How Province could solve cash crunch
SPOTLIGHT: The Western Province Rugby Union is on the brink of sealing a deal that could end its long-standing cash crunch.
@rugby365com has learnt that an agreement between WPRFU and Generation Schools is a ‘done deal’, even though officials are playing it cool.
WPRFU President Zelt Marais confirmed to this website that they “in talks” to develop part of Brookside in Claremont.
However, he suggested they have not yet finalised the structure of the deal.
However, well-placed sources said a deal with Generation Schools, owned by the JSE-listed investment holding company Trematon, is much closer to finalisation than what is publicly being admitted.
“We are still finalizing the structure of the deal,” Marais said, declining to reveal who brokered the deal.
“We have been in negotiations for the past three years regarding this project,” Marais told @rugby365com.
While some of the ‘finer details’ of the deal still have to ironed out, it is believed a resolution has already been passed by council to go ahead.
The WPRFU will then become part owners of the private school group, which will provide them with a steady income.
As a JSE-listed investment holding company Trematon has enough money to ensure they could provide WPRFU with an advance or loan of ZAR30- to ZAR40-million.
And any proceeds WPRFU get from schools will go towards repayment of that loan/advance.
Some reports have suggested the deal could be worth a whopping ZARR150-million.
As part of the partnership, Generation will be able to build schools at Brookside in Claremont and Oranjezicht.
@king365ed
@rugby365com
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