Western Province’s plannetjies for the development of Newlands got twee duime op from the council of the Western Province Rugby Football Union (WPRFU) on Tuesday night.
According to a statement released by the union on Wednesday, the loan agreement with Flyt Property Group will enable the WPRFU to pay off its debt to Remgro and Investec Bank.
The statement reads: “Guarantees have already been obtained in this regard, subject to the
ratification of the agreement by a Special General Meeting of the WPRFU on July 8.
“The council also approved a proposal that will see the WPRFU and Flyt Property Group incorporate a new company called
Newlands DevCo.
“This company will be owned equally by both parties with the objective of developing the
Newlands property into a mixed-use development.
“Importantly, the WPRFU will have a 50-percent share in all economic benefits derived from the future development of the site.”
Daai is nie al nie, the union adds: “Additionally, the WPRFU
Council also approved a proposal that another new company be incorporated between the WPRFU and Flyt Property Group, called Brookside DevCo.
“This new company will
purchase the Brookside property and its purpose will be to develop that property as a mixed-use development.
“This deal will give the WPRFU access to an estimated R40m in cash, plus 50 percent of development profits down the line.”