Asian junket operator, Suncity Group Holdings Limited,has released more information regarding the deals it signed last month to provide management and consultancy services to an integrated casino resort being built in southern Cambodia.
The Hong Kong-listed firm used an official Monday filing (pdf) to explain that the agreements with Golden Sun Sky Entertainment Company Limited were inked by its Suncity Group Management and Consultancy Limited subsidiary in connection with an under-construction project in the coastal city of Sihanoukville.
Suncity detailed that the coming 5.9 million sq ft venue is due to sit alongside Otres Beach and feature a 1.3 million sq ft casino alongside a hotel, commercial units and restaurants. The Macau-headquartered firm declared that the $360 million beachfront development is expected to open during the first quarter of 2020 and also comprise a residential complex as well as sports and meeting facilities.
Description of ‘pre-opening services’:
One of the largest junket operators in Macau, Suncity stated that it has agreed to supply the coming enterprise with ‘pre-opening and technical services’ throughout its design, planning and construction phases. It proclaimed that these are to encompass the provision of design guidelines, hiring advice and operational plans as well as a review of ‘the timetable and budget for the development of the integrated resort complex.’
The operator clarified that this twelve-month arrangement is due to see it earn approximately $500,000 divided between two equal payments with any additional consultancy services charged at a monthly rate equivalent to $41,667.
Furthermore, the junket giant pronounced that it had signed a 20-year deal that is to see it operate the coming Cambodian development on behalf of Golden Sun Sky Entertainment Company Limited in return for receiving 3% of the venue’s monthly gaming revenues as well as up to 6% of its annual earnings before interest tax depreciation and amortization.
It further detailed that its duties as an operator are to include ‘all such actions for and on behalf of the owner as are reasonably necessary or advisable to operate the casino’. It explained that these will encompass the employment of workers, the performance of ordinary maintenance and repairs, the purchase or rental of any additional facilities and the establishment of ‘rates for the gaming and other facilities.’
Annual budgetary obligations:
As if these weren’t enough, the operator communicated that it is to additionally be in charge of managing the revenues for the as yet unnamed integrated casino resort and preparing annual budgets based on ‘anticipated revenues, expenses and proposed expenditures.’
Hopes for expanded customer base:
Suncity declared that it is ‘principally engaged’ in developing and leasing commercial and residential properties in the mainland Chinese provinces of Guangdong, Anhui and Liaoning alongside providing ‘hotel and integrated resort management and consultancy and travel agency services’. It asserted that the deal with Golden Sun Sky Entertainment Company Limited is due to allow it to ‘expand its customer base to Cambodia’ while allowing additionally allowing members of its board to ‘leverage’ their expertise.
According to a statement from the group…
“The board considers the entering into of the technical services agreement and casino management agreement as in the ordinary and usual course of business of the group and the terms are based on normal commercial terms and are fair and reasonable and in the interests of the company and its shareholders as a whole.”
Wide business interests:
For its part, Golden Sun Sky Entertainment Company Limited is a subsidiary of Chinese construction, tourism and airline firm China Yunnan Jingcheng Group Company Limited while its sister enterprises include Kunming-based Ruili Airlines Company Limited alongside Cambodian carrier JC (Cambodia) International Airlines Company Limited.