Tsogo offers to buy out casino lease in PMB

2012-09-07 00:00

TSOGO Sun, the South African casino and hotel giant, has proposed to buy the land on which the Golden Horse Casino was built from the land owners, the Msunduzi Municipality.

An official from Tsogo Sun, Steven de Clerk, has presented to the Msunduzi Municipality executive committee their plans to buy out the 24-year lease agreement that the municipality has with Akani Msunduzi, a wholly-owned subsidiary of Tsogo Sun. De Clerk said Tsogo Sun is a long-term developer and further developing the Golden Horse Casino would not be possible if they did not have full ownership of the land.

“We have a vision of expansion, however Akani need to secure freehold title before considering further development,” he said.

He said the sale of the land in question in an open market with a 24-year lease was R26 million, but Akani was offering R42,5 million.

“Akani are essentially buying a lease locked for 24 years, current rental of R439 352 per annum,” he said.

De Clerk said hotels, hospitals and casinos needed to be recycled every eight to 10 years to maintain market share. He added the sale would stimulate development, ensure continued re-investment by Akani in the city, enhance tourism and attract more visitors, create more employment, realise a capital sum, and increase rates on the entire property.

Msunduzi municipal manager Mxolisi Nkosi said the matter was referred back to the portfolio committee for economic development.

“Without pre-empting the outcome of the sale, this has the potential to unlock serious major investment for the city, because we need to have a seven-star hotel and a conferencing venue in the city,” he said.

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