Itacare Capital Investments Ltd Update Re: Tres Praias project (6653H)

TIDMITA

RNS Number : 6653H

Itacare Capital Investments Ltd

24 June 2013

 
 Date:              24 June 2013 
 On behalf of:      Itacaré Capital Investments Ltd ("Itacaré" 
                     or "the Company") 
 Embargoed until:   0700hrs 
 

Itacaré Capital Investments Ltd

Update re: Três Praias project

The Board of Itacaré Capital Investments, the real estate investment company focused on residential projects in Brazil, today issues an update regarding the Três Praias development ("Três Praias" or the "Project") situated in the state of Espirito Santo, Brazil.

The Company announced in April 2013 that it had received confirmation from the Institute of Natural Heritage ("IPHAN") that the Project's archaeological studies satisfied their requirements for the issuance of the Preliminary Licence. A public hearing had been scheduled for 20 June, at which the Preliminary Licence was expected to be granted, but the hearing had to be cancelled due to current anti-government protests taking place across Brazil.

The Company remains confident that the Preliminary Licence will be granted but this will not happen before the end of June, as had previously been expected. As a result, the anticipated increase in the Project's NAV and the start of the construction will also be pushed back. The Company will update the market further once a new date for a public hearing has been set.

Furthermore, Itacaré notes that the exchange rate of the Brazilian Real against the US Dollar has spiked to 2.24, which is expected to have a negative impact on the US Dollar valuation of the portfolio.

For further information:

 
 Itacaré Capital Investments             Tel: [phone] 
  Chairman, Michael St. Aldwyn                 5976 
 Itacaré Capital Partners                Tel: [phone] 
  Investment Manager, Pedro de Miranda 
 Duet Private Equity                          Tel: [phone] 
  Investment Advisor, David Mattey             8534 
 Cenkos Securities                            Tel: [phone] 
  Stephen Keys, Adrian Hargrave (Nominated     8962 
  adviser) Russell Kerr, Alex Aylen (Sales) 
 Redleaf Polhill                              Tel: [phone] 
  Emma Kane, Henry Columbine, Hannah           4720 
  Fesnome                                      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 maximise sea views and reduce the need for expensive landscaping thus translating into higher margin.

-- Itacaré Capital either recruits or looks to partner with local developers to maximise the value of its land investments.

-- 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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