In Macau and one of the companies behind The 13 luxury hotel has reportedly agreed a trio of deals that are to see it offload a 50% shareholding in the property for a cash consideration worth approximately $95.6 million.
According to a report from GGRAsia, the agreements are to involve ITC Properties Group Limited as well as All Fame Developments Limited each paying around $38.2 million for 20% stakes in an entity known as Uni-Dragon Limited, which is the parent behind the sole owner of The 13, New Concordia Hotel Limited.
A third arrangement is to purportedly later involve local logistics and mining firm CST Group Limited acquiring a 10% share in the opulent property for about $19.1 million to leave seller South Shore Holdings Limited via its Falloncroft Limited subordinate with a 50% interest in the 200-room venue.
GGRAsia reported that The 13 opened its doors in late-August of 2018 but that it has subsequently failed to live up to earlier financial expectations largely due to the collapse of a plan that was to see it feature a casino. Located on the border between Macau’s Cotai Strip and Coloane districts, the venue has since purportedly fallen on hard times with South Shore Holdings Limited reporting a net loss of about $744.5 million for the twelve months to the end of March.
Hong Kong-listed South Shore Holdings Limited later reportedly detailed that the rise in its annual deficit had been down to an aggregate impairment worth approximately $599.2 million caused by lower than expected occupancy rates at The 13 with its historical loss on the property now standing at around $892.4 million.
GGRAsia reported that the deals moreover include a two-year provision that will give ITC Properties Group Limited an option to purchase an additional 30% stake in The 13 with this firm allegedly investigating the potential synergies that may exist between the hotel and an adjacent residential complex being developed by its Concord Industrial and Commercial Development Enterprise Limited subordinate.
Reportedly read a Wednesday filing from ITC Properties Group Limited…
“Given the knowledge and experiences gained through Concord Industrial and Commercial Development Enterprise Limited, the directors believe the acquisition represents a good investment for the group to acquire a stake in a property project in Macau and increase its exposure to the Macau property market.”