After repeated contractual breaches, a long-stalled Macau Legend development project in Cabo Verde is finally over, reports gaming industry outlet GGRAsia.
The Cabo Verdean government has formally taken possession of all assets and existing structures linked to the sprawling development project, confirming completion of the years-long reversion process last Friday. Authorities accused Macau Legend of “flagrantly and repeatedly” breaching its obligations regarding the project’s development, leaving Cabo Verde “no option other than to resolve” the concession contract.
The properties include infrastructure in Praia, the Santa Maria Islet, and the abandoned hotel-casino building, which has stood unfinished for years. All assets were reclaimed in their current condition and free of any liens, charges or liabilities.
Originally envisioned as a sprawling tourism and real estate development covering Praia Bay, the Santa Maria Islet and Gamboa Beach, the 250-million-euro (US$291.09 million) project began construction in early 2016. Artist renderings show the planned luxury hotels, casino, conference centre and marina planned for the roughly 160,000-square-metre site in Cabo Verde’s capital, Praia.
[See more: Macau Legend completes Bermuda re-domiciliation, moves to restructure capital]
But development stalled and the project was ultimately abandoned, despite extensive efforts by the government to facilitate implementation. Officials concluded that the concessionaires had “irremediably failed” to meet their contractual obligations, leading to the government to terminate all related agreements and begin the process of reverting assets to state ownership in line with legal and contractual provisions.
Officials also accused Macau Legend of breaching the country’s legal regime for the exploitation of gaming “by transferring, without authorisation from the government of Cabo Verde, the ownership of more than 20 percent” of the firm’s capital. Businessman Levo Chan Weng Lin purchased a 20.65-percent stake in Macau Legend in September 2020, making him the largest individual shareholder.
According to a statement from the Council of Ministers, “Cabo Verde gave Macau Legend companies every opportunity to resume work or to negotiate the sale of shares or [effect] the assignment of their contractual position to a potential interested [party] in continuing the project.” The company offered no alternatives.
Cabo Verde offered Macau Legend “one last chance” to restart the project last July, emphasising their interest in finding a solution. The company, which has struggled financially in recent years, did not take the opportunity.
