Suncity announced that it's indirect wholly-owned subsidiary Suncity Group Management and Consultancy (Van Don) Limited had entered into the technical services agreement relating to the provision of technical and pre-opening services to Van Don Sun’s casino project in Van Don, Quang Ninh province on September 22.
The casino project is a part of Sun Group's 2,500ha high-class tourism complex project in Van Don, Quang Ninh province. The investment capital of the complex is over US$2 billion including US$312.5 million of Van Don Sun which accounts for 15 per cent of the total investment. 85 per cent of the capital is expected to be provided by the Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) in Hanoi from the second quarter of this year to the end of 2021.
Under the investment license, the high-class tourism complex project will be due in 50 years; however, Sun Group has proposed to increase the project’s operating time to 70 years. The project will include residential area, convention center, hotels, casino, golf course, and hippodrome.
The first phase of the project is expected to be completed and go into operation from 2019 when the second phase is implemented. The whole project is expected to be operated in the first quarter of 2022.
According to the agreement, Van Don Sun has chosen Suncity to provide consultancy services including pre-opening services in relation to the development, set up and preparation for the opening of the project to the public, design guidelines and layout plans.
The opening date of the project is expected to be 31 March 2019 or another date which shall be prior noticed by the Van Don Sun in accordance with the provisions of the Technical Services Agreement.
Also, if the services are agreed by the Van Don Sun and the Management Van Don Subsidiary of Suncity to be required to be performed beyond the term, a monthly fee of US$41,667 to be paid in arrears for each month.
The sum of US$0.5 million of service fee shall be paid, in which US$250,000 will be paid in advance within 15 days from the date of signing of the Technical Services Agreement and the rest shall be paid within 15 days after the Van Don Sun receives all the payment documents after six months from the effective date.
The Technical Service Agreement was signed on September 22, 2017, for a period of one year. The two sides are also promoting the negotiation to sign the contract to manage the casino project.
Suncity revealed that this collaboration with Van Don Sun is its first step in the provision of consultancy and technical services to large-scale entertainment and casino projects in such hot spots of the tourism industry as Vietnam.
Suncity is also cooperating with VinaCapital Corporate Finance Ltd to develop a casino project in Hoi An city, Quang Nam province. Accordingly, 68 per cent of the project is owned by Suncity and the rest is controlled by VinaCapital.
According to Suncity, the project is still in the construction stage and is expected to commence operation in 2019.
Suncity confirmed that as things stand, the first phase with the total investment capital for phase one is US$650 million of the Hoi An project in Quang Nam Province, on Vietnam’s central coast, is to have a foreigner-only casino with 140 gaming tables and 1,000 slot machines.