Portfolio Update

28 Aug 2007 07:30

South African Property Opps PLC28 August 2007 28th August 2007 SOUTH AFRICAN PROPERTY OPPORTUNITIES PLC ("SAPRO" or the "Company") SAPRO announces Kindlewood Development SAPRO today announces the exchange of contracts for the acquisition of twoadjoining pieces of land with a combined area of 5.3ha (the "Site") in theKindlewood Estate, Umhlanga, north of Durban, KwaZulu Natal (the "KindlewoodDevelopment"). The Site, which is currently undeveloped land, is situated close to theprestigious Mount Edgecombe Golf Estate and will be developed into a residentialconservation estate aimed at the upper end of the market featuring naturalwetlands populated with indigenous flora and fauna. Investment highlights: * The Kindlewood Development is a joint venture with an experienced localresidential developer. SAPRO will hold a 65 per cent. stake. * SAPRO will fund 95 per cent. of the land acquisition costs and will provide anadditional R5.0 million (£0.3 million) of working capital to the joint venturetaking the total investment from the fund up to R32.5 million (£2.2 million). * The total investment by the joint venture is estimated to be R192.4 million(£13.3 million), consisting of land acquisition costs of R29.0 million(£2.0 million) and estimated development costs of circa R163.4 million (£11.3million). Up to R158.4 million (£11.0 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 land is already zoned for medium density residential development, and weanticipate being on site in the 1st quarter of 2008 and completing the projectwithin two years. * The transaction brings total equity invested to R468.9 million (£33.1million). Brian Myerson, a director of SAPRO, commented: "Umhlanga has experienced significant residential, commercial and retail growthover the past few years and Mount Edgecombe is seen as one of the premierresidential locations in the Durban area. This project will address the strongdemand for secure residential property in the area." 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 a company investing in the South African property market. Its shares wereadmitted to AIM in October 2006 raising an intial £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, 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 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