Enrique Razon’s firm formerly leased the land
A subsidiary of Philippine casino operator Bloomberry Resorts Corp. has completed the purchase of 16 hectares (39.5 acres) of land under the company’s Solaire Resort & Casino in Manila’s Entertainment City.
The deal, approved in April by the Philippine Amusement and Gaming Corp, included a purchase price of PHP37.33 billion (US$710.8 million) for the land. Bloomberry’s wholly-owned subsidiary, Sureste Properties Inc. paid the price in full. Bloomberry previously leased the property from PAGCOR.
According to Inside Asian Gaming, in a recent note Morgan Stanley said buying the land would save Bloomberry PGP 500 million (US$9.6 million) on rentals but could cause net debt to rise to PHP 31 billion in 2018, declining to PHP 17 billion in 2019.
The financial services firm added that interest could also rise to PHP 3.6 billion in 2018 and PHP 3.9 billion in 2019, which would cut net profit forecasts by 23 percent and 30 percent respectively to PHP 7.7 billion and PHP 7.9 billion.
