Western Province Rugby have accelerated plans to move to Cape Town Stadium after agreeing to a new development deal for Newlands.
This comes after a special general council meeting on Tuesday, where the Western Province clubs voted in majority to approve Flyt Property as a development partner for Newlands Stadium.
The deal was agreed on a 50-50 basis which would also have Flyt develop Brookside in Claremont.
Plans are to have both Newlands and Brookside developed into residential and office apartments.
FROM THE MAG: Farewell to Newlands
‘Importantly, unlike previous loan and redevelopment arrangements, the WPRFU will have a 50 per cent share in all economic benefits derived from the future development of the site,’ WP president Zelt Marais said in a statement.
‘The previous development agreement with Investec lapsed on 1 June 2020 due to suspensive conditions not being met.
‘Unlike the previous agreement, this new agreement with Flyt Property Group will give the WPRFU a meaningful and equal stake in the proposed development.
‘It is, therefore, a much better deal for the WPRFU and the future of rugby in the province, which the body of voters clearly recognise.
‘It is envisaged that this will bring in an additional R23 million into the city’s coffers per annum, for the benefit of all Cape Town residents.’
Further, WPRFU have also received a loan of R112m from Dream World Investments – a company of the Flyt Group – which will allow them to repay their debts to both Remgro and Investec.
‘Bank guarantees [for the loan repayments] have already been obtained, subject to the ratification of the agreement by a Special General Meeting of the WPRFU on Wednesday, 8 July 2020.
‘This agreement will allow the union to unlock the value in its properties, so it can invest in the long-term development of clubs and players in the province. This bodes well for the sustainability of Western Province rugby going forward.’
FROM THE MAG: Fond farewell to a ‘holy ground’
Marais added that the agreement would allow WP to accelerate their plans to host their rugby at Cape Town Stadium.
‘Rugby fans will soon be able to enjoy world-class facilities including a better viewing experience, top-notch safety and security measures and modern corporate hospitality suites at the Cape Town Stadium.
‘Of course, Newlands will always have its place in the history of the sport, and we will certainly pay tribute to our Newlands rugby heritage at our new home in the heart of Cape Town.’
Photo: Grant Pitcher/Gallo Images
