Itacare Capital Investments Ltd Update re: sale of Warapuru assets (6026W)
December 31 2013 - 2:00AM
UK Regulatory
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: +44 (0)7770 362863
Chairman, Michael St. Aldwyn
Itacaré Capital Partners Tel: +55 11 2678 0800
Investment Manager, Pedro de Miranda
Cenkos Securities Tel: +44 (0)20 7397 8962
Stephen Keys
Redleaf Polhill Tel: +44 (0)20 7382 4720
Emma Kane, Henry Columbine E: itacare@redleafpolhill.com
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
END
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