Fther re Property Acquisition

18 Sep 2007 07:30

South African Property Opps PLC18 September 2007 18th September 2007 SOUTH AFRICAN PROPERTY OPPORTUNITIES PLC ("SAPRO") Further Property Acquisition SAPRO is pleased to announce an exchange of contracts for the second phase ofthe development in Ballito, north of Durban, KwaZulu Natal, that was announcedon December 15th 2006. Imbonini Services Park Phase 2 ("The Phase 2 Development") will provideadditional serviced stands for light industrial use and potentially, a number ofmiddle income residential dwellings on the 77.5 ha site. The site, which is currently undeveloped vacant land is expected to yield anestimated 38.0 ha of gross developable area after planning consent has beenobtained. Investment highlights: * SAPRO's investment commitment (excluding refundable transfer duties) is R66.5million (£4.6 million) consisting of a R60.0 million (£4.2 million) interestbearing mezzanine loan, R6.0 million (£0.4 million) to acquire a 50 per cent.stake in the Phase 2 development company from the founding shareholders (who arealso our partners in this and the phase 1 development) and R500k (£35k) to matchthe founding shareholders loan account balance. * The development is expected to require a total investment of R150.8 million(£10.4 million) of which R89.8 million (£6.2 million) of the estimateddevelopment cost of R95.1 million (£6.6 million) will be financed by bank loanssecured on the property. However, the total amount borrowed at any point in timewill be considerably less than this. * The planning application is in the process of being prepared. It is expectedthat construction work will commence in 2008 and that the total duration of theproject will be less than four years. * This transaction brings SAPRO's total equity invested to date up to R535.4million (£37.7 million). Brian Myerson, a director of SAPRO, commented: "The rapid progress being made on Phase 1 has motivated us to secure our optionto participate in Phase 2 and the potential to include a residential componentcould further enhance the overall returns. We expect that demand for thisdevelopment will be strong as it is extremely well located, approximately 10miles up the N2 highway from the proposed new Durban King Shaka InternationalAirport that is scheduled to open in time for the 2010 FIFA World Cup." Further enquiries: SAPRO Anne Dalen +44 207 240 3222 Landsbanki Securities Paul Fincham +44 207 426 9000 Bell Pottinger Dan de Belder / Algy Rowe +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 £30 million initially and a further£33.5 million in April 2007. - 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