Itacare Capital Investments Ltd Update re: sale of Warapuru assets (6026W)

TIDMITA

RNS Number : 6026W

Itacare Capital Investments Ltd

31 December 2013

 
 Date:              31 December 2013 
 On behalf of:      Itacaré Capital Investments Ltd ("Itacaré" 
                     or the "Company") 
 Embargoed until:   0700hrs 
 

Itacaré Capital Investments Ltd

Update re: sale of Warapuru assets

The Board of Itacaré Capital Investments Ltd, a real estate investment company focused on residential projects in Brazil, is pleased to update the market on the disposal of two of its non-core assets.

On 30 December 2013, the Company entered into a Sale and Purchase Agreement ("SPA") with, inter alia, Dominic Redfern (the "Buyer") for the sale of its Warapuru assets for a total consideration of US$1.5 million. The Warapuru assets had a book value of US$2 million and represented 2.0% of the value of the property portfolio of the Company, as at 30 June 2013. The purchase price is composed of: (i) US$150,000 in cash, payable immediately; (ii) the transfer to a subsidiary of the Company of US$900,000 in shares of the Company at a price of US$0.35 per share; and (iii) US$450,000 in cash to be paid by 31 January 2014. The SPA contains standard warranties and representations in favour of the Buyer.

In connection with the SPA the Buyer shall be granted a 36-month option over the Itacaré group's (the "Group") Havaizinho property with a strike price of US$3 million (the "Strike Price"). The Havaizinho property had a book value of US$4.8 million and represented 4.8% of the value of the property portfolio of the Company, as at 30 June 2013. During the option period, the Group may elect to sell the Havaizinho property subject to a right of first refusal from the Buyer. In the event that the Group receives an offer for the property at a price higher than the Strike Price and the Buyer does not exercise its right of first refusal, the Buyer will be entitled to a break fee equivalent to 40% of the excess (net of any transfer costs or expenses) between the purchase price and the Strike Price.

For further information:

 
 Itacaré Capital Investments        Tel: [phone] 
  Chairman, Michael St. Aldwyn 
 Itacaré Capital Partners           Tel: [phone] 
  Investment Manager, Pedro de Miranda 
 Cenkos Securities                       Tel: [phone] 
  Stephen Keys 
 Redleaf Polhill                         Tel: [phone] 
  Emma Kane, Henry Columbine              E: [e-mail] 
 

Notes to Editors:

-- Itacaré Capital Investments Ltd is a limited liability closed-end 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.

-- 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.

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

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

-- The Company 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 at 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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