Suntrust's 20-year casino hotel deal | Business | Daily Tribune
Monday 24th February 2020
Suntrust Home Developers Inc. entered into a 20-year lease agreement with Tan-led Travellers International Hotel Group Inc. (TIHGI) and its unit Westside City Resorts World, Inc. to develop the 31-hectare Westside City Resorts World casino and hotel.
In a filing to the Hong Kong Stock Exchange by the Suncity Group Holdings Ltd., which recently acquired 51 percent of Philippine Stock Exchange-listed Suntrust, it said the lease term will take effect from the handover of the project site to Suntrust until 19 August 2039.
Under the agreement, signed on 21 February 2020, Suntrust will pay an annual rental fee of $10.6 million in two installments on a semi-annual basis.
The fee was determined via the assessment of an independent valuer on the indicated market value of the project site at $340 million, Suncity said.
The lease will automatically renew for another 25 years subject to applicable laws unless otherwise agreed upon by the parties.
"The lease agreement is subject to conditions precedent, including obtaining by Suncity Group of the necessary approval of its shareholders to the lease agreement and the transactions contemplated thereon," Suntrust said in a disclosure to the local stock exchange Monday.
The lease is part of the co-development agreement between Westside and Suntrust wherein Westside and TIHGI will lease the project site for the main hotel and casino of the Westside City Resorts World for Suntrust's development. TIHGI also runs Resorts World Manila.
Megaworld is allotting P121 billion to build the integrated resort and casino within the Entertainment City in Parañaque City.