Melco International Development Ltd, the parent company of international IR operator Melco Resorts & Entertainment, says it has terminated a joint venture agreement to develop a multi-billion dollar mixed-use residential, entertainment hospitality complex in Zhongshan, Guangdong Province.
First announced in June 2021, the project had been planned to cover a gross floor area of 750,000 square meters in the heart of Zhongshan, located just north of Zhuhai, and feature residential, commercial, recreational and entertainment elements, including residential complexes, office areas, hotels, serviced apartments, wellness centers, shopping malls and a theme park.
Instead, the company revealed in its 2023 Interim Report, published this week, that it had served to its joint venture partner on 13 July 2022 a notice to terminate a cooperation agreement and supplemental agreements in accordance with the Civil Code of the PRC. This, Melco explained, was because certain provisions in the Joint Venture Cooperation Agreement were not met by the joint venture partner.
Subsequently, Melco and the joint venture partner entered into a framework agreement for the separation plan, adding “management expects that the Group will be able to recover the carrying amount of its investment in the joint venture.”
Melco had named its joint venture partner at the time of announcement as Zhongshan Yachen, a subsidiary of Hong Kong-listed Agile Group. Melco was to be responsible for development, management and operation of the theme park, as we as contributing RMB150 million (US$23 million) towards the land acquisition price, RMB250 million (US$39 million) towards development of the land and fund the ongoing operational costs of the theme park.
RelatedPosts
