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29 Jul 2008 07:00
29 July 2008
SOUTH AFRICAN PROPERTY OPPORTUNITIES PLC
("SAPRO" or the "Company")
SAPRO announces 'African Renaissance Development' offer extension and receipt of planning rights
Offer extension
On 9th April 2008 SAPRO announced it has accepted an offer for an 11 hectare retail portion of the 'African Renaissance Development', a site east of Pretoria owned by a joint venture company in which SAPRO holds a 65% stake.
Following a three month due diligence period the offeror, one of the largest investment management groups in South Africa, has asked for a six week extension to the offer, which SAPRO has granted. Although it is unlikely that the offeror will be able to build the envisaged 61,000sqm regional shopping centre on the site as originally proposed, the offeror is investigating the viability of developing a smaller shopping centre, which would complement the major residential element of the development.
Planning rights
The Company is delighted to announce that it has received full residential planning rights on the site (in addition to the commercial and retail planning rights which had already been granted). These planning rights allow the Company to develop 3,353 residential units, up from the 3,200 originally envisaged, and will materially increase the value of the Company's investment.
Brian Myerson, a director of SAPRO, commented:
"The granting of the residential planning rights is a major development for this project, which is primarily focused on supplying first buyer homes in this area to the east of Pretoria. The area has experienced significant residential growth over the past few years and it is anticipated that the value of the site will enjoy a significant uplift following the granting of the rights."
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 (before placing expenses). In May 2007 a further £34.2 million (before placing expenses) 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).
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