Lonrho Regulatory News (LONR)

9 May 2008 11:44

Lonrho PLC09 May 2008 9 May 2008 LONRHO PLC ("Lonrho" or the "Company") LONRHO SIGNS 'BOT' AGREEMENT WITH GOVERNMENT FOR KARAVIA HOTEL IN LUBUMBASHI Lonrho Plc, ( AIM : LONR ) today announces that, following the announcement inFebruary this year that it had won the tender process for the redevelopment ofthe hotel Karavia, the formal agreement and 'Build, operate, transfer' terms forredevelopment were signed in Kinshasa, The Democratic Republic of the Congo, onthe 7th May 2008. The signing ceremony took place following two months of detailed negotiationswith the Government department for reconstruction, Comite de pilotage de laReforme des Enterprise Publiques ( COPIREP ). Signing and presenting theGovernment at the ceremony which was held at The Minister of Portfolio's office,were the Minister of Portfolio, Her Excellency Mabunda Lioko and the Minister ofEnvironment, Conservation and Tourism, His Excellency Jose Endundo Bononge. Under the terms of the final agreement, Lonrho will lease the property for 15years, renewable for a further 15 years for a yearly royalty fee of 1% of annualgross revenue. The hotel is expected to open by the 1st July 2009. The projectis budgeted to cost US$ 20 million, consisting of US$ 15 million refurbishmentand US$ 5 million pre-opening costs and working capital. Under Lonrhoagreements, the DBSA is expected to provide US$ 10 million commercial funding,and a local bank will provide the working capital facilities. Lonrho has established a new company to develop the project, 'Grand KaraviaSARL' with a local partner, DeMoerloose Group, on a 50/50 joint venture basis.Lonrho will provide Board control, and Lonrho Hotels has a management contractto operate the hotel once it is completed. The Karavia hotel is currently the only potential large-scale accommodationfacility in Lubumbashi, the burgeoning centre of the copper and cobalt industryin the DRC. The hotel, originally a Sheraton Hotel, has been derelict for overten years and requires complete refurbishment. The hotel market in Lubumbashi issignificantly underserviced with no international standard facilities availablefor current demand. Demand for hotel rooms is forecast to soar as US$ 12 billionof new copper and cobalt projects are to be developed in the region over thenext five years. David Lenigas, Executive Chairman of Lonrho stated: "I am delighted that, following the professional and transparent discussionswith COPIREP and the relevant Ministries in Kinshasa, this exciting project isnow ready to start. Work will commence on site in six weeks and the hotel willbe operational within twelve months. I am confident that the Grand Karavia willbecome one of the most renowned hotels in Southern Africa." LONRHO ENQUIRIES Lonrho Plc +44 (0)20 7016 5105 David Lenigas, Executive Chairman +44 (0)7881 825 378 Geoffrey White, Chief Executive Officer +44 (0)7717 307 308 Emma de Borchgrave, Executive Director +44 (0)7867 785 177 Pelham PR Charles Vivian +44 (0) 20 7743 6672 +44 (0) 7977 297903 James MacFarlane +44 (0) 20 7743 6375 +44 (0) 7841 672831 Collins Stewart Europe : NOMAD to Lonrho Hugh Field / Simon Alston +44 (0) 20 7523 8350 NOTES TO EDITORS About LONRHO: Lonrho Plc is an expanding conglomerate that is rapidly growing a successfulbusiness throughout Africa. The Company's shares are traded on the London AIMstock exchange (LONR). Lonrho is strategically focused on the development ofbusiness opportunities in infrastructure, transportation, support services,hotels and natural resources. The Company has over 19,000 shareholders andsubstantial institutional backing to support its mandate to build a profitablebusiness that plays a fundamental role in the development of the Africaneconomy. Since 2006, the Company has invested in or acquired control of: Hotel Cardoso - www.hotelcardoso.co.mz (retained) Lonrho Mining - www.lonrhomining.com Luba Freeport - www.lubafreeport.com Fly540 - www.fly540.com Swissta Holdings - www.swissta.com SA Independent Liner Services - www.saliners.com Bytes and Pieces www.bytespieces.com Kwikbuild - www.e-kwikbuild.co.za LonZim - www.lonzim.co.uk This information is provided by RNS The company news service from the London Stock Exchange