PHILIPPINE REAL ESTATE and RELATED NEWS in and around the country . . .

AB Leisure invests P4B for casino

Published on 31 October 2012 [ ]

AB Leisure Global Inc. (ABLGI), a wholly owned subsidiary of Leisure & Resorts World Corp. (LRWC), is set to provide P4 billion for the construction of LRWC’s Belle casino project in Entertainment City, which has a project value of $1 billion.

“ABLGI will provide funding to Belle for the Casino Project equivalent to 30 percent of Belle’s interest, or an estimated P4 billion which will be funded through debt and internally generated income,” a memorandum of agreement on the matter said.

ABLGI, in exchange for its contribution, will be entitled to 30 percent of the fixed yearly income generated from the leasing of all commercial spaces in the project, inclusive of the hotel, retail and casino premises.

The company will also be paid fees equivalent to “30 percent of Premium Leisure and Amusement Inc.’s [PLAI], another wholly owned subsidiary of LRWC, 50 percent share from casino operations or 30 percent of PLAI’s 15 percent share of the net win, whichever is higher, after deducting PLAI’s royalty which is based on gross win.”

“ABLGI and LRWC have agreed to amend their previous agreements because of the changes in the development guidelines issued by the Pagcor on July 18, 2011, which effectively and materially changed the terms and conditions of the Provisional License granted to the SM Consortium in December 2008,” a company statement said. Pagcor is the Philippine Amusement and Gaming Corp.

Belle casino project is an integrated resort complex and casino that will rise in the Pagcor Entertainment City in ParaƱaque City by next year.

In the previous week, Belle Corp. partnered with Melco Crown Entertainment Ltd. (MCE), a company listed in the Hong Kong Stock Exchange, for the development and operation of the aforementioned project.

Belle Corp., together with its wholly-owned subsidiary, PLAI, formally entered into a cooperation agreement with MCE for cooperation in the development of the casino and resort project.

MCE, a developer and owner of integrated resort facilities focused on the Macau market, has an operating complex known as the “City of Dreams,” which is a highly successful project that houses a gaming facility, a Crown Hotel, a Grand Hyatt Hotel, a Hard Rock Hotel and an upscale retail operation, along with a mix of bars and restaurants that are drawing crowds mainly from Hong Kong and China. It is based in Macau.

MCE is also building its second integrated resort in Macau called “Studio City.”

real estate central philippines
Copyright ©2008-2018