SJM Holdings, the parent company of Macau concessionaire SJM Resorts, has renewed a Premises Leasing Master Agreement with its own Co-Chairman and Managing Director, Angela Leong, for the ongoing rental of the casino, retail and office spaces at peninsula property Jai-Alai.
Just days after inking a three-year services agreement with Leong for the ongoing operation of Macau’s L’Arc Hotel, SJM said via a Hong Kong Stock Exchange filing that it has signed a deal under which it will lease Jai-Alai from Leong from 1 January 2023 until 31 December 2025.
Rental payments to Leong will be capped at HK$37.4 million in 2023, falling to HK$3 million in each of 2024 and 2025. Leong had previously been paid HK$248.9 million for use of Jai-Alai in 2020, falling to HK$7.8 million in 2021 and HK$6.0 million in 2022.
Under the terms of the new agreement, SJM will also be liable to cover regular maintenance and usage deterioration costs while Leong will be responsible for any structural repairs required to maintain the integrity of the premises.
Explaining the reasons for renewing its lease agreement, SJM said, “The Group’s core business is the development and operation of casinos and related facilities in Macau.
“Ms Leong and/or her associates currently own a number of properties (including, among others, the Jai-Alai building, casino premises and offices in Macau) in which the Group operates. The Board considers that leases of premises under the renewed Ms Leong Premises Leasing Master Agreement are a necessary component of the Group’s ongoing business.”
Casino Oceanus at Jai Alai was named as one of four properties SJM is permitted to self-operate under Macau’s new gaming law, which came into effect on 1 January 2023.
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