GGRAsia – Ponte 16 op in property deal for Hong Kong’s Wan Chai

Ponte 16 op in property deal for Hong Kong’s Wan Chai

Aug 24, 2018 Newsdesk Latest News, Macau, Rest of Asia, Top of the deck

Success Universe Group Ltd, the operator of the Ponte 16 casino and hotel complex in Macau, says it has agreed to buy commercial space in a building in Wan Chai, Hong Kong, for HKD106.8 million (US$13.7 million).

Success Universe told the Hong Kong Stock Exchange that a subsidiary, Total Gain Ltd, and the seller, catering services and property investment company Concept Italian Co (HK) Ltd, had reached a preliminary agreement on Wednesday.

The investment property is the 34th floor and storeroom at Sunshine Plaza in Lockhart Road. The space, now occupied by the seller, has a gross area of about 5,134 square feet (about 477 square metres). Success Universe said it was buying as an investment, adding the building’s price and suitability for third-party rental were attractive.

Success Universe stated its subsidiary paid an initial deposit of HKD5 million, will pay a further deposit of HKD5.68 million on or before 4 September, and will pay the other HKD96.12 million on or before October 5. The buyer says it will use its own money or borrow – or both – in order to cover the cost. The buyer and seller are due to conclude the formal agreement on the deal on or before 4 September and complete the deal on or before 5 October, Success Universe said.

Success Universe was required to make the deal public as it is considered a “discloseable transaction” under the exchange’s listing rules.

Earlier this month, Success Universe said it expected to record a profit for the first half of the year – thanks to its expected share of returns from Ponte 16 – turning round the first-half loss it made during the same period last year.