South African Property Opportunities Regulatory News (SAPO)

11 Dec 2007 09:14

South African Property Opps PLC11 December 2007 FOR IMMEDIATE RELEASE 11 December 2007 SOUTH AFRICAN PROPERTY OPPORTUNITIES PLC ("SAPRO" or the "Company") SAPRO announces the Emberton Development SAPRO today announces the exchange of contracts for the acquisition of a pieceof land with an area of 16.5ha (the "Site") in Hillcrest, approximately 15kmwest of Durban, KwaZulu Natal (the "Emberton Development"). The site, an existing golf driving range, is currently zoned for agriculturaluse. It is situated directly adjacent to the main M13 highway and commuter routeinto Durban from the west, providing excellent visibility and exposure. Theproposed development will comprise an upmarket mixed-use secure estate, withresidential, commercial and retail components. Investment highlights: * SAPRO has secured the Emberton Development, but has simultaneously commencednegotiations with an experienced local contractor who it is proposed wouldacquire a minority stake and work on the project with SAPRO. * The land acquisition costs are R52.5 million (£3.7 million), which at presentSAPRO has funded. SAPRO will further provide an additional R1.3 million (£0.1million) of working capital, taking the Company's total investment toR53.8 million (£3.8 million). However, any joint venture partner will berequired to fund their equity participation on a pro rata basis at par. * The total investment in the Emberton Development is estimated to beR184.5 million (£13.0 million), consisting of land acquisition costs ofR52.5 million (£3.7 million) and estimated development costs of circa R132million (£9.3 million). Up to R130.7 million (£9.2 million) of bank financingwill be required for the construction phase (although the total amountoutstanding in any one calendar year will be considerably less than this). * The land is currently classed as an agriculture holding and we estimate theproject will require a two year township application process allowing SAPRO tocommence construction in the first quarter of 2010. * The transaction brings total equity invested to £43.5 million. Brian Myerson, a director of SAPRO, commented: "In the Emberton Development we have secured some prime strategic land at anexcellent price and which we are confident will produce strong medium termreturns. The site is in a great location in the high growth Hillcrest node (asuburb of Durban) and links directly to the current main commuting route intoDurban from Hillcrest. Whilst planning will take some time, we believe that itwill be obtained and the returns justify the extra time and effort required tolaunch the development." Further enquiries: 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 acompany investing in the South African property market. Its shares wereadmitted to AIM in October 2006 raising an intial £30 million. In April 2007 afurther £33.5 million was raised from new and existing investors. - SAPRO was established to invest in the South Africanproperty market with a view to generating attractive returns, principallythrough capital growth. It is targeting opportunities arising from theincreasing wealth that has been generated from greater urbanisation in SouthAfrica coupled with the rapid emergence of a cross cultural middle class. SAPROis currently focused on investments in brownfield and greenfield developmentopportunities. - The Investment Manager is Proteus Property PartnersLimited and the Investment Adviser is Proteus Property Advisors (Pty) Limited.The Investment Manager and Investment Adviser are responsible for identifyingnew 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