(Yicai Global) Oct. 17 -- Hong Kong movie production firm China Star Entertainment Group [HK:0326] plans to sell its hotel and relevant staff dormitories in Macao to Chan Meng Kam, a super-rich Macanese, for USD256.16 million (HKD2 billion).
The parties recently signed W transaction agreement, China Star Entertainment said today. China Star Entertainment will sell its Hotel Lan Kwai Fong Macau as well as its 18 employee housing residences for HKD2 billion, representing an acquisition premium of HKD648 million.
China Star Entertainment said that after paying back the bank loan and the deduction of relevant expenses, the company will net about HKD1.3 billion, which it will invest in other real estate projects.
The Hotel Lan Kwai Fong Macau has 209 rooms and supporting facilities including casinos, dining rooms, flower and retail shops, and hydrotherapy rooms. It has won multiple international awards. Government regulatory policies, a decline in visitors to Macao and competition impeded the hotel's performance.
The buyer heads many corporations in Macao, and has been elected as a member of the Legislative Assembly of Macao since 2005.