On Tuesday night, the Western Province Rugby Football Union Council, made up of all the union’s clubs across the province, by majority vote, decided to follow the lead of its president, Zelt Marais, and accept a R112-million loan from a small Cape Town-based company called Flyt Property Investment .
Marais argues that this is a better deal for the union because the WPRFU will now become a “partner” with Flyt Investments on the redevelopment of Newlands. It is not clear if, and how, the ownership structure will change. But it opposes the union’s previous policy of keeping full ownership of assets, which was the parameter under which the original Investec deal was done.
“This is far better than any previous deal that has been on the table and, if it is approved, will ensure the sustainable and long-term future of Western Province rugby. That is our absolute priority.” Under the new deal, which Marais presented at an online meeting of the Council on Tuesday night, the WPRFU will take on half the risk of developing the Newlands property. It will also become 50% partners with Flyt in another property it owns in Cape Town’s southern suburbs, called Brookside.Daily Maverick
Investec should have acquired a 99-year lease and had plans to redevelop Newlands into a residential and retail complex. The WPRFU, in turn, would benefit from a 5% share in any profits derived from this plan, plus a further 3.5% share from the resale of any units developed. Remgro CEO Jannie Durand did not return calls, but the company has the right to foreclose on the assets underpinning the Flyt deal if the WPRFU does not come up with the money, which is where the DreamWorld loan comes into play. The WPRFU now urgently needs funding to settle with Remgro.
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