Joint Venture to run Macau’s THE 13 Hotel
South Shore Holdings Ltd has revealed it will liberate a 50% stake in Macau THE 13 hotel for approximately €85,7 million.
Macau.- Three offshore companies have reached an agreement with South Shore Holdings to acquire a 50% stake in a firm holding investment in Macau’s The 13 Hotel.
Last month, South Shore announced the selling of a 40% stake to “an associate of a substantial shareholder” with the option to acquire another 10%.
South Shore Holdings Ltd has now seen its stock resume trading on the Hong Kong Stock Exchange. The shares had been suspended since October 15.
The first purchaser is a wholly-owned subsidiary of ITC Properties Group, which holds a 10.48% stake in South Shore. Fine Intellect Ltd and Fame Developments Ltd, each acquire a 20% stake in Uni-Dragon Ltd, the South Shore subsidiary that controls THE 13, for approximately €34,3 million each.
South Shore subsidiary Falloncroft Investments Ltd will retain a 50% interest in Uni-Dragon. However and as part of the deal, Fine Intellect will also be granted an option to purchase an additional stake of 30% in Uni-Dragon Ltd, which is valid for two years. Moreover, and as part of the deal, Uni-Dragon will no longer be considered a subsidiary of the company and its financial results will no longer be consolidated into the financial statements of the group.
About THE 13 Hotel
Located south of the Cotai Strip, THE 13 Hotel opened on 31 August 2018 following a series of delays due to funding problems. Nevertheless, the company recently revealed an average occupancy rate of just 8% through 30 June 2019.
Originally envisioned as a luxury casino-hotel, THE 13 has space for 66 gaming tables; but hasn’t yet applied for their use under a potential “service agreement” arrangement it previously reached with Macau concessionaire Melco Resorts and Entertainment.
