Summit Ascent close to completing Russia resort

Summit Ascent Holdings, backed by Melco International CEO Lawrence Ho, said it has nearly completed construction on its integrated resort in Primorye, Russia.

“The construction of the integrated resort in the Russian Federation is nearing completion. Being the single largest shareholder in the joint venture we are actively involved in all phases of construction, staffing of the resort and execution of our business plan,” the company said in a filing.

The casino, which is expected to have 25 VIP gaming tables, 15 mass-market baccarat tables and 800 slots, hopes to attract Chinese gamblers from nearby provinces and the rest of East Asia. The casino will also benefit from a “favorable tax environment.”

“The proposed casino and resort is geographically close to the target feeder markets of Heilongjiang, Jilin and Liaoning provinces in Northeastern China, as well as South Korea and Japan, carries a very favourable tax environment for gaming activity compared to other jurisdictions, and is expected to be the first and only legitimate casino operating in the Far Eastern region of the Russian Federation for next few years.”

The company added that, due to the potential of the project, it sought to acquire an additional 14 percent equity interest in the project in 2014.

The company said in its annual report that turnover in 2014 was HK$21.9 million ($2.8 million), compared with HK$7.9 million in 2013, while loss for the year was HK$78.9 million, compared with HK$79.5 million in 2013.

“The losses were mainly attributable to non-cash share-based payments of HK$84.2 million incurred during the year.”

 

 

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