Dining venture for Luk Hing Entertainment Group
A subsidiary of Luk Hing Entertainment Group Holdings, which runs Macau’s Club Cubic, has formed a JV to run a Chinese restaurant and bar in Harbour City, Kowloon.
Group subsidiary L&B Betula is investing HK$17.75 million (US$2.2 million) in the venture, which has $25 million capital, giving it a 71 per cent share. The other investors are Brilliant Hero and Guangdong Weikedor, holding 20 and 9 per cent ownership respectively.
Given its entry into the F&B segment, the group notes it “incurred and expects to continue to incur substantial start-up and pre-opening costs, including but not limited to additional staff costs, rentals, commission and professional fees, as well as promotion expenses”.
Consequently, it expects an “adverse impact” on its current year’s results.