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Cape leisure applies the black tint
ENTERTAINMENT INDUSTRY
A WESTERN Cape empowerment group has emerged as 51% shareholder in a leisure investment company whose first asset is the luxurious, R260-million Table Bay hotel at the Victoria & Alfred Waterfront. Sun International will hold 49% of the new company, called SunWest International, while 51% will be owned by community-based investors - Grand Parade Investments (34%) and AfriSun, an empowerment consortium (17%). SunWest is bidding for the Western Cape metropolitan casino on the Goodwood showgrounds site. It hopes to make other investments in the Cape leisure industry. SunWest International chairman, Peter Swartz, says the company has planned a R1-billion-plus casino development and believes it has a strong consortium which includes seven groups from disadvantaged communities as well as Sun International. Swartz says this is the first time coloured and black investors in the Western Cape will have a stake in a major development at the Waterfront. SunWest director Ian Douglas says each of the seven consortia in Grand Parade Investments was required to make an initial cash investment and have at least 50 members. "Getting a casino licence bid to its final stage will not be an inexpensive exercise. Both GPI and AfriSun are aware of the risk and understand that in the event we are unsuccessful, they will be responsible for their share of the costs." Swartz says additional funds which it needs to raise will be leveraged through the issue of preference shares. Swartz, who is the past chairman of Satour and a director of numerous other companies, says he chose Sun International as a partner because of its operating experience. He believes the leisure company is well placed in the Western Cape, which is strongly tourism driven. In terms of the new structure, Sun International will enter into long-term management contracts, giving SunWest access to its expertise and specialised know-how and infrastructure.
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