Macau Legend Development Limited has entered into a Memorandum of Understanding with the Setúbal Municipality in Portugal for the proposed development of an integrated leisure, tourism and entertainment project.
The first phase of this project will include a hotel, a shopping area, a residential area, a marina, a parking lot, a new multi-sport pavilion and a gaming arcade with slot machines. In developing the Setúbal Project, the company hopes to promote both the growth of tourism and the local economy of Setúbal and to better connect Setúbal with the neighbouring area of Tróia.
Tróia is located approximately 15 minutes from Setúbal by passenger and car ferries, and by speed boat in approximately eight minutes. The company has also entered into a Heads of Agreement with three companies in Portugal; Fundo Aquarius, Amorim Turismo and B&G, to establish a new company to jointly develop the Setúbal Project. As part of this proposed transaction, B&G (jointly owned by Fundo Aquarius and Amorim Turismo) will transfer the existing Tróia Casino and Concession into the Joint Venture Company. The Joint Venture Company will own and operate the existing Tróia Casino and will seek to use debt financing to develop the Setúbal Project. B&G and Macau Legend expect to form the Joint Venture Company by 31 December 2016 and the shareholding will be 55 per cent owned by Macau Legend and 45 per cent owned by B&G. Under the terms of the proposed transaction, B&G will transfer the existing Tróia Casino and Concession for €40m and
Macau Legend will simultaneously inject cash or provide bank guarantee of €50m into the Joint Venture Company which will be adjusted by all contributions, costs and expenses incurred by the Company to the Joint Venture Company and confirmed by an independent valuation relating to the development of the Setúbal Project before the closing of the HoA. The existing Tróia Casino is located at the Tróia Design Hotel and has an area of 2,500 square meters with 220 slot machines and 13 gaming tables. The concession for the Tróia Casino expires in 2031.
Ms. Maria das Dores Meira, Mayor of Setúbal, said: “The signing of the MoU represents an important step in achieving the strategic goal of promoting tourism and investment to Setúbal and to increase employment opportunities. This project will lead to a profound and substantial transformation of the riverfront’s usages and help attract Chinese and other Asian tourists.”
Co-Chairman, Executive Director and Chief Executive Officer of Macau Legend, David Chow, said: “This project is the third international project undertaken by Macau Legend after Cape Verde in Western Africa, and Savannakhet in Laos, and they all follow the PRC Central Government’s national policy “One belt, one road”, which helps position Macau as one of the important cities on the Maritime Silk Road, and also helps to lead Macau small and medium enterprises to expand from Macau. We will continue to build on Macau’s unique position as “one center, one platform”, and further showcase the importance of Macau’s role on the Sino-Luso platform. The project will help promote tourism in Portugal but also improve the well-being of the citizens in Setúbal.”
“The Setúbal project and the Tróia casino will be complementary to each other by offering different amenities. This creates synergy between the two sites and allows our project to benefit from the uniqueness of both cities,” said Mr. Chow.
The District of Setúbal is located just 30 kilometers from Lisboa (and Lisbon Airport) through a modern highway system. It has an area of 230 square kilometers and a population of over 120,000 people. Connected with both the River Sado and the Atlantic Ocean, the bay of Setúbal is considered to be one of the most attractive bays in Europe and is home to a famous colony of dolphins which inhabits at River Sado Estuary. Tróia is a peninsula located in Grândola Municipality in the River Sado Estuary and is 40 kilometers from Lisbon by road and ferry, and 130 kilometers by direct roads. Tróia is an established tourist destination with facilities such as golf, fishing, boating, sightseeing and Roman archeological sites. It hosts several hotels, a casino, tourism apartments, restaurants and vineyards.