The 13 Holdings Ltd says it has raised HK$300 million for the completion of its luxury Macau hotel The 13 following the sale of its majority stake in construction company Paul Y Engineering Group Limited.
The 13 Holdings announced overnight that it had reached an agreement to sell 558,494,429 Sale Shares, representing 45.76% of issued share capital, to Precious Year Ltd and another 73,233,540 Sale Shares representing 6.0% of issued share capital to Tycoon Bliss Limited for a combined HK$300 million. The company estimated a loss of HK$338 million on the sale.
“The Group intends to apply the net proceeds from the Disposal against primarily the remaining pre-opening expenses of The 13 Hotel, including costs related to furniture, fixtures and equipment, operating supplies, inventories and staff costs, debt servicing and the general working capital of the Group,” it said in an overnight filing. The 13 Holdings added that its senior management team was now in place with the company now in the process of obtaining licenses and hiring operational staff ahead of its soft opening, which it has previously stated will take place by the end of July.
“As the Group is working towards the opening of The 13 Hotel, the Board believes it is timely for the Disposal to take place so that the management team can focus more of their time on the hotel management business of the Group and the Group’s resources can be effectively utilized for the hotel management business after the opening of The 13 Hotel.
“In addition, the Disposal provides funding to finance the completion of the facilities and amenities of The 13 Hotel as well as pre-opening costs of The 13 Hotel.”
Paul Y Engineering Group Limited is also the company responsible for the construction of The 13.
Primary purchaser Precious Year Ltd is a wholly-owned subsidiary of property development and investment holding company ITCP, while Tycoon Bliss Ltd is wholly owned by Paul Y Engineering Group Limited Deputy Chairman Fut Yan Chan.
The 13, located in Cotai, is set to be one of the most luxurious hotels in the world and will offer 200 duplex suites and villas ranging between 2,000 and 12,000 square feet each, as well as a Royal Villa covering 20,000 square feet.
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