Western Province's deal with Investec over the development rights at Newlands is understood to be in doubt.
It was confirmed last year that the Western Province Rugby Football Union (WPRFU) had accepted a deal worth R110 million to hand over the rights to Investec, which would almost certainly result in the demolition of the iconic stadium with the asset management company looking to develop real estate and commercial property in the area. While the figure seemed low, it was enough to help Western Province out of its financial crisis which included a debt of R58 million owed to shareholder Remgro.
According to a report in the Daily Maverick on Friday, over R50 million was paid to Western Province last year when the deal was struck, with those funds used to help with the cash-flow issues at the union. The remaining payment, which is to be used to settle the Remgro debt, is still outstanding and will was due to be paid across at the end of June.
However, according to the report, WPRFU president Zelt Marais has not yet signed the final agreement with Investec and while the reason is not known, it has stalled the deal. Further eyebrows were raised when, on Tuesday night, board member Kevin Kiewitz resigned from the WPRFU board. Kiewitz, a lawyer, was heavily involved in the Investec negotiations.
Originally Published by News24