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Company overview

Grand Parade Investments is a Western Cape-based black owned and controlled (as defined in the Codes of Good Practice) holding company listed on the JSE Limited, having investments and operations in the South African gaming and leisure industry. Since its establishment in 1997, the company has positioned itself as a formidable player in this industry, keenly focused on cash generative gaming assets capable of delivering long-term sustainable returns to shareholders.

Through participation and leadership, GPI has consistently sought to ensure that its investments are optimally leveraged for the benefit of all stakeholders and the broader community. As a Broad-based Black Economic Empowerment enterprise with a substantial shareholder base comprising a broad spectrum of the population of the Western Cape, one of GPI’s primary objectives was to provide a vehicle whereby Historically Disadvantaged Persons were able to participate in the country’s lucrative gaming industry. The black empowered shareholder base is in excess of 6 000 direct members and up to a further 15 000 indirect members. After listing, thousands of the initial shareholders progressed to a new corporate listed environment, with an opportunity to participate in the continued growth and development of GPI.

GPI has consistently been driven by two passions - to be a profitable and successful enterprise in the gaming and leisure industry, while at the same time uplifting and rewarding its thousands of shareholders.

Its field of expertise is gaming and its present investment and operations portfolio is therefore biased towards the gaming, leisure and entertainment sectors. Notwithstanding this, GPI is also looking at opportunities outside the gaming industry such as property, retail and entertainment with a view to expanding its investment portfolio, not only geographically (as there is a current Western Cape focus) but also in terms of industry emphasis.

Investment overview

All of GPI’s investments are quality assets in the leisure and gaming industry that have shown strong growth and solid earnings performance over the years.

The investment portfolio has been consistently grown to the benefit of its shareholders year on year (over the last 11 years, GPI’s share value has grown by a phenomenal 1 687%, from the original investment of R28 million to a net asset value of R1,6 billion).

GPI owns an effective 34.30% economic interest in SunWest which owns and operates the GrandWest Casino and the Table Bay Hotel, and also owns a 24.75% stake in the CTICC.

  • GrandWest provides its guests with the latest state-of-the-art gaming and non-gaming entertainment facilities.
  • The Table Bay Hotel provides its guests with a luxury hotel experience in one of the most beautiful settings in the world.
  • The CTICC has proven to be of enormous economic value and is rated as one of the top convention centres in the world.

GPI owns an effective economic stake of 46.68% in Worcester Casino (Pty) Ltd which owns and operates the Golden Valley Casino which provides guests with an intimate gaming and entertainment experience and the Golden Valley Lodge which provides a relaxing and comfortable hotel experience.

  • Through its 30,6% stake in RAH, GPI has increased its exposure to SunWest and other high-quality 'urban casino' assets, namely Carnival City, Sibaya Casino and Boardwalk Casino, as well as other regional Mancos.

Operational overview

2010 represented a watershed year for GPI in that it marked the end of our time as purely an investment company and a new beginning whereby we acquired 100% control over our LPM investment. With this acquisition now bedded down and our management team wholly integrated, we are fully committed to growing our operational business and to ensure consistent returns for all.

The LPM industry is still relatively new, with just over 6  000 machines having become active by the end of  December 2010 out of a total potential 50 000 machines countrywide. As a result we see considerable opportunity in not only our Grandslots (WC) and Kingdomslots (KZN) operations but in the rest of the country.

As such, GPI has set a short to medium-term objective of securing control of an additional 3 000 machines over and above the 2 000 machines which we now control. We are confident that we can continue to grow our LPM business profitably and that it will have a positive impact on our future earnings.

Vision and Values

  • To become a major and respected force in the gaming and leisure industry in Africa.
  • To promote Broad-based Black Economic Empowerment in a meaningful way, by being as inclusive as possible.
  • To offer ordinary people a platform to enter the corporate environment in a sustainable and responsible manner and in so doing foster crucial human capacity and skills.
  • Our philosophy of empowerment is to create corrective action to allow people to graduate from an abnormal environment, to an equitable one, and in so doing embrace all shareholders.
  • To fulfil the promise to our many shareholders, by conducting operations in line with best business practice, upholding the highest legal, ethical and moral standards and engaging and developing the best managerial and operational skills.
  • It is through solid investment in the finest people and assets, that GPI’s shareholders reap the highest rewards.