Macau Legend Sells Casino to Focus on Macau Fisherman’s Wharf Redevelopment Project

Macau-based hotel and casino operator Macau Legend Development announced earlier today that it is selling its 100% interest in New Macau Landmark Management, the company that manages The Landmark Macau resort in the world’s largest gambling hub.

As revealed by the seller, the buyer will pay the amount of HK$4.6 billion. Macau Legend is expected to net a total of HK$4.5 billion from the sale. The company said in a filing to the Hong Kong stock exchange that it will use proceeds from the deal to redevelop its other property – Macau Fisherman’s Wharf.

The buyers of Macau Legend’s subsidiary remained undisclosed, but the company revealed that they were third-party ones. The Macau-based hotel and casino operator went on to say that it has decided to sell its equity in The Landmark Macau as the operation of two properties in Macau has created tremendous costs, including labor ones.

Macau Legend’s Plans for Fisherman’s Wharf

With site area of 109,500 square meters, Macau Fisherman’s Wharf is one of the largest hotel and casino complexes on the Macau Peninsula. In 2012, Macau Legend merged its operations with Macau Fisherman’s Wharf International Investment Ltd. and announced major plans for the redevelopment of the property.

The project includes refurbishment of the complex’s existing facilities and the addition of new ones. Macau Legend also intends to turn the property into a more mass-market and family-friendly one, thus following a growing trend within Macau’s borders. The city is the only place in China where gambling is legal.

In recent years and following a corruption crackdown on Mainland China that hit VIP player revenue, Macau officials urged the city’s six casino concessionaires to change tack and focus their attention on the mass market and on attracting non-gambling customers to their resorts.

Located on Macau’s harbor, Macau Fisherman’s Wharf features three hotels – Rocks Hotel, Harbourview Hotel, and Legend Palace Hotel – the 10,000-square-meter Babylon Casino, and multiple convention, entertainment, and food and beverage facilities.

Macau Legend’s redevelopment includes the addition of a fourth hotel – the five-star Neo-Renaissance Legendale Hotel with 500 guest rooms and suites, the construction of a public pier and yacht club, a retail, dining, and entertainment colonnade, and a facility with different general entertainment options.

The resort is expected to reach total area of 133,000 square meters after the expansion is completed and all its new and existing facilities are successfully redeveloped and fully operational.

Macau Legend said that by selling its other property, The Legendary Macau, it will be able to streamline its efforts and operations on redeveloping Macau Fisherman’s Wharf and thus expand the resort’s offering in a bid to attract more customers, including mass-market and non-gambling ones from the Asia-Pacific region.

Macau Fisherman’s Wharf’s Babylon Casino is operated under a license of SJM Holdings Ltd., one of the six concessionaires that are authorized to run casino gambling in the city.

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