The 13 Holdings says it expects net proceeds of HK292.6 million from the sale of its construction unit to help fund the completion of the ultra-luxury hotel project.
In a filing with the Hong Kong Stock Exchange, the company said the opening of the resort has been further delayed and it now expects to receive a Macau Government Tourism Office license somewhere between mid-May and June and to open the property on June 30th.
From the proceeds of the sale, about $24 million was used to finance the purchase of furniture and fixtures, and equipment. About $266.1 million has been allocated as working capital and $2.5 million was used to repay principal on a bank loan.
“With The 13 Hotel commencing operation, a new revenue stream will be generated,” the company said. “Having considered the above reasons and factors, and having regard to the long term strategy of the group in having The 13 Hotel which is a unique ultra-luxury hotel, the board believes that it is timely for the company to reduce its exposure to the risks relating to the construction business and focus on The 13 Hotel.”
The 13 announced last year it was selling its Paul Y. Engineering business. It also recently said it was changing its name to South Shore Holdings.
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