Earlier this month, a deal to sell Newlands to Investec fell through and it’s then when the new company and WP Rugby Football Union (WPRFU) started negotiating, according to the president.
Terms of the new deal means that Flyt have agreed to advance R112m to the WPRFU to pay off its debt to Investec (R50m) and Remgro (R60m) and together they are aiming to incorporate a new company - Newlands DevCo.
Marais explains: “Newlands DevCo is envisaged as a 50-50 partnership between the WPRFU and Flyt Property Investment.
“Importantly, this will mean that - unlike previous loan and redevelopment arrangements - the WPRFU will have a 50 percent share in the economic benefits derived from the future development of the site.
“This will ensure the sustainable future of Western Province rugby and, specifically, the opportunity for investment in clubs in our poorer communities over the longer term.”
According to IOL, another new company, Brookside DevCo, will be incorporated between the WPRFU and Flyt Property Investment.
This new company will purchase the Brookside property and aim to acquire development rights for the development of the Brookside property as a mixed-use development.
This deal is anticipated to give the WPRFU access to an estimated R40m in cash in addition to 50 percent of development profits down the line.
This proposed loan agreement and development proposal is to be considered by the Council of the WPRFU at a meeting to be held tomorrow.
The proposal is to be considered further by a Special General Meeting on Wednesday, July 8.