China Star in talks to sell Macau’s Lan Kwai Fong hotel

Casino services company China Star Entertainment Ltd, which suspended stock trading on the Hong Kong Stock Exchange on Nov. 3, plans to sell its property at the Lan Kwai Fong (pictured) hotel on the Macau Peninsula. The hotel building currently has a casino licensed by Macau game concession company SJM Holdings Ltd, but a filing by China Star on Thursday did not state what would happen to the operation.

“The company is in the late stages of negotiations with an independent third party regarding the possible disposal of Lan Kwai Fong hotels in Macau,” China Star said.

“The terms of the hotel disposition are subject to final negotiations. As of this announcement date, there are no contracts signed by the company,” the company added.

China Star said in August it wanted to focus on gaming in Macau. The Hong Kong-listed company divested several non-gaming subsidiaries from the half-year to June 30.

In September, China Star shareholders approved the issuance of new shares to raise cash to invest in gaming-related businesses.

It also signed a binding letter of intent dated Oct. 31, 2014, disposing of rights to four lands on the Macau Peninsula adjacent to the Lan Kwai Fong hotel site. In a filing on Thursday, the company said it was still preparing an announcement related to the deal.

China Star’s subsidiary paid HK$550 million (US$70.9 million) for four plots in 2010. Its supplier was Sociedade de Turismo de Divers o ̃ de Macau (STDM) SA, founded by Stanley Hoheungseon.

At the time of the transaction, Ho was identified as chairman and director of Lan Kwai Fong (Makau), a subsidiary that owns a 50% stake in China Star. 실시간 바카라사이트

Under the 25-year lease agreement, three of these lots were to be developed by constructing 16-story buildings each for residential, commercial and parking. The fourth site closest to Lan Kwai Fong should also have a 16-story building for office, commercial and parking, according to a January 2011 filing.

The latter land was leased for a period of 25 years ending on December 25, 2014. The other three leases are valid until December 20, 2019, China Star said when it acquired the rights to the land from STDM.

The site will still be developed under the lease agreement.

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