Wealthy entrepreneurs and private equity players are flocking to a tiny territory off the southern coast of China, and it’s not because they’re looking for tax breaks.
Macao, a former Portugese colony, last year overtook the Las Vegas Strip as the world’s biggest gaming centre by revenues, and investors are looking to get in on the action.
Virgin entrepreneur Sir Richard Branson is in advanced talks to secure land in the Chinese special administrative region, where he intends to build a $3bn casino resort complex.
Meanwhile, a group of private equity investors has paid about US$390m for convertible preferred shares in a Macau hotel and casino firm in yet another sign of growing global interest in the Chinese gambling enclave, Reuters said. The preferred shares, mostly secondary, represent 45 per cent of the share capital of Macao Legend Development, according to a statement released by Merrill Lynch, which acted as the placement agent in the deal, one of the biggest private equity offerings from Macao. No further details about the deal and the identity of the private equity investors were available.
Macao is the only place in China where casinos are legal. Last year gaming revenues in the territory rose 23 per cent to $7bn, and further growth is expected. Baccarat – 007′s favourite card game – is the territory’s most popular diversion.