Itacare Capital Investments Ltd Update re: disposal of non-core assets (9619H)

TIDMITA

RNS Number : 9619H

Itacare Capital Investments Ltd

27 June 2013

 
 Date:              27 June 2013 
 On behalf of:      Itacaré Capital Investments Ltd ("Itacaré" 
                     or "the Company") 
 Embargoed until:   0700hrs 
 

Itacaré Capital Investments Ltd

Update re: disposal of non-core assets

The Board of Itacaré Capital Investments, the real estate investment company focused on residential projects in Brazil, today issues an update regarding the proposed disposal of its two non-core assets.

In July 2012, the Company announced that it had entered into a Letter of Intent ("LOI") with WRP, LLC ("WRP"), a US private investment group, for the sale of Itacaré's interest in Warapuru 2 for a total consideration of $2 million, plus an option for the sale of the Company's interest in the Havaizinho project for a further $7 million to be paid over time. On 14 December, the Company signed a Purchase and Sale Agreement and Other Covenant ("PSA"), which was followed by an announcement on 11 March 2013 that the terms of the LOI had been amended to extend the due diligence period by 90 days in exchange for improved payment terms.

Itacaré today announces that the due diligence period expired without completion and WRP did not meet the agreed deadline. In accordance with the terms of the amended PSA, the Company has been paid a $30,000 non-refundable deposit but the sale to WRP will no longer go ahead. Itacaré will continue to seek a purchaser for its non-core assets in line with its stated strategy.

Itacaré also announces that the Company's Annual Report and Accounts for the year ended 31 December 2012 will be posted to shareholders this week and may also be viewed on, or downloaded from, the Company's website at www.itacarecapital.com.

For further information:

 
 Itacaré Capital Investments             Tel: [phone] 
  Chairman, Michael St. Aldwyn                 5976 
 Itacaré Capital Partners                Tel: [phone] 
  Investment Manager, Pedro de Miranda 
 Financial Consultant                         Tel: [phone] 
  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 
  Fensome                                      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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