Suncity Group Chairman Alvin Chau Cheok Wa has agreed to lend the company HK$1.5 billion (US$192 million) to aid in its rapid expansion initiatives throughout Asia.
In a filing to the Hong Kong Stock Exchange overnight, Suncity revealed that it had entered into an agreement with Star Hope Limited – a company wholly-owned by Chau – to provide an unsecured loan facility of up to HK$1.5 billion, to be made available for a period of three years. Chau will earn interest of 3.5% per annum on the loan.
Explaining the reasons for the loan, Suncity Group said it “will continue to diversify its businesses to tourism-related real estate in Asian countries and seek opportunities on the provision of consultancy services to hotels and integrated resorts.
“The Group aims to build an integrated tourism-related platform with equity investments in integrated resorts and the provision of tourism-related services to integrated resorts within the Asian region. The Directors (excluding Mr Chau) consider that the Facility will strengthen the financial position and provide additional working capital to the Group.”
Suncity last year completed the acquisition of a 34% stake in Vietnamese integrated resort Hoiana in a significant move into the operations side of IRs. It also bought a 3.29% stake in Hong Kong-listed Summit Ascent, which operates Russian IR Tigre de Cristal near Vladivostok, and has signed an agreement relating to pre-opening services and casino management for a casino in Sihanoukville, Cambodia.
In February Suncity Group signed an MoU with Korea’s Paradise Co in regards to a potential cooperation agreement at Paradise Casino Busan.