TIDMITA

RNS Number : 1096V

Itacare Capital Investments Ltd

09 January 2013

 
 Date:              9 January 2013 
 On behalf of:      Itacaré Capital Investments Ltd ("Itacaré 
                     Capital" or "the Company") 
 Embargoed until:   0700hrs

Itacaré Capital Investments Ltd

Update re: Trancoso Project

-- Terms signed with Banco do Nordeste for construction loan facility

-- Favourable outcome from lawsuit

-- IBAMA suspension lifted

Itacaré Capital (AIM: ITA), the real estate investment company focused on residential projects in Brazil, is pleased to update the market regarding its Trancoso project in Bahia.

The Company has now signed terms with Banco do Nordeste for a 13-year R$40.1 million construction loan facility, with an annual interest rate of 2.5%, to cover Phase I of the project, which incorporates a 40-room hotel, restaurant, spa and 23 residential villas for sale on the beachfront part of the site.

In addition, Itacaré Capital previously announced a lawsuit initiated by a local organisation that had resulted in a preliminary injunction. The Company is now pleased to report a favourable outcome from this litigation and that the injunction has now been lifted.

Finally, the Installation Licence for the project has now also been reinstated. As previously announced, this was suspended at the end of 2011 by IBAMA, the Brazilian environmental agency, while it investigated the possible presence of protected vegetation.

The Company now expects to start off-plan sales during H1 2013, after incorporation documents are registered with the local Real Estate Registry. Construction is expected to start in mid-2013.

The Trancoso-Bahia Beach project is situated on a 293-hectare site with approximately 600 metres of beachfront. It is three kilometres from the village of Trancoso, Bahia and 47 km south of Porto Seguro International Airport, which is served by domestic and international charter flights. There is also a 1,500-metre paved landing strip located within a 15-minute drive from the project. The luxury hotel and villas will be branded Fasano, a premium marque in Brazil, following an operating agreement signed with Hotel Marco Internacional S.A. Itacaré Capital currently owns 50% of the special purpose vehicle that owns the Trancoso-Bahia Beach land and permits. Now that all permits have been granted, the Investment Manager is currently in discussion with the joint venture partner about the potential of raising some further equity into the project company.

Michael St. Aldwyn, Chairman of Itacaré Capital, commented:

"With these obstacles now removed and financing in place, we look forward to bringing this exciting project to life as we start off-plan sales and construction later this year. With the World Cup in 2014 and the Olympics in 2016, this development will be delivered at a time when Brazil is set to receive considerable infrastructure investment and worldwide attention. It is for this reason that the Government is sponsoring construction loan capital via Banco do Nordeste and other nominated banks for projects across the country."

- ends -

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 
 Duet Private Equity                           Tel: +44 (0)20 8959 8534 
  Investment Advisor, David Mattey 
 Cenkos Securities                             Tel: +44 (0)20 7397 8900 
  Stephen Keys, Adrian Hargrave (Nominated 
  adviser) 
  Russell Kerr, Alex Aylen (Sales) 
 Redleaf Polhill                               Tel: +44 (0)20 7566 6720 
  Emma Kane, Henry Columbine, Hannah Fensome    E: itacare@redleafpolhill.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 maximize sea views and reduce the need for expensive landscaping thus translating into higher margin.

-- 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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