The Western Province Rugby Football Union has reportedly put Newlands Stadium up as ‘security’ for outstanding debts in the region of R44-million owed to Remgro Sport Investments.
The Stellenbosch-based company, a sub-division of Johann Rupert’s investment company Remgro, threatened to call in a loan if the WPRFU did not pay it back by 6 July, which was this past Friday.
According to Rugby365.com, the beleaguered union indeed failed to repay the loan and has now instead registered a mortgage bond on one of its prime properties as security.
Remgro CEO Jannie Durand confirmed that the bond registration was provided on deadline.
‘I can confirm that they [WPRU] did provide the security to Remgro, as required by the agreement,’ Durand said and added that the surety bond covers the ‘full amount owed’ to Remgro.
Durand, however, refused to disclose the property in question.
While it is believed properties owned by WPRFU that could raise a bond include the Brookside in Claremont and the rugby complex in Montreal Road, Oranjezicht, in the high-demand residential City Bowl area, insiders told Rugby365.com that it was indeed Newlands that was put up as security.
WP Rugby has made no official announcement about the ongoing saga.
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