GGRAsia – Alvin Chau unit inks consultancy MOU for Vietnam project

Alvin Chau unit inks consultancy MOU for Vietnam project

Mar 01, 2017 Newsdesk Latest News, Rest of Asia, Top of the deck

A Hong Kong-listed company chaired by Alvin Chau Cheok Wa (pictured), head of privately-held Macau casino junket investor Suncity Group, says it has a non-binding memorandum of understanding (MOU) regarding a so-called integrated resort project in Vietnam.

Suncity Group Management and Consultancy Ltd, a unit of Mr Chau’s Sun Century Group Ltd, has made the agreement with the Vietnam project owner, described as an independent third party, according to a Sun Century filing on Monday.

The arrangement is for “provision of consultancy and management services” to the scheme. The filing did not identify the project.

The term “integrated resort” is widely used in the casino industry to promote the concept of a casino complex that also provides an economic multiplier effect via conference and entertainment facilities that attract new visitors to a place.

Subject to terms and conditions, Suncity Group Management and Consultancy will be entitled to a “pre-opening consultancy service fee” of US$500,000 for an initial period of 12 months from the signing of what the filing termed a “technical service agreement” relating to the project.

On December 15, Sun Century Group said in a filing it had raised HKD721.1 million (US$92.9 million), via a rights issue at HKD0.20 per rights share. It had stated in a September filing – outlining likely uses for any cash raised by a rights issue – that it would “further expand [its] newly planned tourism-related business to other countries in the Asian markets, such as Vietnam and South Korea”.

In a February 6 filing, Sun Century Group – which in earlier filings has described its principal activities as residential and commercial property development and property leasing in the mainland China – said it was seeking to change its name to “Suncity Group Holdings Ltd”.

Privately-held junket business Suncity Group has previously confirmed it is involved in the development of a casino resort in Vietnam’s Quang Nam province.

The casino property is being promoted by Hoi An South Development Co Ltd, a joint venture between Suncity Group; Vietnam-based asset management firm VinaCapital Group; and Gold Yield Enterprises Ltd, a subsidiary of Hong Kong-based Chow Tai Fook Enterprises Ltd.

The Vietnamese government on January 20 published a decree paving the way for an end to the long-standing ban on locals gambling in casinos. It would allow selected domestic casinos to accept bets from economically-qualified Vietnamese gamblers, for a trial three-year period.