By Richmond S. Mercurio (The Philippine Star) | Updated September 25, 2014 - 12:00am
MANILA, Philippines - Travellers International Hotel Group, the joint venture of property tycoon Andrew Tan’s Alliance Global Group Inc. and Genting Hong Kong Ltd., has firmed up control of the company that will develop the $1.1-billion Bayshore City Resorts World along Manila Bay for P16.15 billion.
Travellers said yesterday, it has paid a quarter of the total subscription amount, or P4.037 billion, for the purchase of additional shares of stock in Resorts World Bayshore City Inc. (RWBCI).
In a disclosure to the local bourse, Travellers said it has subscribed to 880 million common shares of stock and 2.35 billion preferred shares of stock of RWBCI at a “premium price” of P5 each.
The subscription enabled Travellers to own 95 percent of RWBCI, leaving other stockholders with the remaining five percent stake in the company.
Travellers, the developer of Resorts World Manila at Newport City in Pasay, said the balance of about P12 billion will be paid “upon call” of the firm’s board of directors.
“The company’s board of directors decided to focus on the growth and development of its core business – gaming, leisure and entertainment, which necessitated the acquisition of the majority shares of RWBCI, the company’s co-licensee in its provisional license with the Philippine Amusement and Gaming Corp. assigned to construct and develop Site A located at Manila Bayshore Entertainment City,” Travellers said.
RWBCI is the developer and operator of Bayshore City Resorts World, the last integrated resort complex scheduled to start operations in Entertainment City.
Bayshore City Resorts World will have at least 1,500 hotel rooms to be managed and operated by international hotel brands that will include The Westin Hotel Manila Bayshore of the Starwood Asia Pacific Hotels & Resorts group, Hotel Okura Manila of the Okura Hotels & Resorts, and Genting Grand and Crockfords Tower of the Genting Group.
Aside from the branded hotels, the project will also include a 3,000-seater grand opera house and a commercial complex with retail component that will have department stores, food and beverage outlets, cinemas, and entertainment and gaming facilities.
Travellers said Bayshore City Resorts World has already commenced site development, with actual construction and development to kick off later this month.
The integrated resort, expected to open by the fourth quarter of 2018, was earlier targeted to be operational starting 2016 but was deferred due to delay in the turnover of the property.
Travellers president Kingson U. Sian earlier said the initial phase of development which would start within the year would cover less than a third of the area of the 31-hectare Bayshore City Resorts World.
Sian said RWBCI would likely bring in something new and different in Bayshore City Resorts World which other integrated resort complex do not have yet.
Bayshore City is expected to be about three times the size of the existing Resorts World Manila, a resort complex which has the largest gaming facility opened in 2009.
“True to the group’s core value of establishing a truly integrated resort destination, Bayshore City Resorts World will be designed with attractions and facilities to accommodate millions of visitors and tourists annually and cater to different market segments ranging from families, the corporate sector, business travelers, tourists and the meetings and convention market,” Travellers said.