Hotel Acquisition

20 Feb 2008 07:00

LonZim PLC20 February 2008 20th February 2008 LONZIM Plc LonZim acquires strategic Don Carlos and Estoril Hotel development sites in Beira LonZim Plc ("LonZim" or the "Company"), which has been established for theprincipal purpose of making investments in Zimbabwe and the Beira corridor inMozambique, today announces that it has acquired a 79 per cent. shareholding inAldeamento Turistico de Macuti, SARL. ("ATdeM"). ATdeM owns the historic DonCarlos and the Estoril hotel sites on a 300,000 m2 plot of land, including 1.5km of beach front, in central Beira on the Mozambique coast (the "Site"). LonZim plans to demolish the two existing hotel properties and develop a luxuryhotel on the Site, to be operated and managed by an entity owned by Lonrho plc.This luxury hotel will have conference facilities, a training centre, retailmall, offices and logistics units. The Site is already zoned for commercialdevelopment purposes. Beira is described as the 'coast of Zimbabwe' and is the main supply route fromthe sea to Zimbabwe. As a result, LonZim sees strategic investments in supportservices in Beira as inextricably linked and crucial to the recovery of Zimbabweand its economy. The acquisition cost of the 79 per cent. shareholding in ATdeM was US$4,250,000.LonZim has funded this out of its cash resources. The remaining 21 per cent.shareholding in ATdeM is owned (i) as to 11.4 per cent. by the MozambicanGovernment through IGEPE, the Government investment fund, and (ii) as to 9.6 percent by the Beira Municipality. ATdeM holds no assets other than the Site andhas never traded. LonZim has also agreed to meet the costs, up to a maximum of US$1,500,000, ofarrears, penalties and charges which are historically outstanding and payable tothe Mozambican Government in relation to the Site. David Lenigas, Executive Chairman of LonZim commented : "This is an excellent investment opportunity for LonZim. Beira has always beenseen by the Company as a region that will recover rapidly when Zimbabwe'seconomy turns. This location, in central Beira, was historically very activewhen Zimbabwe had a thriving economy. It is clear that the Beira region willagain become fundamental for servicing Zimbabwe's demands for accommodation,office space and services. This is enhanced by the strength and stability of the Mozambican economy and theeconomic growth that is occurring within the Beira region of Mozambique. This acquisition further endorses LonZim's focus on identifying investmentopportunities, both in Zimbabwe and Beira, that will position the Company tobecome a major participant in infrastructure, industrial, support and transportsectors as the Zimbabwe economy recovers." ENQUIRIES Lonrho Plc +44 (0)20 7016 5105David Lenigas, Executive Chairman +44 (0)7881 825 378Geoffrey White, Chief Executive Officer +44 (0)7717 307 308Emma Priestley, Executive Director +44 (0)7867 785 177 Pelham PRCharles Vivian +44 (0) 20 7743 6672 +44 (0) 7977 297903James MacFarlane +44 (0) 20 7743 6375 +44 (0) 7841 672831 Collins Stewart Europe: NOMADHelen Goldsmith +44 (0) 20 7523 8350 NOTES TO EDITORS About LONZIM: LonZim Plc ("LonZim") is a company focused on developing and acquiring businessopportunities primarily in Zimbabwe and the region of Mozambique known as theBeira Corridor, which links Zimbabwe to the coast. LonZim was listed on theLondon AIM stock exchange on 11th December 2007 after raising £29.16 million.LonZim is 20 per cent. owned and managed by Lonrho Plc (AIM: LONR) a companystrategically focused on the development of business opportunities ininfrastructure, transportation, support services and natural resourcesthroughout Africa. Since listing in December 2007, LonZim has invested in or acquired control of: • Celsys Limited www.celsys.co.zw • Gardoserve (Private) Ltd t/a Millpal Chemicals This information is provided by RNS The company news service from the London Stock Exchange