Hong Kong-listed Suncity Group Holdings Ltd., controlled by Macau junket investor Alvin Chau, has become the largest single shareholder of Summit Ascent Holdings, the company that operates Tigre de Cristal in Russia’s Primorye casino zone.
Suncity upped its stake from approximately 3.29 percent of the issued share capital of Summit Ascent to approximately 27.97 percent, reported GGRAsia, paying HKD717.8 million (US$91.5 million) to Jerry Kuo Jen Hao and First Steamship Co Ltd. According to Suncity Group Holdings, the acquisition was funded out of a previously-announced loan of up to HKD1.5 billion (US$191 million) from Chau to the company.
Suncity said it “aims to increase its investment in tourism-related property projects in regions other than China—the company believes that Russia is a favorable place for investment.” It noted that in 2017, nearly 1.8 million Chinese citizens traveled to Russia.
Summit Ascent said it would be revising the designs and financing for Phase II of Tigre de Cristal, with plans to open it in the summer of 2021.
The resort, which opened in late 2015, is the only IR now open in the Primorsky’s Integrated Entertainment Zone, or PIEZ near the port city of Vladivostok, but will soon have company in the, reported Forbes. Cambodian operator NagaCorp is developing a US$350 million integrated resort in the district, and on track to open it in early 2020. “Primorsky fits NagaCorp’s playbook as a low tax jurisdiction with a diverse customer base and untapped China market potential,” the magazine reported.
Two Russian companies also have casino projects in development: Diamond Fortune announced in February that it and a Japanese partner will build Imperial, a US$270 million project that will open its first phase by September 2020. And last July, casino operator Shambala announced that it was acquiring land for a US$125 million integrated resort.
“Together with Tigre de Cristal, about 12 complexes are planned, including a hotel, a casino, restaurants, shopping areas and related tourist services,” Primorsky Krai Development Corporation Executive Director Igor Trofimov said. “To date, three sites remain free in the gambling zone, which we plan to commission this year and to work more closely on the development of the non-gaming sector and transport and engineering infrastructure.”
In related news, Suncity Group will not keep all the VIP action to itself at its new Hoiana casino resort in Hoi An, Vietnam.
According to Inside Asian Gaming, Suncity will open the doors for competing operators at the complex, which is 34 percent owned by Suncity and represents the company’s first foray into the operations side.
“When we originally started designing Hoiana a few years ago, we had four junket rooms but then we changed it to seven rooms and moved the Suncity room to the ground floor,” Suncity Chief Investment Officer and Executive Director Andrew Lo told IAG. “And we think that wherever we go, other junkets will follow. We have already discussed it with different junkets. We are filtering right now.
“Likewise, if our competitors build a casino and invite us to open a junket room, we will join them.”
Lo said Hoiana’s gaming revenue could be “about 75 percent” VIP when it first opens, but over time he envisions an “entertainment hub” that will draw a much broader mix of patrons. “That is our direction,” Lo said. “We are not really interested in promoting the casino, we will promote entertainment. And then if people like playing a slot machine, go for it.”
