,1 0,5
Waterfall Park, Midrand User Finance, Regional Tourism
Organisation of Southern Africa,
Batseta Consulting CC, B2B
Placements CC, Cedar Point Trading
308 (Pty) Limited, Leonard Cheshire
International SA
Office Lynnridge Mews# 22 Hibiscus Street, Lynnwood SA National Tutor Services, Phakama 3 533 19 139 000 45,28 0,5 0,2
Ridge Funeral Society, Freeworld Travel
(Pty) Limited
Office Menlyn 116 Lois Avenue, Menlyn Absa Bank Limited, The Standard Bank 9 852 103 000 000 98,49 2,8 1,3
of South Africa Limited, First National
Asset Management and Trust
Company, FirstRand Bank Limited,
Discovery Health (Pty) Limited,
Liberty Group Limited
Office Midrand Business Park 563 Main Road, Halfway House Rentcorp Africa Technical, 13 373 57 900 000 39,09 1,6 0,7
Midrand Construction Education & Training
Authority, Ngubane & Co
Management Consultants
(Pty) Limited, Postnet Southern Africa
(Pty) Limited, Celtrac (Pty) Limited
Office Momentum House# 125 Florence Nzama Street, Grafton Everest, Tshwane University 6 249 41 700 000 61,23 1,1 0,5
Durban of Technology, Larson Burton &
Falconer Inc, Push to Talk Africa
(Pty) Limited, Mkyaya Security &
Protection Services (Pty) Limited
Office Newlands Terraces 8 Boundary Road, Newlands UCS Solutions (Pty) Limited, The 4 251 70 800 000 124,37 1,9 0,9
Western Province Rugby Football
Union, Taquanta Asset Management
(Pty) Limited
Office Nimas House# No. 5 The Boulevard, Westway Metropolitan Health Corporate 1 372 18 400 000 128,83 0,5 0,2
Office Park, Westville (Pty) Limited, Uniclox (Pty) Limited,
Dr Shirish Bhaga
Office Olivedale Office Park Cnr Olive & Lima Street, Olivedale CRS Holdings, DNA Telesales CC, 3 227 17 300 000 61,92 0,5 0,2
Randburg Birthday Suit Corporate Gifts CC,
Associated Neural Technologies CC
& Interact Accounting Services CC
Office Omni Centre 73 Aliwal Street, Bloemfontein Free State Province Dept of 5 447 22 500 000 34,64 0,6 0,3
Education, Metropolitan Health
Corporate, MM & Associates
Consulting Engineers
* Single tenant – weighted average for all single-tenant buildings in office sector – R93,13/m²
#
Independently valued at 30 June 2010

Page 89
30 June Weighted
2010 average
Office Oracle House*# 500 Smuts Drive, Halfway House Department of Public Works, 5 922 70 000 000 93,13 1,9 0,9
Midrand Vodacom Service Provider Company
(Pty) Limited
Office Podium House 43 Ingersol Road, Lynwood Glen Vacant 4 832 23 700 000 — 0,6 0,3
Pretoria
Office Rentworks 48 Grosvenor Road, Bryanston Rentworks Africa (Pty) Limited, 3 027 39 850 000 115,83 1,1 0,5
Amadeus Global Travel Distribution
Southern Africa (Pty) Limited
Office Rigel Park*# 446 Rigel Avenue, Erasmusrand Vacant 4 417 45 140 000 93,13 1,2 0,6
Pretoria
Office Riverworld Park 42 Homestead Road, Edenburg The Jupiter Drawing Room (Pty) 5 154 37 600 000 83,03 1,0 0,5
Limited, Aptus Integrated Solutions,
Dunamis Financial Services (Pty)
Limited
Office Sandgate Park# 16 Desmond Street, Eastgate Griffiths & Griffiths CC, Four Moons 12 120 59 000 000 51,57 1,6 0,7
Trading CC, Sellutions (Pty) Limited,
Nicci Boutiques CC, Defence
Concepts South Africa (Pty) Limited,
John Anthony Ford, Sanlam Limited
Office Southern Life Plaza 41 Maitland Street, Bloemfontein Free State Legislature, FirstRand Bank 10 697 69 700 000 76,08 1,9 0,9
Limited
Office Spoor & Fisher 11* Building 11, Highgrove Office Park S and F Management Services 4 055 43 400 000 93,13 1,2 0,6
Oak Road, Centurion (Pty) Limited
Office Spoor & Fisher 13* Building 13, Highgrove Office Park S and F Management Services 2 216 23 000 000 93,13 0,6 0,3
Oak Road, Centurion (Pty) Limited
Office Strathmore Park# 305 Musgrave Road, Durban Vox Orion (Pty) Limited, Crawford & 3 727 31 300 000 97,28 0,8 0,4
Co SA (Pty) Limited, HT Insurance
Brokers (Pty) Limited, SA Biomedical
(Pty) Limited, Positive Packaging
Industries SA (Pty) Limited
Office Sturdee House 9 Sturdee Avenue, Rosebank Netcare Hospitals (Pty) Limited, 1 695 16 200 000 100,36 0,4 0,2
RA Hellman & Company
Office The Avenues North 6 Mellis Road, Edenburg, Sandton Connection Group Holdings Limited, 3 471 30 700 000 90,47 0,8 0,4
Bytes Technology Group Limited,
Brand Soldiers CC
Office The Gables# 320 Duncan Street, Hatfield Securicor (SA) (Pty) Limited, G4S 2 851 25 962 000 91,79 0,7 0,3
Pretoria Secure Solutions (SA) (Pty) Limited
Office The Pinnacle 2 Burg Street, Cape Town Grant Thornton, Cape Town Tourism, 11 625 100 000 000 86,93 2,7 1,3
Independent Development Trust,
Kelly Group Limited, Old Mutual Life
Assurance Company SA Limited,
Apache Spur Steak Ranch
Office Tuinhof 265 West Avenue, Centurion Trans Caledon Tunnel Authority, 9 182 72 800 000 100,52 2,0 0,9
FirstRand Bank Limited, Internex
Engineering & Management
Consulting (Pty) Limited, Quality
Business Consultants
Office UNDP House* Cnr Leeukop & Naivasha Roads United Nations Development 4 585 50 400 000 93,13 1,4 0,6
Sunninghill, Sandton Programme
#

Page 90

30 June Weighted
2010 average
Office WesBank House 21 Riebeek Street, Cape Town
Department of Labour, WesBank, 8 693 76 400 000 92,99 2,1 1,0
Reuters SA, Ian Rubin’s Liquorland
Office Westway 17 The Boulevard, Westway Office First National Asset Management & 2 277 32 000 000 124,11 0,9 0,4
Park, Westville Trust Company, FNB Personal Banking
Premier Division, Emmanuel Staffing
Services (Pty) Limited, Davis Langdon
Africa (Pty) Limited
Office Woodmead Office Park# 140 & 145 Western Services Road DBT Technologies (Pty) Limited, ECI 17 514 163 100 000 67,02 4,4 2,1
Woodmead Africa Consulting (Pty) Limited,
SIMPROSS, Cummins South Africa
(Pty) Limited, Musgrave Agencies CC
Subtotal Office 447 289 3 696 931 000 76,09 100 47
#
Retail Bizana Shopping Centre Main Road, Bizana Boxer Superstores, Barnetts, Pep, 4 865 15 000 000 49,11 0,5 0,2
Power Factory Shop, KFC Bizana,
Discom, Express Stores
Retail Boskruin Shopping Cnr President Fouché & Hawken Woolworths (Pty) Limited, Boskruin 6 752 95 500 000 117,35 3,4 1,2
Centre# Avenue, Bromhof Village Hardware Centre, Luigi’s
Pizzeria, Keg & Countryman, Medicare
Pharmacy, CNA
Retail Brandwag# Melville Drive, Brandwag, Pick n Pay Retailers (Pty) Limited, 12 253 109 000 000 84,27 3,8 1,4
Bloemfontein Engen Petroleum Limited, FNB
Learning, First National Bank of SA
Limited, Pepkor Retail Limited, Baby
Boom Toy Boom, Mellin & Partners,
Catch 22
Retail Central Square Idutywa Cnr Bell Street & Kiddell, King & Pep Stores, Buzi Cash & Carry, Dunns, 4 024 19 800 000 53,85 0,7 0,3
Richards Roads, Idutywa Power Factory Shop, Carelishelf
Investments, Bao Cheng Trading CC,
Thekwini Stores
Retail Centurion Discount 1289 Heuwel Avenue, Centurion Fabric & Décor, Creative Costumes 2 049 9 600 000 28,03 0,3 0,1
Centre and Masks, Angling Africa Fishing
Tackle Centurion CC
Retail Cofimvaba Shopping Main Road, Cofimvaba Boxer Superstores, Discom, Ellerines 4 938 22 200 000 57,70 0,8 0,3
Centre Furnishers, Lewis Stores, Empire
Furniture & Hardware
Retail Cresta Corner# Cnr Beyers Naudé Drive & Virgin Active (Pty) Limited, Audi 8 469 50 520 000 64,61 1,8 0,6
Pendoring Street, Cresta Centre Northcliff
Retail Dundee Boulevard Karel Landsman Street, Dundee Pick n Pay Retailers, Edcon (Pty) 6 749 28 400 000 57,45 1,0 0,4
Limited, Woolworths, Truworths,
Milady’s, Talana Bottle Store
Retail Epsom Downs 13 Sloane Street, Bryanston Pick n Pay, Woolworths (Pty) Limited, 6 747 65 700 000 99,24 2,3 0,8
Shopping Centre Nedbank Limited, Mica Hardware,
Kentucky Fried Chicken, Ricardo Fabre
Restaurants
* Single tenant – weighted average for all single-tenant buildings in retail sector – R58,41/m².
#

Page 91
30 June Weighted
2010 average
Retail Flagstaff Shopping Main Road, Flagstaff Engen Petroleum Limited, Boxer 4 030 12 500 000 32,91 0,4 0,2
Centre Superstores, Blue Sky Import & Export,
The Standard Bank, Bawinile Thando
Supermarket
Retail Gateway# 1319 Pretoria Street, Hatfield McDonalds SA (Pty) Limited, Kentucky 1 763 16 332 000 119,85 0,6 0,2
Fried Chicken, Hatfield Liquor CC
Retail Gift Acres# 441 Queens Crescent, Lynnwood Woolworths (Pty) Limited, Younique 8 982 65 239 000 83,25 2,3 0,8
Ridge, Pretoria (Pty) Limited, Cheeky Monkey Bar,
Liquor City Lynnwood, Mimmo’s Gift
Acres, Kanhym Varsvleis Deli, Universal
Paints, Kentucky Fried Chicken
Retail Granada Square 16 Chartwell Drive Woolworths, Absa Bank, John Dory’s 7 161 88 400 000 93,18 3,1 1,1
Umhlanga Rocks Fish & Grill, Independent
Management & Projects (Pty) Limited,
Creative Beads, Europa Umhlanga,
Microsoft (SA)
Retail Greytown Centre Bell Street, Greytown Shoprite Checkers (Pty) Limited, 2 272 9 100 000 46,78 0,3 0,1
Pepkor Retail Limited, Dunn’s,
Kentucky Fried Chicken, Capitec Bank
Limited
Retail Home Centre 2 Ilala Avenue, Springfield Park Builders Express, B & J Meltz 17 648 105 400 000 77,66 3,7 1,3
Durban (Proprietary) Limited, Geen & Richards,
Furniture City Home Centre, Fruit and
Veg City Holdings (Pty) Limited, Greg’s
Bedding CC, Outdoor Warehouse
Retail Ingwavuma Shopping Main Road, Ingwavuma Supatrade Spa, Ellerine Furnishers, 4 886 23 800 000 53,01 0,8 0,3
Centre Pepkor Retail (Pty) Limited, Ithala Bank
Retail Kokstad Shopping Main Street, Kokstad Rhino Cash & Carry, Edcon (Pty) 9 196 37 500 000 46,84 1,3 0,5
Centre Limited, Barnetts, Price & Pride,
Jwayelani Butchery, Joshua Doore
Retail Kokstad Boxers* Main Street, Kokstad Boxer Superstores (Pty) Limited 1 837 5 700 000 58,41 0,2 0,1
Retail Kosmos Woonstelle# 1 Wannenberg Street, Brandwag 28 Residential Apartments — 5 100 000 1659,52 per unit 0,2 0,1
Bloemfontein
Retail Linksfield Road# Linksfield Road, Linksfield Woolworths (Pty) Limited, Regal 4 090 34 500 000 88,72 1,2 0,4
Palace Chinese Restaurant, Canoa
Restaurant, Nike SA (Pty) Limited,
Linksfield Pharmacy
Retail Lynnridge Mall 273 Freesia Street, Lynnwood Pick n Pay Stores Limited, Mr Price 14 220 156 400 000 111,76 5,5 2,0
Ridge, Pretoria Group Limited, Absa Bank Limited,
Kraal Products CC, The Standard Bank
of South Africa Limited, Jimnets Arts
and Crafts, Clicks, Lion Bridge
Retail Market Square# Beacon Way, Plettenberg Bay Pick n Pay Family Store, Woolworths 13 425 109 000 000 78,58 3,8 1,4
(Pty) Limited, Wellness World, Pepkor
Retail Limited, Mr Price Group Limited,
Edcon (Pty) Limited, Yellow Wood
Spur, Barracloughs Radio Eelctric
(Pty) Limited
Retail Matatiele Centre Station Road, Matatiele Rhino Cash & Carry, Matatiele Power 7 272 35 000 000 63,34 1,2 0,4
Stores, Pep Stores, Edcon (Pty)
Limited, Natal Fashion Wear, Ideals
#
Page 92

30 June Weighted
2010 average
Retail Midrand Motor City 1081 Main Road, Midrand Midrand Action Sports CC, Dent 8 400 28 200 000 36,71 1,0 0,4
Doctor, Dekra Automotive
(Pty) Limited, Midrand Speedy Tyre
& Exhaust
Retail Montana Value Centre 1151 Tibouchina Street, Montana Moresport (Pty) Limited, Vaal Tyre 9 717 42 400 000 39,08 1,5 0,5
Ext 59 Centre Holdings (Pty) Limited,
Ellerines Furnishers (Pty) Limited,
Linen For You CC, Hire All (Pty)
Limited
Retail Mutual Mews 333 Rivonia Boulevard, Edenburg Glyda Enterprises CC, African Bank, 1 596 12 600 000 114,96 0,4 0,2
T & T Appointments, Beverley
Johnson Hair CC
Retail Nongoma Centre Sizwe Road, Nongoma King Super Store, Supatrade Spar, 9 061 33 500 000 46,53 1,2 0,4
Jet Stores, Price ‘n Pride, Pep Stores,
Fashion World
Retail Nqutu Cnr Manzolwandle & Hlube Roads Boxer Superstores, Town Talk, 3 893 18 000 000 56,31 0,6 0,2
Nqutu Power Stores, Chinese Store
Retail Old Acre Plaza Cnr Victoria & Wilson Streets Pop In Supermarket, Shell SA 6 077 25 200 000 50,41 0,9 0,3
Dundee Marketing (Pty) Limited, Edcon (Pty)
Limited, Ackermans, Pep, Dunns
Retail Park Boulevard Retail 11 Brownsdrift Road, Riverside Connoisseur Electronics, On Tap, 5 207 31 000 000 64,23 1,1 0,4
Centre Durban North TOMS Sound & Music, Metcash
Trading Africa, Etchings, Kaqala
Trading (Pty) Limited
Retail Quagga Centre# Cnr Church & West Streets, Shoprite Checkers (Pty) Limited, Pick n 29 748 258 000 000 76,70 9,1 3,3
Pretoria West Pay Stores Limited, Woolworths (Pty)
Limited, FirstRand Bank Limited,
Edgars Consolidated Stores Limited,
Absa Props Gauteng North, The
Standard Bank of SA, New Clicks
South Africa (Pty) Limited, Mr Price
Group Limited, Pepkor Retail Limited
Retail Randridge Mall Cnr John Vorster Drive & Kayburne Pick n Pay Tvl (Pty) Limited, Dis-Chem, 22 624 207 825 000 65,28 7,3 2,6
Road, Randpark Ridge Pep Stores, Randridge Medicine
Centre, Truworths, Nedbank, Absa
Bank, Cats Café
Retail Southern Sentrum# Benade Drive, Fichardt Park Pick n Pay Stores, Shell SA Marketing 21 224 125 000 000 52,48 4,4 1,6
Bloemfontein (Pty) Limited, First National Bank, Cash
Crusaders, Absa Bank, Clicks
Retail Standard Bank 88 Brand Street, Glenwood, Standard Bank of South Africa Limited 368 4 500 000 58,41 0,2 0,1
Glenwood* Durban
Retail The Colony Centre 345 Jan Smuts Avenue, Craighall Baby City, Worldwide Sports 7 273 69 700 000 106,17 2,4 0,9
Park Marketing & Advertising, JDI
Consultants, Sing Fei Chinese
Restaurant CC, Monterry Spur
Retail The Tramshed 288 Van der Walt Street, Pretoria Pick n Pay Stores Limited, Virgin 12 132 78 800 000 71,81 2,8 1,0
Active South Africa (Pty) Limited,
The Government of the Republic of
South Africa, SA Post Office, Discom
Tramshed
#

Page 93
30 June Weighted
2010 average
Retail Tin Roof Cnr Madeira & Callaway Streets
Transkei Yamaha, Shoprite Checkers 2 175 12 600 000 41,83 0,4 0,2
Umtata (U-Save), Hungry Lion Fast Foods,
Sure Bank
Retail Tokai Shopping Centre 20 Malibongwe Drive, Ferndale Dros Restaurant Randburg CC, 2 748 18 200 000 80,01 0,6 0,2
Randburg Kumnandi Food Company (Pty)
Limited, Oriental Curries Restaurant,
Mr Video
Retail Umhlanga Centre 189 Ridge Road, Umhlanga Rocks Buxtons Spar, Il Gusto Ristorante, 5 816 43 600 000 89,50 1,5 0,6
Mews Pharmacy, Fabulous Bride,
Closeout, Soukop & Assoc
Retail Umzimkulu Centre Cnr National and Franklin Roads Rhino Cash & Carry, Barnetts, Pep 5 410 21 000 000 53,62 0,7 0,3
Umzimkulu Stores, Ellerines, Dunns
Retail Wonderpark Shopping Cnr Old Brits Road & Heinrich Pick n Pay Stores Limited, Masstores 63 360 601 500 000 81,04 21,1 7,6
Centre Avenue, Karenpark (Pty) Limited (Game), Virgin Active
South Africa (Pty) Limited, Builders
Express, Edcon (Pty) Limited (Edgars),
Pepcor Retail Limited, Cashbuild
South Africa (Pty) Limited,
Woolworths, Chevron SA (Pty)
Limited, Ster Kinekor Films, Foschini
Retail Group, Mr Price Group Limited
Retail WorldWear Fashion Mall Cnr Beyers Naudé Drive & Wilsson Mr Price Group Limited, Pick n Pay 14 186 95 000 000 89,59 3,3 1,2
Road, Fairland (Pty) Limited, The Pro Shop,
Seemann’s Quality Meat, Adidas SA
(Pty) Limited, JB Rivers, Col’cacchio
Pizzeria, FTV Café
Subtotal Retail 384 640 2 846 316 000 72,77 100 36
#
Industrial 8 Grader Road* 8 Grader Road, Spartan AIC Chemicals (Pty) Limited 3 437 10 300 000 35,03 0,8 0,1
Industrial Admiral House 151 Lechwe Street, Corporate Park Mega Packaging, Kaira Technologies 4 460 23 600 000 47,87 1,8 0,3
South, Randjiespark Ext 7, Midrand (Pty) Limited, Ne Channel Trading CC,
BI Planning Services (Pty) Limited
Industrial Aeroport – Fulcrum* 96 Loper Avenue, Spartan Ext 2 Sturrock & Robson Industries 3 805 14 100 000 35,03 1,1 0,2
Kempton Park (Pty) Limited
Industrial Aeroport – Grenco*# 98 Loper Avenue, Spartan Ext 2 Grenco (SA) (Pty) Limited 1 672 7 603 000 35,03 0,6 0,1
Kempton Park
Industrial Arjo Wiggins 1 Monte Carlo Road, Mahogany Antalis (Pty) Limited 6 907 28 300 000 35,03 2,1 0,4
– Mahogany Ridge* Ridge, Pinetown
Industrial Barracuda# 82 Lechwe Street, Sage Corporate Cambridge Property Holdings 6 524 24 987 000 34,91 1,9 0,3
Park, Randjiespark Ext 70, Midrand (Pty) Limited, OBC Group
(Pty) Limited, McCarthy Limited,
Maxxis Auto (Pty) Limited
Industrial Cambridge Park# 22 Witkoppen Road, Paulshof ITEC SA, ITEC North (Pty) Limited, 12 788 51 500 000 38,57 3,8 0,7
Danfoss (Pty) Limited, Puma South
Africa, Netflorist (Pty) Limited
* Single tenant – weighted average for all single-tenant buildings in industrial sector – R35,03/m².
#

Page 94

30 June Weighted
2010 average
Industrial Crocker Road Cnr Peddie & Crocker Roads Edwards & Buckley Systems (Pty) 9 883 19 400 000 25,38 1,4 0,2
Industrial Park Wadeville Limited, George John Rubenstein,
Gasket Man CC, Plasmar Packaging,
Hencetrading 1033 (Pty) Limited
Industrial Defy Appliances* Cnr Mimetes Rd & Kruger St, Defy Appliances Limited 10 100 25 500 000 35,03 1,9 0,3
Denver
Industrial Electrocom 20 Indianapolis Crescent, Kyalami RS Components Limited, VWV Group 3 856 14 500 000 31,98 1,1 0,2
Park, Midrand (Pty) Limited
Industrial Epping Warehouse 3A Bofors Circle, Epping Industria Nampak Products Limited, Auto Part 25 076 67 300 000 22,09 5,0 0,9
(WGA)# 2 Distributors (Pty) Limited, Santam
Industrial Evapco*# Cnr Quality and Barlow Streets Evapco SA (Pty) Limited 5 753 21 944 000 35,03 1,6 0,3
Isando
Industrial Executive City 81 Industrial Road, Kya Sands
Blue Chip Lubricants (Pty) Limited, 4 558 15 000 000 32,10 1,1 0,2
Sensient Colors South Africa
(Pty) Limited, Shimba Marketing
Distribution Promotion CC, Detonate
Hardware Solutions CC
Industrial Flexitainer# 59 Lechwe Street, Sage Corporate Bridging Technologies South Africa 1 714 6 096 000 36,40 0,5 0,1
Park, Randjiespark Ext 74, Midrand (Pty) Limited
Industrial Fosa Park*# 570 Inanda Road, Durban Adcock Ingram Healthcare 4 200 16 700 000 35,03 1,2 0,2
(Pty) Limited
Industrial Freeway Park Cnr Berkley & Upper Camp Roads Torga Optical (Pty) Limited, Southern 7 935 35 600 000 54,29 2,7 0,5
Ndabeni, Maitland Canned Products (Pty) Limited,
Advanced Material Technology,
Hestico (Pty) Limited, Letmerepair CC,
Three-D Agencies (Pty) Limited
Industrial Goodyear Tycon*# 14 Cochrane Avenue, Epping Springs Car Wholesalers CC 5 870 15 600 000 35,03 1,2 0,2
Industria 1
Industrial Greenfields 1451 Chris Hani Road, Redhill AB Movers KZN CC, Media Film 9 398 32 500 000 34,69 2,4 0,4
Durban Services SA (Pty) Limited, Alvin Dudley
Meyer, VIVA International (Pty)
Limited, Rose Nina Trading, Betting
World (Pty) Limited
Industrial Highway Business 36 Park Avenue North Westinghouse Electric South Africa 2 362 15 900 000 35,03 1,2 0,2
Park-IST* Rooihuiskraal, Centurion (Pty) Limited
Industrial Highway-Ceramic 95 Park Avenue North Ceramic World 2 369 8 100 000 35,03 0,6 0,1
World* Rooihuiskraal, Centurion
Industrial Highway-National TT* 95 Park Avenue North Iliad Africa Trading (Pty) Limited 1 616 5 700 000 35,03 0,4 0,1
Rooihuiskraal, Centurion
Industrial Highway-Outdoor 95 Park Avenue North Patels Ceramics (Potchefstroom) 1 523 5 800 000 35,03 0,4 0,1
Warehouse* Rooihuiskraal, Centurion (Pty) Limited
Industrial Highway-Productive 95 Park Avenue North Productive Systems (Pty) Limited 2 093 9 300 000 35,03 0,7 0,1
Systems* Rooihuiskraal, Centurion
Industrial Industrial Village Jet Cnr Kelly & Estee Ackerman Roads Rene Turck & Associates (Pty) Limited, 11 613 36 500 000 30,72 2,7 0,5
Park# Jet Park Humulani Marketing (Pty) Limited,
New Deal Trading, Joint Venture
Pump Services (Pty) Limited
* Single tenant - weighted average for all single-tenant buildings in industrial sector – R35,03/m².
#

Page 95
30 June Weighted
2010 average
Industrial Industrial Village Kya Cnr Elsecar & Barnie StreetsLGB Distributors CC, Poli-Film South 16 659 45 600 000 26,24 3,4 0,6
Sands Kya Sands Africa (Pty) Limited, Redline Logistics
Project Management, Beau Concepts,
Bandit Signs CC, Poly Injection Mould
Making Services
Industrial Industrial Village Rustivia 6 Rover Street, Elandsfontein ISO Bearings CC, Nobel Brands (Pty) 9 854 26 900 000 28,33 2,0 0,3
Germiston Limited, Level Productions CC, In Line
Trading 112 (Pty) Limited, Major Tech
(Pty) Limited
Industrial Isando – Unitrans 20 Anvil Road, Isando Joshua Doore Warehouse, GMG 12 250 28 300 000 11,17 2,1 0,4
Kempton Park Power SA (Pty) Limited
Industrial Johnson & Johnson* 1 Medical Road, Randjiespark Johnson & Johnson Medical (Pty) 3 472 15 500 000 35,03 1,2 0,2
Ext 41, Midrand Limited
Industrial Midline Business Park Cnr Richards Drive & Le Roux Road Coated Fabrics (SA) (Pty) Limited, 12 573 39 900 000 29,50 3,0 0,5
Midrand Millington Steel & Alloys CC, Niser
Composites SA (Pty) Limited,
Flintgroup South Africa (Pty) Limited
Industrial Mitek South Africa*# 754 16th Road, Randjiespark Mitek South Africa (Pty) Limited 6 604 28 906 000 35,03 2,2 0,4
Midrand
Industrial Morgan Creek*# 38 Mahogany Road, Mahogany Simba (Pty) Limited 4 644 17 300 000 35,03 1,3 0,2
Ridge, Pinetown
Industrial Nampak Building* Nicolson Street, Denver Nampak Cartons & Labels Limited 24 880 18 000 000 35,03 1,3 0,2
Industrial New Zealand Milk Cnr 16th and Douglas Roads Ceva Animal Health (Pty) Limited 2 756 13 900 000 35,03 1,0 0,2
Products* Randjiespark, Midrand
#
Industrial One Highveld 5 Bellingham Street, Centurion Spero Sensors and Instruments 5 932 25 650 000 45,87 1,9 0,3
(Pty) Limited, V-Custom Cycles, Bass,
Eclipse Infrastructure Solutions (Pty)
Limited, Pro Angling Equipment CC,
The Traditional Fish & Chips (Pty)
Limited
Industrial Portion 130 Spartan 34-36 Director Road, Aeroport Gallagher Power Fence (SA) (Pty) 1 715 6 700 000 23,98 0,5 0,1
Spartan Limited, Bearing Man Limited t/a
Sealco
Industrial QD House* 91-94 Silverstone Crescent, QD Group (Pty) Limited 3 470 14 900 000 35,03 1,1 0,2
Kyalami
Industrial Rep-Props 12-14 Winnipeg Avenue, Aeroport LUD Logistics (Pty) Limited, 1 640 6 600 000 37,79 0,5 0,1
Masterguard Fabric Protection Africa
(Pty) Limited, Freight-X Cargo
Solutions CC, General Pneumatics
Natal (Pty) Limited
Industrial RTT Acsa Park* Cnr Taljaard & Springbok Streets Fuel Logistics Group (Pty) Limited 46 673 253 000 000 35,03 18,9 3,2
Bardene
Industrial RTT Continental* Cnr Springbok & Jones Streets Fuel Logistics Group (Pty) Limited 12 921 45 400 000 35,03 3,4 0,6
Bardene
Industrial Siliconics*# Cnr Precision & Staal Roads Control Techniques SA (Pty) Limited 1 452 5 297 000 35,03 0,4 0,1
Kya Sands
Industrial Starsky House* 9 Dartfield Street, Kramerville Christ Embassy (Pty) Limited 2 450 7 000 000 35,03 0,5 0,1
#

Page 96

30 June Weighted
2010 average
Industrial Steiner Services* Loper Road, Aeroport Steiner Services (Pty) Limited 4 804 17 900 000 35,03 1,3 0,2
Kempton Park
Industrial Taylor Blinds 10 Hoist Street, Montague Odyssey House (Pty) Limited t/a 7 794 37 000 000 41,28 2,8 0,5
Gardens Taylor Blinds CT
Industrial Technohub# Corporate Park North Technology Integrated Solutions, 15 171 77 500 000 42,72 5,8 1,0
Roan Crescent, Midrand Paramount Logistics Corporation SA,
Vodacom Services Provider Company
(Pty) Limited
Industrial The Wolds A 82 Intersite Avenue Datanet Infrastructure Group (Pty) 1 770 4 700 000 44,41 0,4 0,1
Umgeni Business Park, Umgeni Limited, TNT Express Worldwide SA
(Pty) Limited, Prozak Electronic World
Durban CC
Industrial The Wolds B# 56 Intersite Avenue Heidelberg Graphic Systems SA 1 886 2 000 000 47,81 0,1 0,0
Umgeni Business Park, Umgeni (Pty) Limited, BID Industrial Holdings
(Pty) Limited
Industrial Umgeni Road A* 98-102 Intersite Avenue Ubunye Uniforms (Pty) Limited 6 021 5 000 000 35,03 0,4 0,1
Umgeni Business Park, Umgeni
Industrial Umgeni Road B 19-23 Intersite Avenue Pharmaceutical Health Distributors, 12 559 10 000 000 45,15 0,7 0,1
Umgeni Business Park, Umgeni Barrows Design & Manufacturing
(Pty) Limited, Jeevan’s Sarrie
Centre (Pty) Limited
Industrial Universal Print House* 72 Stanhope Place, Briardene Universal Print Group (Pty) Limited 13 384 30 900 000 35,03 2,3 0,4
Durban North
Industrial Wadeville Industrial 6 Crocker Road, Wadeville Multisurge CC, Zippel Filing and 2 384 33 900 000 27,32 2,5 0,4
Village Germiston Storage Systems (Pty) Limited,
Ferobrake Wadeville, Omeme
Electrical Unity, Plan it Safety CC
Industrial Xpanda 918 Morkels Close, Halfway House TCS John Huxley Africa (Pty) Limited, 830 10 100 000 44,91 0,8 0,1
Midrand Spray Nozzle (Pty) Limited
Subtotal Industrial 386 061 1 339 683 000 33,50 100 17
Total investment properties 1 217 990 7 882 930 000 100
#

Page 97
Strategic Real Estate Managers (Proprietary) Limited (“STREM”)

Statement of directors’ responsibilities
The directors are responsible for the preparation, integrity, and fair presentation of the financial statements of Strategic Real Estate
Managers (Proprietary) Limited. The financial statements presented on pages 99 to 107 have been prepared in accordance with
International Financial Reporting Standards (“IFRS”), and include amounts based on judgements and estimates made by management.
The directors consider that in preparing the financial statements they have used the most appropriate accounting policies, consistently
applied and supported by reasonable and prudent judgements and estimates, and that all statements of International Financial
Reporting Standards that they consider to be applicable have been followed.
The directors are satisfied that the information contained in the financial statements fairly presents the results of operations for the year
and the financial position of the company at year-end. The directors also prepared the other information included in the annual report
and are responsible for both its accuracy and its consistency with the financial statements.
The directors have responsibility for ensuring that accounting records are kept. The accounting records should disclose with reasonable
accuracy the financial position of the company to enable the directors to ensure that the financial statements comply with the relevant
legislation.
Strategic Real Estate Managers (Proprietary) Limited operated in a well-established control environment, which is well documented and
regularly reviewed. This incorporates risk management and internal control procedures, which are designed to provide reasonable, but
not absolute, assurance that assets are safeguarded and the risks facing the business are being controlled.
The going-concern basis has been adopted in preparing the financial statements. The directors have no reason to believe that the
company will not be a going concern in the foreseeable future, based on forecasts and available cash resources. These financial
statements support the viability of the company.
The company’s external auditor, PricewaterhouseCoopers Incorporated, audited the financial statements, and their report is presented
on page 98.
The financial statements were approved by the board of directors on 30 September 2010 and are signed on its behalf:

Certificate by Company Secretary
We declare that to the best of our knowledge, for the year ended 30 June 2010, the company has lodged with the Registrar of Companies
all such returns as are required of a public company in terms of section 268G(d) of the Companies Act, 1973, as amended and all such
returns are true, correct and up to date.
ME Harris
Company Secretary

Page 98

Report of the independent auditor
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF STRATEGIC REAL ESTATE MANAGERS (PROPRIETARY) LIMITED
We have audited the annual financial statements of Strategic Real Estate Managers (Proprietary) Limited, which comprise the statement
of financial position as at 30 June 2010, and the statements of comprehensive income, changes in equity and cash flows for the year
then ended, and a summary of significant accounting policies and other explanatory notes, and the directors’ report, as set out on pages
99 to 107.
Directors’ responsibility for the financial statements

The company’s directors are responsible for the preparation and fair presentation of these financial statements in accordance with
International Financial Reporting Standards and in the manner required by the Companies Act of South Africa. This responsibility
includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting
policies; and making accounting estimates that are reasonable in the circumstances.
Auditor’s responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance
with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the
entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial position of Strategic Real Estate Managers
(Proprietary) Limited as at 30 June 2010, and its financial performance and its cash flows for the year then ended in accordance with
International Financial Reporting Standards and in the manner required by the Companies Act of South Africa.
Director: N Mtetwa
Registered Auditor
Johannesburg
30 September 2010

Page 99

Directors’ report
NATURE OF BUSINESS
The company continued with its business as the manager of Emira Property Fund in terms of the Collective Investment Schemes Control
Act.
GENERAL REVIEW
The results for the year under review are reflected in the accompanying annual financial statements.
SHARE CAPITAL
Details of the authorised and issued share capital of the company appear in note 3 to the financial statements.
DIVIDENDS
No dividends were paid by the company during the year under review.
EXECUTIVE DIRECTORS
WK Schultze
JWA Templeton
PJ Thurling
NON-EXECUTIVE DIRECTORS
BJ van der Ross (Chairman)
MS Aitken
BH Kent (appointed as lead independent director on 20 May 2010)
NE Makiwane
V Mahlangu (appointed 24 June 2010)
W McCurrie
MSB Neser
NL Sowazi
COMPANY SECRETARY
DA Isserow resigned as Company Secretary on 16 February 2010 and ME Harris was appointed in her stead.
POST YEAR-END EVENTS

With effect from 15 September 2010, following the approval of the Registrar of Collective Investment Schemes, Emira’s Trust Deed was
amended with the result that the service charge payable to the company is calculated on a cost recovery basis only, in return for the
receipt by the company, of a lump sum payment of R197 400 000.
REGISTERED ADDRESS
3 Gwen Lane
Sandton Central
2196
POSTAL ADDRESS
PO Box 786130
Sandton
2146
AUDITOR
BANKERS
First National Bank Limited
REGISTRATION NUMBER
1997/020911/07

Page 100

Statement of financial position
as at 30 June 2010
2010 2009
Notes R R
ASSETS
Current assets
Accounts receivable 2 3 841 543 3 290 025
Deferred tax asset 7 99 625 83 731
Taxation 7 — 13 434
Cash at bank 14 552 733 5 753 483
Total assets 18 493 901 9 140 673
EQUITY AND LIABILITIES

Capital and reserves
Share capital 3 300 300
Share premium 3 29 999 910 29 999 910
Non-distributable reserve (29 915 762) (29 915 762)
Retained earnings 218 523 164 519
Shareholders’ funds 302 971 248 967
Long-term liabilities
Shareholders’ loans 4 2 500 000 —
Current liabilities
Term loan 5 808 958 754 222
Accounts payable 6 14 690 032 8 137 484
Taxation payable 7 191 940 —
18 190 930 8 891 706
Total equity and liabilities 18 493 901 9 140 673
Statement of comprehensive income

2010 2009
Notes R R
Turnover 36 170 562 31 843 073

Operating loss 8 (333 669) (727 307)
Net interest income 9 578 054 642 430
Net profit/(loss) for the year before income tax expense 244 385 (84 877)
Income tax expense 10 (190 381) 27 654
Profit/(loss) for the year attributable to equity holders 54 004 (57 223)
Total comprehensive income/(loss) attributable to equity holders 54 004 (57 223)

Page 101

Statement of changes in equity
2010 2009
R R
Share capital
Ordinary shares
Balance at 1 July 2009 300 300
Balance at 30 June 2010 300 300
Share premium
Balance at 1 July 2009 29 999 910 29 999 910
Balance at 30 June 2010 29 999 910 29 999 910
Share capital and share premium at 30 June 2010 30 000 210 30 000 210
Reserves
Non-distributable reserve
Balance at 1 July 2009 (29 915 762) (29 915 762)
Balance at 30 June 2010 (29 915 762) (29 915 762)
Retained earnings
Balance at 1 July 2009 164 519 221 742
Total comprehensive income/(loss) for the year 54 004 (57 223)
Balance at 30 June 2010 218 523 164 519
Total reserves at 30 June 2010 (29 697 239) (29 751 243)
Statement of cash flows

2010 2009
Notes R R
Cash flows from operating activities

Cash flows from operating activities 11 5 666 460 (385 646)
Net interest income 578 054 642 430
Taxation paid 12 — (100 757)
Net cash generated from operating activities 6 244 514 156 027
Cash flows from financing activities
Shareholders loans advanced 2 500 000 —
Term loan advanced/(repaid) 54 736 (78 009)
Net cash generated from/(utilised in) financing activities 2 554 736 (78 009)
Net increase in cash and cash equivalents 8 799 250 78 018
Cash and cash equivalents at the beginning of the year 5 753 483 5 675 465
Cash and cash equivalents at the end of the year 14 552 733 5 753 483

Page 102

Notes to the financial statements
1 Accounting policies
Basis of presentation
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and the
Companies Act of South Africa.
Various new and amended international financial reporting standards and interpretations have been issued.
The following standards, amendments and interpretations, which became effective in 2010, are of relevance to the Company:

IAS 1 Presentation of Financial Statements 1 January 2009
IAS 23 Borrowing costs 1 January 2009
Interpretations and amendments to standards becoming effective in the current financial year but not relevant to the company.
IFRS 1* First-time Adoption of International Financial Reporting Standards 1 July 2009
Standards, amendments and interpretations that are not yet effective and not expected to have significant impact on the
company’s financial statements.
IAS 24* Related Party Disclosures 1 January 2009
Amendments IFRS 1* Additional Exemptions for First-time Adopters 1 July 2010
* Not expected to be relevant to the company.
The financial statements are prepared on the historical cost basis and incorporate the following accounting policies which are
consistent with those applied in the previous year.
The financial statements are prepared on a going-concern basis.
1.1 Turnover
Turnover comprises management fees received from Emira Property Fund accounted for on the accrual basis as services are
performed. The fees are based on the substance of the management agreement.
1.2 Accounts payable

Trade payables are carried at the fair value of the consideration to be paid in future for goods or services that have been received.
1.3 Cash and cash equivalents
Cash and cash equivalents are carried in the balance sheet at cost. For the purposes of the cash flow statement, cash and cash
equivalents comprise cash on hand and deposits held at call with banks.
1.4 Accounts receivable
Trade receivables are initially recognised at fair value and subsequently at amortised cost. A provision for impairment of trade
receivables is established when there is objective evidence that the company will not be able to collect all amounts due
according to the original term of the receivables. The amount of the provision is the difference between the carrying amount and
the recoverable amount, being the present value of the expected cash flows, discounted at the market rate of interest for similar
borrowers.
1.5 Taxation
Taxation is provided at current rates on net income before tax for the year after taking into account income and expenditure,
which are not subject to taxation.
1.6 Intangible assets and impairment losses
Intangible assets are initially measured at cost if acquired separately or at fair value if acquired as part of a business combination.
Intangible assets are amortised over their estimated useful life on a straight-line basis. The estimated useful lives and residual
values are reviewed annually. Impairment losses are recognised as an expense in the income statement.
1.7 Borrowings
Interest-bearing borrowings are recognised initially at fair value, less attributable transaction costs. Subsequent to initial
recognition, they are measured at amortised cost using the effective interest rate method.

Page 103
2010 2009
R R
2 Accounts receivable
Trade receivables 3 233 637 2 714 062
Other receivables 607 906 575 963
3 841 543 3 290 025
Due within one year 3 841 543 3 290 025
The carrying values of accounts receivable approximate their fair value.
3 Share capital
Authorised
Ordinary shares
4 000 ordinary shares of R1 each 4 000 4 000
Issued
Ordinary shares
300 shares of R1 each (2009: 300 shares of R1 each) 300 300
Share premium 29 999 910 29 999 910
30 000 210 30 000 210
4 Shareholders’ loans 2 500 000 —

The loans are unsecured, have no fixed date of repayment and bear interest at rates to be
agreed from time to time. The carrying value of the loans approximate their fair value.
5 Term loan
Owing to:
Eris Investment Holdings (Proprietary) Limited 808 958 754 222
The loan is unsecured and has no fixed terms of repayment and interest is payable at rates
agreed from time to time.
6 Accounts payable
Trade payables 349 147 170 857
Accrued expenses 14 340 885 7 966 628
14 690 032 8 137 485
Payable within one year 14 690 032 8 137 485
7 Taxation
SA Normal taxation
Balance at 1 July 2009 13 434 (76 261)
Payments made — 100 757
Prior-period adjustment 901 —
Income statement movement (206 275) (11 062)
Balance at 30 June 2010 (191 940) 13 434
Deferred taxation
Balance at 1 July 2009 83 731 45 015
Income statement movement 15 894 38 716
Balance at 30 June 2010 99 625 83 731
Deferred taxation comprises timing differences in respect of provision for leave pay.

Page 104

2010 2009
R R
8 Operating loss
The following items have been charged in arriving at operating loss:
Management fee paid to Eris Investment Holdings (Proprietary) Limited 19 000 000 16 433 400
Management fee paid to Corovest Property Group Holdings (Proprietary) Limited 3 360 000 2 900 000
Audit fees – current year 58 992 55 440
Directors’ emoluments:
Contributions
to defined
Basic contribution Annual
Executive directors salary plans bonus Total
2010
JWA Templeton (CEO) 888 982 231 152 1 920 000 3 040 134
PJ Thurling (CFO) 1 196 198 211 338 250 000 1 657 536
Total 2 085 180 442 490 2 170 000 4 697 670
2009
JWA Templeton (CEO) 799 112 194 313 1 920 000 2 913 425
PJ Thurling (CFO) 1 115 112 193 576 250 000 1 558 688
Total 1 914 224 387 889 2 170 000 4 472 113
Fees for Fees for

services as services as
directors directors
Non-executive directors 2010 2009
BJ van der Ross (Chairman) 175 500 163 000
MS Aitken 129 000 120 000
LS Barnard (Resigned 5 August 2009) — 185 000
BH Kent (Chairman of the audit committee) 211 000 185 000
V Mahlangu (Appointed 24 June 2010) 46 750 —
NL Sowazi 129 000 120 000
NE Makiwane 187 000 174 000
W McCurrie 129 000 60 000
MSB Neser 129 000 120 000
Total 1 136 250 1 127 000

Page 105
2010 2009
R R
9 Net interest income

Interest received 632 790 724 306
Interest paid (54 736) (81 876)
578 054 642 430
10 Income tax expense

South African normal taxation – current 206 275 11 062
Deferred taxation (15 894) (38 716)
190 381 (27 654)
Tax rate reconciliation % %

Standard rate 28,00 28,00
Permanent differences 49,90 5,86
Prior period adjustments — (1,28)
Effective rate of taxation 77,90 32,58
11 Notes to the statement OF cash flows

Cash generated from/(utilised in) operations
Net profit/(loss) for the year before income tax expense 244 385 (84 877)
Net interest income (578 054) (642 430)
Prior period tax adjustment (note 12) (901) —
Operating loss before working capital changes (334 570) (727 307)
Increase in accounts receivable (551 518) (504 144)
Increase in accounts payable 6 552 548 845 805
5 666 460 (385 646)
12 Taxation paid
Balance owing at 1 July 2009 13 434 (76 261)
Prior period adjustments 901 —
Taxation charge for the year (206 275) (11 062)
Balance owing at 30 June 2010 191 940 (13 434)
Taxation paid for the year — (100 757)

Page 106

13 Financial risk management

The company’s financial instruments consist mainly of deposits with a bank, accounts receivable, a term loan from a shareholder
and accounts payable. In respect of the abovementioned financial instruments, book values approximate fair value. Exposure to
interest rate, credit and liquidity risks occurs in the normal course of business.
Weighted
average
effective 1 year More than
interest rate or less 1 – 5 years 5 years Total
% R R R R
Financial assets
Accounts receivable 3 841 543 3 841 543
Cash at bank 6,0 14 552 733 14 552 733
Total financial assets 18 394 276 18 394 276
Term loan 6,0 808 958 808 958
Accounts payable 14 690 032 14 690 032
Total financial liabilities 14 690 032 808 958 15 498 990

Financial assets
Accounts receivable 3 290 025 3 290 025
Cash at bank 10,0 5 753 483 5 753 483
Total financial assets 9 043 508 9 043 508
Term loan 10,0 754 222 754 222
Accounts payable 8 137 484 8 137 484
Total financial liabilities 8 137 484 754 222 8 891 706
Interest rate risk management

Exposure to interest risk is considered minimal. Interest paid on the term loan from a shareholder is equivalent to the interest
earned on the call deposit at Rand Merchant Bank.
Credit risk management
Credit risk is considered to be minimal. Trade receivables consist of the asset management fee due by Emira Property Fund.
Liquidity risk management
Cash flows are monitored on a monthly basis to ensure that cash resources are adequate to meet funding requirements.

Page 107
2010 2009
R R
14 Related party transactions

The company is controlled by FirstRand Asset Management (Proprietary) Limited,
which owns 70% of the company’s shares, the other 30% being owned equally by
Eris Investment Holdings (Proprietary) Limited and Corovest Property Group
Holdings (Proprietary) Limited. The ultimate parent of the company is FirstRand
Limited.
Income received from Group companies
Emira Property Fund (associate of parent) – asset management fees 36 170 652 31 843 073
Rand Merchant Bank a division of FirstRand Bank Limited (associate of parent) – interest
received 632 790 724 306
36 803 442 32 567 379
Expenses paid to Group companies
Eris Investment Holdings (Proprietary) Limited (shareholder)
– management fees 19 000 000 16 433 400
– interest paid 54 736 81 876
Corovest Property Group Holdings (Proprietary) Limited (shareholder)
– management fees 3 360 000 2 900 000
22 414 736 19 415 276
Inter-Group balances
Eris Investment Holdings (Proprietary) Limited (shareholder) – term loan 808 958 754 222
– term loan 2 125 000 —
Corovest Property Group Holdings (Proprietary) Limited (shareholder)
– term loan 375 000 —
Rand Merchant Bank a division of FirstRand Bank Limited (associate of parent) – bank balances 14 552 733 5 753 483
15 Post year-end events

With effect from 15 September 2010, following the approval of the Registrar of Collective Investment Schemes, Emira’s Trust Deed
was amended with the result that the service charge payable to the company is calculated on a cost recovery basis only, in return
for the receipt by the company, of a lump sum payment of R197 400 000.

Page 108

Notice of annual general meeting
EMIRA PROPERTY FUND

(Participatory interest code: EMI, ISIN: ZAE000050712)
(“Emira” or “the Fund”)
Notice is hereby given that the seventh annual general meeting of the members of Emira will be held in the boardroom, Third Floor,
3 Gwen Lane, Sandton at 14:00 on Tuesday, 16 November 2010 for the purposes of considering, and if deemed fit, passing with or
without modification the resolutions set out below:
1 Ordinary resolutions
1.1 Ordinary resolution number 1
”Resolved that the annual financial statements for the financial year ended 30 June 2010 including the management company’s
report and the report of the auditors thereon be received, considered and approved.”

To reappoint PricewaterhouseCoopers Inc. as the auditor of the Fund and N Mtetwa as the individual designated auditor of the
Fund for the 2011 financial year until the next annual general meeting.

“Resolved that the directors of Strategic Real Estate Managers (Proprietary) Limited (the manager of Emira) are hereby authorised,
by way of a renewable general authority, to issue participatory interests in the authorised but unissued capital of the Fund for
cash, as and when they in their discretion deem fit, subject to the Trust Deed of the Fund and the Listings Requirements of the JSE
Limited (“JSE”), when applicable provided that:
• this general authority shall be valid until the Fund’s next annual general meeting or for 15 months after the date on which this
authority is granted, whichever period is the shorter;
• the participatory interests must be of a class already in issue, or where this is not the case, must be limited to such securities or
rights that are convertible into a class already in issue;
• a press announcement giving full details, in accordance with the JSE Listings Requirements including the impact on net asset
value and earnings per participatory interest, will be published at the time of any issue representing, on a cumulative basis
within one financial year, 5% or more of the number of participatory interests prior to the issue;
• issues in terms of this authority will not in the aggregate in any one financial year exceed 10% of the number of the Fund’s
participatory interests already in issue of that class, as calculated in accordance with the JSE Listings Requirements;
• in determining the price at which an issue of participatory interests will be made in terms of this authority, the maximum
discount permitted will be 10% of the weighted average traded price of the participatory interests measured over the
30 business days prior to the date that the price of the participatory interests are agreed between Emira and the party subscribing
for the securities; and
• any such issue will only be made to public participatory interest holders as defined in the JSE Listings Requirements and not to
related parties.

The approval of a 75% majority of the votes cast in favour of such resolution by participatory interest holders present or represented
by proxy at this annual general meeting is required for this ordinary resolution to become effective.”
2 Special resolution
2.1 Special resolution number 1
“Resolved that the directors of Strategic Real Estate Managers (Proprietary) Limited, be hereby authorised by way of a renewable
general authority, to approve the repurchase of its own participatory interests by the Fund as and when they in their discretion
deem fit, subject to the Trust Deed of the Fund and the JSE Listings Requirements, when applicable, provided that:
• this general authority shall be valid until the Fund’s next annual general meeting or for 15 months from the date of the passing
of this resolution, whichever period is shorter;
• the repurchase of participatory interests will be effected through the order book operated by the JSE trading system and done
without any prior understanding or arrangement between the Fund and the counterparty (reported trades are prohibited);
• an announcement complying with the JSE Listings Requirements be published by the Fund when (i) the Fund has cumulatively
repurchased 3% of the participatory interests in issue as at the time the general authority was given (“the initial number”) and
(ii) for each 3% in aggregate of the initial number of participatory interests acquired thereafter by the Fund;
• the general repurchase by the Fund of its own participatory interests shall not in the aggregate in any one financial year exceed
20% of the Fund’s issued capital of that class as at the beginning of the financial year (or 10% in the case of a subsidiary);

Page 109
• repurchases must not be made at a price more than 10% above the weighted average of the market value of the participatory
interests for the five business days immediately preceding the date on which the transaction is effected;
• at any point in time the Fund may only appoint one agent to effect any repurchase on the Fund’s behalf;
• the Fund will not repurchase participatory interests during a prohibited period as defined in paragraph 3.67 unless Emira has in
place a repurchase programme where the dates and quantities of securities to be traded during the relevant period are fixed
(not subject to any variation) and full details of the programme have been disclosed in an announcement over SENS prior to
the commencement of the prohibited period; and
• such repurchases shall be subject to the Trust Deed of the Fund, the provisions of the Collective Investment Schemes Act and
the JSE Listings Requirements, where applicable.

The directors of Strategic Real Estate Managers (Proprietary) Limited, undertake that they will not implement any such repurchases
as contemplated above, unless:
• the Fund and the Group are able, in the ordinary course of business, to pay its debts for a period of 12 months after the date of
the general repurchase;
• the assets of the Fund and the Group, being fairly valued in accordance with International Financial Reporting Standards, are
in excess of the liabilities of the Fund and the Group for a period of 12 months after the date of the general repurchase;
• the participatory interest capital and reserves of the Fund and the Group are adequate for a period of 12 months after the date
of the general repurchase;
• the available working capital of the Fund and the Group will be adequate for ordinary business purposes for a period of
12 months after the date of the notice of the general repurchase; and
• before entering the market to proceed with the repurchase, the Fund’s sponsor has confirmed the adequacy of the Fund’s and
the Group’s working capital in writing to the JSE.

The JSE Listings Requirements require the following disclosure, some of which are elsewhere in the annual report of which this
notice forms part as set out below:
• Directors and management (page 32)
• Major Participatory Interest holders of the Fund (page 83)
• Directors’ interests (page 84)
• Participatory interest capital of the Fund (page 70)
Directors’ responsibility statement

The directors, whose names are given on pages 32 and 33 of the annual report of which this notice forms part, collectively and
individually accept full responsibility for the accuracy of the information pertaining to this special resolution number 1, and certify
to the best of their knowledge and belief that there are no facts that have been omitted which would make any statement false
or misleading, and that all reasonable enquiries to ascertain such facts have been made and that this resolution contains all the
information required by law and the JSE Listings Requirements.

Litigation statement
The directors, whose names are given on pages 32 and 33 of the annual report of which this notice forms part, are not aware of
any legal or arbitration proceedings, including proceedings that are pending or threatened, that may have or had, in the recent
past, being at least the previous 12 months, a material effect on Emira’s financial position.
Material changes
Other than the facts and developments reported on in the annual report, there have been no material changes in the affairs or
financial position of the Fund and its subsidiaries since the date of signature of the audit report and the date of this notice.
Reason and effect

The reason for and effect of special resolution number 1 is to authorise the Fund by way of a general authority to acquire its own
issued participatory interests on such terms, conditions and in such amounts as determined from time to time by the directors of
the Fund subject to the limitations set out above.
Statement of board’s intention

It is the intention of the directors of Strategic Real Estate Managers (Proprietary) Limited that they use such general authority
should prevailing circumstances in their opinion warrant it.
3 To transact any other business which may be transacted at an annual general meeting

Page 110
Administration information
Registered address Transfer secretaries

3 Gwen Lane Computershare Investor Services (Pty) Limited
Sandton 70 Marshall Street
2196 Johannesburg
PO Box 786130, Sandton, 2146 2001
PO Box 61051, Marshalltown, 2107
Asset manager
Strategic Real Estate Managers (Pty) Limited Auditor
3 Gwen Lane PricewaterhouseCoopers Inc.
Sandton 2 Eglin Road
2196 Sunninghill
PO Box 786130, Sandton, 2146 2157
Private Bag X36, Sunninghill, 2157
Property manager
Eris Property Group (Pty) Limited Bankers
3 Gwen Lane FirstRand Bank Limited t/a First National Bank
Sandton Wierda Valley
2196 Sandton Outlet
PO Box 786130, Sandton, 2146 Wierda Valley
2196
Trustee PO Box 787428, Sandton, 2146
Absa Bank Limited
11 Diagonal Street Attorneys
Johannesburg DLA Cliffe Dekker Hofmeyr Inc
2001 6 Sandown Valley Crescent
PO Box 42010, Fordsburg, 2033 Sandown
Sandton
Merchant bank and sponsor 2196
Rand Merchant Bank, a division of FirstRand Bank Limited Private Bag X40, Benmore, 2010
1 Merchant Place
Fredman Drive
Sandton
2196
PO Box 786273, Sandton, 2146

Page 111
Form of proxy
Emira Property Fund

(Participatory interest code: EMI)
ISIN: ZAE000050712)
(“Emira” or “the Fund”)
Form of proxy
This form of proxy is only for use by:
• registered members who have not yet dematerialised their Emira participatory interests; and
• r egistered members who have already dematerialised their Emira participatory interests and are registered in their own names in the
Fund’s sub-register.
For completion by the aforesaid registered members of Emira and who are unable to attend the seventh annual general meeting of the
Fund to be held in the boardroom, Third Floor, 3 Gwen Lane, Sandton at 14:00 on Tuesday, 16 November 2010 (“the annual general
meeting”).
I/We (name/s in block letters)
Of (address)
Being the registered holder/s of participatory interests in Emira, as at
Hereby appoint (see instruction 1 overleaf)

1. or failing him/her,
2. or failing him/her
3. the Chairman of the annual general meeting, as my/our proxy to attend, speak and vote for me/us and on my behalf or abstain from
voting at the annual general meeting of the Fund and at any adjournment thereof, as follows (see note 2 and instruction 2 overleaf):
Ordinary resolutions FOR AGAINST ABSTAIN
1.1 To receive, consider and adopt the annual financial statements for the financial
year ended 30 June 2010
1.2 To reappoint PricewaterhouseCoopers Inc. as auditor of the Fund and

N Mtetwa as the individual designated auditor of the Fund
1.3 To vote on a general authority to issue participatory interests for cash
Special resolution number 1
2.1 To vote on a general authority to repurchase participatory interests
Signed at on 2010
Signature(s)
Assisted by (where applicable)
Please read notes and instructions overleaf

Page 112
Notes
1. A participatory interest holder entitled to attend and vote at the meeting may appoint a proxy to speak and vote in this capacity.
A proxy need not be a participatory interest holder of the Fund. Proxy forms should be forwarded to reach the Fund’s
transfer secretary Computershare Investor Services (Proprietary) Limited, Ground Floor, 70 Marshall Street, Johannesburg, 2001
(PO Box 61051, Marshalltown, 2107) by no later than 14:00 on Friday, 12 November 2010. The appointment of a proxy will not
preclude a participatory interest holder from attending the meeting.
2. A participatory interest holder may insert the name of a proxy or alternative proxy of the ordinary participatory interest holder’s
choice in the space provided with or without deleting “the Chairman of the annual general meeting”. The participatory interest
holder must initial any such deletion. The person whose name appears first on the form of proxy and has not been deleted will be
entitled to act as a proxy to the exclusion of those whose names follow.
3. A participatory interest holder’s instructions to the proxy must be indicated by the insertion of the relevant number of votes
exercisable by that participatory interest holder in the appropriate space provided. Failure to comply with the above will be
deemed to authorise the Chairman of the annual general meeting, if he/she is an authorised proxy, to vote in favour of the
resolutions, or any other proxy to vote or abstain from voting at the annual general meeting as he/she deems fit, in respect of the
participatory interest holder’s vote exercisable thereat. A participatory interest holder or his/her proxy is not obliged to use all the
votes exercisable by the participatory interest holder or by his/her proxy, but the total of votes cast and in respect whereof
abstention is recorded may not exceed the total of the votes exercisable by the participatory interest holder or his/her proxy.
4. An alteration or correction must be initialled by the signatory/ies.
5. Documentary evidence establishing the authority of a person signing this form of proxy in a representative capacity must be
attached to this form unless previously recorded by the transfer secretaries of the Fund or waived by the Chairman of the annual
general meeting.
6. His/her parent or guardian, as applicable, must assist a minor or any other persona under legal incapacity unless the relevant
documents establishing his/her capacity are produced or have been registered by the Fund.
7. The completion and lodging of this form will not preclude the relevant ordinary participatory interest holder from attending the
annual general meeting and speaking and voting in person thereat to the exclusion of any proxy appointed in terms hereof,
should such participatory interest holder wish to do so.
8. The Chairman of the annual general meeting may accept or reject a proxy which is completed and/or received other than in
accordance with the instructions, provided that he/she shall not accept a proxy unless he/she is satisfied as to the manner in
which a participatory interest holder wishes to vote.
9. If participatory interest holders have dematerialised their participatory interests with a CSDP or broker, other than own name
dematerialised participatory interest holders, they must arrange with the CSDP or broker concerned to provide them with the
necessary authorisation to attend the general meeting and vote thereat, or the participatory interest holders concerned must
instruct their CSDP or broker as to how they wish to vote in this regard. This must be done in terms of the agreement entered into
between the participatory interest holders and the CSDP or broker concerned.

BASTION GRAPHICS
www.emira.co.za
EMIRA Property Fund annual report 2010

Emira Property Fund
3 Gwen Lane
Sandton Central
2196
East Coast Radio House

Market Square
RTT Acsa Park

Emira Annual Report Highlights Growth and Diversification

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Emira Annual Report Highlights Growth and Diversification

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a n n u a l r ep o r t 2 0 1 0

innovation diversification rejuvenation

A property fund created under the

Front cover – Wonderpark Shopping Centre, Boundary

108,08 cents + 6,8%

Imfundo House UNDP House

Annual Report 2010 Emira Property Fund

Amending the management

asset management fee structure was the culmination of extended

short- and long-term benefits for participatory interest (PI) holders of

Emira became the first Collective Investment Scheme in Property (CISP) to

align management and PI holders’ interests by introducing a cost only related

terms of its service charge arrangement to a monthly fee based on

STREM’s actual operating costs rather than the historical arrangement

cancellation payment of R197,4 million was paid in September 2010.

arrangement will be tangibly earnings enhancing from the first year.

The changes were overwhelmingly positively received with between 94%

and 98% of eligible PI holders who responded, voting in favour of the

Annual Report 2010 Emira Property Fund

Geographic diversification provides

The investment represents Emira’s first investment in an offshore jurisdiction.

It was motivated by the opportunity to diversify the portfolio by acquiring a

Facts and Figures: Growthpoint Properties Australia

The transaction will be earnings enhancing from the date of purchase.

In August 2010, GOZ announced the acquisition of seven direct properties

Northcorp Boulevard, Broadmeadows, Sharps Road, Tullamarine,

Annual Report 2010 Emira Property Fund

Continued active asset management

During the past three years, the Fund has:

Facts and Figures: Property investments in 2010

Annual Report 2010 Emira Property Fund

Five-year financial review

Annual Report 2010 Emira Property Fund

Portfolio of top 10 properties by value

1. Wonderpark Shopping Centre Retail

2. Fuel Group Acsa Park Industrial

3. Quagga Centre Retail

4. Randridge Mall Retail

Annual Report 2010 Emira Property Fund

6. Woodmead Office Park Office

7. Lynnridge Mall Retail

8. Faerie Glen Office Park Office

9. Southern Sentrum Retail

10. Braamfontein Centre Office

Annual Report 2010 Emira Property Fund

Portfolio value by sector Portfolio value by region Portfolio GLA by sector

Office Gauteng Office Office

Portfolio GLA by region Tenant profile by GLA*

Gauteng Grade A Grade A

* Tenants have been graded as follows:

Annual Report 2010 Emira Property Fund

Lease expiry profile (% of GLA) Lease expiry profile by sector (% of GLA)

Year 1 28,2 Year 1 12,2 7,2 8,8 28,2

Year 2 18,6 Year 2 7,5 5,5 5,6 18,6

Year 3 16,9 Year 3 6,5 5,2 5,2 16,9

Year 4 11,8 Year 4 2,1 3,8 5,9 11,8

Year 5+ 15,3 Year 5+ 2,7 7,9 4,7 15,3

■ Office ■ Retail ■ Industrial

Year 1 16,1 9,7 4,6 Office 9,3

Year 2 10,6 7,0 2,9

Year 4 3,0 3,5 2,1

Year 5+ 3,5 6,8 3,2

Front cover – Wonderpark Shopping Centre, Boundary