Itacare Capital Investments Ltd Disposal of non-core assets (LOI terms amended) (6628Z)

TIDMITA

RNS Number : 6628Z

Itacare Capital Investments Ltd

11 March 2013

 
Date:             11 March 2013 
On behalf of:     Itacaré Capital Investments Limited ("Itacaré 
                   Capital" or "the Company") 
Embargoed until:  0700hrs 
 

Itacaré Capital Investments Ltd

Disposal of non-core assets (Amendment of the LOI terms)

Itacaré Capital (AIM: ITA), the real estate investment company focused on residential projects in Brazil, announces that, as previously outlined in its last Annual Report, the Company has been actively pursuing the disposal of its two non-core assets, representing 7% of the Company's NAV, to focus on its larger projects. The Company announced on 9 July 2012 that it had entered into a Letter of Intent (LOI") with WRP, LLC ("WRP"), a US private investment group, for (i) the sale of the Company's interest in Warapuru 2 for a total consideration of $2 million and (ii) the granting of a 12-month option to purchase 100% of the Company's interest in the Havaizinho project for $7 million.

On 14 December 2012, the Company and WRP signed the related Purchase and Sale Agreement and Other Covenant ("PSA"), which establishes the main terms and conditions applicable to the sale of the Warapuru 2 assets and the granting of the option in the Havaizinho property.

The Company announces that it has signed an Amendment to the PSA to amend the following terms:

(1) the Due Diligence period was extended by 90 days, from 1 March 2013 to 29 May 2013, with a Closing Date on or before 3 June 2013; and

(2) the payment terms for the Warapuru 2 assets and the Havaizinho option were improved as follows:

(i) An additional $30,000 non-refundable good faith deposit (netted against the first payment at closing) will be paid on or before 15 March 2013;

(ii) the $2 million consideration for the Warapuru 2 assets will now be fully paid at Closing, and

(iii) the $7 million consideration for the Havaizinho property shall be paid, if the option is exercised, in two installments (rather than three), being $6 million at the exercise of the option and $1 million 12 months later.

.

Michael St. Aldwyn, Chairman of Itacaré Capital, commented:

"We are pleased to have secured improved payment terms as we continue to make progress in the sale of our two non-core assets, in line with our stated strategy. We look forward to completing these sales, enabling us to focus on delivering maximum value from our core portfolio."

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For further information:

 
Itacaré Capital Investments           Tel: [phone] 
 Chairman, Michael St. Aldwyn 
Itacaré Capital Partners              Tel: [phone] 
 Investment Manager, Pedro de Miranda 
Duet Private Equity                        Tel: [phone] 
 Investment Advisor, David Mattey 
Cenkos Securities                          Tel: [phone] 
 Stephen Keys, Adrian Hargrave (Nominated 
 adviser) 
 Russell Kerr, Alex Aylen (Sales) 
Redleaf Polhill                            Tel: [phone] 
 Emma Kane, Henry Columbine                 E: [e-mail] 
 

Notes to Editors:

-- Itacaré Capital Investments Limited is a real estate investment company focused on tourism-real estate developments in Brazil. The Company acquires large parcels of land at strategic locations that can be developed and sold to end users with the intention of achieving a minimum IRR of 25 per cent.

-- The Company invests in projects at an early development stage or in strategic land sites that can be acquired at a discount to open market value at current usage.

-- Itacaré Capital focuses on beachfront parcels with particular geographic characteristics that maximize sea views and reduce the need for expensive landscaping thus translating into higher margin.

-- Itacaré Capital aims to create a development that is better than the best quality development in the local area in order to achieve maximum pricing power.

-- Itacaré Capital focuses on high quality residential developments that typically include a number of holiday or second home units, luxury hotels and leisure components. Approximately 70% of our portfolio is targeted to domestic buyers.

-- Further information is available at www.itacarecapital.com

This information is provided by RNS

The company news service from the London Stock Exchange

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