South Shore Dumps 50% Of The 13 Hotel Holdings

South Shore Holdings Ltd, the business behind Macau’s The 13 Hotel has been able to fulfil a vision and dump a large portion of its investments in the venue as it tries to move away from the property, which has only caused it trouble since it opened. South Shore has announced that a handful of companies pooled their resources to buy 50% of the site, adding that the offer is about $95.7 million.

Three firms partnered to purchase all or some of the stake in The 13 owned by the South Shore branch, Falloncroft Investments Ltd. They are all British Virgin Islands registered companies, including All Fame Developments Ltd, Ease Link Investments Ltd, and Fine Intellect Ltd.

The latter of the three, Fine Intellect, is a subsidiary of ITC Properties Group Ltd., a real estate development company. Ease Link is owned by CST Group Ltd., a Hong Kong-based financial holding company, and it is reported that All Fame is run by someone named Ma Ting Hung. CST was one of the companies listed in an earlier announcement about a work-related acquisition. ITC controls South Shore at 10.48 per cent.

For South Shore, the 13 has been anything but lucky, conceived as an enlarged estate that would eventually include a casino, the site could never see its full potential and South Shore was prepared to unload up to 50%. The new deal could be even better, though, as it offers Fine Intellect a two-year option to buy another 30 percent of Uni-Dragon Ltd., New Concordia Hotel Ltd.’s owner, and The 13’s sole beneficial shareholder.

South Shore announced the arrangement on November 1, adding that, in accordance with a shareholder agreement, it and Falloncroft will need to “provide certain financial assistance to the disposal company.” That assistance comes through a $31.9 million loan from Falloncroft from a shareholder and a provision from South Shore against an existing guarantee for a reported $375.14 million full amount of a bank loan.

However, Falloncroft will have to pledge to “cover the advance loan programme for the first three years after completion.” Any financial assistance will arrive on a “non-pro-rate basis.” As a result of the decision, South Shore is back to trading. Since October 15, it had been suspended from the Hong Kong Stock Exchange, but the news of the new agreement gave the company the green light to return.