Published on 31 October 2012 [
manilatimes.net ]
Written by MADELAINE B. MIRAFLOR
AB Leisure Global Inc. (ABLGI), a
wholly owned subsidiary of Leisure & Resorts World Corp. (LRWC), is set to
provide P4 billion for the construction of LRWC’s Belle casino project in
Entertainment City, which has a project value of $1 billion.
“ABLGI will provide funding to Belle
for the Casino Project equivalent to 30 percent of Belle’s interest, or an
estimated P4 billion which will be funded through debt and internally generated
income,” a memorandum of agreement on the matter said.
ABLGI, in exchange for its
contribution, will be entitled to 30 percent of the fixed yearly income
generated from the leasing of all commercial spaces in the project, inclusive
of the hotel, retail and casino premises.
The company will also be paid fees equivalent
to “30 percent of Premium Leisure and Amusement Inc.’s [PLAI], another wholly
owned subsidiary of LRWC, 50 percent share from casino operations or 30 percent
of PLAI’s 15 percent share of the net win, whichever is higher, after deducting
PLAI’s royalty which is based on gross win.”
“ABLGI and LRWC have agreed to amend
their previous agreements because of the changes in the development guidelines
issued by the Pagcor on July 18, 2011, which effectively and materially changed
the terms and conditions of the Provisional License granted to the SM
Consortium in December 2008,” a company statement said. Pagcor is the
Philippine Amusement and Gaming Corp.
Belle casino project is an integrated
resort complex and casino that will rise in the Pagcor Entertainment City in
Parañaque City by next year.
In the previous week, Belle Corp.
partnered with Melco Crown Entertainment Ltd. (MCE), a company listed in the
Hong Kong Stock Exchange, for the development and operation of the
aforementioned project.
Belle Corp., together with its
wholly-owned subsidiary, PLAI, formally entered into a cooperation agreement
with MCE for cooperation in the development of the casino and resort project.
MCE, a developer and owner of
integrated resort facilities focused on the Macau market, has an operating
complex known as the “City of Dreams,” which 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 based in Macau.
MCE is also building its second
integrated resort in Macau called “Studio City.”
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