SUNCITY SEAL SIGNED CONTRACT TO SET UP AND OPERATE CAMBODY CASINO

Suncity Group Holdings, with Macau gambling junket President Alvin Chauchuk, said it had signed a deal to establish and operate a casino at a resort in the Cambodian state of Sihanoukville.

SunCity Group Holdings told the Hong Kong Stock Exchange on Monday that its subsidiary SunCity Group Management and Consulting (Cyanookville), known as Macau-based SGMC (Cyanookville), and casino resort owner Golden SunSky Entertainment had finalized two deals two days ago.

The first is for Sihanoukville (SGMC) to provide pre-open and technical services for casinos.

The second transaction is for Suncity Group Holdings subsidiary to provide casino management services to property owners for 20 years once the location opens.

On Sept. 5, Suncity Group Holdings said it had signed a "strategic partnership framework agreement" with Golden Sun Sky through its subsidiary.

According to an announcement last month, the Cambodian venue will be Otres Beach, a beach settlement in the city of Sihanoukville. According to Suncity Group Holdings, the project requires a US$360 million investment and is expected to open in the first quarter of 2020.

The development will include facilities for casinos, hotel accommodations, restaurants, shops, homes and sports and gatherings, according to Monday's announcement. Casino resorts will have a total floor area of about 550,000 square meters (5.92 million square feet), of which casinos will cover about 120,000 square meters. Suncity Group Holdings previously noted that the development will also include sports betting facilities.

Golden Sunsky is a subsidiary of China's Yunnan Jingcheng Group Limited, a mainland China-based group with a diverse investment portfolio. Jingcheng Group calls itself an investor in construction, tourism and aviation.

Details of this week's announcement said the SGMC (Sihanoukville) would initially pay US$500,000 if it received technical support for 12 months. If additional support was needed after that, it would incur a monthly cost of US$41,667.

To operate the casino, the owner pays 3% of the total game revenue (GGR) to Sihanoukville (SGMC) each month and 5% or 6% of the casino's annual revenue, depending on whether the annual revenue is greater or less than 1/5 of the GGR.

While the Hong Kong-listed brand's substance does not cover privately owned Sun City Group's revenue stream from junket operations, Sun City Group is one of the largest single investors in Macau's junket room operations, analysts say.

SunCity posted a net loss of nearly 1.65 billion yuan ($241.8 million) in the first half of the year, compared with a loss of 632.3 million yuan in the same period last year.

BY: 슬롯머신