The Macau Legend Development Ltd signed a deal on Wednesday to buy 21.5% stake in a company which is currently developing a shopping complex on Hengpin Island in China.
This project is majorly being controlled by Macau Legend co-chairman and chief executive David Chow Kam Fai. Macau Legends latest deal is for a stake in Lai Leng Investment Co Ltd which owns the “勵駿龐都廣場PONTO” project in Hengqin.
Macau Legend said in its filing that, “PONTO is the first large-scale shopping complex in Hengqin, with an investment value exceeding RMB1.6 billion [US$239.5 million]. PONTO is strategically located at Hengqin and is approximately a 5-minute drive from Hengqin customs port. The total construction area of the project is approximately 140,000 square meters [1.5 million sq feet], and it will offer over 300 shops.”
It was further elaborated by the company that, “The board is of the view that the acquisition permits the group to take part in, and benefit from, the economic growth in the area of Zhuhai Hengqin New District.. which is important for the group’s long-term development as well as the broadening of its revenue base.”
This made no reference to whether there may be future non-gaming partnerships between Zhuhai project and other gaming assets of Macau.
Announcement In 2012
Mr. Chow started planning the project in 2012. It was estimated that the project will conclude in 2016 and the cost would be US$250 million.
Hengqin is expected to attract tourists. Mr. Chow and his wife are interested in 55.7% of the share capital of Raising Investment Co. Ltd which is one of the sellers in the operation. Raising has a 70% stake in the target company.
Lai Va Investment Co Ltd is another seller and is deemed to be an independent third party of Macau Legend. It is selling 20.5% stake in Lai Leng to Macau Legend.
Following the completion of the deal, Macau and the target company will enter a management services agreement and the subsidiary will provide services to PONTO.