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IFH
IFH
IFH - IFA Hotels & Resorts Limited - IFA SA acquires further stake in Boschendal
Limited
IFA Hotels & Resorts Limited
(Incorporated in the Republic of South Africa)
(Registration number 1919/001318/06)
Share code: IFH
ISIN: ZAE000075669
("IFA SA" or "the company")
IFA SA acquires further stake in Boschendal Limited
IFA SA has expanded its South African and global presence by acquiring a further
7,32% stake in Boschendal Limited, increasing its stake to 26,57%.
Talal Jassim Al-Bahar, CEO, IFA SA, and Chairman and Managing Director, IFA
Hotels & Resorts Kuwait (IFA HR Kuwait), said: "The acquisition reinforces our
confidence and belief in the Boschendal transformation and development plans.
As an integral contributor to the Boschendal transformation initiative,
supported by the local community and planning authorities, we are pleased to
invest in an iconic South African brand such as Boschendal."
The acquisition is part of a set strategy by IFA HR Kuwait, which owns 85% of
IFA SA, to expand the geographic reach of IFA HR Kuwait as a global developer of
mixed-use integrated resorts. It also aligns with IFA SA`s strategy to deliver
new premier resort and residential developments in South Africa, diversifying
from Kwa-Zulu Natal where it owns Zimbali Lodge and holds a 50% stake in the
joint venture that is developing Zimbali Coastal Resort."
The current development plans for the proposed mixed-use development on
Boschendal`s 2,400-hectare estate include the superb Founders Estate sites
nestled amongst the vineyards on the slopes of the Simonsberg mountain,
residential homes set within villages of varying in size, an upmarket retirement
village, a boutique hotel and a mixed-use precinct combining shopping, offices
and apartments. Ultimately only 7% of the 2400 hectares will be covered by
buildings and gardens.
Werner Burger, President and COO, IFA HR Kuwait, said: "The tangible results of
our global expansion strategy are there for all to see. Apart from Boschendal
and Zimbali, IFA SA recently announced its entry into the Namibian hospitality
market in a R550m joint venture with Ohlthaver & List. This was made possible
because of our established platform through IFA SA for continued investment in
Africa. We aim to expand the group`s global network of resorts, ensuring that we
continue to deliver prime tourism and real estate opportunities to our global
investors."
Clive Venning, CEO, Boschendal, said: "There is no doubt that IFA SA`s
participation in Boschendal is of critical importance to the future development
of the estate and its admirable transformation initiatives. It is therefore
frustrating that, despite the overwhelming support this development initiative
has, due legal process in respect of rezoning and other regulatory issues has
hampered the delivery of substantial benefits to both the developer and the
community. However, the world heritage status of Boschendal requires the
adoption of a slower, more careful approach to design and planning in order to
ensure the development`s success and minimum disruption to the valley. The
patience of our wise investors has been remarkable."
Boschendal Limited has taken its cue from President Mbeki`s State of the Nation
Addresses in 2004 and 2005 to adopt responsible corporate citizenship in
promoting a people-centred society, the eradication of poverty and inequality
and the improvement in quality of life. The transformation will generate jobs
and lead to a 30% rise in real wages in the region. Boschendal has pledged 210
hectares of land towards the Local Community Trust. In addition annuity income
in perpetuity is also guaranteed to the Trust through a 5% (five percent)
contribution from first time property sales and 0.5% (half a percent) from
future property resales, which is estimated to raise over R100million over the
next 10 years.
Investors that have recognised the obvious beauty and potential of Boschendal
have already reserved stands to the value of over R600m, but all negotiations
have been put on hold pending a clear signal from the planning authorities.
IFA HR Kuwait also has major development projects in Dubai, United Kingdom,
Thailand, Portugal, Lebanon, Zanzibar, Namibia, Kenya and is currently exploring
further opportunities in South Africa, Africa and the Indian Ocean region.
Al-Bahar concluded: "Our strong strategic partnerships and relationships with
international hospitality partners such as Moreland, Kingdom Hotel Investments,
Nakheel, Istithmar, United Investments Portugal, Raimon Land and Ohlthaver &
List provides an outstanding synergy of skills adding significant value to our
partners in development".
IFA SA continues to trade under a cautionary on the JSE Limited.
Zimbali
31 May 2007
Sponsor: BDO QuestCo
Date: 04/06/2007 07:00:01 Produced by the JSE SENS Department.
