Hong Kong-listed casino operator and real estate developer Suncity Group Holdings Ltda. Has tapped into a Philippine development giant to build its planned hotel-casino complex in the Entertainment City area of Manila, news broke on Monday. Friday.
A local Suncity subsidiary, SunTrust Home Developers Inc., has signed the necessary construction agreements with Megawide, the company announced.
According to a statement released Friday by Suncity, its Philippine subsidiary and Megawide have signed two separate agreements that will see the Hong Kong-listed operator pay a total of HK $ 1 billion (approximately $ 130 million) for the completion of construction work on the planned Suncity complex.
Under the terms of the first of the two agreements, Megawide will receive slightly less than HK $ 650 million for the construction of the basement, podium and tower of the main hotel and casino building. The second agreement will make Suncity pay Megawide HK $ 364.3 million to complete pile finishing, excavation and lateral support work.
Suncity first announced plans to enter the Manila hospitality and gaming market in October 2019. In February, the company signed a lease for the site that will be used for the development of its planned hotel and casino complex in the Philippine capital.
Last fall, Suncity partnered with Westside City Resorts World Inc. to jointly develop a hotel and casino complex that will be part of the new township of Westside City Resorts in the entertainment city of Manila.
Entertainment City is a concept introduced by the Philippine government in the early 2010s that includes integrated casino complexes and other entertainment and hospitality facilities that aim to boost the tourism industry in Manila and the Philippines.
The complex proposed by Suncity will have a casino with 1,200 slot machines and 400 table games, a five-star hotel with 400 rooms and a 44,000-square-meter parking lot with 960 spaces, among other amenities. The hotel-casino complex would be aimed at both high-end casino players and mass market customers.
As mentioned above, Suncity’s SunTrust subsidiary signed a lease for the site where the property would be developed. Under that contract, SunTrust would pay an annual rent of $ 10.6 million once the planned complex is complete and operational.
The contract is valid until August 19, 2039 and is scheduled to automatically renew for another 25 years.
Commenting on its decision to expand to the Philippines, Suncity CEO Andrew Lo said last year that “outside of Macau, the most worthy city for games is Manila Due to the scale, three international brands and facilities, the airport […]. ”
Suncity’s SunTrust subsidiary is 51% owned by the Hong Kong-listed company, while Philippine real estate developer Megaworld Corporation owns a 43.5% stake and Aurora Securities owns the remaining 5.5%.