THE ICONCAPE TOWN

Location

Prime position in the heart of the financial sector of Cape Town CBD. Investec, Absa, International Convention Centre and the V& A Waterfront

are some of the neighbours within the immediate vicinity.

The Icon was nominated for the Good Hope FM’s Best of Cape Town Awards 2008 ‘Best Architectural Design’

Architecture

• Contemporary design by DHK Architects

• Condominium Hotel operating off Residential Stock

• Retail Ground Floor has Food-Hall character

• 4 floors of office space• Underground car-parking

Exciting Mixed Use Development

Icon Retail

Total number of units: 46

Single owner of all 46 units currently included in a hotel rental pool of 81 units operated by Urban Hip Hotels (UHH)

Residential Units for Sale

1 bed units: 23 2 bed units: 23 1 parking space per bedroom High quality fit out including

furniture 1 Beds from 64m² to 91m² 2 Beds from 104m² to129m² Immediate returns on

investment

One Bedroom Units

Two Bedroom Units

Icon Apartments

Floor Lift Lift1918 1800A 1800 1801 1802 1803 1804 1805 1807 1808 1809 1810 181117 1700A 1700 1701 1702 1703 1704 1705 1707 1708 1709 1710 1711 16 1600A 1600 1601 1602 1603 1604 1605 1607 1608 1609 1610 161115 1500A 1500 1501 1502 1503 1504 1505 1507 1508 1509 1510 151114 1400A 1400 1401 1402 1403 1404 1405 1407 1408 1409 1410 141112 1200A 1200 1201 1202 1203 1204 1205 1207 1208 1209 1210 121111 1100A 1100 1101 1102 1103 1104 1105 1107 1108 1109 1110 111110 1000A 1000 1001 1002 1003 1004 1005 1007 1008 1009 1010 1011 Lift9 900A 900 901 902 903 904 905 907 908 909 910 911 912 913 914 915 9168 800A 800 801 802 803 804 806 807 808 809 810 811 812 813 814 8157 700A 700 701 702 703 704 705 706 707 708 709 710 711 712 713 714 7156 600A 600 601 602 603 604 605 606 607 608 609 610 611 612 613 614 6155 500A 500 501 502 503 504 505 506 507 508 509 510 511 512 513 514 5154 400A 400 401 402 403 404 SR SR 405 406 407 408 409 41032

1B1B2

Total Apartments 1911 Bedroom apartments 232 bedroom apartments 23Commercial spaceRetail spaceParking 69

Block A (Mountain view) Block B (City/harbour view)

Block C (Harbour view)

1903 1904

10061106120614061506160617061806

Gym

190519021900 1901

805906

SRSRSRSR

A

C

B

Price ListUNIT

BLOCK /TYPE BEDS BATHS STUDY

PARKING BAYS

SEC TITLE

AREA M²

SALE PRICE OF UNIT (EX

VAT) VALUE OF PARKING

TOTAL SALE PRICE

SALE PRICE PER M²

MONTHLY LEVIES

1 505 B6A 1 1 1 1 88 R 1 134 000 R 100 000 R 1 234 000 R 14 023 R 1 498.66

2 509 B2 2 2 0 2 108 R 1 444 500 R 200 000 R 1 644 500 R 15 227 R 1 909.00

3 510 B1 2 2 0 2 138 R 1 741 500 R 200 000 R 1 941 500 R 14 069 R 2 301.50

4 513 C3 1 1 0 1 67 R 864 000 R 100 000 R 964 000 R 14 388 R 1 141.84

5 605 B6A 1 1 1 1 88 R 1 176 000 R 100 000 R 1 276 000 R 14 500 R 1 498.66

6 607 B4 1 1 0 1 71 R 966 000 R 100 000 R 1 066 000 R 15 014 R 1 231.04

7 609 B2 2 2 0 2 108 R 1 498 000 R 200 000 R 1 698 000 R 15 722 R 1 909.00

8 610 B1 2 2 0 2 138 R 1 806 000 R 200 000 R 2 006 000 R 14 536 R 2 301.50

9 705 B6A 1 1 1 1 88 R 1 218 000 R 100 000 R 1 318 000 R 14 977 R 1 498.66

10 709 B2 2 2 0 2 108 R 1 551 500 R 200 000 R 1 751 500 R 16 218 R 1 909.00

11 710 B1 2 2 0 2 138 R 1 870 500 R 200 000 R 2 070 500 R 15 004 R 2 301.50

12 809 B2 2 2 0 2 108 R 1 605 000 R 200 000 R 1 805 000 R 16 713 R 1 909.00

13 810 B1 2 2 0 2 138 R 1 935 000 R 200 000 R 2 135 000 R 15 471 R 2 301.50

14 906 B6B 2 2 0 2 106 R 1 612 000 R 200 000 R 1 812 000 R 17 094 R 1 855.48

15 911 B1 2 2 0 2 138 R 1 999 500 R 200 000 R 2 199 500 R 15 938 R 2 301.50

16 913 C4 1 1 0 1 67 R 992 000 R 100 000 R 1 092 000 R 16 299 R 1 141.84

17 914 C3 1 1 0 1 67 R 992 000 R 100 000 R 1 092 000 R 16 299 R 1 141.84

18 915 C2 1 1 0 1 67 R 992 000 R 100 000 R 1 092 000 R 16 299 R 1 141.84

19 1005 B7 1 1 1 1 94 R 1 456 000 R 100 000 R 1 556 000 R 16 553 R 1 623.54

20 1006 B6B 2 2 0 2 106 R 1 664 000 R 200 000 R 1 864 000 R 17 585 R 1 855.48

21 1009 B3 1 1 0 1 71 R 1 104 000 R 100 000 R 1 204 000 R 16 958 R 1 231.04

22 1010 B2 2 2 0 2 108 R 1 712 000 R 200 000 R 1 912 000 R 17 704 R 1 909.00

23 1011 B1 2 2 0 2 138 R 2 064 000 R 200 000 R 2 264 000 R 16 406 R 2 301.50

Price ListUNIT

BLOCK /TYPE BEDS BATHS STUDY

PARKING BAYS

SEC TITLE

AREA M²

SALE PRICE OF UNIT (EX

VAT) VALUE OF PARKING

TOTAL SALE PRICE

SALE PRICE PER M²

MONTHLY LEVIES

24 1105 B7 1 1 1 1 94 R 1 501 500 R 100 000 R 1 601 500 R 17 037 R 1 623.54

25 1106 B6B 2 2 0 2 106 R 1 716 000 R 200 000 R 1 916 000 R 18 075 R 1 855.48

26 1110 B2 2 2 0 2 108 R 1 765 500 R 200 000 R 1 965 500 R 18 199 R 1 909.00

27 1205 B7 1 1 1 1 94 R 1 547 500 R 100 000 R 1 647 500 R 17 527 R 1 623.54

28 1206 B6B 2 2 0 2 106 R 1 768 000 R 200 000 R 1 968 000 R 18 566 R 1 855.48

29 1207 B5 1 1 0 1 71 R 1 173 000 R 100 000 R 1 273 000 R 17 930 R 1 231.04

30 1208 B4 1 1 0 1 71 R 1 173 000 R 100 000 R 1 273 000 R 17 930 R 1 231.04

31 1209 B3 1 1 0 1 71 R 1 173 000 R 100 000 R 1 273 000 R 17 930 R 1 231.04

32 1210 B2 2 2 0 2 108 R 1 819 000 R 200 000 R 2 019 000 R 18 694 R 1 909.00

33 1405 B7 1 1 1 1 94 R 1 592 500 R 100 000 R 1 692 500 R 18 005 R 1 623.54

34 1406 B6B 2 2 0 2 106 R 1 820 000 R 200 000 R 2 020 000 R 19 057 R 1 855.48

35 1407 B5 1 1 0 1 71 R 1 207 500 R 100 000 R 1 307 500 R 18 415 R 1 231.04

36 1408 B4 1 1 0 1 71 R 1 207 500 R 100 000 R 1 307 500 R 18 415 R 1 231.04

37 1410 B2 2 2 0 2 108 R 1 872 500 R 200 000 R 2 072 500 R 19 190 R 1 909.00

38 1411 B1 2 2 0 2 138 R 2 257 500 R 200 000 R 2 457 500 R 17 808 R 2 301.50

39 1507 B5 1 1 0 1 71 R 1 242 000 R 100 000 R 1 342 000 R 18 901 R 1 231.04

40 1508 B4 1 1 0 1 71 R 1 242 000 R 100 000 R 1 342 000 R 18 901 R 1 231.04

41 1509 B3 1 1 0 1 71 R 1 242 000 R 100 000 R 1 342 000 R 18 901 R 1 231.04

42 1510 B2 2 2 0 2 108 R 1 926 000 R 200 000 R 2 126 000 R 19 685 R 1 909.00

43 1605 B7 1 1 1 1 94 R 1 638 000 R 100 000 R 1 738 000 R 18 489 R 1 623.54

44 1610 B2 2 2 0 2 108 R 1 926 000 R 200 000 R 2 126 000 R 19 685 R 1 909.00

45 1807 B5 1 1 0 1 71 R 1 276 500 R 100 000 R 1 376 500 R 19 387 R 1 231.04

46 1810 B2 2 2 0 2 108 R 1 979 500 R 200 000 R 2 179 500 R 20 181 R 1 909.0069 69 8 69 4467 R 69 463 500 R 6 900 000 R 76 363 500

Investment Product - YieldYield Calculation, based on UHH projection: '08/'09 '09/'10 '00/11

Current Selling Price 76 363 500 76 363 500

Rental Pool Revenue 9 601 132 21 946 325Parking Revenue 331 200 364 320UHH Management Fee 1 841 125 4 389 265Other Rental Pool Expenses 2 707 432 2 868 509

5 383 775 15 052 871 add back UHH Management Fee (as indicated in Income Statement) 7 224 900 19 442 136

Partners participation interest 67% 67%

Net Profit before Management Fee - Partners 4 840 683 13 026 231

less UHH Management Fee (15%) 726 102 1 953 935

less Levies - Municipal Levies, Body Corporate Levies 2 160 000 2 332 800

Net Profit - Partners 1 954 580 8 739 496

Yield '07/'08Historic Yield '08/'09 Pending auditExpected Yield '09/'10 based on UHH budget 2.560%Expected Yield '10/'11 based on UHH budget 11.445%

Assumptions:1 Short-term letting using UHH assumptions2 Parking revenue assumed (conservative figures used)

Yield Calculation, market comparison: '09/'10 '00/11

Total Purchase Price of 46 units Excl VAT 76 363 500

Income

Revenue (at R120/m2) 6 223 680 6 846 048 Management fee (11%) 684 605 753 065 Tenant sourcing fee (2.5%) 155 592 171 151 Net Revenue 5 383 483 5 921 832

ExpensesLevies - Municipal Levies, Body Corporate Levies 2 160 000 2 332 800 Insurance 9 204 9 940 Airconditioning 24 120 26 050 Repairs and Maintenance 120 000 129 600

2 313 324 2 498 390

Profit Before Interest and Tax 3 070 159 3 423 442

Estimated Yield '09/'10 4.020%Estimated Yield '10/'11 4.483%

Assumptions:1 Medium to long term letting, i.e. not rental pool. Furnished apartments are

achieving about R120/m2 per month2 Repairs and Maintenance assumed, including Airconditioning3 Escalations - 10% on Revenues; 8% on Costs4 Insurance on contents only, other insurance through Body Corporate

Comparative Market Analysis - Average

Economic Data Sheet

With inflation still above the South African Reserve Bank’s 3% to 6% inflation target, Prime is expected to remain at 10.5% with a possible further decrease of 50 basis points before the end of 2009.

0.02.04.06.08.0

10.012.014.016.018.0

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CPI Headline Rebased

R157/Long Bond

CPI + R157

Prime Interest Rate

The International Monetary Fund’s (IMF) findings into the impact of the expansionary monetary and fiscal policy responses to the recent global shock showed that there is a risk of these policies resulting in higher inflationary pressure (IMF, September 2009). It was noted that the Rand’s current strength will help to offset this inflationary pressure.

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Rand/US Dollar

Rand/ Euro

Economic Data Sheet

Summary

The Icon was completed in 2007. Since its completion, Urban Hip Hotels (UHH) has been operating all 46 apartments as part of a hotel rental pool scheme consisting of 81 apartments total, providing a return to investors.

As anticipated in terms of any new start-up operation, initial yields from the new hotel rental pool scheme started low, but in line with market trends have increased exponentially over the first 2 years of operation as the hotel has become better known in the market. This upward trend is expected to continue.

Yields are expected to increase significantly with higher occupancy rates and average room rates prior, during and post World Cup events. Performance of the rental pool is projected at a yield of 11.5% for the 2010 financial year.

The apartments are collectively being offered at a substantial discount to the market. Recent individual apartment sales in the Icon sold for an average of approximately R23,500/m2, however, as a bulk deal the average price of the Icon apartments collectively is R17,000/m2, i.e. a 27.7% discount. This compelling investment offer is further substantiated by analysing the comparative City developments of Pepper Club and Mandela Rhodes Place, which are selling for approximate average prices of R28,000/m2 and R24,000/m2 respectively.

Forecast economic and financial data are also showing signs favouring investment, with banks increasing the availability of Credit (Fin24.com); Prime expected to stabilise at around 10.5%; inflation expected to remain close to the 3% to 6% inflation target set by SARB (Standard Bank, September Economic Preview).

The above collective basket of positive indicators provides a compelling argument favouring investors seeking to capitalise on the current market to enhance their own portfolios.

Contact us

LONDON

Jonathan Werth

Email: jwerth@life-at.co.uk

Cell: +44 (0)7711 510 120

Telephone: +44 (0)20 8896 9990

LIFE Residential

CAPE TOWN

Richard Boxford

Email: richard@liferesidential.co.za

Cell: +27 (0)72 431 4475

Telephone: +27 (0)21 469 9720

Skype: richard boxford