Paradise Ent pays US$16mln for Macau storage space
Casino equipment maker Paradise Entertainment Ltd has struck a deal to buy warehousing space in Macau for HKD128.5 million (US$16.37 million). The agreement, made after the markets closed on Friday, will see Paradise Entertainment buy 33,000 square feet (3,066 sq metres) of industrial space at the Centro Polytex industrial building in Macau’s Areia Preta district, in order to store inventory.
The company told the Hong Kong Stock Exchange that an indirect but wholly-owned subsidiary, Century Force Ltd, made the provisional agreement with a seller it did not name. The deal will be settled after an initial deposit of HKD2 million, followed by a further deposit of HKD10.85 million by June 25 and a final payment of HKD115.65 million on completion, on or before October 15. Finance has been provided by banks and from the company’s own reserves.
Paradise Entertainment sells electronic gaming equipment and systems in Macao and abroad under the LT Game brand. It also runs casino operations in several so-called satellite Macau properties that make use of the gaming permit of one of the six local casino licensees. The new storage premises would substitute for warehousing space it currently rents for the keeping of electronic gaming machines, equipment and spare parts.
The company reported on May an improvement in its results, with adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of HKD51.8 million in the three months to March 31. The first quarter of 2017 saw an adjusted EBITDA loss of HKD10.1 million. The company said the quarterly numbers were helped by greater revenue from electronic gaming equipment and systems.
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