South Shore Holdings has announced the sale of one of its few remaining Rolls-Royce Phantoms by its wholly-owned subsidiary, The 13 Group (Macau) Ltd, to a local property development arm, aimed at boosting liquidity as it looks to pay down debt.
Under its former Chairman Stephen Hung, South Shore purchased a fleet of 30 bright red Rolls-Royce Phantoms in September 2016 for a total cost of around US$20 million, which were to be used to transport VIP guests to its new hotel THE 13. At the time, the cars were touted as some of the most luxurious ever produced with a specially formulated “Stephen Red” exterior paint designed by Hung, bespoke 21” wheels and an interior clock by master jeweler Graff. The fleet also included two special gold phantoms reserved for select guests.
THE 13 was similarly said to be the most luxurious hotel in the world, but five years later remains incomplete and without a casino license. Instead, South Shore was last year forced to apply to its bank for a “standstill” to prevent enforcement of security over THE 13 Hotel in Macau and liquidation of the company. That application was in response to the bank issuing a demand for immediate payment of HK$2.48 billion owing under its facility agreement, with South Shore having stated it was unable to make a HK$470 million payment due on 31 March 2020. The company has since confirmed it is looking for a buyer for THE 13.
In the meantime, The 13 Group (Macau) Ltd has been selling off assets, including the 2019 sale of 24 cars from its Rolls-Royce fleet for HK$24 million (US$3.1 million).
This week’s sale of another Rolls-Royce is for a consideration of HK$3.5 million, with the purchaser named as Empresa de Fomento Industrial e Comercial Concórdia, S.A. – a subsidiary of ITC Properties Group Limited.
“The Disposal will bring an immediate cash of HK$3.5 million to the Group and will enhance the liquidity of the Group,” South Shore said.