Nedbank agrees to R150m funding for IFA Hotels & Resorts’ new Fairmont Zimbali (South Africa)
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Nedbank agrees to R150m funding for IFA Hotels & Resorts’ new Fairmont Zimbali (South Africa)
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Category: Africa Indian Ocean - South Africa -
This is a press release selected by our editorial committee and published online for free on 2009-06-24
Despite the challenging economic climate and reticence being shown by most financial institutions to back new developments, Nedbank has agreed to a funding facility to the value of R150m for IFA HRs’ new Fairmont Zimbali Hotel.
Anand Joseph, Regional Executive: KZN for Nedbank Corporate Property Finance says that “Nedbank is proud to be associated with this premier hotel development, situated in an award-winning world class integrated resort which continues to be a sought-after address. Notwithstanding the current market conditions, the Bank’s decision was influenced by the strong fundamentals of this development, IFA Hotels & Resorts’ commitment to Zimbali and the Bank’s past experience with the IFA Group.”
When IFA Hotels & Resorts decided to go into a joint venture in the development of Zimbali with Tongaat Hulett Development in 2003, they did so on the promise of delivering a new internationally branded and operated 5-star hotel for Zimbali. The promise has been kept, with the imminent opening of the Fairmont Zimbali Hotel & Resort. Remarkably, the R500m cost to date, R345m of which is related to the hotel component only, has been funded entirely by equity. What is more is that the development is only the first phase, with the next phase, the construction of the new Gary Player signature 18-hole championship golf course and Gary Player Academy within the recently launched Zimbali Lakes, about to begin.
IFA has not sought any funding for the non-hotel components of the development, i.e. the Fairmont Heritage Place Private Residence Club and the Fairmont Hotel Condos, as sufficient cash has been generated from their incredibly successful marketing and selling of these products, with sales in excess of R150m having been notched up to date.
“What is also clearly apparent is that this development has already had a significantly positive impact on the Zimbali Coastal Resort, where sales of approximately R475 million have been recorded over the last six months despite the prevailing difficulties in the real estate sector” said Wessel Witthuhn, IFA HR President (Africa & Indian Ocean).
“We value our association with Nedbank and are delighted that we have secured this facility, at a time when most financial institutions are hesitant to fund new developments, particularly those in the leisure and hospitality sector. Once again IFA HR has demonstrated ability to deliver on promises, in extremely difficult times, and we are especially proud with the new Fairmont Zimbali Resort. We believe that it will prove to be an incredibly valuable asset for South Africa, particularly for the hospitality and leisure sector of KwaZulu-Natal”, concluded Witthuhn.
IFA SA continues to trade under a cautionary on the JSE Limited.
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