Revamped Sun City’s value drops by R306m
Leisure sector hit by increased competition, sluggish economy and reduced consumer spending
Sun International has for the first time reduced the value of Sun City as a struggling economy brought pressure on the iconic resort and casino. The R306m reduction in value to R2bn comes after the company spent R1bn on refurbishments at the Sun City complex in 2016. The drop in the resort’s value attests to the difficulties facing SA’s leisure and retail sectors due to increased competition, sluggish economic growth and reduced discretionary consumer spending. Sun International, which reported results for the year to December on Monday, said that it had performed a valuation on Sun City’s anticipated future performance. "This valuation led to the impairment as it was below the carrying value. It is important to understand that the impairment does not mean that Sun City will not potentially exceed expectations, in which case the impairment will be reversed," the company said. Sun International CEO Anthony Leeming said auditors PwC had instructed the group to re-evaluate the value of...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.