28 Jul 2015 11:35
South African Property Opportunities Plc (the "Company")
African Renaissance Transaction
The Board of Directors of South African Property Opportunities Plc is pleased to announce that the Company has entered in to a contract to sell the African Renaissance Project for ZAR 70 million. This amount will be received in two installments with the first payment of ZAR 30 million due on 01 September 2015, and a second payment of ZAR 40 million due on 31st December 2016. The purchaser has agreed to provide a bank guarantee for the second payment. The ZAR 70 million purchase price represents a 27% discount to the current carrying value of the property (ZAR 96 million). This discount reflects the difficult macro-economic conditions prevailing in South Africa coupled with protracted delays of electrical supply and an unresolved land claim on the African Renaissance property. The Company has received ZAR 1 million as nonrefundable consideration for entering into the purchase and sale contract.
In accordance with the Company's stated policy, all excess cash will be returned to shareholders as soon as practicable.
For further information please contact
Paul Fincham +44 (0) 20 7886 2713
Robert Naylor +44 (0) 20 7886 2714
Panmure Gordon
Ian Dungate/David Parnell + 44 (0) 1624 692600
Galileo Fund Services Limited