Macau Legend Development said it has agreed to buy a 21.5 percent stake in a company that operates a large-scale shopping complex on Hengqin island for HK$84.4 million ($10.7 million).
The company said in a filing with the Hong Kong Stock Exchange that the target is 70-percent owned by Raising Investment, a company in which Macau Legend co-Chairman and CEO David Chow Kam Fai and his spouse have a 55.7 percent stake.
Following the acquisition, Macau Legend will enter into a management agreement with the shopping complex, known as PONTO. There will be a monthly fixed management fee in the sum of HK$65,000 plus an annual performance bonus.
The scope of services includes providing and maintaining management, business plan development, strategic planning and oversight of operations. The accord will take effect from the date of the completion of the acquisition and runs through to Dec. 2021. It also includes designing, organizing and hosting special events and promotions for the target company.
“The board is of the view that the acquisition permits the group to take part in and benefit from the economic growth in the area of Zhuhai Hengqin New District, PRC, which is important for the group’s long-term development as well as the broadening of its revenue base,” the filing said.
Macau Legend operates the Landmark Casino, Babylon Casino and Legend Palace Casino in Macau and the casino in the Savan Legend Resorts Hotel and Entertainment Complex in Laos.
PONTO is about a five-minute drive from Hengqin Customs Port. The total construction area of the project is approximately 140,000m2 , and it will offer over 300 shops.