South African Property Opportunities Regulatory News (SAPO)

11 Oct 2007 07:00

South African Property Opps PLC11 October 2007 11 October 2007 SOUTH AFRICAN PROPERTY OPPORTUNITIES PLC ("SAPRO" or the "Company") SAPRO announces Kyalami Development The Directors of SAPRO announce that the Company has exchanged contracts for theacquisition of an 8.9 hectare site in Kyalami, north of Johannesburg, Gauteng(the "Kyalami Development"). The site, which is currently undeveloped land, is located within a growing nodeclose to the well known Kyalami Racetrack, and it is intended that it will bedeveloped into a residential complex aimed at middle market buyers. Investment highlights: * The Kyalami Development is a joint venture that includes an experienced localresidential property developer. * SAPRO will hold up to 75 per cent. of the equity pending the results of theplanning application which will determine the maximum density that can beachieved on the site and has committed a total of R27.7 million (£1.9 million)of equity into the project in addition to the R3.5 million (£0.2 million)committed by the other parties. * The total investment by the joint venture is estimated to be up toR251.3 million (£17.6 million), consisting of land acquisition costs ofR28.2 million (£2.0 million) and development costs of circa R223.1 million(£15.6 million). Up to R220.1 million (£15.5 million) of bank financing will berequired for the construction phase (although the total amount outstanding inany one calendar year will be considerably less than this). * The site is currently zoned for agricultural holdings. However a planningapplication has already been submitted and it is expected to be accepted in thethird quarter of 2008. SAPRO anticipates being on site in the first quarter of2009 and completing the project within two years thereafter. * The transaction brings total equity invested by SAPRO to R563.1 million (£39.7million). Brian Myerson, a director of SAPRO, commented: "I am delighted that SAPRO has exchanged contracts to acquire this site and ourproposed development will target the growing demand for residential property inthe area of Kyalami. This latest acquisition represents another excitingopportunity for SAPRO and furthers our ambition to become one of the leadingreal estate development companies in South Africa." Further enquiries: Principle Capital on behalf of SAPRO Anne Dalen +44 20 7240 3222 Landsbanki Securities Paul Fincham +44 207 426 9000 Bell Pottinger Dan de Belder +44 207 861 3232 Note to Editors: - South African Property Opportunities plc (SAPRO) is a company investing in the South African property market. Its shares were admitted to AIM in October 2006 raising an initial £30 million. In April 2007 a further £33.5 million was raised from new and existing investors. - SAPRO was established to invest in the South African property market with a view to generating attractive returns, principally through capital growth. It is targeting opportunities arising from the increasing wealth that has been generated from greater urbanisation in South Africa coupled with the rapid emergence of a cross cultural middle class. SAPRO is currently focused on investments in brownfield and greenfield development opportunities. - The Investment Manager is Proteus Property Partners Limited and the Investment Adviser is Proteus Property Advisors (Pty) Limited. The Investment Manager and Investment Adviser are responsible for identifying new investment opportunities. - The Investment Manager and Investment Adviser are 60% owned subsidiaries of Principle Capital Holdings S.A. (AIM: PCX.L). This information is provided by RNS The company news service from the London Stock Exchange