By Zinnia B. Dela
Peña (The Philippine Star) | Updated December 1, 2012 - 12:00am
MANILA, Philippines
- Leisure developer and gaming firm Belle Corp. is spending P5 billion for the
second phase of the $1-billion mixed-use complex that will rise within the proposed Entertainment City along Roxas
Bld.
In a text message,
Belle vice-chairman Willy N. Ocier said construction works for Phase 2 has
already started with the interior and fit-out of the facility targeted to be
completed in January 2013.
He said funding for
Phase 2 will come from proceeds of a stock rights issue and loan facilities
from Banco De Oro.
Upon completion of
Phase 2, Belle will lease to Macau casino giant Melco Crown Entertainment Ltd.
the land and buildings in the facility for the operation of a hotel, casino and
resort complex, with retail, entertainment, convention, exhibition, food and
beverage services as well as other related activities.
The operating
agreement will be signed on closing and will govern the operation of the
project until the expiry of the casino license (currently expected to be in
July 2033).
Melco Crown, the
joint venture between Macau gaming kingpin Stanley Ho and the late Australian
casino and media magnate Kerry Packer, is investing around $600 million in the
project .
Belle and Melco will
each have an estimated economic interest of 50 percent in the project, which
will be derived from gaming revenues and the lease of commercial space in the
entertainment center.
This would be
Melco’s first foray in the Philippine gaming market, which is forecast to hit
$3 billion in revenues by 2015.
The project will be
the second complex to open in this area, groomed to become the Philippines’
version of the Las Vegas strip, next to port mogul Enrique Razon’s Solaire
Casino & Resort.
Lawrence Ho,
co-chairman and chief executive officer of Melco Crown, said the project is a
step closer towards realizing the group’s vision of becoming one of the leading
gaming companies in Asia. The deal is also seen to provide Melco with a
platform for further expansion in Asia, allowing it to capitalize on future
opportunities to drive long-term shareholder value.
“The success of
Macau as a gaming and entertainment destination has led to the proliferation of
gaming across the Asia Pacific region. With our strong foothold in Macau and
experience in developing and operating world-class integrated entertainment
resorts, such as City of Dreams, we are perfectly positioned to add a new
dimension to the gaming and entertainment industry in the Philippines, enabling
us to benefit from the anticipated growth in the leisure and tourism industry,”
Ho said.
“We believe the Philippines is well placed to
take advantage of the increasingly affluent and growing Asian middle class who
continue to seek new travel destinations and experiences throughout Asia,” he added.
Aside from the City
of Dreams, Melco also operates Altira
Macau. It likewise owns a chain of
gaming machines under the Mocha Club brand.
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