Suncity Group completes acquisition of majority stake in developer of casino-hotel at Manila's Westside City Resorts World - IAG
Wednesday 8th January 2020
Suncity Group has completed its acquisition of a majority 51% stake in Philippines firm Suntrust Home Developers Inc ahead of its planned development of a casino and hotel within Manila's Westside City Resorts World.
According to documents filed with the Philippine Stock Exchange on Wednesday, Suncity's wholly-owned subsidiary Fortune Noble Ltd acquired 2.55 billion shares in Suntrust - equal to 51% of issued shared capital - on 20 December 2019 at a cost of Php1.0 per share. The total consideration was Php2.55 billion (US$50.4 million).
The documents also noted that Suncity Group Chairman Alvin Chau and Sun International Group Ltd Chairman Cheng Tong Kong - the joint owners of Fame Select Ltd which in turn holds a majority stake in Suncity Group - are each now indirect beneficiaries of a 19.09% stake in Suntrust following completion of the transaction.
As previously reported by Inside Asian Gaming, Suncity's investment in Suntrust has been funded by Mr Chau, with revenue from the company's Westside City hotel and casino development expected to be consolidated into the financial accounts of Suncity Group's Hong Kong-listed entity.
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.
As per the terms of that agreement, Suncity has now acquired 51% of Suntrust with Megaworld to acquire 43.5% and Aurora Securities Inc the remaining 5.5%.
A subsequent Co-Development Agreement entered into between Westside and Suntrust will see Westside and Travellers lease the project site for the main hotel and casino at Westside City Resorts World to Suntrust for development.
The development is set to cost US$700 million and cover an area of around 44,000 square meters, with building floor area of 182,000 square meters.
The high-end 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.