Success Universe, operator of the Ponte 16 integrated resort in Macau, is cementing its bond with concession-holder SJM ahead of the termination of the satellite casino contracts by the end of the year.
Macau’s satellite casino operations must end by December 31st, with the only possibility to continue casino operations being under a management contract, or outright ownership by the gaming license holder.
The license holder, SJM, holds a 51 percent stake in Pier 16 – Property Development (via a subsidiary), while Success Universe holds 49 percent. SJM has previously indicated that Ponte 16 is one of the two satellite properties (the other being L’Arc) that it wishes to maintain open after the year-end deadline, while it chooses to shutter seven others.
In a Monday filing with the Hong Kong Stock Exchange, Success Universe indicated that it will continue to provide ‘financial assistance’ for the development of Ponte 16, with its estimated total exposure under the 2025 Financial Assistance plan amounting to approximately HK$497 million ($63.31 million).
The group also has an outstanding balance on a shareholders loan amounting to approximately HK$342 million ($43.57 million) – bringing the total financial assistance from Success Universe to Pier 16 – Property Development up to HK$839 million ($106.9 million).
The group is currently extending the maturity date on its loan facilities for one year with the Industrial and Commercial Bank of China (Macau) to ensure such financial assistance. This involves Acknowledgement Letters from both SUGL (Success Universe Group Limited) and its wholly-owned subsidiary World Fortune – linked to its 49 percent stake in Pier 16- Property Development. Under World Fortune’s letter, ‘all of its interests in the shares of Pier 16 – Property Development’ are assigned as collateral.
The overall figure outlined in the 2025 Financial Assistance plan is actually lower than the HK$1.19 billion ($151.6 million) previously approved by shareholders.
For FY24, Success Universe generated a profit of HK$112 million ($14.27 million) from its share of the associates in Ponte 16.
