MQ Technology embarks on US$51 mil GDV integrated casino project in Cambodia

KUALA LUMPUR (Dec 13): MQ Technology Bhd (MQ Tech) is embarking on an integrated casino resort project, which includes a casino, serviced apartments and theme park, in Cambodia that carries a gross development value of US$51.1 million (RM225.58 million) over the next six years.

MQ Tech's newly appointed executive director Robbie Hari Krishnan Tatparanandam said the company's wholly-owned subsidiary Star Acres Sdn Bhd has inked an agreement with Cambodian Resort & Entertainment Ltd (CRE) for the venture.

Following the agreement, CRE and Star Acres have set up a 30:70 joint venture in Cambodia.

"CRE is the legal and beneficial owner of a piece of land measuring 5.1 hectares situated in Bonteay Chakkrei (in Prey Veng province) that houses a casino, hotel and other facilities.

"CRE is leasing the casino licence from its sister company Arunbopea Layseng Keng Co Ltd to operate the casino business on the said land," he said at a media conference to announce the venture today.

The agreement will see CRE, among others, providing the present land and facilities for the use of the joint venture project and undertake the validity of all the licences, including the casino licence.

MQ Tech's role will be to finance the setup of a "Jurassic Theme Park" on the land provided by CRE, and it has the first right of refusal to finance the building of two blocks of serviced apartments with 250 units each.

CRE will fork out US$3 million over the next three years for the renovation work of the existing facilities.

MQ Tech on the other hand will fork out US$5.1 million for the Jurassic Theme Park over the next three years.

"The project is subject to a due diligence review, which we expect to complete within the next three to six months," said Robbie.

He shared that the group is also embarking on the "Malacca Explorer Resort-Dive Park Zone" theme park project on a reclaimed land measuring 9.16 acres in Klebang, Melaka.

"The first phase of the theme park consists of an arena stage, which will be used for the performance of arts, cultural shows as well as musical fountain and laser shows, and will be launched in the first quarter of 2017.

"The second phase of the theme park, which we have budgeted RM60 million for, is expected to comprise a hotel, shop lots and various water rides. The second phase is currently at the initial conceptual design and planning stage, which is expected to be finalised by the first half of 2017," he said.

On the sources of funding for the projects, MQ Tech executive director Edwin Silverster Das shared that the group will be looking at various sources.

"We will look at other sources of funding for the Cambodian project, and we may look at a bridging loan for the Melaka project," he said, but declined to elaborate further on the funding mechanisms. — theedgemarkets.com