Eurocape-Indian Partnership Brings International to South Africa

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. October 14, 2008

CAPE TOWN, South Africa, June 21, 2006. Eurocape, the developers of the R1-billion Mandela Rhodes Place (MRP), has announced a partnership with Indian Hotels Company Ltd (IHCL) to develop Cape Town's newest addition in luxury hotel accommodation. The five-star hotel will form part of the Mandela Rhodes Place lifestyle complex in Cape Town's CBD.

Indian Hotels Company Ltd (IHCL) owns and operates 75 Taj Hotels Resorts and Palaces across the world and the R300-million hotel at Mandela Rhodes Place marks their first major investment into South Africa. The South African market has always been part of the company's Indian Ocean Rim development strategy, and in addition to Cape Town, Taj Hotels Resorts and Palaces intends developing two other hotel properties in Johannesburg and Durban. With properties in Maldives, Mauritius and Seychelles, additions in the main cities of South Africa will complete the strategy.

Mr. Raymond Bickson, Managing Director and CEO of Indian Hotels Company Ltd., said the decision to invest here is based on South Africa's status as the forerunner in tourism and hospitality in Sub-Saharan Africa: 'The country has been growing rapidly as a tourist destination, with tourism being one of the government's key economic drivers. We want to leverage the potential of the market and Cape Town is recognized as the most developed tourist market in South Africa.

'We are delighted to partner with Eurocape in our introduction into South Africa. With our combined experience, Cape Town will soon be able to add a world-class product that promises a truly high-end luxury experience to its tourism offering,' Bickson added.

Adds Frank Gormley, Chairman of Eurocape and sister company Howard Holdings in Europe, 'Working in partnership is the Howard Holdings and Eurocape philosophy and are very pleased to be involved with such a major global partner in this exciting second phase of the Mandela Rhodes Place development. With a legacy and experience dating back to 1903, Taj Hotels are the perfect choice to bring the royal tradition of Indian hospitality to South Africa.'

Joop Demes, Managing Director of Golding Hotel Investment Consultants, who was appointed by Eurocape to identify and facilitate negotiations with the most suitable hotel operator, is ecstatic with the final outcome.: 'There was fierce competition amongst the top global hotel operators to be involved with this prestigious project. With so many of the top brands competing, the final decision took more time than originally envisaged. There is no doubt in my mind that the location, heritage and building of the Eurocape Hotel is totally aligned with the great reputation Taj Hotels world wide is known for - we have without doubt secured for Cape Town one of the best hotel operators in the world!'

Leading South African developer, Eurocape, has been instrumental in regenerating the heart of Cape Town's city centre through its development of Mandela Rhodes Place, the Western Cape's largest mixed-use development since the 1970's. Once complete, Mandela Rhodes Place will personify the concept of inner-city living, by offering accommodation and retail attractions found in many modern cities around the world, including the European cities of Prague, Dusseldorf, Barcelona and Dublin.

The first phase of Mandela Rhodes Place is nearing completion and is due for handover before the end of the year. In addition to 180 luxurious apartments, this first phase includes a range of restaurants, bars, and Cape Town's first, fully operational inner-city winery. These will be complemented by a state of the art wellness centre, offices, gymnasium, swimming pool, rooftop garden and in-house parking.

The new luxury hotel forms phase two of the development and will cater mainly for the leisure tourism market. The hotel will comprise 175 rooms plus 20 luxury apartments and will be developed within two heritage buildings which forming part of the Mandela Rhodes Place development. These include the landmark Old Reserve Bank building, the Board of Executors building and the old Cape of Good Hope Bank building, which are flanked by St George's Mall, Wale Street and Adderley Street and is within walking distance of Cape Town's major tourist and cultural attractions. Rooms will overlook Cape Town's cityscape, the Company's Gardens and Table Mountain.

Construction will commence in September 2006 and the project is scheduled for completion by the end of 2008.

'The third phase of Mandela Rhodes Place is at planning stage and will include substantial retail and third generation office space. This will complete Eurocape's aim of preserving the heritage of the central city while infusing the area with modern city living to create a vibrant city centre alive with cultural, retail and a variety of other attractions found in many modern cities around the world,' concludes Gormley.

The announcement of the hotel venture in South Africa follows on Taj Hotels assuming management rights of the Pierre Hotel in New York and the acquisition of the BLUE in Woolloomooloo Bay, Sydney (formerly trading as a 'W' hotel).