Itacare Capital Investments Ltd New investor in Trancoso project (5676I)
04 Julio 2013 - 1:00AM
UK Regulatory
TIDMITA
RNS Number : 5676I
Itacare Capital Investments Ltd
04 July 2013
Date: 4 July 2013
On behalf of: Itacaré Capital Investments Ltd ("Itacaré"
or "the Company")
Embargoed until: 0700hrs
Itacaré Capital Investments Ltd
New investor in Trancoso project
The Board of Itacaré Capital Investments, the real estate
investment company focused on residential projects in Brazil, is
pleased to announce that a Brazilian pension fund has signed as a
new investor in the Company's Trancoso project in Bahia.
The Company will set up a local REIT that complies with the
legal requirements for pension funds and contribute R$50 million in
shares from the Trancoso SPV (out of a current December 2012
valuation of R$140.8 million) while the new investor will
contribute R$15 million in cash (approximately $7 million). The
transaction values the Trancoso SPV at the the December 2012
valuation of R$140.8 million ($68.8 million). As a result, the new
investor will control approximately 10% of the Project SPV and the
holding company that Itacaré currently owns 50:50 with other
investors will own the remaining 90%, thus resulting in a project
ownership of 45% for Itacaré. It is intended that this cash will be
used primarily to fund marketing of the villas at Trancoso, site
preparation, infrastructure and other pre-construction costs
Commenting on the new investor, Michael St. Aldwyn, Chairman of
Itacaré, said:
"Local government regulations have changed allowing Brazilian
pension funds to invest a greater portion of their assets in
private equity and real estate. The Investment Manager has been
working for the past two years to establish relationships with
pension funds in Brazil to tap this alternative source of capital,
given the large discount to book value of our shares. We believe
local institutional investors offer an attractive alternative
source of funding for projects and may also ultimately help to
generate exits."
For further information:
Itacaré Capital Investments Tel: +44 (0)20 3640
Chairman, Michael St. Aldwyn 5976
Itacaré Capital Partners
Investment Manager, Pedro de Miranda Tel: +55 11 2678 0800
Cenkos Securities Tel: +44 (0)20 7397
Stephen Keys, Adrian Hargrave (Nominated 8962
adviser) Russell Kerr, Alex Aylen (Sales)
Redleaf Polhill Tel: +44 (0)20 7382
Emma Kane, Henry Columbine, Hannah 4720
Fensome E: itacare@redleafpr.com
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
END
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