Luck runs out for Boardwalk mall plans

THE Eastern Cape’s gambling authority has slammed the brakes on the Boardwalk’s proposed R1.3-billion development in Port Elizabeth that could have effectively rescued the establishment from further decline.

The initiative hinged fully on the Eastern Cape Gambling and Betting Board (ECGBB) granting the casino an extension to its licence.

This expires in 2025 and the group had applied for a further 20-year extension.

While the gambling board told the Boardwalk’s parent companies, Emfuleni Resorts and Sun International, that they could still forge ahead with the mall construction, Sun International felt it did not make economic sense without the licence extension.

Sun International spokesman Michael Farr said R1.5-billion had been invested into the Boardwalk to date, but there had been no tangible return on the investment so far.

The new plan had been to use the remaining licence tenure to try to recoup some of that.

“Spending a further R1.3-billion on the precinct makes no commercial sense in the absence of a licence or security of tenure,” he said.

“The commercial viability of the mall is completely interdependent on the licence amendment. We made that a condition precedent so the application being denied means we cannot go ahead.”

Farr said the approval of the extension had been essential to provide the Boardwalk Consortium and Emfuleni with the assurance that they would be guaranteed more than the remaining nine years of the casino licence.

This included enabling the refinancing of Emfuleni’s empowerment shareholders’ loans over a longer period.

The precinct would have represented the biggest single investment into the city’s tourism and hospitality industry, creating 1 500 permanent jobs and 8 500 employment opportunities during construction, the company said at the time of the first announcement.

“It is really sad because we thought the development would give impetus to the Boardwalk as well as an economic boost to the city, and give the people additional attractions,” Farr said.

Attempts to obtain comment from ECGBB spokesman Kanya Nqelenga were unsuccessful yesterday.