Investor pulls out of Macao Studio City

New Cotai contributed at least $100 mil to project

HONG KONG -- New Cotai Llc., one of the investors in eSun's Macao Studio City project, has terminated its agreement to provide additional investment, eSun said Thursday.

East Asia, a subsidiary of eSun Holdings, and U.S.-based New Cotai reached an agreement in November to each contribute additional funding to the Macao Studio City project under the joint venture Cyber One, of which East Asia owns 60% and New Cotai 40%.

In April, eSun and its sister company Lai Sun Holdings, issued a joint announcement to shareholders about a delay in finalizing the funding plan, but reasserted their commitment to the project.

Macao Studio City was designed to be an entertainment complex that includes casinos, four hotels, shopping malls and the first Playboy Mansion outside the U.S. On Oct. 14, the Macau government approved an expansion of the gross floor area of the Macao Studio Project from 340,000 to 560,000 square meters.

Before the November agreement, New Cotai -- a consortium of investors including the co-chairman and co-CEO of Macao Studio City, David Friedman -- and East Asia had each contributed $100 million as working capital of the project.
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