Macau Legend Development Ltd has completed the sale of peninsula hotel and casino The Ladmark Macau.
In a filing to the Hong Kong Stock Exchange, Macau Legend said that the HK$4.6 billion disposal of its subsidiary, New Macau Landmark Management Limited (NML), had been completed on Friday 27 April with the official handover of control taking place as of midnight on Saturday.
The sale will see the property’s owners – Macau Legend CEO David Chow and wholly owned subsidiary Hong Hock – offload 100% of the issued capital in another subsidiary, New Macau Landmark Management Limited (NML), with neither to have any further interest in The Landmark.
“Following the completion, NML has ceased to be a subsidiary of the company,” Macau Legend said. “The financial results of NML will cease to be consolidated into the accounts of the group. The disposal is expected to accrue a gain before tax of approximately HK$3.3 billion, which is calculated based on the purchase price, net liabilities value and carrying amount of the sale loan of NML as at 31 December 2017.”
The company had previously announced the four buyers as Dong Lap Hong Property Investment Company Limited, which will acquire 58% of NML, Tong Lap Tak Real Estate Limited (20%), Tong Hong Wan Real Estate Limited (17%) and Tong Tak Cheng Real Estate Limited (5%).
The buyers have acquired 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.
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