New offers for 'derelict' Newlands
NEWS: The protracted ‘Newlands for sale’ saga has taken a few intriguing turns, but appears to be no closer to a conclusion.
@rugby365com can confirm that there are ‘new’ offers on the table for the sale of Newlands, all with conditions.
However, nothing is final yet.
In March last year, @JanDKrugby revealed that Dream World called up the bonds they hold on all the WPRFU properties – including Newlands, Millhouse, Brookside, and Oranjezicht.
* To read the Dream World interview with @JanDKrugby, CLICK HERE!
The legal process to have the properties sold at auction, which was activated at the time, is ongoing and won’t be halted as a result of the most recent offers.
The much-publicised ‘partnership’ between the Flyt Property Group and WPRFU in 2020, helped the union to unlock a loan of ZAR112-million from Dream World Investments 401 (Pty) Ltd.
That loan was used to pay off previous debts owed to Remgro (ZAR58-million) and Investec (ZAR50-million).
Previously, it was reported that the asking price was ZAR500-million for Newlands, but as the saga surrounding the various factions in the fractious union dragged on and new challenges came out of the woodwork, the South African Rugby Union-appointed administrators (three between October 2021 and March 2025) found it very troublesome getting a willing buyer.
That is why Dreamworld started litigation last year and is continuing with the process.
WPRFU, placed in administration in October 2021, was handed back the reins in March last year, just days after Dream World Investments confirmed they called up the bonds they hold on all WPRFU properties.
The decision to lift the administration cleared the way for the union to hold elections and will restore its full voting rights.
In April last year, Kevin Kiewits was elected President of WPRFU. Moneeb Levy was named Deputy President and Shamila Sulayman is the new Vice-President.
Achmat Jacobs, Andre Kermis, Anton Schelhase, Francois Bonthuys, Bulelani Mlakalaka, Siyabonga Hani, Ruben Machelm, and Riaaz Khan are the eight additional members.
The decision to lift the administration was taken after the union finally secured financial stability in the post-Zelt Marais era.
It included the conclusion of a private equity investment in the commercial arm of the union.
However, SARU left the sale of the Newlands in the hands of Kiewits and his new executive.
The SARU ExCo felt the sale of the stadium was a function that the union could perform.
Newlands remains a difficult property to sell, and many experts feel there is a misperception about the value of the property.
Unlocking Newlands as a development is going to cost an enormous amount of money, which means that Newlands itself cannot be worth billions.
The Dream World litigation is also not necessarily an indictment of the SARU administrators and their inability to get the stadium sold.
Newlands is hard to sell because of over-inflated valuations in the past and also have limited market appeal.
@JanDKrugby
@rugby365com
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