Macau Legend Development Limited has announced the signing an agreement with four buyers to sell The Landmark Macau for HK$4.6 billion.
The sale will see the property’s owners – Macau Legend CEO David Chow and wholly owned subsidiary Hong Hock – offload 100% of issued capital in another subsidiary, New Macau Landmark Management Limited (NML), with neither to have any further interest The Landmark upon the successful execution of the agreement.
According to a filing with the Hong Kong Stock Exchange, Dong Lap Hong Property Investment Company Limited will acquire 58% of NML, with the other buyers listed as Tong Lap Tak Real Estate Limited (20%), Tong Hong Wan Real Estate Limited (17%) and Tong Tak Cheng Real Estate Limited (5%).
The buyers will acquire the entire combined stake in The Landmark Macau – a hotel and casino complex on the Macau Peninsula covering 80,129 square meters in gross floor area including 439 five-star rooms and suites as well as Pharaoh’s Palace Casino. Pharaoh’s Palace occupies 16,698 square meters with 60 mass market gaming tables, 17 VIP gaming tables and 141 slot machines.
The sale won’t completely end Macau Legend’s involvement, with one stipulation of the agreement being that Hong Hock will continue to provide gaming services at Pharaoh’s Palace “for as long as SJM maintains its status as a gaming concessionaire in Macau, including extensions and/or renewals of the existing gaming concession and/or a new concession obtained by SJM.”
Under the gaming services agreement, SJM is to pay Hong Hock around 15% of gross gaming income while NML, under its new owners, will pay Hong Hock a monthly management fee of 0.5% of gross gaming income. Neither Hong Hock or SJM will pay any rent for operation of casino facilities.
Macau Legend said that a total of HK$660 million has already been paid by the buyers as way of a deposit with a third deposit of HK$340 million due on 5 January 2018. The remaining HK$3.6 billion will be payable upon completion of the deal.
