Cresta drops Phakalane deal
Mbongeni Mguni | Friday March 19, 2021 17:11
In January, Cresta announced that it had signed a 10-year lease agreement for the hotel and the golf course, with an option to renew for further ten year periods.
In addition, Cresta had planned to pay Phakalane P10.7 million as a once-off for moveable assets which include furniture, fittings and equipment, with the amount payable over a 24-month period.
Yesterday, Cresta directors told shareholders that the conditions necessary to finalise the deal had not been fulfilled and as a result the transaction had been ended.
Cresta had hoped to add Phakalane Golf Estate to its extensive chain of leisure and business hotels around the country. Phakalane Golf Estate Hotel is a prominent four-star property and Cresta was expected to bring its expertise, marketing and branding to expand its offering around the country.
Cresta, which is listed on the Botswana Stock Exchange, is currently in a closed period ahead of its results announcement and directors were not available for comment.