Investec to fund Tsogo Sun complex.

Posted On Friday, 25 October 2002 10:01 Published by
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Durban - Investec Bank would make available a total of R1.275 billion to finance Tsogo Sun's development of the Suncoast Casino and Entertainment World, Mike Meeser, Investec's head of project and infrastructure finance, said yesterday.

Durban - Investec Bank would make available a total of R1.275 billion to finance Tsogo Sun's development of the Suncoast Casino and Entertainment World, Mike Meeser, Investec's head of project and infrastructure finance, said yesterday.

The initial funding of R600 million was concluded earlier this year to meet the December deadline for the official opening of the first phase, in time for the peak holiday season.

Meeser said: 'We put in the money on behalf of shareholders from Tsogo Sun and Johnnic and at the end of the project they will pay it back.'

A further funding of R675 million had been
approved on the basis of a senior debtor facility, which meant that cash generated from the project would be used to repay the debt.

'Given that the debt facility is not a straightforward corporate loan, we are thrilled by the speed at which we were able to conclude this deal,' said Meeser.

Jabu Mabuza, Tsogo Sun's chief executive, said he was pleased banks had shown confidence in Tsogo Sun's management and praised Investec for embracing the opportunity presented by the gaming industry.

Nedcor Investment Bank and Nedcor Bank are the co-lenders of the project. Nedcor could not be contacted.

The Suncoast Casino and Entertainment World is the biggest private sector project on Durban's beachfront. The development is expected to contribute more than R840 million to KwaZulu-Natal's economy during its first year of operation. Construction has already created 8 500 jobs over the past year, of which 97 percent were filled by people from KwaZulu-Natal .

Securicor KZN was recently awarded a R3.5 million- a-year contract for handling security at the casino.

After completion of the second phase, the complex will include a casino, restaurants, gaming tables and slot machines, retail outlets, a cinema, a hotel and a theme park.


Publisher: Business Report
Source: Business Report

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