SJM Holdings is poised to take over the Oceanus building for HK$1.91 billion. It already leases the Casino Oceanus in the complex from its majority shareholder Sociedade de Turismo e Diversões de Macau (STDM).
SJM announced that Oceanus had been independently valued, with the non-gaming area rated at HK$516 million and the casino at HK$1.39 billion. The transaction will be catered for by the issue of convertible bonds.
The four-storey complex covers nearly 40,000 square metres. The casino occupies roughly one-third, with the remainder given over to retail and food and beverage outlets.
The transfer is being effected with an eye on the upcoming changes in Macao’s gaming laws. Under the current regulations, casino operators must return gaming venues to the government at the end of their concession period, which falls due on 31 December.
The group embarked on the transfer agreement to meet the property ownership requirement and to allow SJM Resorts to be eligible to tender for a new gaming concession contract for a further 10 years.
