Newlands: All the facts about Remgro, Investec & Flyt
ONE-ON-ONE WITH ZELT MARAIS: Jan de Koning sat down for a factual discussion with Western Province Rugby Football Union President Zelt Marais.
Much has been said in the multifarious media dispatches over the Newlands Stadium saga.
@rugby365com attempted to separate fact from fiction and Marais kindly obliged.
He confirmed that a loan of ZAR112-million from Dream World Investments 401 (Pty) Ltd will be used to pay off the debts owed to Remgro (ZAR58-million) and Investec (ZAR50-million).
The loan owed to Remgro must be repaid by next Tuesday, June 30, while the Investec advance must be repaid in “24 equal instalments over 24 months” with effect from July 1.
Marais admitted that the road ahead will be “challenging”, but said WPRFU is “well-positioned” with its rich asset portfolio and strong balance sheet to ride out the storm in the short, medium and long term.
He dismissed suggestions that they ever negotiated in bad faith with Investec and said they acted in the “best interest” of WPRFU.
“It [WPRFU] has, at all times, acted in good faith in its negotiations with Investec,” he said.
The Province President also explained exactly why they walked away from the Investec deal – a proposal to redevelop the Newlands stadium into a multipurpose complex of housing and businesses.
“After more than nine months of negotiations, the net present value [NPV] of the deal continued to decline to a stage that resulted in too much uncertainty and risk for WPRFU, its 91 affiliated clubs, its associate and Sunday League clubs and all its stakeholders,” Marais told @rugby365com.
“All WPRFU wanted to be inserted in the agreement was a comfort clause to the extent that the benefits be shared on an equitable basis,” he added.
“As a result of the uncertainty of the deal and the dilution of the NPV, the deal could have only be proceeded with should the Executive Committee have sorted a fresh approval from the General Council – who are the highest decision-makers in WPRFU.”
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He admitted the ‘heads of agreement’ had already been signed with Investec, but said it was “subject to the fulfilment of certain suspensive conditions by 29 May”.
“Those were not fulfilled,” the WPRFU boss said.
He said the advantage of Flyt – in stark contrast to the Investec offer – is that they are willing to be a 50-50 partner of WPRFU in the development company.
And Dream World Investments, a company within the Flyt group, is the entity that will advance the loan funding.
He said the Special General Council Meeting, originally planned for Thursday, June 25, will now be held on the alternative date – next Tuesday, June 30.
This is in compliance with the requirement of 15 days’ notice.
The main agenda will be the “approval of a development partner” – on a 50/50 basis – for the Newlands Stadium Grounds and also that of Brookside in Claremont.
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FACT SHEET ON PROPOSED WPRFU AGREEMENT WITH FLYT PROPERTY INVESTMENT