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July 13, 2004

By Roy Cokayne

Pretoria - The Imperial Group and a consortium of businessmen have acquired the AA Kyalami Grand Prix Circuit from the Automobile Association of SA (AA) for R42 million.

The new owners intend to keep the circuit as South Africa's premier motorsport facility but will convert some sections into a motoring estate with residential and lifestyle components.

Imperial Bank and Imperial Motor Holdings have each acquired a 30 percent share in the Kyalami Property Holdings from the AA and MJF Associates, a consortium of businessmen the remaining 40 percent.

The consortium, financed by Nedcor, is headed by Mike Fogg, the managing director of the Roy Hesketh Motor Racing Foundation and a former South African motorcycle champion; Jim Redman, a six times world motorcycle champion with links to Formula 1 supremo Bernie Ecclestone; and Dave McGregor, South Africa's "Mr Motorsport".

Fogg said MJF would continue to run and manage the circuit as a premier motorsport facility, while the Imperial Group would focus on the property and retail opportunities.

"The preservation of Kyalami as a world-renowned motorsport icon is of paramount importance to us," he said. "At the same time, we intend developing the property as a unique home for all facets of motoring, from the sport through to the retailing of motor vehicles.

"The track will remain central to the motoring theme," Fogg said.

Tak Hiemstra, the managing director of Imperial Bank, said Imperial was synonymous with the wheels business and its investment made a lot of sense because there were opportunities for retailing and motor-related products.

Fogg said the four-pronged business plan included attracting inbound foreign tourists to Kyalami; extending motor racing activities at the facility; getting the motor industry involved at Kyalami by giving it "a compelling reason to be here"; and developing sections of Kyalami into a residential motoring theme park similar to residential golf estates.

"Parts of the circuit will go through residential areas, just like the Monte Carlo Grand Prix," he said.

Robert Bray, a director of architects Bentel Associates International, said the development of a residential estate at the circuit was subject to the rezoning of the property being approved.

Bray said 18 000m2 of commercial rights had already been approved and were available at the entrance to Kyalami.

Bray said these commercial rights could be used for retail and motorsport-related retail but stressed that the track would not be overdeveloped.

He said the 70 hectare site, of which the track took up 11 hectares, was underutilised.

Ed Kok, the managing director of the AA, said it had owned the circuit for

11 years.

It had publicly stated in the past that this was not part of its core business and if the right offer came along it would give it serious consideration.

"That deal has now become a reality and rather than the end of an era, we see it as the start of a new and exciting chapter in the circuit's history,"

Kok said.

The AA acquired Kyalami in December 1992 for R31 million from the liquidators of Tollgate Holdings, to preserve the circuit for motorsport.