Johannesburg – IFA Hotels & Resorts (IFH) said on Monday that it had signed a sale of shares agreement with Cinmark Twenty Seven for the sale of wine farm Boschendal from its subsidiary IFA Boschendal Investments and JCI Investment Finance, in a deal worth R700m.
Boschendal was one of the oldest wine farms in South Africa with a French viticultural heritage dating back to 1685. Boschendal was set on a 2 240 hectare estate between Stellenbosch and Franschhoek in the Western Cape, and consisted of vineyards which covered an area of 254 hectares, extending for six kilometres along the slopes of the Groot Drakenstein Mountain towards the Dwarsriver and the slopes of the Simonsberg Mountain.
Boschendal was currently the site of a proposed mixed-use development.
The sellers said they received an unsolicited offer from Cinmark, which IFA reviewed and concluded to be an attractive offer and in the best interest of IFA shareholders.
The IFA Board will carefully consider how the proceeds from the Transaction should be deployed in order to enhance shareholder value? the group said.