To be acquired by Bloomberry unit
The Philippine Amusement and Gaming Corp. reportedly will proceed with plans to sell two parcels of land to a subsidiary of Bloomberry Resorts, owner of the Solaire Resort and Casino in Manila’s Entertainment City. According to GGRAsia, the state-run regulator can now engage in direct negotiation after two public auctions in November and January failed.
No bids were submitted in November. The sole bid in January was submitted by Sureste Properties Inc., a wholly owned subsidiary of Bloomberry Resorts Corp. Under the bidding rules, there must be at least two qualified bids in order for the process to be considered to be valid.
“PAGCOR didn’t even have to open the bid,” an industry source told the news outlet. “PAGCOR is now free to negotiate with interested parties that want to purchase the land.”
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 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 purchase would be a smart move for Bloomberry, said banking group Morgan Stanley in a note in November, putting Bloomberry’s valuation “comparable to peers who own their land.”
