Suncity Group Holdings subsidiary Goal Summit Ltd has announced the acquisition of a 34% stake in Vietnam’s Hoi An South integrated resort as it looks to expand its interest in the country’s blossoming casino industry.
Goal Summit will pay a total of HK$600 million for 50,000 shares in Star Admiral Ltd, a subsidiary of Suncity International Holdings, which represents the entire equity interest in and shareholder’s loan owed. Both Suncity International Holdings and Star Admiral Ltd are wholly-owned by Mr Alvin Chau, who is also the majority shareholder and an executive director of Suncity Group Holdings.
The first phase of the Hoi An South development is due to open in mid-2019, according to Suncity Group Holdings, with Phase 1 to include gaming facilities with 140 gaming tables and around 1,000 slot machines as well as a hotel, condos and a golf course.
Suncity Group Holdings said its HK$600 million interest will be paid through a HK$303 million promissory note and HK$297 million in convertible bonds.
“The group is confident in the outlook for the tourism sector in Vietnam and believes there will be an increasing demand for resort facilities in popular tourist destinations in the country, including Quang Nam province, which has received almost a quarter of the country’s total number of foreign visitors in 2016,” the company said.
Suncity Group Holdings previously announced that in conjunction with the acquisition deal, Suncity Group Management and Consultancy Ltd, which is wholly owned by Suncity Group Holdings, will provide management and consultancy services for the same project.
The consultancy deal will see Mr Kai Bong Lo, Chief Investment Officer of Suncity Group, “provide advisory and consultancy services to Mr Chau” in respect to the IR.
The Hoi An South project is a collaboration between Suncity Group, local asset management firm VinaCapital Group and Chow Tai Fook Enterprises Ltd subsidiary Gold Yield Enterprises Ltd.
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