By Jenniffer B. Austria | Posted on
Oct. 26, 2012 at 12:01am |
[ manilastandardtoday.com ]
Belle Corp. said Thursday it finalized
an agreement with Hong Kong-based Melco Crown Entertainment Ltd. to jointly
develop a $1.3-billion casino and entertainment complex in Entertainment City.
Belle said in a disclosure to the
stock exchange both parties would be co-licensees and owner of the complex
under the agreement. The two companies will also make equal investments in the
project.
Melco said in a separate disclosure to
the Hong Kong Stock Exchange its investment in the project was expected to
reach $600 million up to the opening of the complex.
Both companies actually committed to
contribute $650 million each as initial investment.
Belle, controlled by retail tycoon
Henry Sy Sr., will contribute the land and the building structures worth $325
million. Melco agreed to contribute furnitures, gaming equipment, additional
improvements, inventory and supplies as well as intangible properties and
entertainment facilities costing not less than $325 million.
Both parties agreed to split the
remaining $350 million in investment commitment.
Melco, led by Australian billionaire
James Packer and Macau gambling tycoon Lawrence Ho, is also expected to bring
the expertise and experience in running a world-class casino to the Belle
project, giving them a strong competitive edge.
Melco is a developer and owner of
integrated resort facilities focused on the Macau market. Its operating complex
known as the “City of Dreams” 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 building a second integrated
resort in Macau called Studio City.
“We are very happy to welcome MCE into
the Philippines. We could not have found a better partner for this endeavor. We
are confident that MCE will bring its expertise in operating a highly
successful integrated resort complex and strongly contribute to promoting the
Philippines as one of the Asia’s premiere tourism destination,” Belle vice
chairman Willy Ocier said.
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