Cape Town: Extra revenue for World Cup stadium?
source: SowetanLive.co.za; author: michał
It may have been the most expensive stadium of the 2010 World Cup, but to this day it fails to generate revenue. Latest idea includes converting a parking site into commercial area.
Cape Town Stadium was subject to controversy more times than it should have. Proved to have price inflated by contractors it now continues to fail expectations of generating revenue to the extent that last year a proposal of turning it into a sewage plant was raised.
Of course such initiative couldn’t be taken too seriously especially with the stadium standing in one of Cape Town’s most prestigious locations. That very location is why municipal authorities are hoping to lure investor in the latest bid to raise non-sporting revenue from the Stadium Precinct.
In its internal evaluation‚ the City of Cape Town said the market rental value of this property‚ comprising a gravelled parking area site of 7‚385 square-meter in size‚ was estimated to be either an upfront payment of R100 million ($6.4m) or a monthly rental of R750‚000 ($48,000).
This rental is valid for a proposed lease term of 25 years‚ with an escalation of 8% per annum.
It is expected to be developed to provide a medium-rise complex of buildings incorporating parking‚ ground-floor retail and commercial components.