Posted on November 01, 2013 10:33:24
PM [ BusinessWorld Online ]
LISTED Century Properties Group, Inc.
has partnered with the Okada Group for a mixed-use project in Bagong Nayong
Pilipino Entertainment City in Parañaque City, the local company said in a
disclosure e-mailed to media on Friday.
"Century Properties...today
announced that it has signed a memorandum of agreement with Eagle I
Landholdings, Inc. (Eagle I), a Philippine affiliate of Universal Entertainment
Ltd., to develop five hectares of land within the 44-hectare site called Manila
Bay Resorts," the disclosure read.
Century said it will develop a luxury
residential and retail project that will have 300,000 square meters of gross
floor area.
Both companies also forged an
investment agreement "whereby Century will be issued with 432 million
preferred shares, representing 36% of Eagle I’s pro-forma capital stock."
The value of the project and
investment in Eagle I was not immediately available.
In a telephone interview, Maria
Theresa F. Yu, Century Properties vice-president for communications, said the
agreement is purely for property development.
"We will not be involved in
gaming," Ms. Yu said in a telephone interview on Friday.
According to Century Properties, both
transactions "shall occur upon satisfaction of legal and regulatory
requirements, and neither transaction contemplates Century being involved in
any aspect of the gaming operations."
Eagle I owns the 44-ha land while
Tiger Resort Leisure and Entertainment, Inc. -- another unit of Universal
Entertainment of Japanese businessman Kazuo Okada -- is one of the four
licensees at the Entertainment City.
Mr. Okada is being investigated by the
US Federal Bureau of Investigation for bribery allegations in dealing with
Philippine gaming authorities.
The deal comes after Gokongwei-led
Robinsons Land Corp. and the Okada Group last May announced that they will no
longer pursue real estate projects in the Manila Bay Resorts area. They did not
disclose the reason. Robinsons Land had planned to develop a high-rise
residential project and a retail center in the same 44-ha area.
Century Properties' net income grew by
6.57% to P1.06 billion in the first half from P944.5 million in the same six
months last year.
Revenues climbed 7.09% to P5.29
billion from P4.94 billion while cost and expenses rose 4.11% to P3.80 billion
from P3.65 billion.
Its shares gained nine centavos or
5.20% to P1.82 apiece on Thursday from P1.73 each on Wednesday. Financial markets
were closed on Friday in observance of the All Saints' Day. -- Cliff Harvey C.
Venzon
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