| Tue 20 Jun 2006, 9:37 | | Ifa Hotels & Resorts To Acquire Stake In Boschenda |
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IFH
IFH
Ifa Hotels & Resorts To Acquire Stake In Boschendal
IFA Hotels & Resorts Limited
(formerly Moribo Leisure Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1919/001318/06)
Share code: IFH
ISIN: ZAE000075669
("the company")
In its first acquisition since listing on the JSE in February, IFA Hotels &
Resorts Limited ("IFA SA") will purchase a significant stake in Boschendal
Limited, becoming an integral contributor to the landmark Boschendal
transformation initiative. The acquisition positions IFA SA to assist with a
proposed mixed-use development on Boschendal"s 2 400ha estate near Franschhoek
in Cape Town.
CEO of IFA SA, Talal Jassim Al-Bahar (also the Chairman and Managing Director of
IFA Hotels and Resorts) says that IFA SA is pleased to align with an iconic
South African brand such as Boschendal and to leverage Boschendal"s prime real
estate for development. He explains that the acquisition 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 a 50%
stake in the joint venture that developed Zimbali Coastal Resort.
Future development plans for the Cape Boschendal estate include an upmarket
retirement village with 500 individual homes, a boutique hotel with upwards of
80 keys and a mixed-use development of a shopping centre, offices and
apartments.
Al-Bahar adds: "The acquisition further fulfils IFA SA"s commitment to
sustainable transformation at grass-roots level - the Boschendal programme
spearheaded by BEE fellow shareholder Kovacs Investments ("Kovacs"), should see
more than R100 million in cash and 270ha of land contributed to the local
community over the next 10 years." Kovacs is a broad-based black consortium led
by former Western Cape MEC for Economic Affairs, Chris Nissen.
Werner Burger, President and COO of IFA Hotels and Resorts, points out that the
global IFA group has already contributed to transformation in the country as the
largest single foreign direct investor in Kwa-Zulu Natal tourism.
He says that the IFA group"s continued expansion into the Africa sub-continent
affirms its commitment to ongoing direct investment in South Africa and
neighbouring countries. "The intention is to use IFA SA as a platform for
continued investment in Africa to expand the group"s global network of resorts,
ensuring that we continue to deliver prime opportunities in tourism and real
estate to our global investors." He adds that the investment in Boschendal
enables IFA SA to elevate Boschendal onto the international real estate market
and present the estate as a world-class destination.
Clive Venning, CEO of Boschendal, says that IFA SA"s participation in Boschendal
is of critical importance to the future development of the estate. "As an
established developer of premier leisure hotels and mixed-use resorts, the group
will contribute crucial expertise to our development to benefit the company and
the surrounding Dwarsriver community."
Boschendal recently signed a social accord with Dwarsriver residents to
eradicate poverty in the valley and conserve the natural resources. The
Boschendal Treasury Trust was established to administer the 5% of gross land
sales which will be donated by Boschendal. "With gross land sales expected to
generate R2,2 billion, the local community stands to benefit significantly,"
says Venning.
Boschendal has further pledged to the Trust, for locals, 270 ha of land
including 40ha for 500 homes, 110ha of viable agricultural land and 120ha of
nature reserve. Venning points out that transformation will also come in the
form of job creation and economists have noted that real wages in the area would
be boosted by 30% by the development.
He says that land sales of the Founders" Estates should launch in 2006 with the
balance being released around 2008 - the development is delayed at present by
rezoning and other regulatory issues. "With a heritage site such as this, we
must adopt a slower, careful approach to design and planning to ensure the
development"s success and minimum disruption to the valley." Al-Bahar says that
IFA SA agrees with Boschendal"s prudent approach and is confident of
management"s ability to realise the development vision.
Al-Bahar concludes: "Boschendal is the latest of the IFA group"s resort
development projects world-wide, including its major investment of more than
US$2 billion investment in Palm Jumeirah Island Dubai." With regard to Africa
the IFA group has major development projects in Zanzibar and Kenya and is
currently assessing opportunities in Indian Ocean and Asian locations.
Ends.
Issued by: Envisage Communications
Nicole Sacks: (011) 325 5944/083 287 2771
On behalf of: IFA Hotels & Resorts
Werner Burger, President and COO
Email: burger@ifahotelsresorts.com
website: www.ifahotelsresorts.com
Issue date: 20 June 2006
FYI:
IFA SA listed on the JSE in February 2006. It owns the exclusive Zimbali Lodge
on Kwa-Zulu Natal"s north coast, rated by Conde Naste as one of the world"s top
hotels, and a 50% stake in the multi-million rand Zimbali Coastal Resort. The
Zimbali Coastal Resort was jointly developed with Tongaat-Hulett"s Moreland
Developments, and offers hotels, luxury residences, golf courses and leisure
facilities. IFA Hotels and Resorts K.S.C.C (IFA Kuwait) is the majority
stakeholder in IFA SA with an 85% interest. Listed on the Kuwait Stock
Exchange, IFA Kuwait has a market capitalisation of over US$1 billion.
Date: 20/06/2006 09:37:06 AM Produced by the JSE SENS Department
