Suncity to pick 34% in Hoiana casino project, commits to invest $26.6m

Hong Kong junket operator Suncity Group is finalising the acquisition of a 34 per cent stake in central Vietnam-based casino complex Hoiana (previously branded as Hoi An South). It has committed to allocate $26.2 million for the first phase of the project. 

Two other venture partners of the projects – Golden Yield Enterprise (GYE), an affiliate of jewelry major Chow Tai Fook, and Ho Chi Minh City-headquartered asset management firm VinaCapital – hold 68.09 per cent and 31.91 per cent respectively in Hoiana. 

Suncity will acquire the 34 per cent interest from GYE’s ownership of the proposed casino complex, it said in a filing to the Hong Kong Stock Exchange on Wednesday.

The document added that the project holding company had already invested $89 million in the first phase of the $4-billion project, and a loan facility worth $484 million had also been obtained. It now needs another $77 million to deploy into the $650 million first phase of the project. As a result, Suncity will contribute $26.22 million based on its 34 per cent holding. 

"The project is still in the construction stage and is expected to commence operation in 2019,” the group said. 

The development, which will be in seven phases, will comprise a casino, hotel resort facilities, two golf courses, residential dwellings, commercial and retail areas, opportunistic developments and other public facilities.

Suncity said it had been planning to further expand its tourism-related business to Asian countries other than China, and Vietnam had been one of the initial target markets. 

"As there are currently no other integrated resorts comparable to the scale of the project in the area, the group is optimistic that there will be a strong demand for the facilities in the project,” it noted in the filing. 

In addition, gaming business is being supported by a new Decree issued earlier this year which will allow selected domestic casinos to accept bets from certain Vietnamese gamblers under a 3-year pilot scheme.

"The group is of the view that the decree signals the Vietnamese government’s determination to further open up its gaming market,” it added. 

(Source: dealstreetasia)

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