| Fri 9 May 2008, 13:20 | | LAF - Lonrho Plc - Lonrho Signs `BOT` Agreement Wi |
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LAF
LOLAF
LAF - Lonrho Plc - Lonrho Signs `BOT` Agreement With Government For Karavia
Hotel In Lubumbashi
Lonrho Plc
(Formerly Lonrho Africa Plc)
(Incorporated and registered in England and Wales)
(Registration number 2805337)
(Share code: LAF; ISIN number: GB0002568813)
("Lonrho" or "the Company")
LONRHO SIGNS `BOT` AGREEMENT WITH GOVERNMENT FOR KARAVIA HOTEL IN LUBUMBASHI
9 May 2008
Lonrho Plc, ( AIM : LONR ) today announces that, following the announcement in
February this year that it had won the tender process for the redevelopment of
the hotel Karavia, the formal agreement and `Build, operate, transfer` terms for
redevelopment were signed in Kinshasa, The Democratic Republic of the Congo, on
the 7th May 2008.
The signing ceremony took place following two months of detailed negotiations
with the Government department for reconstruction, Comite de pilotage de la
Reforme des Enterprise Publiques ( COPIREP ). Signing and presenting the
Government at the ceremony which was held at The Minister of Portfolio`s office,
were the Minister of Portfolio, Her Excellency Mabunda Lioko and the Minister of
Environment, Conservation and Tourism, His Excellency Jose Endundo Bononge.
Under the terms of the final agreement, Lonrho will lease the property for 15
years, renewable for a further 15 years for a yearly royalty fee of 1% of annual
gross revenue. The hotel is expected to open by the 1st July 2009. The project
is budgeted to cost US$ 20 million, consisting of US$ 15 million refurbishment
and US$ 5 million pre-opening costs and working capital. Under Lonrho
agreements, the DBSA is expected to provide US$ 10 million commercial funding,
and a local bank will provide the working capital facilities.
Lonrho has established a new company to develop the project, `Grand Karavia
SARL` with a local partner, DeMoerloose Group, on a 50/50 joint venture basis.
Lonrho will provide Board control, and Lonrho Hotels has a management contract
to operate the hotel once it is completed.
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 complete refurbishment. The hotel market in Lubumbashi is
significantly underserviced with no international standard facilities available
for current demand. Demand for hotel rooms is forecast to soar as US$ 12 billion
of new copper and cobalt projects are to be developed in the region over the
next five years.
David Lenigas, Executive Chairman of Lonrho stated:
"I am delighted that, following the professional and transparent discussions
with COPIREP and the relevant Ministries in Kinshasa, this exciting project is
now ready to start. Work will commence on site in six weeks and the hotel will
be operational within twelve months. I am confident that the Grand Karavia will
become one of the most renowned hotels in Southern Africa."
LONRHO ENQUIRIES
Lonrho Plc +44 (0)20 7016 5105
David Lenigas, Executive Chairman +44 (0)7881 825 378
Geoffrey White, Chief Executive +44 (0)7717 307 308
Officer
Emma de Borchgrave, Executive +44 (0)7867 785 177
Director
Pelham PR
Charles Vivian +44 (0) 20 7743
6672
+44 (0) 7977 297903
James MacFarlane +44 (0) 20 7743
6375
+44 (0) 7841 672831
Collins Stewart Europe : NOMAD to
Lonrho
Hugh Field / Simon Alston +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`s shares are traded on the London AIM
stock exchange (LONR). Lonrho is strategically focused on the development of
business opportunities in infrastructure, transportation, support services,
hotels and natural resources. The Company has over 19,000 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 (retained)
Lonrho Mining - www.lonrhomining.com
Luba Freeport - www.lubafreeport.com
Fly540 - www.fly540.com
Swissta Holdings - www.swissta.com
SA Independent Liner Services - www.saliners.com
Bytes and Pieces www.bytespieces.com
Kwikbuild - www.e-kwikbuild.co.za
LonZim - www.lonzim.co.uk
South African sponsor to Lonrho Plc
Java Capital (Proprietary) Limited
Date: 09/05/2008 13:20:12 Produced by the JSE SENS Department.
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