The Philippine Amusement and Gaming Corp., which reportedly was poised to sell two parcels of land in Manila to a subsidiary of Bloomberry Resorts, apparently has changed its mind.
According to CDC Gaming Reports, PAGCOR has called for more offers for the “negotiated sale” of the land, which is occupied by Bloomberry’s Solaire Resort & Casino. In January, Bloomberry submitted its own bid to buy the property.
On its website, PAGCOR called for new bids by April 17.
Two previous public auctions in November and January failed. The sole bid was submitted by Sureste Properties Inc., a wholly owned Bloomberry subsidiary. Under the bidding rules, there must be at least two qualified bids in order for the process to be considered to be valid.
The minimum bid price for the combined plots is PHP37.23 billion (US$739 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.
Bloomberry 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).
Despite the call for new offers, Morgan Stanley analysts told Inside Asian Gaming it still expects Bloomberry to complete acquisition of the land. Bloomberry reported record revenue in 2017, with GGR up 17 percent to PHP44.93 billion (US$863.6 million); an 11 percent increase in VIP volumes; 21 percent growth in mass table drop; and a 29 percent rise in EGM coin-in at Solaire. Non-gaming revenues increased by 40 percent for a record PHP3.34 billion.
“Going into our fifth year of operation has become even more exciting with our 2017 results in sync with the growth trajectories we have aimed for,” said Chairman and CEO Enrique Razon Jr. “This is largely due to our top-notch management team and the thousands of Bloomberry and Solaire men and women, whose tireless drive and dedication keep us notches ahead.”
