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Press Release: IFA
November 19, 2003
KUWAIT -- Jassim M. Al-Bahar, the Chairman and Managing Director of Kuwait's International Financial Advisors (IFA)
- a major investor in Dubai's Palm-Jumeirah - has announced one of the largest foreign international transactions
in South Africa's tourism industry. The IFA Consortium will invest $100 million over a 10 year period in the Zimbali
Resort.
International Financial Advisors (IFA) listed on the Kuwait Stock Exchange with a capitalisation of US $500 million.
IFA heads a consortium with several leading Kuwaiti and international companies, Kuwait Real Estate Company (KREC),
International Finance Company (IFC) and United Investments Portugal (UIP), with assets in excess of US $1 billion.
In an initial investment of $10m, IFA has acquired a a 50% equity stake in the renowned Zimbali Coastal Resort
in the KwaZulu-Natal region, north of Durban. The joint venture that was formed -Moreland / IFA Resort Developments
is with Moreland Developments, one of South Africa's leading land developers and property subsidiary of the Tongaat-Hulett
Group, a major South African company which is listed on the Johannesburg Stock Exchange (JSE) and the London Stock
Exchange (LSE), with $1.1 billion in assets and 9,100 employees.
IFA's joint venture partner, Moreland Developments, has developed more than 10 million square metres of land (1
000 hectares), worth more than US $1.5 billion, over the past 10 years.
The existing Zimbali Resort covers 3.7 million square metres (370 Hectares) the expansion of resort will add a
further 3.5 million square metres (350 hectares) with 340 properties sold to date.
Additionally, IFA Hotels & Resorts, a subsidiary of IFA, has purchased 1 million square metres (100 hectares)
of land to build a 300 bedroom, five-star hotel, golf course and vacation club.
The combined value of the acquisition by IFA of 50% of the equity in Zimbali Coastal Resort and the planned development
of the Zimbali Hotel and Beach Resort makes this transaction, one of the largest tourism investments ever undertaken
in the region and a significant investment into the South African tourism industry. The total economic value of
the first phase of the joint venture's intended development plan is estimated to be in the order of $ 350 million.
This is expected to increase to $ 570 million in new capital investment attracted into the area over the ten year
planning & development horizon.
The joint venture land will include over phases the sale of 700 freehold properties on the beach and around the
existing golf course followed by a further 500 freehold properties-villas, apartments and condominiums on a adjoining
lagoon. The expansion of the resort will substantially improve the area and its value and create a single resort
community.
"The Zimbali Coastal Resort is considered to be one of the leading property developments in South Africa and
boasts the five-star Zimbali Lodge, rated by Conde Naste Magazine as one of the top-31 hotels in the world, an
18-hole golf course designed by Tom Weiskopf and currently rated among the top-25 courses in South Africa, country
club facilities and tennis courts, a beach club and an extensive network of nature trails within a secure perimeter
estate"-----
---"The IFA Zimbali Hotel and Beach Resort will feature a beach club with stunning views of the Indian Ocean,
a world class spa, vacation club suites, country club, resort shopping and luxury villas built around a new 18-hole
golf course and will be managed by a top international hotel company,. This is an expansion of IFA's business in
South Africa, which creates further synergy with our other top class facilities in other parts of the world,"
said James Wilson, President & COO -IFA Hotels & Resorts..
This is IFA's second major investment in Africa within the last three months. In October, IFA Hotels & Resorts
signed a 10 year $50 million deal for the largest tourism investment on the famed spice island of Zanzibar. IFA
has secured 3 million square metres of land with 3 kilometres of beach front and purchased the 70 room Zanzibar
Beach Hotel and outlined plans for a major tourist resort.
The joint venture was presented at a official press function announcing the joint venture between Moreland and
IFA Hotels & Resorts for the future
development of Zimbali Coastal Resort as an international resort
destination by Jassim M. Al-Bahar, Chairman and Managing Director of Kuwait's IFA and His Excellency Mohamed Valli
Moosa-Minister of Environmental Affairs and Tourism and Tongaat-Hulett CEO, Peter Staude.
In attendance at the official press function were local and regional distinguished executives and guests including
Steven Saunders, Chairman of Moreland, Gordon Hibbert, Managing Director of Moreland and Neels Brink, Development
Director Moreland. In addition at the ceremony was the Kuwait Ambassador to South Africa His Excellency Salem Al-Zamanan
and Talal Jassim Al Bahar, Director IFA Hotels & Resorts-General Manager United Investments Portugal and James
Wilson President & Chief Operating Officer, IFA Hotels & Resorts.
Commenting further Jassim M Al Bahar, Chairman and Managing Director, IFA said:
"The Zimbali development is all part of IFA's strategic aim to provide world class facilities for tourists
in prime locations. Zimbali will link with Zanzibar as well as its resort at The Palm-Jumeirah, Dubai, our planned
resort in Lebanon and the existing hotel and resort in Portugal, the Sheraton Algarve and Pine Cliffs Resort, which
is owned by one of the companies in the IFA consortium, United Investments Portugal,
We can offer tourists in Europe, the Middle East and Africa a unique network linking IFA's respective hotels, resorts,
timeshare and vacation club destinations,
Apart from having a distinguished joint venture partner, IFA's investment in South Africa has been motivated by
the arrivals statistics produced by the South African Tourism Department that show that more than 6.4 million tourists
visited South Africa last year, making it one of the world's fastest-growing tourist destinations. With overseas
tourists arrivals having increased by 20.1%, South Africa has by far exceeded its projected tourism growth numbers.
All of South Africa's key markets have posted double-digit growth. Visitors from Europe increased by 24.2%, tourists
increased by 20.7% from Asia and 14.5% from Australia
"The IFA and Moreland joint venture creates a great deal of synergy and will automatically open up South Africa
to a large part of the world through the direct access IFA has to current international tourism markets,"
Moreland Managing Director, Gordon Hibbert said:
"Since its inception in 1996, the Zimbali Coastal Estate and Resort development has achieved phenomenal success
as a landmark premium resort and residential estate initiative in South Africa. We have developed and sold some
340 residential units in the resort and to date total investment in the eastern precinct of the estate exceeds
R1bn. ($145m) In December we will present an additional 27 key sites to the national and international markets
by way of an innovative property auction.
We are delighted to have IFA as our new partners in unlocking the incredible value and potential inherent in Zimbali
and we regard the involvement of IFA and IFA Hotels & Resorts as representing a long-term commitment to tourism
and economic development in KwaZulu-Natal. IFA is the first major international investor to commit directly to
the future of tourism in this province and we are delighted to have concluded this important joint venture agreement.
We have over the past few years been looking for a partnership that would open up new international markets and
are confident that IFA has the credentials, experience and resources to expose our property developments to key
markets abroad."
Commenting further on the joint venture agreement with IFA, Tongaat-Hulett CEO, Peter Staude said:
"We are delighted to have IFA with their international resorts and market linkages join with us in unlocking
further value in this world-class development, as it acknowledges Zimbali's international stature. As a company
we have great faith and confidence in the long-term economic potential of the KwaZulu-Natal north coast and we
believe that investors from around South Africa and abroad share in this confidence.
Jassim Al-Bahar concluded his statement by declaring "that the IFA's investment in Zimbali, South Africa together
with that in Zanzibar have placed the company in a strong competitive position in Africa's tourism industry. IFA
will also seek and evaluate other investment opportunities in South Africa's tourism industry, commercial sector
as well as the banking and investment sectors"
ABOUT IFA HOTELS & RESORTS - www.ifahotelsresorts.com
IFA Hotels & Resorts is a subsidiary of the Kuwait-based International Financial Advisors Company (IFA). The
depth and strength of the group places it in the forefront of companies engaged in the development of tourism projects,
hotels and resorts in Europe, the Middle East and Africa. It is the force behind the management of the super-premium
Sheraton Algarve Hotel and Pine Cliffs Resort in Portugal, part of Starwood's Luxury Collection, and behind the
planned luxury Zanzibar Beach Hotel and Resort - the largest destination resort on the historic spice island.
IFA Hotels & Resorts aims to link its resorts in Zanzibar, Palm-Jumeirah, Dubai and Portugal with future planned
resorts in Lebanon and South Africa. This will offer tourists in Europe, the Middle East and Africa a unique network
linking the company's respective hotels, resorts, timeshare and vacation club destinations.
About Moreland Developments - Building on a Vision
Acquiring property with long-term intent also requires confidence in knowing the project is backed by secure developers.
Moreland Developments (Pty) Ltd is a wholly owned subsidiary of the South African company The Tongaat-Hulett Group
Limited which is listed on the JSE Securities exchange (Johannesburg Stock Exchange) and the London Stock Exchange.
Moreland is one of the leading land developers in South Africa. Its projects span the entire property spectrum
and are located primarily along the eastern seaboard of the Province of KwaZulu-Natal in the north Durban region.
Amongst the company's better-known residential projects are Mount Edgecombe Country Club Estates, Umhlanga Ridge,
La Lucia Ridge, Somerset Park, The Gardens, Broadlands and Ilala Ridge. Major commercial projects include the Umhlanga
Ridge New Town Centre and La Lucia Ridge Office Estate. Since 1992 the company has developed more than 1000ha (10,000,000m²)
of land resulting in investment in infrastructure, the environment, buildings, equipment and finishes in the order
of R10bn (US$1,5bn). In doing so, 30 000 new permanent and 20 000 construction jobs have been created.
Zimbali, which was launched by Moreland in 1995, fits in well with the company's vision of continually creating
the most sought after quality of life environments in Southern Africa through developments of international standing.
Moreland's mission is to drive development, economic growth and property values in the north Durban area, in line
with this vision, market needs and on a internationally benchmarked, co-ordinated, planning basis.
For further information: Kuwait-IFA Hotels & Resorts Tel: +965 2403796 Fax: +965 2407179 celia@ifahotelsresorts.com Dubai-Greg Hunt, MCS/Action Tel: +9714 390 2960 Fax: +9714 390 8161 Greg@mcsaction.com South Africa-Rob Raven-Group Editors Tel: +27 31 263 9000 Fax: +27 31 263 9003 rob@groupedit.co.za