NORTH ASIA 28
russia
Russia growth prospects fail to excite Summit Ascent Holdings says it remains “cautiously optimistic” about the long-term future of Russia’s Far Eastern gaming zone, but has begun looking for faster growth opportunities elsewhere given the political and economic instability in the country.
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he Hong Kong-listed company owns 60 percent of Oriental Regent, which operates the Tigre de Cristal property in the Primorye gaming region near Vladivostok. The zone is expected eventually to host a cluster of integrated resorts, however, construction and other delays have meant that it’s still the only one currently operational. The Shambhala resort, owned by Russian entrepreneur Max Smolentsev, was due to open its doors this summer, though as of going to press, there was no set date for its debut.
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Summit Ascent conceded that given the prevailing financial conditions it would be prudent to diversify its income sources.
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In a recent fund raising exercise, Summit Ascent conceded that given the prevailing financial conditions it would be prudent to diversify its income sources. The group earned revenue from gaming and hotels of HK$532.8 million last year, up from $463.15 million a year earlier and $470.82 in 2017, suggesting a slow ramp up at Tigre de Cristal. “The Russian Federation faces many potential challenges, among others: a large
Asia Gaming Briefings | October 2020
state footprint, insufficient infrastructure, low levels of competitiveness, underinvestment, dependence on raw materials, and poor economic climate,” the group said. It also pointed to political instability and the severe economic sanctions faced due to the 2014 Ukrainian crisis. As a result the Russian economy has seen average gross domestic product growth of 1.4 percent between 2016 and 2019, compared with 6.6 percent in the Philippines. In search of diversity, about half of the HK$1.6 billion Summit Ascent intends
to raise from a share issue will be used to subscribe for bonds in a Suncity unit that is developing the Westside City IR in Manila’s Entertainment City. The group is pressing on with its current plans for Phase II expansion of the resort, but does not intend to expand the scope of the development. The design is being tweaked after changes suggested by Summit Ascent’s new majority shareholder, the Suncity Group. It’s now targeting a 2022 opening for the first stage of Phase II. The new facilities will double the group’s VIP and mass gaming
