By Neil
Jerome C. Morales (The Philippine Star) | Updated July 29, 2013 - 12:00am
MANILA,
Philippines - Hotel and recreation firm Leisure & Resorts World Corp.
(LRWC) is ramping up its bingo and hotel gaming facilities ahead of the opening
of a $1.3-billion megacasino next year.
The listed
company is on the lookout for more hotels with gaming facilities while beefing
up its electronic gaming portfolio, officials said.
For instance,
LRWC allotted P500 million to build an annex for Midas Hotel and Casino, LRWC
president Reynaldo Bantug told reporters. Bantug said the expansion, which is
in the planning stage, will increase the hotel’s gaming area, rooms and common
areas.
“We also have
growth in core projects like the bingo boutique. We are also funding that,”
Bantug said. LRWC, which will roll out more bingo boutiques, is enjoying brisk
revenues from its electronic bingo machines.
On Friday,
shareholders approved the plan of LRWC to issue P250 million worth of series 2
preferred shares. The preferred shares carry a yield of 8.5-percent dividend
per year.
“Our core
business is in gaming. But nowadays, you package gaming plus amenities,” Bantug
said.
In November,
LRWC secured a 50-percent stake in Midas Hotel and Casino along Roxas
Boulevard.
“We are
always on the lookout for opportunities especially in the gaming area. We think
the gaming industry is a growth industry in the Philippines,” Bantug said.
Late last
week, a subsidiary of LRWC secured the Philippine Amusement and Gaming Corp.’s
(Pagcor) approval to operatejunket operations in Midas Hotel and Casino. Pagcor
operates the gaming facilities in the hotel.
LRWC investor
relations chief Freddie Reyes said the junket operations target Asian high
rollers, particularly Chinese mainlanders.
The expansion
program of existing businesses will allow LRWC to post higher earnings ahead of
the operations of the $1.3-billion Belle Grande Manila integrated casino
complex in Parañaque.
Early this
month, LRWC raised P1.65 billion through preferred shares, which will primarily
finance LRWC’s participation in the Belle Grande integrated resort and casino
project.
The proceeds
will also bankroll construction and capital expenditures of Midas Hotel and
Casino and Techzone office building, which will offer more than 75,000 square
meters of gross floor area in Makati.
LRWC will
also acquire and roll-out additional bingo sites.
“The
significant impact (of Belle Grande Manila) on LRWC’s bottomline will be felt
in the latter part of 2014 and 2015,” Bantug said.
LRWC
subsidiary AB Leisure Global Inc. is entitled to 30 percent of the fixed yearly
income generated from the lease of all commercial spaces in Belle Grande
Manila. It will also earn from casino operations.
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