The Eastern Cape Development Corporation (ECDC) has sold the Mpekweni Sun resort, near the Fish River Sun, to a consortium of local businessmen.

The total value of the deal was not disclosed and is effective from 1 April 2004.

The new owners, Silvercharm Investments 99 (Pty) Ltd will continue to run the 96-room resort hotel as a holiday destination.

Silvercharm MD Colin Whitehead said that the deal had been complex and had been completed after many months of intensive negotiations with the ECDC and the Eastern Cape Gambling Board.

Mpathi Mgqaliso, an Eastern Cape businessman who heads the black economic empowerment component of the deal, said that empowerment played a critical role in development and was paramount in the black economic transformational charter that had now been legislated.

Silvercharm said that the venture would benefit from the expertise of Whitehead and his wife Nicolette who were well-known personalities in the provincial business circles.

They believed that the development would be the next Umgazi River Bungalows of the Eastern Cape and expected huge support from business, government and the general population of the province.

Mgqaliso indicated that the resort would receive a major upgrade and refurbishment and that dividends would not be distributed but would be spent on turning the facility into a world class international destination.

The resort’s lease to Sun International, who also runs the Fish River Sun, is to be terminated.

Sun International said the sale allowed it to consolidate its guest operations at the Fish River sun which the majority of these rooms are now Sun International Vacation Club timeshare suites.