Shares in 13 Holdings, the developer behind The 13 integrated resort currently under construction in Macau’s Coloane area, sunk more than 50% today after it was announced late last week that the company would seek funds to complete the property.
Construction work on the $1.6-billion resort commenced in 2013. The property was planned to open doors by the end of 2016 and then in July 2017, but both deadlines were missed. There have been reports that the developer would be seeking finances for the ambitious project for some time now.
On Friday, 13 Holdings announced that it wants to raise the amount of HK$1.74 billion ($223 million) through rights issue and debt in order to be able to complete the resort by the end of next year’s first quarter.
The company has so far raised over $1 billion to finance the construction of the luxury integrated resort. The 13 project was launched with the intention to lure high roller players from Mainland China. However, the lack of sufficient funds together with the anti-graft campaign launched by Chinese President Xi Jinping in 2013 delayed opening and even stalled construction. It is believed that 13 Holdings will need some time to restart the dormant project and this is why the resort is not likely to open doors before March 2018.
Will The 13 Feature Gaming Options?
The 13 has been promoted as a premium destination that would lure wealthy customers with luxury services. Guests of the resort would be chauffeured with a fleet of 30 Rolls-Royce Phantoms and will be accommodated in 200 villa rooms and even offered the opportunity to stay at a $130,000-per-night suit.
It remains unclear whether the complex will feature a casino floor or not. Macau’s Secretary for Economy and Finance Lionel Leong Vai Tac said last week that they had not received a gaming license application from 13 Holdings yet. Previously, there were reports that the developer was interested in adding a gambling venue to the resort, but there has not been much information about the prospect as of lately.
Here it is important to note that only six concessionaires and sub-concessionaires are allowed to operate casino options in Macau and 13 Holdings is not among them. In order to operate casino games at The 13, the developer will either have to sign a service agreement with one of the authorized operators and to run its casino as a satellite one, or to even sell majority ownership to one of the six gaming license holders.
Mr. Leong said last week that when and if they receive a gaming application from 13 Holdings, they will immediately refer it to the planning department. The reason why said department will be involved in the process is because The 13 is located in Coloane and not on the Cotai Strip. However, the Finance Secretary pointed out that its location will not necessarily hamper the issuance of a gaming license.
