Re SAPO: Further Fund Raising

1 May 2007 07:05

Principle Capital Holdings S.A.01 May 2007 PRINCIPLE CAPITAL HOLDINGS S.A. ("Principle Capital") FURTHER FUND RAISING - SOUTH AFRICAN PROPERTY OPPORTUNITIES PLC The Board of Principle Capital is pleased to note the announcement made today bySouth African Property Opportunities plc ("SAPRO") (Ticker: SAPO), regarding asecond fund raising by way of a placing. SAPRO is managed by the ProteusProperty Group ("Proteus") of which Principle Capital and one of itssubsidiaries owns 59.8%. Placing commitments have been received which will result in SAPRO raisingapproximately £34.2m after expenses. Based on the current level of commitments(which may increase between now and the EGM of SAPRO to be held on 18 May 2007)and on SAPRO's unaudited net assets of £29.25 million as at 31 December 2006,SAPRO's net assets would increase to approximately £63.5 million following theplacing. It is intended that the existing and new funds raised will be used tocreate a geared property portfolio of around £210 million (Rand 2.95 billion). Brian Myerson, Chief Executive Officer of Principle Capital and Joint Chairmanof Proteus commented "We anticipate that the funds raised by SAPRO in Octoberlast year will be fully allocated shortly. It is both a great credit to theefforts made by the investment team to date as well as an acknowledgement of thecontinuing quality of the pipeline of opportunity that this second fund raisinghas been supported by all of the existing major shareholders. I am also pleasedto welcome some significant new investors to SAPRO, which means that SAPRO'sequity capital will more than double. South African real estate remains in myview well placed to produce superior investment returns. As South Africa gainsrecognition around the world for its sophisticated property market and solidmacroeconomic fundamentals, this can only be to the benefit of SAPRO." Proteus will earn the same rate of management and performance fees from thenewly raised funds as it does from the existing capital of SAPRO. Whilst therewill be some investment in the professional and administrative team of Proteus,the increase in funds under management will have an immediate positivecontribution to the profitability of Principle Capital. The Placing is subject to shareholder approval at an Extraordinary GeneralMeeting of SAPRO to be held on 18 May 2007. Assuming approval is given, thePlacing Shares will be admitted to trading on AIM on 21 May 2007. For further information, please contact: Zoe BiddickBiddicks Tel no. +44 207 448 1000 Principle CapitalJames Peggie/David Cooley+44 20 7240 3222 Numis Securities LimitedStuart Skinner+44 20 7260 1000 This information is provided by RNS The company news service from the London Stock Exchange