South Shore Holdings has announced that it has found three companies that have agreed to acquire an aggregate 50 percent interest in its luxury hotel The 13.
The announcement follows nearly 10 months of talks with investors – which South Shore said would help reduce debt associated with the development of The 13, which opened in 2018 along with a rather lackluster ramp up.
The transaction will see three companies: Fine Intellect, All Fame and Ease Link own an aggregate 50 percent of the total issued shares in Uni-Dragon, a subsidiary of South Shore which owns The 13, for a total consideration of $750 million.
The transaction will also include the disposal of 50 percent of the shareholder’s loan owed by Uni-Dragon.
There will also be an option for the purchasers to purchase an additional interest of up to 30 percent of the issued share capital of the company.
Following completion, Uni-Dragon will cease to be a subsidiary of South Shore Holdings, and instead will be operated as a joint venture between the three new purchasers and Falloncroft, a subsidiary of South Shore.
Under the agreement, the land in which The 13 is situated, which is owned by Uni-Dragon, will be leased back to South Shore Holdings’ management company, for a lease term of five years, and rent to be determined by gross operating profit.
The Land comprises of approximately 6,059 sq. m. on the Cotai Strip of Macau, and the Hotel has a gross floor area of approximately 88,000 sq. m., featuring approximately 200 duplex suites and villas, with designs and furnishings representative of the Hotel’s niche market position as an ultra-luxury destination.