Macau casino operator SJM Holdings has announced a partnership with a subsidiary of its parent company in order to co-manage a department store to be located in the Grand Lisboa Palace.
The department store, named “New Yaohan” is the largest and most well-known department store, with its flagship branch having operated in Macau since 1997 in the Macau Peninsula.
Under the agreement, NYH Gesta˜ o de Vendas a Retalho Limitada, an indirect wholly-owned subsidiary of STDM, will operate the department store for a period of 12 years and 6 months, starting from April 2020.
NYH will enjoy a fee-free period for 6 months, after which the base fee for each month will be equal to four percent of monthly sales turnover until year 3.
After this, the monthly fee will also include average turnover fee over the last two years from that point, plus a ten percent increment.
There will also be a management fee and promotion levy payable by NYH, as well as a security deposit.
Grand Lisboa Palace’s opening is expected to be in the second half of 2020.