IFA Hotels & Resorts SA said on Tuesday that it had acquired a significant interest in the mixed-use Boschendal estate in Western Cape for R53,9m.

It owns a 19,25% stake in the 2,400ha estate.

Development plans for the estate included an upmarket retirement village with 500 individual homes, a boutique hotel, and a mixed-use development of a shopping centre, offices and apartments.

IFA SA was formed when parent company Kuwait-based IFA Hotels and Resorts reverse-listed two South African units into JSE cash shell Moribo Leisure in February.

IFA SA owns Zimbali Lodge and half of the joint venture developing the Zimbali Coastal Resort.

Speaking from Dubai yesterday, Werner Burger, president and chief operating officer of Kuwait-based IFA Hotels and Resorts, which owns a 75% interest in IFA SA, said Boschendal "fits into our business model of having mixed-use resorts across the world".

Burger said Boschendal had a black empowerment component, with 30% owned by empowerment shareholder Kovacs Investments. The shareholders in Kovacs were communities around the estate.

Talal Jassim Al-Bahar, Kuwait-based IFA Hotels and Resorts chairman and MD and CEO of IFA SA, said the acquisition was in line with IFA SA's strategy to deliver new premier resort and residential developments other that in KwaZulu-Natal.

Al-Bahar said Boschendal should see more than R100m in cash and 270ha of land contributed to the local community over the next 10 years.

Boschendal is in Franschhoek near Cape Town.

Burger said the acquisition was part of IFA SA's expansion plan into SA and the rest of Africa.

"When we listed, we said we were looking to use the listing as a platform to increase our investments in Africa and SA. Boschendal is the first step," Burger said.

Business Day
 
Publisher: I-Net Bridge
Source: I-Net Bridge