Sun
International today announced plans to create a new R3-billion urban
entertainment destination at Menlyn in Tshwane’s eastern suburbs.
The
company is making an application
to the Gauteng Gambling Board to amend
its Morula casino licence to relocate the casino from Mabopane to Menlyn,
Tshwane in order to deliver the full potential of this licence to the City of
Tshwane and the Gauteng Province.
Sun
International CE Graeme Stephens said that Morula Casino and Hotel had for some
time experienced a significant decline in revenues due primarily to its
relatively inaccessible location and the growth of non-casino gambling
activities in its catchment area. He said that the proposal is to move the
casino to an area that is closer
to its source markets and well serviced by highway access which would maximize
the potential of the licence for provincial and national government, employees
and Sun International shareholders.
Based
on extensive market research and after evaluating a number of options, the
Menlyn area of Tshwane was identified by the company as an area which is a high growth node, easily
accessible to the key source
markets of Tshwane East, North and Central, and to the region generally through
good highway access along the N1 and the
Atterbury and Garsfontein offramps.
In
the Menlyn area a new large scale mixed-use “Green City” project is currently
under development, known as Menlyn Maine. This will, in its final form, be an
R8-billion, 315,000m2precinct, of which R825-million is either
already built or under construction. It will have a new shopping mall, a
high-end residential component, an office park, hotels and an entertainment
node – which is the component that Sun International will provide, with its
proposed R3-billion scheme, “Time Square at Menlyn Maine”.
All
of Menlyn Maine’s buildings have been designed with the aim of achieving a best
practice four-star rating from the Green Building Council of South Africa.
Menlyn
Maine is the largest mixed-use precinct ever to be built in Tshwane. If Sun
International is successful with its applications to the Gauteng Gambling
Board, the new entertainment destination will constitute the most significant
investment by the private sector in Tshwane in the history of the city’s
entertainment industry.
Sun
International Chairman, Valli Moosa, said “It is with pride that Sun
International would become part of the largest Green precinct in the country -
and this proposed investment is a statement of our confidence in South Africa
and in particular the leisure and tourism industry”.
.
Time Square at Menlyn Maine will offer a 5-star hotel
and conference centre with 100
luxury rooms and 10 suites to cater to the diplomatic travel market, support
the business traveller and
encourage overnight stays in Tshwane and accommodate gambling patrons over
weekends. It will also boast an indoor entertainment arena seating 8,000 people
for international and local entertainment, concerts, sports events and provide
a convention and exhibition facility for Tshwane residents.
In
addition to the most recent innovations in gaming, the casino will have up to
3,000 slot machines and 100 tables. Other attractions will include a diverse
range of retail shopping, bars and restaurants that will draw visitors from
around the Province, with parking for 2,785 vehicles.
“The
proposed Sun International
entertainment component will act as a major catalyst for the rest of the
project and will bring to the area an urban entertainment facility on a scale
that it warrants and deserves” says
Stephens.
“Our
market research has shown that there is clear demand for the hotel and
convention space in Tshwane as well as the proposed entertainment arena.
Research into the gaming market indicates that for many
customers from Tshwane West, North, Central and East, the location of the
existing Gauteng casinos has made reaching them difficult.
“This suggests that there
will be growth in the market from these areas with a casino based in Tshwane,
giving residents the opportunity to enjoy the same ease of access and urban
facilities found in other South African cities. It is proposed that the casino
will open with 2,000 slots and 60 tables and will have the flexibility to
increase its offering once demand is proven.
“We
expect that as many as 10 000 jobs will be created during construction and when operations start, it is estimated that Time Square at Menlyn
Maine will sustain approximately 2 200 jobs.”
Taking
cognizance of the multiplier effect, the Sun International project expects to
deliver cumulative contribution to GDP of as much as R19-billion during
construction and over the first 5 years of operations.
The
development would also generate considerably more revenue for both provincial
and national government by way of taxes and gaming levies. It is anticipated
that some R1.7-billion in gaming taxes and VAT would be generated in the first
five years of operation at Menlyn Maine. The
total estimated revenue to Government from the project over a five year period
is estimated at R2.7-billion, while approximately R32-million will be invested
in social investment and enterprise development over the same period.
Sun
International has concluded an agreement to acquire the necessary land from the
developers of Menlyn Maine under an option arrangement conditional upon
receiving the required regulatory approvals. Approval has already been received
for the necessary land rights, including all relevant zoning.
Environmental impact assessments and traffic impact studies have also been
completed.
Sun International will, through group companies, have
a management contract and hold an effective 74.9% of Time Square at Menlyn Maine. It is fully committed to the
establishment of meaningful empowerment ownership and the proposal includes a
broad-based BEE component and a total effective 25.1% BEE shareholding.
As
regards the Morula property, Stephens said: “Our primary concern in relocating
the casino to Menlyn Maine is for the existing staff at Morula, and the impact
the move could have on the surrounding communities of Mabopane and Soshanguve..
“We will offer all Morula staff the
option of staying with the company in the same or similar job types. Given the
relative proximity of the development to Morula, existing staff can be employed
at the new location with bus transportation being provided.”
The company is considering
alternative uses for the existing Morula property including the possibility of
using it as a hospitality school for the region. It intends to work with local
government to establish the most appropriate utilisation of the property.
Sun International is also committed
to continue supporting Morula’s social investment and enterprise development
initiatives – but on an enhanced basis given the greater economic benefits that
flow from the relocation.
Should
the necessary regulatory approvals be granted, Sun International will
immediately commence detailed planning, estimated to require 6 months. Physical
construction of the new entertainment destination is estimated to take 30
months and will be completed in one phase.
Said Stephens: “The proposed development of Time Square at Menlyn Maine will deliver an overwhelmingly
compelling package of substantial economic and financial returns to all
stakeholders with a critical mass of attractions to leverage Tshwane’s leisure
product and complement other attractions in the area.”
ENDS
For
further information, please contact Tamra Veley on 083 251 3658 or Enid
Vickers on 083 460 3910.
NOTE
TO EDITORS
1
Morula
Sun
International, through group companies, holds two licences in Gauteng: one at
Carnival City in Brakpan and the other at Morula Casino and Hotel in Mabopane, the latter built in 1988.
For
some time Morula has experienced a significant decline in revenues due
primarily to its location, which is now relatively inaccessible in the context
of highway proximity and the new growth areas of Tshwane. More recently the
business has been further negatively impacted by the growing electronic bingo
and limited payout machine sectors which are targeting the underserviced
Tshwane market in Morula’s catchment area. This has led to a downsizing of the
casino and Sun International
believes that, in its current location, nothing further can be done to reverse
this once-popular and successful property’s decline.
2
Theming at Time Square at Menlyn Maine
The
new complex is to be called Time
Square at Menlyn Maine with
the theme of ‘horology: the art or
science of measuring time’ for its rich source of visual imagery. The
development will be appropriately and sensitively designed to fit the urban
fabric of the Menlyn Maine precinct in terms of both its visual impact as well
as the anticipated impact from the expected influx of visitors. It will feature a high profile, iconic
building with a contemporary feel
and, coupled with its variety of integrated activities, is likely to become the
focal entertainment and activity hub in the precinct. Although intended to be
eye-catching, the building will blend in with the rest of the Menlyn Maine
precinct during daylight hours. At night, however, it will transform into an
exciting landmark.
