CASTLEVIEW PROPERTY FUND LIMITED – Announcement of dividend reinvestment price and confirmation of finalisation information

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Announcement of dividend reinvestment price and confirmation of finalisation information
CASTLEVIEW PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2017/290413/06)
JSE share code: CVW
ISIN: ZAE000251633
(Approved as a REIT by the JSE)
(“Castleview” or “the Company”)
ANNOUNCEMENT OF DIVIDEND REINVESTMENT PRICE AND CONFIRMATION OF FINALISATION INFORMATION
Further to the declaration of a cash dividend of 26.60 cents per share (the “cash dividend”) with an election to reinvest
the cash dividend in return for Castleview shares (the “dividend reinvestment alternative”), announced on SENS on
Wednesday, 26 May 2021 (the “declaration announcement”), the price per share, as determined on Monday, 7 June 2021
(the “finalisation date”), applicable to Castleview shareholders electing the dividend reinvestment alternative and
recorded in the register on Friday, 18 June 2021 (i.e. the “record date”), is R4.37 per share (the “reinvestment price”).
The reinvestment price represents the net asset value per share at 28 February 2021, as reflected in the Company’s
provisional summarised reviewed consolidated financial statements for the twelve months ended 28 February 2021,
released on SENS on Wednesday, 26 May 2021.
The ratio in respect of the dividend reinvestment alternative is 6.08696 shares for every 100 shares held on the record
date by South African resident shareholders exempt from dividend tax and 4.86957 shares for every 100 shares held on
the record date by non-resident shareholders subject to dividend tax at 20%.
Where a shareholder’s entitlement to the shares in relation to the dividend reinvestment alternative, calculated with
reference to the above share ratio, gives rise to an entitlement to a fraction of a new share, such fraction will be rounded
down to the nearest whole number with the cash balance of the dividend being retained by the shareholder.
Dividend withholding tax (“dividend tax”) implications
Dividend tax implications for South African resident shareholders
Dividends received from a Real Estate Investment Trust (“REIT”) are exempt from dividend tax in the hands of South
African resident shareholders provided that the shareholders have provided the requisite declaration as to residence as
detailed in paragraph 5 of the circular to Castleview shareholders dated and posted on Wednesday, 26 May 2021 (the
“circular”). South African resident shareholders, who have submitted the requisite documentation and are exempt from
dividend tax, will accordingly receive a net dividend of 26.60 cents per share.
Dividend tax implications for non-resident shareholders
Dividends received from a REIT by a non-resident shareholder will be subject to dividend tax at 20%, unless the rate is
reduced in terms of any applicable agreement for the avoidance of double taxation (“DTA”) between South Africa and
the country of residence of the non-resident shareholder. A reduced dividend withholding rate in terms of the applicable
DTA may only be relied upon if the non-resident shareholder has provided the requisite documentation as detailed in
paragraph 5 of the circular. Non-resident shareholders who have submitted the requisite documentation and assuming
that a dividend tax rate of 20% is applicable, will accordingly receive a net dividend of 21.28 cents per share.
Due to the fact that the cash dividend or dividend reinvestment alternative may have tax implications for resident and
non-resident shareholders, shareholders are encouraged to consult their professional advisors should they be in any
doubt as to the appropriate action to take.
Illustrative example on the application of rounding and the impact of dividend tax
The application of the rounding principle of rounding down to the nearest whole number and the impact of dividend tax
on shareholders has been illustrated by way of the example below:
South African Non-resident
resident shareholders
shareholders subject to
exempt from dividend tax at
dividend tax 20%
Dividend per share (cents) 26.60 26.60
Dividend tax per share (cents) – 5.32
Total net dividend per share (cents) 26.60 21.28
Number of shares held 100 100
Reinvestment price (R) R4.37 R4.37
Total amount available for reinvestment (R) 26.60 21.28
Number of shares entitled to in terms of the dividend reinvestment alternative 6.08696 4.86957
Rounded number of shares issued in terms of dividend reinvestment alternative 6 4
Total amount payable for shares acquired in terms of the dividend reinvestment
alternative (R) 26.22 17.48
Balance of distribution paid to shareholder (R) 0.38 3.80
Trading of Castleview shares
Shareholders are advised that, as per the published timetable, the last date to trade is Monday, 14 June 2021 and the
shares will trade ex-dividend on Tuesday, 15 June 2021.
As published in the declaration announcement, shareholders electing the dividend reinvestment alternative are once
again alerted to the fact that the new shares will be listed on LDT + 3 and that these new shares can only be traded on
LDT + 3 being Friday, 18 June 2021, due to the fact that settlement of the shares will be three days after the record date,
being Monday, 14 June 2021, which differs from the conventional one day after record date settlement process.
Shareholders are reminded that the last day to elect to receive the dividend reinvestment alternative is 12:00 (South
African time) on Friday, 18 June 2021. No action is required if you wish to receive the cash dividend.
The salient dates, timetable and all other information relating to the dividend (including the tax implications) and
dividend reinvestment alternative disclosed in the declaration announcement remain unchanged.
7 June 2021
Corporate Advisor and Designated Advisor
Java Capital
Date: 07-06-2021 11:00:00
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