Hatten Land has authenticated a decade-long agreement with a subsidiary of Focus Media Information Technology, a Chinese media group, to invest approximately CNY 8 million (USD 1.21 million) in an eSports centre project.
Hatten Land to Invest in eSports Hub
The entrancing eSports centre will be one of the presenting tenants at Hatten Land’s Element X mall (Melaka), encompassing over 90,000 square feet of retail space. The group indicated this through a bourse filing on May 5th 2022 (Thursday).
Hatten Land estimates long-term rental revenue and operating income from the eSports centre via entry ticket sales and other pertinent income, reimbursed as rent. In addition, it will finance its investment from profits grown from its share assignment exercise declared in April 2022.
Hatten Land will invest 70% of the CNY 8 million through its subsidiary Hatten Edge, whilst Focus Media Sports will fund the remainder of 30%.
Both organisations will collaboratively form a management team to supervise the daily operations of the Element X project. After inhibiting the management team’s expenses, any remaining profits will be allocated through a 70-30 ratio to Hatten Land and Focus Media Sports, respectively.
Focus Media Sports, a subsidiary of the Shenzhen-listed Focus Media, concentrates on the sports industry investments and operations. It has a decade long exclusive right to manage and operate a CNY 1.5 billion sports facility in Shanghai.
The group estimates the eSports centre to positively contribute to its total assets and fiscal performance for the fiscal year ending on June 30th, 2023, preventing unanticipated circumstances.