SJM can end the agreement in the first six years if they decide to extend the casino space at Grand Lisboa Palace.
Macau.- Casino operator SJM Holdings has announced an agreement between its Macau casino license holder, Sociedade de Jogos de Macau, S.A. (SJM), and NYH Gesta ̃ o de Vendas a Retalho Limitada (NYH), to operate the second New Yaohan department store at Cotai integrated resort Grand Lisboa Palace from April 2021.
SJM, which operates the Grand Lisboa, Ponte 16 and other properties in Macau, secured the right to use the space for the next 12 years, starting next April. The grand opening of the shopping mall is expected for October.
As part of the agreement, SJM can end the contract in the first six years if they decide to extend the casino space at Grand Lisboa Palace and need to use the New Yaohan premises as extra gaming floor. NYH can do the same if its sales during the first six years is less than 150% of those in year one.
SJM published a statement explaining the agreement and what the company expects from it.
“The entering into of the Right to Use a Shop Agreement is considered strategically important to the success of the Grand Lisboa Palace as (i) ‘‘New Yaohan’’, being a well-known department store brand, is expected to draw traffic to both gaming and non-gaming facilities of the Grand Lisboa Palace; and (ii) the entering into of the Right to Use a Shop Agreement will generate income for the Group from an anchor retailer, who will take up approximately one-third of the retail space of the Grand Lisboa Palace, on a long-term basis.”