IFA in $15m deal to buy South African property

Kuwait-based International Financial Advisors (IFA) yesterday unveiled a $15 million deal to buy the 76-room five star Zimbali Lodge Hotel, suites and golf and country club at South Africa's Zimbali Coastal Resort.

The purchase follows IFA's recent joint venture with South Africa's Moreland Developments to buy a 50 per cent equity stake in the 700 hectare Zimbali Coastal Resort and Zimbali Lakes.

It marks a further stage in the development of the IFA brand - it is the largest investor in The Palm, Jumeirah, where its projects include the 300 room Palm Hotel and Beach Resort, a five-star Palm Vacation Club on the island's trunk and a 1,000 room five-star Hotel and Vacation Club on the island's crescent.

It is also behind the 1,000 apartment Palm Residence and is involved with Nakheel in the $300 million joint venture The Golden Mile development.

"The purchase of Zimbali Lodge is the key to unlocking the international stature and potential of Zimbali Coastal Resort, providing an integrated experience for Zimbali property owners and guests," said Jassim Al Bahar, IFA's chairman and managing director.

With its partner Sun International, IFA plans to develop a further five star hotel development in Zimbali which will be called the Zimbali Lakes Hotel and Beach Resort.

It also has plans for a new 18-hole golf course and a beach Vacation Club resort which will be managed by Sun International under the Sun International Vacation Club brand.

IFA has signed a management agreement with Sun International Management under which Sun will continue to manage Zimbali Lodge, The Imbali Suites and Spa, the Zimbali Country Club and other resorts facilities, new projects and resort residential services planned at the Zimbali resort.

Oscar Dlomo, chairman of Afrisun KZN, welcomed IFA's investment in the Zimbali Coastal Resort. He said: "The access IFA has to international capital and tourism markets will definitely boost Zimbali's status," he said.

Jassim Al Bahar added: "The signing of this acquisition agreement with Sun International and Afrisun Kwa-Zulu Natal Kingdom is a further demonstration of the success of our investments in Zimbali and results from the alliance we forged with Sun in March 2003.

"The combination of our companies forms a major regional and international tourism force and there will be more projects to follow in the Middle East, East Africa, Zanzibar, South Africa and the Maldives."

James Wilson, president of IFA Hotels and Resorts, said: "We are delighted with the acquisition. We believe our asset management experience combined with Sun International's extensive expertise will maximise the potential of the destination in the regional and international markets, and IFA, Moreland and Sun International will work closely together to achieve this."

IFA aims to link its resorts in The Palm, Jumeirah, Dubai, Zimbali, South Africa, Zanzibar and Portugal with future plan-ned resorts in Lebanon. This will offer tourists in Europe, the Middle East and Africa a network linking the company's hotels, resorts, timeshare and residence club destinations.

Jassim Al Bahar added: "IFA is presently evaluating other projects with Sun International which will be embarked upon in the near future. These will further enhance and solidify the strategic alliance of IFA and Sun International in Africa, the Middle East and the Indian Ocean region."