Stor-Age Property REIT Limited entered a joint venture with Nedbank Corporate and Investment Bank, acting through Nedbank Property Partners ("Nedbank"), subject to the finalisation of formal contract documentation, to develop two high profile properties in Morningside (7 400m² GLA) and Bryanston (4 700m² GLA) at a total cost of approximately R200 million. Construction is scheduled to commence at both properties in the second half of 2022. Nedbank has been a primary debt funder to Stor-Age for more than a decade and has developed an excellent understanding and significant insight into the self storage asset class. One of the unique characteristics of the self storage development model is the lease-up of newly developed properties to a stabilised and mature level of occupancy, with the lease-up forming a considerable component of a property's overall formation cost. To mitigate the financial impact of the lease-up, it is desirable for Stor-Age to develop new properties in conjunction with a development partner. Dominated by high profile big box properties in outstanding locations, Stor-Age boasts a significant and attractive development pipeline, consisting of eight properties with an estimated 46 500m² GLA at a total development cost of approximately R685 million. The pipeline represents approximately 12.5% of the total South African portfolio GLA as reported at 31 March 2021. The Morningside and Bryanston properties to be developed in the JV with Nedbank form part of Stor-Age's existing pipeline. The key terms of the JV with Nedbank are set out as follows: Equity ownership will be in the ratio 50.1:49.9 (Stor-Age:Nedbank); JV to be funded by equity and mezzanine funding from both parties of 35% and senior debt of 65% of the total development costs; All newly developed properties to be branded and managed by Stor-Age; Stor-Age will earn development and property management fees from the JV; and Stor-Age will have a pre-emptive right to acquire all newly developed assets once certain predefined operating criteria have been met.