Investment group Lonrho Africa has made progress in its efforts to sell its remaining African interests during the six months to March.

The group, which once owned major interests in the hotel industry in Kenya, Mozambique and other parts of Africa, now only owns the Cardoso Hotel in Mozambique and a small industrial property in Johannesburg.

Chairman Christopher Mills said a year ago the group was still continuing to sell its assets in Africa, but was investigating opportunities in Britain.

Business Day reported that the group had spent the past three years trying to sell its African interests, and that before it could grow in Britain it had to sell all its African assets.

The group said it disposed of its 100% interest in Lonrho Hotels Kenya BV to Saudi hospitality group Kingdom Hotels Investments for £17,05m in cash, subject to warranties.

The hotel had made a loss during the six months, with the group's share amounting to £73,000, compared with an £86,000 loss in the same period last year.

The group said costs, headcount and capital expenditure were strictly controlled and it was discussing selling the hotel for about £1,5m.

Group non-executive director Michael Wilson, speaking from London, said they were in discussions with one party for the sale of the Cardoso, but would not name it at this stage.

The sale of a major part of its remaining agricultural land in Kenya, signed in September 2003, was completed on June 17 for about £1m.

Business Day