Hong Kong-listed South Shore Holdings says it has entered a non-binding memorandum of understanding for an investment of as much as HK$1.5 billion ($191.2 million) to cut debt at its luxury hotel in Macau, The 13.
South Shore says the MOU is with an associate of a substantial shareholder, without giving a name. The investment would be in the South Shore unit that beneficially owns The 13, it said in a statement to the stock exchange.
The proceeds would be used to reduce debt associated with the development of The 13, which opened in 2018. The ultra luxury hotel features 200 villas, each with their own butler services.
The MOU is for a term that expires on 4 April 2019. Over the term of the MOU, the company stands to receive a total of HK$70 million by way of earnest money payments (to be applied towards a deposit in the event that a formal agreement is entered into, or otherwise to be refunded to the prospective investor in full).