Nick Wilson

KUWAIT-based IFA Hotels and Resorts, which reverse-listed two South African subsidiaries onto the JSE main board yesterday, said any restriction on the foreign ownership of leisure and tourism properties would affect its business and foreign direct investment negatively.

Werner Burger, chief operating officer and president of IFA Hotels and Resorts Kuwait — an international developer of leisure hotels and mixed-use resorts — said in an interview that any residential or leisure property that appealed to a potential foreign investor was a possible market for the group.

The group is the largest single foreign investor in the KwaZulu-Natal tourism market.

He was reacting to a report by a government-appointed panel which recommended a moratorium on foreign land ownership.

The panel was appointed by Land Affairs Minister Thoko Didiza in 2004 to review the ownership of local land by foreigners.

Burger said he hoped government would look at the panel’s recommendations along with the “bigmacro picture”.

He said government would have to balance the need for foreign investment in SA with the masses’ need for access to property.

But Burger said it appeared government was moving to “place SA on a global playing field with other countries around the world”.

He also said it appeared government wanted to encourage foreign investment.

Yesterday the two IFA subsidiaries were listed on the JSE main board under the banner IFA Hotels & Resorts (SA).

The share price was R4,50, giving the company a market capitalisation of just under R1bn.

Parent company IFA Hotels and Resorts Kuwait is listed on the Kuwait Stock Exchange with a market capitalisation of more than $1bn.

Through its two subsidiaries, IFA Hotels & Resorts SA owns the Zimbali Lodge hotel on KwaZulu-Natal’s north coast and a 50% stake in the Zimbali Coastal Resort.

IFA Hotels & Resorts Kuwait is the majority shareholder in IFA Hotels & Resorts SA with an 85% interest.

Burger said IFA Hotels & Resorts SA was a platform for “development and expansion in the region”.

“We are looking at new acquisitions. We’re looking at the Western Cape at mixed use resorts. We looking at game reserve opportunities in northern KwaZulu-Natal,” he said.

Phillip de Sylva, executive director of the South African listed company, said the Zimbali development’s “promising prospects” were supported by the King Shaka airport soon to be completed between Zimbali and Durban.