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SAPRO announces receipt of planning rights and le

6th Nov 2008 11:24

RNS Number : 6008H

South African Property Opps PLC

06 November 2008

SOUTH AFRICAN PROPERTY OPPORTUNITIES PLC

("SAPRO" or the "Company") (AIM: SAPO.L)

SAPRO announces receipt of planning rights and lease with major hotel group

Planning rights and hotel ground lease - Longmeadow Development

SAPRO, the South African property fund, is pleased to announce that a joint venture vehicle (the "JV Company") in which it has a 49% interest has:

received planning rights on the first phase of its Longmeadow Development in Fourways, Johannesburg; and

signed a ground lease with City Lodge, a leading South African hotel group operator, on a prominent corner of the development. City Lodge plans to build a 5 storey 200 room hotel on the site, and the JV Company will receive rental proceeds from the ground lease from 1 March 2010.

The term of the lease is for up to 52.5 years, with a first term of 16.5 years and City Lodge thereafter having three consequential options to renew for 12 years. The lease was calculated on a bulk square metre rate of R4,000/sqm, which represents approximately a fourfold uplift on the price that the JV Company paid for the site, and a 9.5% capitalisation rate.

Bulk earthworks will commence shortly, with construction of the hotel estimated to commence in the first quarter of 2009.

Brian Myerson, a Director of SAPRO, commented:

"The securing of the lease from City Lodge creates the cornerstone for this prime development and underpins a fourfold increase in valuation on a prominent portion of the site."

Further enquiries:

Principle Capital on behalf of SAPRO Anne Dalen +44 20 7240 3222

Teathers Limited Tom Hulme +44 207 426 9000

Bell Pottinger Dan de Belder +44 207 861 3232

Change of Nominated Adviser

SAPRO confirms that in accordance with AIM Rule 17, the Company's nominated adviser and broker is Teathers, a division of Straumur-Burdaras Investment Bank hf., of Berkeley Square House, Third Floor, Berkeley Square, London W1J 6BU.

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).

This information is provided by RNS

The company news service from the London Stock Exchange

END

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