Genting Hong Kong Ltd. has sold its interest in a five-star integrated resort project under development at Nam Vam Lake, Macau. Due to Covid-19, the complex, originally scheduled for completion in June 2022, has seen some setbacks, including construction suspensions and funding shortfalls.
Genting’s selloff was reported in late January by Macau Business. A unit of the Malaysian-based conglomerate Genting Group sold its stake in the project to real estate businesswoman Ao Mio Leong for HK$750 million (US$96.7 million). Ao is a located investor focused on real estate, leisure, and hospitality investments in Macau.
The integrated resort is going up on an 8,100-square-meter (87,000-square-foot) plot of land near Praca Ferreira Amaral. It was known as Resorts World Macau, Lago 1 prior to Genting’s departure.
Genting had noted that the project would absorb resources at a time when the group needs to focus on its cruise and shipyard operations. In a statement, the company said the sale “is aligned with the group’s objective to sell non-core assets and will reduce the group’s financial burden in meeting future funding requirements in relation to Genting Macau’s business.
“Further, the transaction will increase the liquidity of the group, … thereby enabling layup of the cruise ships in its fleet which are not in operation as well as the ongoing operation of those cruise ships that continue to sail.”
The project has required HK$1 billion (US$129 million) in investment so far; it will require an additional HK$2.7 billion to reach completion. The property is expected to include a five-star hotel with 708 hotel rooms.
As part of the agreement, Genting’s Star Cruises Asia Holding Ltd. agreed to sell 50 per cent of the total issued share capital of Genting Macau Holdings Ltd. to White Supreme, an investment holding company registered in the Marshall Islands and held by Ao. Genting Macau, in turn, will hold 75 percent of Macau Land Investment Corp., the parent company of Treasure Island Entertainment Complex Ltd., which owns the Nam Vam Lake site.
