Monday, Nov. 29, 2004 | 9:05 a.m.
Shun Tak Holdings Ltd., a property developer and ferry operator controlled by Macau gambling tycoon Stanley Ho's family, will rent casino space to Ho's closely held gaming company in exchange for a portion of the take.
Shun Tak will lease about 215,280 square feet to Sociedade de Jogos de Macau for a casino with at least 180 gambling tables, the Hong Kong company said in a statement. It will get 40 percent of the gross revenue from 60 tables and at least 30 percent of revenue from remaining tables.
"Assuming that the casino hotel is launched by 2007, Shun Tak may obtain (annual) rental income of over HK$1.2 billion ($154 million) from Sociedade de Jogos," Kim Eng Securities (Hong Kong) Ltd. wrote in a note to clients.
Shun Tak shares, which rose 4.4 percent to close at HK$7.05 in Hong Kong, have more than doubled this year. Investors are buying so-called Macau-concept stocks on a surge in tourism and gambling revenue in the former Portuguese colony, the only place in China where casino gambling is legal. Sociedade de Jogos holds one of Macau's three full casino licenses.
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