| Wed 20 Feb 2008, 10:51 | | LAF - Lonrho Wins Contract To Redevelop And Manage The `Karavia`, A 250 |
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LAF
LOLAF
LAF - Lonrho Wins Contract To Redevelop And Manage The `Karavia`, A 250
Room Hotel In Lubumbashi, Democratic Republic Of Congo
Lonrho Plc
(Formerly Lonrho Africa Plc)
(Incorporated and registered in England and Wales)
(Registration number 2805337)
(Share code: LAF; ISIN number: GB0002568813)
("Lonrho Africa" or "the Company")
LONRHO WINS CONTRACT TO REDEVELOP AND MANAGE THE `KARAVIA`, A 250 ROOM
HOTEL IN LUBUMBASHI, DEMOCRATIC REPUBLIC OF CONGO
Lonrho plc (AIM: LONR) today announces that, following a competitive tender
process, Lonrho has been awarded the redevelopment and subsequent
management contract for the Karavia Hotel in Lubumbashi by the Government
of the Democratic Republic Of Congo (DRC).
The tender process was run by the Comite de Pilotage de la Reforme des
Entreprise Publiques, (COPIREP), the Government department for
reconstruction projects and the Lonrho proposal was approved by the Council
of Ministers.
A new company, Karavia 2008, will be established to be owned as to 30% by
the Government of the DRC, 35% by Lonrho and 35% by De Moerloose Group, a
large Belgian group operating in the DRC in the automotive, distribution
and airlines business. Karavia 2008 will hold a 25-year lease on the
property for a peppercorn rent, renewable for a further period of 25 years.
Karavia 2008 will invest up to US$ 20 million in the refurbishment project
to bring the hotel back to an international five star standard. The funds
will be raised as a combination of equity and debt finance.
The Karavia hotel is currently the only potential large-scale accommodation
facility in Lubumbashi, the burgeoning centre of the copper and cobalt
industry in the DRC. The hotel, originally a Sheraton Hotel, has been
derelict for over ten years and requires a complete refurbishment.
The hotel market in Lubumbashi is currently chronically underserviced as
there are no international standard accommodation facilities meeting the
growing market demand, being driven by executives and mining engineers
developing the world class natural resource projects in the region, such as
Phelps Dodge; Anvil; Nikanor; and First Quantum. In excess of US$ 12
billion is being invested in natural resource projects in Katanga province,
of which Lubumbashi is the capital.
Lonrho Hotels will have the management contract for the hotel on a
renewable ten-year management contract. The hotel will be branded the
`Karavia : A Lonrho Luxury Hotel`.
It is estimated that the project will take approximately twelve months to
complete.
David Lenigas, Executive Chairman of Lonrho stated:
"Lubumbashi is experiencing significant economic growth as new copper and
cobalt projects are planned and come on line. This in turn has generated
large numbers of expatriate and Congolese visitors, who currently have very
limited choices for accommodation.
The requirement for an international standard hotel to cater for this
market is clear and forecast occupancy and room rates are excellent.
The refurbishment of the property will create an asset that the DRC
Government can be proud of, and the rebuilt hotel will be a fitting
testament to the progress in the country since the democratic elections."
ENQUIRIES
Lonrho Plc +44 (0)20 7016 5105
David Lenigas, Executive +44 (0)7881 825 378
Chairman
Geoffrey White, Chief Executive +44 (0)7717 307 308
Officer
Emma Priestley, Executive +44 (0)7867 785 177
Director
Pelham PR
Charles Vivian +44 (0) 20 7743 6672
+44 (0) 7977 297903
Alisdair Haythornthwaite +44 (0) 20 7743 6676
+44 (0) 7714 721379
Collins Stewart Europe : NOMAD
to Lonrho
Hugh Field / Jonny Sloan +44 (0) 20 7523 8350
NOTES TO EDITORS
About LONRHO:
Lonrho Plc is an expanding conglomerate that is rapidly growing a
successful business throughout Africa. The Company is listed on the London
AIM stock exchange (LONR). Lonrho is strategically focused on the
development of business opportunities in infrastructure, transportation,
support services and natural resources. The Company has over 20,000
shareholders and substantial institutional backing to support its mandate
to build a profitable business that plays a fundamental role in the
development of the African economy.
Since 2006, the Company has invested in or acquired control of:
- Hotel Cardoso - www.hotelcardoso.co.mz
- Lonrho Mining - www.lonrhomining.com
- Luba Freeport - www.lubafreeport.com
- Fly540 - www.fly540.com
- Norse Air - www.norseair.co.za
- Swissta Holdings - www.swissta.com
- SA Independent Liner Services - www.saliners.com
- Bytes and Pieces -
- Celsys Limited - www.celsys.co.zw
- Kwikbuild - www.kwikbuild.co.za
20 February 2008
South African sponsor to Lonrho Africa Plc
Java Capital (Proprietary) Limited
Date: 20/02/2008 10:51:01 Produced by the JSE SENS Department.
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