Moorhouse Properties Limited

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Moorhouse Properties Limited (hereafter referred to as “MPL” or “the Company”) has embarked on an expansion program to increase its existing presence in the Nigerian hospitality industry. MPL currently has an equity stake in various hospitality facilities in Nigeria including Accor branded hotels situated in Lagos (Sofitel) and Port Harcourt (Novotel), which are 5 and 4-star facilities respectively, a 3-star Ibis-branded property which is located near the Lagos airport and opened on 1 February 2011, and two 2-star facilities trading under the Travelhouse brand. One of these facilities is located in Lekki on the outskirts of Lagos, and the other is situated in Ibapan, 120 km from Lagos and which commenced operations on 1 February 2011. MPL also owns the Epe Resort and Spa located in the town of Epe some 90 km from Lagos which is currently under construction and scheduled to open in April 2011. The company has also acquired two sites in Lagos which will be used for construction of an Ibis and Travelhouse hotel respectively; additional sites for these two hotel brands may be identified in the future. In 1999 IFC was previously involved with MPL, specifically the Sofitel Moorhouse Hotel in Lagos, and this investment is complete with IFC no longer associated with the project. IFC considered further investments in 2007 and 2009 to support the Company’s expansion program, but did not proceed. In both instances though, the Environmental and Social Review Summary documents for the projects were disclosed. The current investment being considered in the Company would involve a $7.4 million equity investment in MPL and a $7.5 million standby loan to one of MPL’s subsidiaries, A M Hotel Limited, with the funds being used to support expansion plans. Other than the hotels trading under the Travelhouse brand, which are managed and operated by a subsidiary company of MPL, all the other facilities are managed and operated by Accor, a multinational French company, which owns and operates hotels in over 100 countries.