Hong Kong-listed South Shore Holdings has entered into a Memorandum of Understanding (MoU) with “an associate of a substantial shareholder” that could result in an investment of up to HK$1.5 billion into the company subsidiary that beneficially owns THE 13 Hotel.
According to an announcement issued this week, the MOU expires on 4 April 2019 but if followed through would see a formal agreement entered into either on or before that date. South Shore Holdings will receive a total of HK$70 million by way of earnest money payments in the meantime, which will act as a deposit if the agreement is signed or refunded if not.
THE 13 Hotel opened for business on 31 August 2018 and is currently welcoming guests for hotel stays and private functions. However, there are still a number of rooms yet to be fitted out due to a lack of funding.
Inside Asian Gaming understands that South Shore Holdings would also entertain any interested buyers of the property – a prospect that would be substantially brightened were the company to gain permission to install gaming tables.
The 13 HOTEL has space for 66 gaming tables but has yet to apply for their use under a potential “service agreement” arrangement it previously reached with Macau concessionaire Melco Resorts and Entertainment. Macau’s service agreements allow third party hospitality operators to have gaming in their properties under the license of one of the city’s six gaming licensees.
