Kuwait-based IFA Hotels & Resorts K.S.C.C ("IFAHR Kuwait"), the largest single foreign investor in KwaZulu-Natal tourism to date, today further boosted the SA economy when it reverse-listed two SA subsidiaries onto the JSE main board under the banner IFA Hotels & Resorts Limited ("IFAHR SA").
IFAHR SA"s share debuted at R4,50, giving the company a total market cap on listing of just under R1 billion. IFAHR Kuwait, listed on the Kuwait Stock Exchange with a market cap of over $1 billion, is an international developer of premier leisure hotels and mixed-use resorts worldwide.

Through its two subsidiaries IFAHR SA now owns the exclusive Zimbali Lodge on Kwa-Zulu Natal"s north coast, rated by Cond Naste as one of the world"s top hotels, and a 50% stake in the multi-million rand Zimbali Coastal Resort. The Zimbali integrated resort project jointly developed with Moreland Developments, which indirectly owns the remaining 50% interest, offers hotels, luxury residences, golf courses and leisure facilities. The rapid take-up of properties has prompted the joint venture to develop a 300ha extension, Zimbali Lakes, which will include a Gary Player signature golf course.

CEO of IFAHR SA Talal Al-Bahar, who is also the Chairman and Managing Director of IFAHR Kuwait, says: "as an established developer of luxury resorts throughout the Middle East, Africa, Europe and the Indian Ocean region, IFAHR Kuwait is well-positioned to invest capital and expertise in resort development in SA,". Notwithstanding its own foreign direct investment in the local economy, IFAHR Kuwait has also introduced to SA partners such as the Fairmont Hotels & Resorts.

Al-Bahar says that SA has emerged as an ideal investment opportunity in light of positive economic factors and an untapped property asset base. "Our multi-million rand investment in SA property development reflects our confidence in the economy given the low interest rate regime, strict regulatory controls and economic stability".

He says that a listing on the JSE was a natural progression in the group"s investment strategy in the country and is intended to serve as a platform for IFAHR SA to enhance its profile. "Foreign shareholders of the global IFAHR group have expressed keen interest in participating in the luxury developments in SA. The listing will enable these investors to gain exposure to high quality SA property assets, backed by the group"s track record and expertise in resort development."

IFAHR SA last week released a trading update advising shareholders that the headline earnings and earnings for the six months to 31 December 2005 are expected to be around R19 million. This would mean that the pro forma headline earnings and earnings for the previous six months to June 2005, set out in the circular to shareholders at the end of last year, will be exceeded by between 54% and 63%.

Executive Director of acquisitions and developments Phillip de Sylva says that the Zimbali developments" promising prospects are supported by the King Shaka airport soon to be completed between Zimbali and Durban. "The new Zimbali Lakes will be substantially complete in time for the World Cup 2010 to benefit from the expected tourism influx," he adds. De Sylva says that IFAHR SA is also pursuing new integrated resort developments in SA and across Africa and the Indian Ocean region. "The global IFAHR group, already an established expert in leisure developments, may look to expand its portfolio strategically into other property sectors such as retail," he adds.

Pointing out other tangible benefits for SA of a local presence De Sylva says that "to date more than 87,000 jobs have been created in KwaZulu-Natal by our developments with an anticipated 43,000 to 85,000 new jobs to be generated by the Zimbali Lakes development depending on its size, powering transformation at grass-roots level".

IFAHR SA materialised when JSE cash shell Moribo Leisure acquired IFA Zimbali (Pty) Limited and IFA Hotels & Resorts (Pty) Limited from IFAHR Kuwait, in exchange for the issue of 212, 8 million shares in the new listed company. De Sylva emphasises that Moribo Leisure"s operations were wound-up as a pre-condition of the acquisitions and "there is no operational or management link between the former Moribo Leisure and

IFAHR SA." IFAHR Kuwait is now the majority stakeholder in IFAHR SA with an 85% interest. The balance of shares is held in free float and includes the 2,5% owned by former Moribo Leisure shareholders.

Al-Bahar concludes: "We are proud to have listed on the JSE as a second listing after Kuwait as part of our strategy of listing in international markets where we have a significant presence. We believe this will maximise shareholder returns and give our investors the opportunity to cross-invest in other global markets and projects."