Plan helped by warmer China-Philippine relations
Hong Kong-listed casino operator Melco Resorts & Entertainment is planning to make further inroads in the Philippine gaming market, in a well-timed salvo to benefit from cordial diplomatic relations between Beijing and Manila.
According to CalvinAyre.com, Melco Chairman and CEO Lawrence Ho recently met with Philippine President Rodrigo Duterte to reiterate his interest in and commitment to the market.
But Andrea Domingo, chairwoman of the Philippine Amusement and Gaming Corp., minimized the significance of the visit. She told the news outlet that Ho and Clarence Chung, CEO of Entertainment Gaming Asia, “merely paid a courtesy call and informed President Duterte of their willingness to increase their investments here.”
Among other things, they discussed Melco’s new luxury brand Nuwa, which is set to replace the Crown Towers brand at City of Dreams Manila and City of Dreams Macau on January 16. That change reflects Melco’s new direction since it severed ties with Australian-based partner Crown Resorts last year.
Asked if Ho may buy some state-run casinos now up for sale, Domingo said, “They were not here for the purchase of PAGCOR casinos.” But last year, after the government announced plans to sell 17 of its 46 casino properties, Ho said he might be interested in picking up a bargain.
PAGCOR recently announced an auction to sell two parcels of land where Solaire Resort and Casino stands in Manila, the Philippine capital.
An industry source told GGRAsia that no bids were submitted for the November auction process. The minimum bid price for the combined plots is PHP37.23 billion (US$739.0 million) in cash. Prospective bidders must be Philippine nationals or otherwise authorized by law to acquire real estate in the Philippines. In case of a corporation or partnership, at least 60 percent of its capital must be owned by Philippine nationals.
Philippines-based Bloomberry Resorts Corp., which owns and operates Solaire, is entitled to match the highest bid. Solaire’s lease allows it to occupy the land until July 2033 and “is extendible for another term under certain conditions.” The land covers 160,359 square meters (1.73 million square feet). The latest deadline for bids is January 26.
