Hong Kong-listed Success Universe Group Ltd, an investor in Macau casino hotel Ponte 16, has told the bourse that its aggregate ongoing “financial assistance” for Pier 16 – Property Development Ltd – the venue’s operating entity – may amount to HKD839 million (US$106.9 million), including a planned one-year extension of a lending facility.
Ponte 16 (pictured in a file photo) – a waterfront property within the city’s Inner Harbour district – contains a satellite casino using the gaming rights of Macau casino operator SJM Holdings Ltd. The latter controls a 51-percent stake in Pier 16 – Property Development, while the rest is controlled by Success Universe.
SJM Holdings announced in June plans to absorb the casino at the Ponte 16 property into its core operations, although the details of how that would be achieved have not been made public.
Under Macau’s revised legal framework for gaming, after December this year satellite-based gaming rights – including for Ponte 16’s casino – will no longer be permitted.
According to Monday’s filing to the Hong Kong bourse, Success Universe is facing an estimated total exposure of approximately HKD497 million under the provision of an amended and restated facility agreement to be reached with its lender, Industrial and Commercial Bank of China (Macau Ltd), before the end of the current month.
That follows the maturity on June 23 of a previous Success Universe loan facility for Ponte 16. The amended and restated facility agreement will be backdated to June 23, the filing said.
Success Universe’s total support of HKD839-million for Ponte 16 includes an outstanding balance on the group’s shareholder loan amounting to approximately HKD342 million as of Monday.
The directors of Success Universe consider the latest lending facilities would “facilitate the development and operation of Ponte 16”, and hence be “beneficial to the group”, according to the Monday filing.
