Suncity Group Holdings Limited has signed an agreement via its wholly-owned local subsidiary Suncity Group Management and Consultancy Limited (Hoi An) that will see it provide technical and pre-opening services for Suncity’s new Vietnam integrated resort, Hoiana.
The agreement follows a similar deal signed last year for SGMC (Hoi An) to provide consultancy and management services to the property upon opening in 2019.
As per the new Techincal Services Agreement, SGMC (Hoi An) will provide technical and pre-opening services during the planning, design, construction, fit out and pre-opening phases of the areas it will manage once operational.
“The technical services include, among other things, provision of design guidelines, to advise on appointment of the professional team, assistance in the preliminary design for the Manager Operated Area, review of the schematic design development provided by the professional team at key stages, provision of technical services of reviewing the designs and drawings provided by the professional teams in relation to the construction of the integrated resort complex,” Suncity said in a filing to the Hong Kong Stock Exchange.
SGMC (Hoi An) will also advise Hoiana of any gross or material discrepancies that come to light in the course of carrying out its services.
Pre-opening services will include providing assistance to Hoiana in relation to preparation for the operation of the resort and casino, selection of the professional teams for the construction of the resort and casino, development of marketing and operation plans and assisting Hoiana in procuring all licenses and permits for the operation of the area to be managed by SGMC (Hoi An).
Under the terms of the Technical Services Agreement, SGMC (Hoi An) will be paid a fee of US$1,333,333 plus another US$800,000 for the first six months of service followed by US$133,333 each month for another six months.
A further ongoing monthly fee of US$133,333 will be paid if SGMC (Hoi An) is retained long-term.
Hoiana is 34% owned by Star Admiral, which is wholly owned by Suncity Group director and Chairman Alvin Chau. Chau also owns 50% of Suncity Group’s controlling shareholder Fame Select.
Hoiana, located 30km south of Da Nang, is a collaboration between Suncity Group, local asset management firm VinaCapital Group and Chow Tai Fook Enterprises Ltd subsidiary Gold Yield Enterprises Ltd. The first phase will include gaming facilities with 140 gaming tables and around 1,000 slot machines as well as a hotel, condos and a golf course.
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