Suncity boss Alvin Chau provides shareholder approval to complete US$200 million payment for Manila hotel and casino site - IAG
Thursday 26th March 2020
Suncity Group Holdings Limited has taken another step towards formally activating an agreement to develop the hotel and casino at Westside City Resorts World in Manila's Entertainment City after receiving shareholder approval to pay US$200 million for use of the site.
However, payment remains pending with Suncity Group telling IAG that some conditions are still yet to be fulfilled.
The Hong Kong-listed company announced in January that its Philippines subsidiary, Suntrust Home Developers, Inc, had paid an initial US$20 million deposit for the site with the remaining US$180 million to be paid by the end of March.
That deadline now looks unlikely with Suncity revealing it will pay the balance after 10 days of some remaining "Conditions Precedents" being fulfilled. However, the condition that shareholder approval be obtained hasbeen fulfilled after Suncity Group controlling shareholder Alvin Chau provided written approval this week.
In a filing to the Philippine Stock Exchange, Suntrust said, "The approval of Suncity Group stockholders is one of the condition precedents for the transactions contemplated under the Co-Development Agreement and the Lease Agreement.
"The Co-Development Agreement provides, among others, for the execution of the Lease Agreement over the Project Site for the development of a 5-star hotel and casino establishment and the payment of the Project Site Payment for the use of the Project Site and reimbursement of the costs incurred on the Project Site and construction works done on the Project Site."
Suncity announced in October the details of the multi-layered agreement that includes involvement in Westside City Resorts World - the fourth integrated resort being developed in Manila's Entertainment City precinct. Westside City Resorts World is a sprawling, multi-billion dollar leisure and entertainment township being developed on 31-hectares by Philippines construction giant Megaworld Corporation and Resorts World Manila operator Travellers International Hotel Group, a joint venture between Genting Hong Kong and Alliance Global Group.
Suncity's hotel and casino development is set to cost US$700 million and cover an area of around 44,000 square meters, with a building floor area of 182,000 square meters.
The project will include 400 gaming tables and 1,200 slot machines across both VIP and mass gaming, plus 400 five-star hotel rooms and 960 parking spaces, due to open in 4Q22. The Westside City Resorts World township will also offer additional facilities such as a Grand Theatre, shopping malls and 2,000 parking spaces.