9th Apr 2008 07:00
South African Property Opps PLC09 April 2008 SOUTH AFRICAN PROPERTY OPPORTUNITIES PLC ("SAPRO" or the "Company") SAPRO announces acceptance of material offer on African Renaissance In July 2007, SAPRO announced that it had exchanged contracts to acquire a stakein a joint venture company with plans to construct a residential developmentwith a retail component, in a rapidly growing area east of Pretoria (the"African Renaissance Development"). The 153.7 hectare African RenaissanceDevelopment site was acquired by the joint venture for R39 million (£2.8 millionat the prevailing exchange rate). SAPRO, which has a 65% stake in the jointventure, financed the full acquisition cost of the site and has also providedR4.1 million (£287,500 at the prevailing exchange rate) by way of workingcapital to the joint venture. SAPRO today announces that the joint venture has accepted an offer of R150m(£9.7 million at current exchange rates) for an 11 hectare portion of the sitefrom one of the largest investment management groups in South Africa, whichintends to build a 61,000 sqm regional shopping centre on the site. The offer is subject to a due diligence period of three months, and severalsuspensive conditions including the completion of the planning process, bulkservice connections and certain road infrastructure upgrades to the site. There is a possibility that at the end of the three month period the offer willnot be concluded. However, should the sale go through it would produce ameaningful return for SAPRO and the construction of the regional shopping centrewould also be expected to enhance the value of the remainder of the sitesignificantly. If the sale does go through, SAPRO would not develop a shoppingcentre as originally planned, but otherwise the Company does not expect to makemajor alterations to its development plans for the remainder of the site. Further enquiries: Principle Capital on behalf of SAPRO Anne Dalen +44 207 240 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 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 and economic growth 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 ExchangeRelated Shares:
South African Property Opportunities