Sands China has renewed a Shared Services Agreement with its parent company, Las Vegas Sands, that will see the latter provide marketing services targeting international VIP and premium players, as well as leasing, management and marketing services for Sands China’s Macau retail malls.
The renewed agreement, similar to one announced by Wynn Macau Ltd and Wynn Resorts earlier this week, will run for three years from 1 January 2021 to 31 December 2023.
Under the agreement, Las Vegas Sands will provide Sands China with joint international marketing services targeting VIP players, premium players and Sands Rewards Club members who may wish to visit the group’s properties in either Macau or Las Vegas. It will also provide retail leasing, management and marketing services relating to the retail malls owned and operated by the group, including hotel, convention, exhibition, meetings and entertainment sales, marketing and public relations services.
Sands China’s Cotai retail space comprises more than 850 stores comprising Shoppes at Cotai Central, Shoppes at Four Seasons, Shoppes at Venetian and Shoppes at Parisian.
According to a Thursday filing, the Shared Services Agreement will include annual caps on the amount to be paid to LVS of US$10.2 million in 2021, US$11.2 million in 2022 and US$12.2 million in 2023.
“The Shared Services Agreement regulates the relationship of the Group and the LVS Group with respect to the provision of the shared services between the Group and the LVS Group,” Sands China said.
“The reason for and the benefits of entering into the Renewal Agreement is to renew the term of the Shared Services Agreement for a period of three years ending on 31 December 2023 and is in line with the growth of the Company’s separate business units.”
