Suncity Group has announced that it will contribute part of a new US$60 million loan to the operating entity of integrated resort, Hoiana, located near Hoi An in Vietnam.
The loan, of which 50% will be provided by Suncity’s wholly-owned subsidiary Star Admiral Limited and the other 50% by Alpha Era Investment Ltd, will be paid directly to Gold Yield Enterprises (GYE) for the ongoing development of Hoiana, which held an exclusive preview opening of its first phase on 28 June. The Grand Opening of Phase 1 is scheduled to take place next year.
Star Admiral and Alpha Era are equal partners in GYE, which in turn owns 66.6% of Hoiana’s developer, Hoi An South Development Ltd (HASD). The remaining 33.3% HASD stake is owned by Vietnam’s VinaCapital Corporate Finance Ltd.
According to a Monday filing, Suncity’s latest US$30 million loan contribution – which will be forwarded to HASD by GYE for development purposes – will be financed by a controlling shareholder facility granted by Suncity Chairman Alvin Chau. Suncity and Chau have previously loaned around US$99 million to GYE for development of Hoiana.
“In light of the increasing demand for tourism-related business in the Southeast Asia region, the Board holds a positive outlook for the Project in the future and it is expected that the Group will benefit from the future success of GYE and the Project,” the company said.
“It is necessary for GYE and the Project to have sufficient fund for its future business development and to meet its capital needs for development.”