(Cape Town, 10 March 2005) Eurocape, the South African investment and development company behind the R1-billion mixed-use Mandela Rhodes Place in Cape Town’s central city, announced today that over 80% of the 180 apartments available in the development have been sold.

Labelled as the most significant mixed-use development in Cape Town since the 1970’s, Mandela Rhodes Place is acknowledged as the catalyst for the rejuvenation of the historical and cultural heart of the city.

The latest sales figures are significant when considering that construction commenced only six months ago. All the apartments in the Court Chambers, Kendall Building and The Winery are sold out.

Martin Kearns, CEO of Eurocape, says he is very happy with the sales results. "It shows that the age of inner city living is well and truly back and Cape Town is leading South Africa in the international trend of drawing people back to the cities. The success of Mandela Rhodes Place is just the beginning.

"The concept of inner city living in South Africa is still in its early stages. For example, twenty years ago, Dublin was in a dejected state with many derelict old buildings, but now people queue overnight to buy new properties that come into the market in the city. In 1994 we thought the regeneration of Dublin had peaked, but by 2004 property values there had gone up 10 times. We are confident Cape Town will follow suit as this is an international phenomenon."

Kearns explains that the strong sales figures prove that investors are eager to buy into a unique lifestyle concept. Developments like Mandela Rhodes Place will soon see Cape Town’s vision of rejuvenating the city’s Old Town area coming to full fruition. As conversions of commercial buildings to residential developments continue, entrepreneurs and retailers will follow those city dwellers investing in a new lifestyle, adding to the creation of a vibrant inner-city living lifestyle.

He estimates that the number of people living in the Cape Town CBD will grow substantially from its current level of 8 000 over the next five years.

"Given recent reports about the growing traffic problem getting to and from the city each day, it re-enforces our belief that more people will choose to live in the city with all the benefits that this will provide, rather than face traffic jams each morning and evening."

Kearns also said that additional phases of Mandela Rhodes Place currently being planned will continue to boost the capital appreciation of the residential component.

Says Andrew Golding, CE of the Pam Golding Property Group which is responsible for Mandela Rhodes Place residential sales in South Africa, and which has a dedicated team of sales agents based on site. "This sales achievement can be attributed to investors recognising Mandela Rhodes Place as a prime financial opportunity. The percentage of owner-occupiers has increased substantially since the initial phase and interest in this major development is not primarily for re-selling purposes.

"A high percentage of the units were purchased for investment purposes to rent to those seeking a highly desirable and convenient inner-city lifestyle and owners can expect an initial rental yield of about 8%."

He adds that both local and international interest in Mandela Rhodes Place has been exceptional, demonstrating overwhelming confidence in the success of the project. Sales figures show a good split between local and international buyers, with approximately half of purchasers being international buyers from Germany, Italy, Russia, the United Kingdom and Ireland. More than 70% of local buyers were Capetonians, while the remainder of purchasers were mostly from Gauteng.

The sales mandate for the apartments is shared between Pam Golding Properties in South Africa and Christies Estates in Ireland. Apartments range between 52m2 and 250m2 in size, with prices ranging between R1.2m to R8m for the large, luxurious penthouses at the top of the Tower.

"Properties in central Cape Town cost only a quarter or a fifth of similar properties in cities like New York, Paris or London where a penthouse could cost $6 million or more."

"The spin-offs of higher property values are huge. The fiscal benefits from property taxes and transfer duties and the city's rates base, is boosted enormously, which assists spending in other areas. In Ireland, the property boom has benefited the entire population," said Kearns.

The first apartments to sell out were in the Kendall and The Winery units.

"Kendall is a turn of the century building and the classic façade and interiors were exceptionally popular with the more mature market. The Winery’s collection of modern studios and crash pads were, on the other hand, in strong demand with upcoming and established professionals," said Golding.

All the residential units, namely Court Chambers, The Winery, Kendall,

The Tower and Fairburn, are uniquely designed and fitted. Eurocape has

gone to great lengths - including undertaking extensive research and consultation - to retain architecturally and historically significant facades, structures and even fittings and fixtures.

An old world luxury hotel will form part of the development and will include world-class gourmet dining, cocktail lounges and bars, 24-hour concierge, full room service and housekeeping, as well as business conference facilities.

Located within the residential block will be a range of restaurants, bars, food halls, delicatessens and The Old Town’s first, fully operational winery. These will be complemented by a state of the art rooftop wellness centre and clinic, offices, gymnasium, swimming pool and in-house parking.

Once completed, the development will boast a spectacular new glazed tower, sensitively divided and constructed between the historic structures and providing property buyers with unparalleled views of the cityscape, V&A Waterfront and Table Mountain.

Editor’s Notes:

§ Eurocape Holdings (Pty) Ltd is the South African investment and development company which is currently developing the R1-billion Mandela Rhodes Place in the heart of Cape Town’s CBD.

§ Eurocape was established in January 2003 from Howard Holdings plc, a major property development group in Ireland and the UK with a portfolio of R10-billion worth of property in the British and Irish property markets, including prestigious residential and commercial projects.

§ Eurocape purchased seven buildings on two historic city blocks to create Mandela Rhodes Place. The buildings include:

- The Cape of Good Hope Bank building in St George’s Mall

- The BoE building in Wale Street

- The old Reserve Bank building in Wale Street

- The Nedbank Syfrets Private Bank building in St George’s Mall

- The Nedcor Investment Banking building in St George’s Mall

- The old Cape Times building (later, the Syfrets building) in Burg Street

§ Mandela Rhodes Place will include 180 luxurious apartments

§ The luxury hotel will be developed in the landmark Old Reserve

Bank building, the Board of Executors building and the old Cape of Good Hope Bank building.

ENDS

ISSUED BY: The Phoenix Partnership

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DATE ISSUED: 10 March 2005