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SUN INTERNATIONAL ANNUAL REPORT ’10
184
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
for the year ended 30 June
31. CAPITAL EXPENDITURE AND RENTAL COMMITMENTS
Capital commitments
Contracted 289 349
Authorised by the directors but not contracted 1 866 2 186
2010
Rm
2009
Rm
2 155 2 535
To be spent in the forthcoming financial year 980 1 594
To be spent thereafter 1 175 941
Future capital expenditure will be funded by a combination of internally generated cash flows and
debt facilities.
Included in capital commitments is R309 million relating to the Wild Coast Sun refurbishment
programme and R986 million relating to the Boardwalk bid commitment.
Rental commitments
The group has the following material rental agreements as at 30 June 2010:
(i) For the group’s head office in Sandton, expiring on 31 May 2014, at an annual rental of
R13.2 million, escalating at 11% per annum.
(ii) For the Naledi Sun Hotel and staff flats, expiring on 31 January 2012, at an annual rental of
R0.8 million escalating at 7% per annum.
(iii) For the land upon which the Wild Coast Sun Resort is situated, expiring on 9 March 2029, at
an annual rental of R0.1 million, escalating at 5% per annum. The group has an option to renew
the lease to March 2079. The rental payment would be negotiated and cannot increase by
more than 15% based on the rental payable in March 2029.
(iv) For the land upon which the Flamingo casino complex is situated, expiring on 30 September
2096, at an annual rental of R0.1 million, plus contribution to the maintenance cost of the golf
course.
(v) For the Sands Hotel building, a new lease was negotiated which began on 1 July 2009 and
expires on 30 June 2019, at an annual rental of R9.6 million, escalating at 8% per annum. The
group has the option to renew the lease to June 2029.
The future aggregate minimum lease payments under non cancellable operating leases are as
follows:
2 155 2 535
No later than 1 year 25 23
Later than 1 year and no later than 5 years 100 111
Later than 5 years 75 89
200 223