Johannesburg - Investment group Trematon is selling its stake in the West Coast Leisure group to hotel group Tsogo Sun for R190 million.
Trematon held 29.64 percent in the unit, which owns a casino, and says, while it was an “excellent investment” it was a passive investment in which it has limited opportunities to add significant value and realised returns are mainly in the form of dividends.
“The group has a current investment pipeline which is better positioned to achieve the internal rate of return targets and the equity realised will be redeployed in those investments.”
Trematon Capital Investments is an investment group with a portfolio of investments, subsidiaries, associates and joint ventures engaged in a variety of industries. Most of the investments are based in the Western Cape and are related in some way to property or leisure. The group also engages in investment and trading in listed and unlisted shares which are not specific to any industry.
It will sell its stake in the casino through a share repurchase, which will see Tsogo holding all of the shares in the casino. WC Leisure holds the West Coast casino license operated by Tsogo at the Mykonos Casino.
It adds its subsidiary, Club Mykonos Langebaan - through which it indirectly held the stake - will continue to own all of the remaining development land at the resort and all of the commercial income-producing assets on the Mykonos resort. This includes restaurants and conference facilities, a marina with 188 berths, a boat and general storage facility with 251 storage units, and other shops and commercial assets.
The entire resort currently consists of 361 residential units with development potential for a further 300 holiday units and/or standalone homes and commercial property, it says in a statement issued on Monday.
The deal is subject to customary conditions.
IOL