Chinese businessmen are Marriott’s secret investor

May 25, 2014 News

…will put US$8M of US$58M required and own 67 per cent

By Gary Eleazar

After months of silence and evading the media, Atlantic Hotel Inc (AHI), the special purpose company created by Winston Brassington, to build and own the Marriott Hotel in Georgetown, yesterday announced that a British Virgin Islands (BVI)-registered company, headed by two Chinese businessmen, will be the private investor in the project.

Works ongoing at the Marriott Hotel yesterday.

AHI yesterday also announced that it has completed the financial arrangements with Republic Bank Ltd. for a syndicated loan of US$27M in debt financing for the project.
“This is for the construction of the Marriott operated hotel and the shell of an Entertainment Complex.”
AHI announced, yesterday, that “Republic Bank, on behalf of its consortium of lenders, has received its approvals and the transaction is expected to be concluded shortly.”
The principal investors in AHI are National Industrial and Commercial Investment Limited (NICIL) which has invested US$4M and BVI registered ACE Square Investments Ltd.
ACE Square Investments Ltd. will acquire 67 per cent of the equity of AHI for US$8M.
The beneficial owners of the shares in ACE Square Investments Ltd., and the owners of the shares in ACE Square Investments Ltd., through a BVI registered holding company, Big Splendor Limited, are Hong Kong businessmen, Victor How Chung Chan, and Xu Han.
It was also announced yesterday, that as required under the Hotel Management Agreement between Marriott and AHI, Marriott has consented to the transfer of the controlling interest of AHI from NICIL to ACE Square Investments Ltd.
Ace Square Management Ltd, reported to be an affiliated company of ACE Square Investments Ltd., has been selected to operate the Entertainment Complex and secure the outfitting cost, estimated at a minimum of US$4M.
It was announced, too, that ACE Square Management Ltd will guarantee a minimum financial performance of the Entertainment Complex, consistent with the feasibility study conducted by HVS International (dated October 31, 2012).
ACE Square Management Ltd’s beneficial shareholders are the same as ACE Square Investments Ltd.
Leader of the Alliance for Change (AFC), Khemraj Ramjattan, was correct when he was reported in September last year that the investor was ACE Square Investment Inc registered in the BVI.
Under BVI law, there is difficulty in accessing information as to shareholders and directors of companies, according to Ramjattan, hence there were no names made public at the time.
According to Ramjattan, it was former President Bharrat Jagdeo and the Finance Minister Dr Ashni Singh, who were in talks with the company to invest in the Marriott project.
It was reported at the time that the law firm of Pollonais and De La Bastide out of Trinidad and Tobago (T&T), was asked to, and did prepare a ‘Guarantee’ to be signed by ACE Square Investment Inc.
Brassington at the time had refused to comment on the fact that it was reported that BVI-based ACE Square Investment Inc was the investor.
According to AHI, in its announcement yesterday, Victor Chan has diverse and substantial investment interests both in Hong Kong and China.
“He is an Executive Director of the REXLOT Group and is the single largest shareholder and Founder and Director of the REX Resources Group.”
The REXLOT Group is said to be the leading lottery system and distribution company in China and has extensive operations in China’s lottery market, through its local subsidiaries and international joint ventures.
The Group is listed on the main board of the Hong Kong Stock Exchange with a market capitalisation of over HK$8 billion (app US$1.B).
The REX Resources Group is principally engaged in gold, coal, rare earth and other metal, mining exploration and development, both in China and internationally.
Chan is also said to be the leading investor and shareholder of China Gamma Group.
The Group is listed on the main board of Hong Kong Stock Exchange, with a market capitalisation of over HK$600 million (app US$77M).
He also founded REXCAPITAL Partners in 1994, a private investment group with over HK$1billion in financial investments.
Xu Han is reported to be a long-standing business associate of Chan and holds graduate degrees from prominent US and Hong Kong universities.
Additionally, Han has over 30 years of global experience in both the public and private sectors, such as finance, gaming, and mining.
NICIL has already injected its US$19.5M, a loan of US$15.5M and an investment of US$4M which it had committed to the project.
The Marriott Hotel has been mired in controversy from its inception firstly with the rerouting of the sewerage system before any works had begun.
Prior to the NICIL money, Government had given Courtney Benn Contracting Services Limited a US$1M contract for the rerouting of the sewerage system in the Kingston locale. That contract was pulled after more than US$700,000 was paid over. It was then given to an overseas company, for a further US$2M.
AHI also leased the prime seven acres of shorefront property on which the hotel rests for a measly US$120 (G$24,000) per month with the option to buy.