Newpark currently holds a R1,33 billion portfolio, comprising two prime commercial buildings in the Sandton CBD and two industrial buildings in Linbro Business Park and Crown City, respectively, and is looking to acquire further similar assets in pursuit of its investment objectives. Newpark is led by a team of individuals with significant experience and successful track records in the property industry. The company’s independent property valuer is Peter Parfitt of Quadrant Properties Proprietary Limited.
Governance structure The governance structures are set out below. Due to the size and maturity of the company, in the period under review and for the current year, the board undertakes the role of the nominations committee.

Lease expiry profile

Segmental analysis

The table below sets out the details of the properties within the property portfolio.

Large international and national tenants, large listed tenants, government and major franchisees. These are the JSE Limited, Saudi Arabian Airlines Inc., Vida E Café Proprietary Limited, MTN Limited, TLS South Africa Trading Proprietary Limited (UK and Belgian Visa), CCI South Africa Proprietary Limited, Hellermann Tyton Proprietary Limited and Bidvest – Bidvest Afcom Proprietary Limited.

 

National tenants, smaller listed tenants, franchisees and medium to large professional firms. These are Solo – Ndlondlobala Holdings Proprietary Limited and Urban Crust – Tijuana Restaurant Proprietary Limited.

 

C-grade tenants include

Other local tenants and sole proprietors. These are Club Sublime CC (Taboo), Juju Lounge CC (Cocoon/BOA), ATM Solutions Proprietary Limited and AU999 Commodities Proprietary Limited, Greenhouse Sandton Proprietary Limited (Greenhouse), Wagyu South Africa Proprietary Limited (Monarch and Roadhouse), Borghini CC (Luca’s).

 

Newpark REIT Broker Commission Policy

Effective Date: 1 December 2024

This policy sets out the terms and conditions governing the payment of commissions to commercial leasing brokers by Newpark REIT. It is designed to ensure clarity, consistency and fairness while avoiding disputes over introductions and commissions.

1.    APPLICATION

This policy applies to all brokers introducing prospective tenants to properties owned by Newpark REIT (including its subsidiaries, associates and managing agents).

Commission is payable only if the broker is deemed to be the effective cause of a concluded transaction and is operating in terms of a valid mandate as detailed herein.

Brokers are responsible for familiarizing themselves with the latest version of this policy. Newpark REIT reserves the right to amend it at its discretion.

2.    REQUIREMENTS

2.1.    Effective Cause

A broker is considered to be the effective cause of a leasing transaction where their efforts directly lead to the successful conclusion of a lease agreement between Newpark REIT and a tenant. The broker must be able to demonstrate a clear chain of events initiated by their actions that led to the conclusion of a lease, including introducing the tenant to the property and to Newpark REIT, conducting lease negotiations, facilitating site visits and presenting Newpark REIT with an offer to lease in accordance with mandates provided by both Newpark REIT and the tenant.

2.2.    Mandate

No sole / exclusive mandate shall be granted to any broker. An introduction made by a broker must be in respect of a specific property and will relate to that specific tenant company only (i.e. excluding associated / affiliated companies). Newpark REIT will not accept generalised introductions between Newpark REIT and a prospective tenant. Brokers must provide Newpark REIT with a written mandate from the tenant specifying the scope of their authority that is only valid if accepted in writing by Newpark REIT (“a valid mandate”).

2.3.    Duration

Introductions made by brokers in accordance with a valid mandate will remain valid for periods of 3 (three) months from the date of introduction. If no transaction is concluded within this period, the introduction lapses unless extended in writing.

3.    COMMISSION STRUCTURE

3.1.    Lease Transactions

Unless otherwise agreed to in writing between the parties, Newpark REIT pays lease commission calculated on net rentals (i.e. basic rental, parking, storeroom and patio rental excluding rates, improvement levies, operating costs and other recoveries) for signed retail lease agreements and

Directors:, Auri Benatar (Chief executive director), Alan Wilson (Financial director), Stewart-Shaw Taylor (Non-executive Chairman), Barry van Wyk (Non-executive director), Dionne Hirschowitz (Non-executive director), Kevin Ellerine (Non-executive director), Roy Campbell (Independent Non-Executive director),Thanduxolo Sishuba (Independent Non-executive director)

pays lease commission calculated on gross rentals (i.e. basic rental, parking, storeroom and patio rental including rates, improvement levies and operating costs but excluding other recoveries) for signed office lease agreements, which are calculated as follows:

Years 1–2: 5% of rental value
Years 3–5: 2.5% of rental value
Years 6–8: 1.5% of rental value
Years 9–10: 1% of rental value

No commission is payable for lease periods exceeding 10 years or on renewals, addenda, option periods or any periods subject to tenant break clauses. No additional commission is payable to the extent that the net rental value increases during the term of the lease agreement due to market rental adjustments.

3.2.    Payment Terms
Lease commission is due within 30 days of:

• the tenant and Newpark REIT having signed the lease agreement,
• the tenant having paid the first month’s rental,
• the tenant having paid the deposit or provided the bank guarantee accepted by Newpark REIT, and
• the tenant having provided the signed sureties and/or guarantees as stipulated in the signed lease agreement and accepted by Newpark REIT.

Brokers are required to provide a valid tax invoice with proof of the bank details together with a copy of a valid Fidelity Fund Certificate prior to payment.

3.3.    Referral / Introduction Fees

Referral commissions (up to 10% of the tariff set out in section 3.1) apply where the broker introduces a tenant in accordance with a valid mandate provided by the tenant but does not provide the balance of the required services detailed in section 4 below. Where a broker has been appointed to facilitate a tender / RFP process on behalf of a tenant, commission will be payable by the tenant unless otherwise agreed in writing by the parties.

4.    SCOPE OF SERVICES

Brokers must provide the following services in order to qualify for full leasing commission:

• Facilitate the introduction of Newpark REIT and the tenant;
• Facilitate the provision by the tenant of all documentation required by Newpark REIT to do a full credit check;
• Facilitate property viewings for the prospective tenant;
• Coordinate and attend meetings between Newpark REIT and the tenant;
• Assist in lease negotiations between the parties.
• Present an offer to lease to Newpark REIT on behalf of the tenant.
• Facilitate and conclude the signing of the lease by the tenant and Newpark REIT
• Facilitate the submission of all the documentation required in section 3.2 by the tenant to Newpark REIT;
• Submission of the necessary broker documents, including FICA compliance and a valid tax invoice.
• Ensure timely information flow between the parties.

Failure to meet all these requirements may result in the payment of a reduced referral / introduction fee as per section 3.3. instead of full commission unless such failure was in response to a specific request by Newpark REIT, in writing, for the broker to not provide any of the above-detailed services and, as a result, the failure to meet these requirements was due to no fault or ommission on the part of the broker.
 
5.    GENERAL TERMS

5.1.    Confidentiality

Brokers must treat all information regarding Newpark REIT, its properties, its agreements, its negotiations with the tenant and the concluded terms of the lease as confidential.

5.2.    Exclusions

No commission is payable on deposits retained due to cancellations or on option fees for interim agreements.

5.3.    Marketing Materials

No broker signage or media statements may be issued without prior written approval from Newpark REIT.

5.4.    Amendments

This policy is subject to change. Brokers must ensure compliance with the latest version.

5.5.    Right of Recoupment

Should a lease be cancelled within the first year by no fault of Newpark REIT then Newpark REIT shall have the right to recoup the proportion of the commission paid for the unexpired portion of the lease period from the broker.