Macau Legend launches public tender to sell Hengqin Ponto Square stake

Macau Legend Development Ltd. (Macau Legend) has announced, through a filing to the Hong Kong Exchanges and Clearing Limited (HKEC), its intention to sell its indirect stake of 21.5% in Zhuhai Lai Ieng. This company owns and operates the commercial square in Hengqin known as Legend Ponto Square.

The tender officially opened yesterday and runs until the end of October. It aims to sell the total equity share of the project, including 971 real estate units, the majority (862) of which are parking spaces, and 109 retail spaces.

According to the same statement, the asset participation will be sold without a reserve price set for bidding, and the highest bid will determine the final transaction value.

The sale is subject to preconditions, including compliance with HKEC disclosure and approval requirements and confirmation that existing tenants do not exercise their rights of first refusal. Interested parties must also submit a RMB15 million deposit to secure the contractual conditions.

The project, estimated to cost RMB2.5 billion, began construction in 2014 and officially opened in mid-December 2019.

In February 2019, nearly a year before the project’s launch, Macau Legend acquired the 21.5% stake previously held by David Chow, the former CEO and co-chairman of Macau Legend.

In a filing to the HKEC, the company said the deal involved a total consideration of HKD84.5 million, including loans contracted for the project development, which totaled more than HKD20.9 million.

The acquisition was justified by the potential value of the property, located about a five-minute drive from Hengqin Port.

The company also stated that, in the view of the Macau Legend board of directors, the acquisition would allow the group to participate in and benefit from economic growth in the Zhuhai Hengqin New District, which they claimed to be “important for the group’s long-term development as well as the broadening of its revenue base.”

Last week, Macau Legend announced an expected loss of approximately HKD1.42 billion for the first half of 2025, primarily due to the impending closure of its Legend Palace Casino at Macau Fisherman’s Wharf.

The group’s board attributed the substantial increase in losses to the recognition of a “significant impairment loss” of about HKD1.29 billion related to the non-renewal of the service agreement with SJM Resorts S.A. (SJM), which will expire on December 31, 2025.

This termination follows plans to close nine of SJM’s 11 satellite casinos. As previously announced, SJM aims to retain only Ponte 16 and L’Arc.

Excluding the impairment loss and deferred tax effects, the company’s net loss still increased year-on-year by approximately 21% or HKD23 million, due to a reduction of earnings from gaming operations by around HKD30 million.

Cape Verde project still open

The construction project for the casino resort in Cape Verde’s Praia involving Macau Legend is not yet resolved, the African country’s Premier Ulisses Correia e Silva said in a recent interview with public broadcaster TDM.

Correia e Silva said the Cape Verdean government still hopes to reach a final agreement with Macau Legend on the project by the end of this year.

This follows the Cape Verdean government’s July statement giving Macau Legend one last chance. In early July, the government issued a final ultimatum urging the company to present a new plan for its stalled hotel-casino project in Praia or risk losing the site entirely.

The Minister of Internal Affairs, Paulo Rocha, said during a visit to Macau that if the company does not present a proposal within the given timeframe, the reversion process will be finalized and the government will seek other investors.