Hong Kong-listed Suncity Group Holdings Ltd. has announced that its Philippine subsidiary has signed a lease on a Manila casino site.
The lease agreement is valid until 2039 and is “automatically renewed” for another 25 years unless otherwise agreed by all parties, according to a February 24 filing. The subsidiary, Suntrust Home Developers Inc., will pay yearly rent of US$10.6 million once the casino opens. The rent, to be split into two payments, will go to the lessors, Westside City Resorts World Inc. and its parent, Travellers International Hotel Group Inc., which in turn is a venture between Philippine conglomerate Alliance Global Group Inc. and casino cruise ship operator Genting Hong Kong Ltd.
Last October, Suntrust announced a “co-development” agreement with Westside for the property identified as “Westside City Resorts.” Under the deal, the lessors agree to lease the casino resort project site to Suntrust for “development of the main hotel casino” of the complex, and Suntrust is to be appointed the “sole and exclusive operator and manager of the main hotel casino.”
According to Inside Asian Gaming, Suncity Group Holdings agreed to pay an upfront fee of US$200 million to Westside City Resorts to develop and operate the casino scheme.
According to Suntrust, “The lease agreement is subject to conditions precedent, including obtaining by Suncity Group Holdings Ltd. of the necessary approval of its shareholders to the lease agreement and the transactions contemplated thereon. It is also subject to announcement requirements of the Hong Kong Stock Exchange.”
The project, as planned, will be located in Entertainment City in Metro Manila. The US$700 million development will span 44,000 square meters (47,000 square feet), and will include 400 gaming tables and 1,200 slot machines, plus 400 five-star hotel rooms and 960 parking spaces. It’s due to open in late 2022.
