Suntrust to rent main hotel and casino in Westside City | VG Cabuag
Monday 24th February 2020
SUNTRUST Home Developers Inc. will give an annual rent of $10.6 million a year to the gambling arm of Andrew Tan, Travellers International Hotel Group Inc., for the lease of the main hotel and casino in its development in Entertainment City.
In its disclosure, Suntrust, now 51 percent owned by Hong Kong-listed Suncity Group Holdings Inc., will give the amount to Tan's property development arm Megaworld Corp. and gambling unit, which is developing Westside City, the fourth integrated resort and casino to rise in Entertainment City.
Suncity said in its disclosure in the Hong Kong stock exchange that it will start the rent "commencing from the date on which the handover of the project site is delivered to SunTrust until August 19, 2039, which shall automatically be renewed, subject to applicable laws, for another 25 years unless, otherwise agreed upon by the lessor and the lessee, on the same terms and conditions of the lease agreement or such other terms, and conditions, as the lessor and the lessee may agree in writing."
Suncity added, "The annual rental was determined by reference to the assessment of an independent valuer on the indicative market value of the project site of $340 million."
The Suntrust board earlier entered into a co-development agreement with Westside City Resorts World Inc., the $2-billion integrated casino and resort owned by Tan. Other developers inside the property are Malaysia's Genting Resorts, which was supposed to be the Westside's casino's operator, Megaworld and Travellers International, which was recently delisted from the Philippine Stock Exchange.
Suntrust, along with Suncity, earlier said it will develop Westside's main hotel and casino "and Westside is to appoint Suntrust as the sole, and exclusive, operator and manager of the main hotel casino on the principal terms, and conditions, that are set out in this announcement."
Suncity group is known to have extensive experience in the leisure and entertainment business, and is actively seeking investment opportunities in integrated resort projects worldwide, including Cambodia, Philippines, Myanmar, South Korea, Japan, Russia and Vietnam.
Other than investments in integrated resorts, the Suncity Group is also engaged in integrated resort consultancy services, as well as travel-related products and services.