Newlands saga: Is the end in sight?
UPDATE: There appears to be light at the end of a very dark tunnel in the protracted ‘Newlands for sale’ saga.
@rugby365com can reveal that there is a ‘promising’ offer on the table.
However, the rider is that the ‘buyer’ and seller (the Western Province Rugby Football Union) need to go through the processes.
It is hoped there will be a final outcome in the next few months, perhaps before the end of the year.
Details around the offer remain finite, but WPRFU is indebted to Flyt/Dream World to the tune of SAR300-million.
It is unclear if Flyt/Dream World are willing to accept a lesser offer.
In March last year, Jan de Koning reported 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, won’t be affected until the current process has reached a conclusion.
The Stormers have permanently shifted their home to the Cape Town Stadium in Green Point.
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.
Still, 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.
(Continue below ….)
WPRFU, placed in administration in October 2021, was handed back the reins in March last year, just days after Dream World Investments confirmed it had called up the bonds it holds 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 was always 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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