Suncity Group Holdings – a company managed by the Chief Executive Officer of Suncity Group – has retained 34 percent stake in Hoiana casino resort is situated in Vietnam. The company has held the stake as far back as August 2018.
At this time, the resort is still under construction, and if everything goes as planned, the first phase should be launched in the coming months. This was after the company missed the first launch date slated for October 2019.
In order for the project to be completed, a branch of Suncity Group Holdings has concluded plans to help out with a loan of $17 million.
This is just a part of an estimated $34-million loan, which will be given to the resort to help complete the project. With this loan, it is believed that the casino will take its seat on the table of heavyweights in the Vietnamese gambling industry.
Calvin Ayre was able to get a report of the company’s filing with the HKSE (the Hong Kong Stock Exchange), which was released yesterday. According to report, the loan will be given through a program that involves various companies.
One such company is Star Admiral Limited – it’s a branch which was launched in the British Virgin Islands. The company plans to offer a sum of $17 million to GYE (Gold Yield Enterprises Ltd), the developers in charge of the resort. In addition, they are also registered with BVI.
The ownership of Gold Yield is equally split between Alpha Era Investment and Star Admiral – which is another company from BVI and it’s listed as an independent 3rd party.
According to the filing, it states:
“In light of the increasing demand for tourism-related business in the Southeast Asia region, the board holds a positive outlook for the project in the future and it is expected that the group will benefit from the future success of Gold Yield Enterprises.”
The last expense that will complete the resort will gulp a mind boggling sum of $4 billion, as long as nothing goes awry. The company had this to say:
“Upon the successful implementation of the project in Vietnam, it is expected that there are business prospects and also room for business growth for GYE.”
The expectation is that GYE will pay interest on the loan, and its financial stance would not be threatened at the end of the day. The agreement of the loan states a yearly rate of just 1.5 percent. The principal and interest will be due by the end of the loan deal which would be in 5 years.
From the moment the Hoiana resort came into existence, Suncity has sponsored a large portion of the development. This is despite the fact that it did not financed a significant part of the construction. So far, Suncity has provided a loan of about $65 million to GYE.
This makes it a profitable investment on all fronts. With the income gotten from the loan and with the prospect of earning big from operations, Suncity will manage all operations of the casino operations through agreement sealed in May 2019.