South Shore had hoped to sell the property after an agreement in late 2019.
Macau.- South Shore Holdings’ sale of its 50 per cent share in The 13 Hotel has fallen through, it has confirmed. The company said the agreement had lapsed because the required conditions were not fulfilled.
An agreement to sell the hotel had been reached in November 2019. At the time, South Shore announced it would dispose of a 50 per cent share in The 13 Hotel for HK$750 million (US$95.6 million), losing ownership of the property but maintaining a role in its management.
The sale agreement involved Falloncroft Investments, a wholly-owned a subsidiary of South Shore, which was to sell 50 per cent of its share capital in Uni-Dragon Limited – the disposal company that indirectly holds The 13 Hotel – to three companies, Fine Intellect (20 per cent); All Fame (20 per cent) and Ease Link (10 per cent).
However, South Shore reported several delays and said Conditions Precedent had not been fulfilled.
The company said: “No agreement was reached by the vendor and each of the purchasers to further extend the Long Stop Date, the sale and purchase agreements have lapsed’”, the company informed.
The sale was intended to help South Shore, a hospitality, entertainment and construction group, to repay an outstanding principal amount of HK$2.84 billion.
The company stated that its intention was “to continue with its endeavours to seek prospective buyer(s) for the hotel and/or the land and execute a sale of the hotel and/or the land, and will work with the bank on any further remedial measures as appropriate”.
The 13 Hotel temporarily suspended operations in February due to the pandemic and has remained closed ever since, according to the Macao Government Tourism Office (MGTO).