Hong Kong-listed Suncity Group provided through its subsidiary Star Admiral a US$17 million (MOP136.1 million) loan to Gold Yield Enterprises Limited (GYE), the company responsible for its Hoiana integrated resort, for investment and development in the project in Hoi An, Vietnam.
So far Suncity has provided almost US$100 million in loans to GYE, with the latest loan having been announced in January this year.
‘It is necessary for GYE to have sufficient fund for its future business development and to meet its capital needs. With the growth potentials of the Project, the Board considers that the Loan Agreement and the terms thereof are fair and reasonable and in the interests of the Company and its Shareholders as a whole,’ Suncity noted in a filing with the Hong Kong Stock exchange.
The loan is expected be withdrawn by GYE in or around late March 2020 and has a five year term since the first drawdown date, for a 1.5 per cent interest per annum.
GYE is a joint venture company of which 50 per cent is held by Star Admiral and 50 per cent by Alpha Era.
Phase 1 of the Hoiana resort development covers an area of some 163 hectares and includes the building of an integrated resort complex with entertainment and retail facilities such as a 140 gaming tables and 1,000 slot machines casino, a golf course, a mass market hotel with 313 hotel rooms, an all-suite hotel with 136 suites, a hotel villa resort with 70 units, 30 villa units for sale and timeshare rental, and a condo-hotel with 236 roomsfor sale and timeshare rental.
This first phase was initially scheduled tone completed between the last quarter of 2019 and the first quarter of 2020.
‘Upon the successful implementation of the Project in Vietnam, it is expected that there are business prospects and also rooms of business growth for GYE. In light of the increasing demand for tourism-related business in the South East Asia region, the Board holds a positive outlook for the Project in the future and it is expected that the Group will benefit from the future success of GYE,’ Suncity added.