GGRAsia – Suncity listco in additional US$17mln loan for Hoiana

Suncity listco in additional US$17mln loan for Hoiana

Mar 09, 2020 Newsdesk Latest News, Rest of Asia, Top of the deck

A unit of Suncity Group Holdings Ltd is to lend an additional US$17 million to the promoter of the under-development Hoiana casino resort in Vietnam, according to a Friday filing to the Hong Kong bourse.

Hong Kong-listed Suncity Group Holdings is controlled by Alvin Chau Cheok Wa, the boss of Macau VIP gambling junket brand Suncity Group.

The Suncity brand is one of the investors in the Hoiana casino scheme (pictured in an artist’s rendering), and the group’s listed company is to manage casino operations there, according to a May filing. Hoiana has been described in press releases related to the project as a US$4-billion, multi-phase development.

It has been anticipated a first phase will open this year. The property will not – initially at least – have permission from the national government to take part in an industry pilot scheme whereby economically-qualified Vietnamese players can gamble at new large-scale resorts.

Suncity Group told GGRAsia last month that it did not expect the current coronavirus health alert to affect the “pre-soft opening” of that scheme.

In a Friday filing, the listco said that its unit Star Admiral Ltd – an indirect wholly-owned subsidiary registered in the British Virgin Islands (BVI) – would advance US$17 million to the Hoiana scheme’s promoter, Gold Yield Enterprises Ltd, another BVI firm. The latter is 50 percent owned by Star Admiral and 50 percent by Alpha Era Investments Ltd, a BVI entity described as an “independent third party” relative to Suncity Group Holdings.

The loan has a five-year term from the first drawdown date, and a 1.5 percent interest per year. The loan is expected be withdrawn by Gold Yield Enterprises “in or around late March 2020,” said Suncity Group Holdings. “Alpha Era will also advance the same amount of shareholder’s loan on the same terms of the loan agreement to Gold Yield Enterprises,” the Hong Kong-listed firm added.

It was announced in early January that Star Admiral was to provide a first loan of just above US$17 million to Gold Yield Enterprises, as part of a US$34-million loan to the scheme. The other half was to be disbursed by Alpha Era, according to the January filing.

Suncity Group Holdings’ interim report, published in September, had mentioned Hoiana would have seven phases – to be developed over a span of 13 years – on a site of approximately 985.5 hectares (2,435 acres).

That filing said phase one would include more than 1,000 hotel rooms, a casino with 140 gaming tables and over 300 slot machines, as well as a golf course.