Our 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 8,600 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 and operations 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 (since inception, GPI’s share value has grown phenomenally, from the original investment of R28 million to a net asset value of R2,5 billion).

GPI owns an effective 25.1% 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 25.1% 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.
Investment policy
GPI is first and foremost a BEE investment holding company and this is the key driver behind each and every investment decision. The board must be satisfied as to each investment’s capacity for generating sustainable earnings for the company (and in so doing, assuring dividends for its shareholders), while maintaining its BEE credentials.

Utilising its unique, Western Cape-based BEE profile to invest in both existing, well-established ventures, as well as in start-ups, GPI’s investment policy seeks to achieve above average returns for its shareholders by investing in undertakings, and entering into joint ventures and other similar alliances, whereby it forms partnerships with such entities, contributing not only capital, but also providing strategic managerial input (ideally at board level), a high profile corporate identity, and, most importantly, impeccable empowerment credentials.

Ideally GPI seeks to acquire significant stakes (more than 20%) in its underlying investments so it is able to suitably influence and equity account its investments. A smaller stake is considered where there is the potential to increase such stake in the future, and where the costs of managing such smaller investment is not inhibitive.

GPI’s track record shows that it has been successful in various start-up ventures, assisting the management of such entities through those tenuous fledgling stages until profitable. These start-ups have been in areas where the GPI Investment Committee has had the ability to influence the investment decisions and in areas where risk has been well-contained. The more recent focus is on existing, more established, investment targets, characterised by potential for exceptional growth and historically healthy cash flows. Possible acquisitions are therefore benchmarked against well-set criteria.

There is no defined exit strategy in respect of any of its investments as GPI is, fundamentally, a long-term owner of businesses and is committed to partnering with these entities in their growth going forward - ideally seeking out investments with a long-term time horizon, and not speculating in securities, but realising profits when suitably justified by market conditions and good common sense. Where necessary, re-investment occurs in underlying assets, increasing interests to as meaningful a stake as possible.
Vision and values
To become a major and respected force in the gaming and leisure industry in Africa through continually investing in new opportunities.
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.