Concessionaire SJM Holdings has acquired a building in Macau’s San Ma Lo district as well as two entities developing restaurants at its Cotai property Grand Lisboa Palace Resort Macau from parent company Sociedade de Turismo e Diversões de Macau, S.A. (STDM) in a move it says will enhance its “culinary leadership” and strengthen its mass market presence.
In a Hong Kong Stock Exchange filing overnight, SJM revealed it would acquire from STDM the Kam Pek Community Centre – a three-storey building located on Avenida de Almeida Ribeiro near “The Historic Centre of Macao” UNESCO World Heritage Site – with the intention of refurbishing it into a mass food and beverage hotspot.
The transaction cost will be HK$166 million with SJM to settle the amount in three stages.
Once fully developed, the building would serve as a “culinary anchor at one end of the San Ma Lo avenue, with Grand Lisboa and Hotel Lisboa at the opposite end,” the company explained.
“This acquisition not only fulfils the Group’s commitment to non-gaming investments as stipulated in the gaming concession contract but is also a strategic initiative designed to develop a vibrant culinary hub in the heart of the historic city and enhance Macau’s appeal as a top international destination.
“It is expected to create synergies with SJM’s hospitality portfolio in the Peninsula, attracting foot traffic and a wider customer base, as well as encouraging recurrent visitation to drive broad based growth.”
In separate transactions, SJM said it has also acquired the entire equity interests in, and related shareholder’s loan, to NYH European and NYH Italian, both indirect subsidiaries of STDM and which are currently developing two distinctive western dining establishments at Grand Lisboa Palace.
The total consideration is HK$31.5 million to be primarily financed through a set off mechanism against trade receivables from NYH to the Group, with a minor portion to be settled in cash. According to SJM, the two venues include the London based social media sensation cafe “EL&N” and the self-branded Italian restaurant “Mamma Pizza”.
“These additions are part of a broader initiative to optimise our food and beverage portfolio at Grand Lisboa Palace, aligning with SJM’s strategy to attract the mass market with a diversified range of international restaurants and cafes,” SJM said.
In a statement, SJM Chairman Daisy Ho said, “SJM is a forerunner in Macau’s gastronomy scene, and we are looking to apply our competitive advantage in fine-dining to bring about a wider spectrum of culinary experiences for our consistently growing mass market segment.
“The acquisitions represent ideal opportunities due to the prime locations of the properties and their complementary nature to our existing operations. We are committed to enhancing shareholder value and advancing our long-term vision of bolstering Macau’s status as a World Centre of Tourism and Leisure.”
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