Dubai: Leisurecorp, a division of Dubai investment firm Istithmar and developer of the Dh40 billion Jumeirah Golf Estates project in Dubai, said it has acquired a golf estate in South Africa.

The company did not say how much it paid for the Pearl Valley Signature Golf Estate and Spa, a 170-hectare championship golf course development in the Cape Winelands.

Leisurecorp said it will develop Pearl Valley into a major international resort and residential golf community.

"We are looking at investing in the vicinity of Dh300 million in the second phase," Leisurecorp chief executive David Spencer told Gulf News.

At present the Pearl Valley estate has one 18-hole golf course, a 4,500 square metre clubhouse and a 500-home gated residential community surrounding the course.

The second phase, to be completed before the Fifa World Cup in 2010, will create an additional 18-hole championship course, an equestrian centre and 500 residences among a host of new facilities.

The Pearl Valley deal follows the $1-billion acquisition of the V&A Waterfront in Cape Town by an Istithmar-led consortium in September last year.

The deal partners are investing another $1 billion to further develop the site by building new hotels, marinas and shopping areas to benefit from increased tourism in the run-up to the World Cup.

Long-term asset

Spencer said the soccer event is an advantage but Leisurecorp has bought Pearl Valley as a long-term asset.

Pearl Valley has received approaches from international football federations looking to accommodate their players.

"This investment marks another important sign of our commitment to South Africa. Pearl Valley offers the chance to create a truly unique destination, wholly complementary to our investment in the V&A Waterfront," Sultan Bin Sulayem, chairman of Istithmar's parent company Dubai World, said.

Ebrahim Rasool, the Premier of the Western Cape, welcomed the investment. "They have shown unbelievable faith in the growth potential of our economy. We are sure that they will be rewarded with great returns by 2010 and beyond," he said.

Leisurecorp is also looking to develop golf-themed real estate projects in southern Europe.