Suntrust inks leasing deal for casino project - The Manila Times
Monday 24th February 2020
SUNTRUST Home Developers Inc. signed a lease agreement with Westside City Resorts World Inc. and Resorts World Manila operator Travellers International Hotel Group Inc. for a casino development.
In a disclosure on Monday, Suntrust said that it would be paying an annual rent of $10.6 million to the lessors upon the completion of the project.
"The annual rent was determined by the reference to the assessment of an independent valuer on the indicative market value of the project site of $340 million," the listed property firm said.
Last year, Suntrust executed a co-development agreement with Westside City Resorts World, which is a 31-hectare leisure and entertainment township in Parañaque being developed by Alliance Global Group Inc. subsidiary Megaworld Corp. and Travellers International.
The lease term will start from the date of "handover of the project site ... to Suntrust until Aug. 19, 2039."
The agreement may be renewed or extended for another 25 years upon expiration. The terms and conditions might be renegotiated depending on the current business environment.
"The lease agreement is subject to conditions precedent, including obtaining by Suncity Group Holdings Ltd. of the necessary approval of its shareholders to the lease agreement and the transactions contemplated thereon. It is also subject to announcement requirements of the Hong Kong Stock Exchange," Suntrust added.
Suncity Group subsidiary Fortune Noble Ltd. acquired 51-percent ownership -- subscribing to 2.55 billion common shares -- in Suntrust last year.
With the entry of Fortune Noble, Megaworld's stake in Suntrust was diluted to 34 percent from the pre-transaction 42 percent.
Suntrust said that Suncity has been "actively seeking investment opportunities in integrated resorts project worldwide," including the Philippines.
Last year, Suntrust was able to raise P5 billion following the increase of its capital base as it shifted primary business to tourism development.
Suntrust shares dipped 1 centavo or 0.62 percent to close at P1.61 each on Monday.