Asia round-up: Blackstone acquires Crown; Pronet steps into Asia & Macau
Blackstone completes Crown acquisition
Real estate funds and private equity funds managed by Blackstone have completed the acquisition of Crown Resorts.
The transaction, which comprises three premium resort and casino properties in Melbourne, Perth and Sydney, represents the largest transaction for Blackstone in Asia Pacific.
“We are thrilled to become the new owner of Crown, bringing our expertise in hospitality to help the company achieve its full potential as a leading travel and leisure company,” said Blackstone Head of Real Estate Acquisitions Asia Alan Miyasaki.
“We first invested in Crown two years ago, seeing the tremendous underlying potential of the company and its people. We look forward to working with the teams at Crown and applying our experience in owning and operating marquee hospitality brands around the globe with the highest levels of ethics and integrity to create something unique for employees, local communities, and visitors.”
As noted by Blackstone, the firm will now work with the Crown management team and its employees to aim to transform the aforementioned properties into world-class entertainment destinations, continuing the operator’s transformation to operate at the highest standards of compliance, governance and integrity.
Pronet Gaming shifts focus to Asia
Pronet Gaming has pinned its hopes on emerging markets in Asia to drive future growth.
“We are thrilled to become the new owner of Crown, bringing our expertise in hospitality to help the company achieve its full potential as a leading travel and leisure company”Alan Miyasaki, Head of Real Estate Acquisitions, Blackstone
The company claims to have undergone rapid expansion in the past 18 months, which freed up funds for a “massive investment” in IT and new offices, enabling the company to shift its focus elsewhere, namely Asia.
The supplier said its new market entry will allow brands in the region to offer customers localised products and a “genuine point of difference among competitors.”
“An Asian market entry was always in the plan and required a real focus on ensuring that we had the right product to compete. I’m obviously really pleased that we are now able to do that sooner rather than later,” remarked Pronet CEO Alex Leese.
“The tremendous commercial success we have enjoyed is not only testament to the hard work of the team and the universal appeal of our offering, but it bodes well for new customers looking for an affordable, yet tailored solution.”
But to make itself market-ready, Pronet will need what Leese called “Asian market specialists.” To this end, the supplier will embark on a major recruitment programme to reinforce its ranks in the region.
SJM extends gaming concession until December 2022
SJM Resorts has entered into a Concession Amendment Contract with the Macau Government that will see SJM's gaming concession extended until 31 December 2022.
The concession was originally due to expire on 26 June 2022, however, the SJM board determined that an extension was in the best interests of the company and will pay Macau's Government MOP$47m (US$5.8m) to defer the expiration date.
Additionally, undertaking letters have been signed by SJM regarding the transfer of casinos and related assets to Macau's Government as of the termination of the gaming concession. These transfers will be without compensation, as per the terms laid out in the gaming concession contract.
In a statement, the SJM board confirmed that it found these terms to be “fair and reasonable."
Emperor Entertainment reports 38% revenue increase for the full-year
Emperor Entertainment has published results for the 2021/22 financial year, as the hospitality and gaming service provider looks to bounce back from the impact of Covid-19.
The satellite casino reported a 38% increase in total revenue, rising to HK$415.9m (US$52.9m) from HK$301.9m the previous year. An increase in fair value loss and impairment loss during the year led to a recorded yearly loss of HK$528.3m, attributable to the company owners. Basic loss per share was reported at HK$0.44, compared to the 2021 figure of HK$0.15.
Total dividends for the year were reported at HK$0.065 per share, this comprised the special dividend distributed in June 2021 of HK$0.050 per share and the interim dividend of HK$0.015 per share.
Gaming revenue saw a 25% increase from HK$209.1m in 2021, to HK$260.6m. Revenue from the mass-market hall stood at HK$179.0m, while revenue from the VIP room was HK$65.0m.