Hong Kong-listed Suncity Group has entered into a lease agreement for the land rights of a US$340 million land site in Manila where an integrated resort project is currently being developed.
A 5-star hotel and casino complex named Westside City Resorts World is currently being developed in the land site by Philippines construction group Megaworld Corporation and by Resorts World Manila operator Travellers International Hotel Group, a joint venture between Genting Hong Kong and Alliance Global Group.
Suncity had previously announced it had to complete a US$200 million (MOP1.6 billion) payment required for the use of the land site by March 28.
Westside City Resorts World is being developed by the Philippines construction group Megaworld Corporation and by Resorts World Manila operator Travellers International Hotel Group, a joint venture between Genting Hong Kong and Alliance Global Group.
The agreement was reached between Suncity’s recently acquired subsidiary, Suntrust Home Developers, Inc. (SunTrust), and Westside City Resort World Inc. and Travellers International Hotel Group, with a US$10.6 million in annual rent to be charged after the commencement of operations of the property’s casino.
The project site is currently evaluated at US$340 million, with Suntrust to hold the land rights until August 19, 2039, which shall automatically be renewed for another 25 unless otherwise agreed upon by the lessor and the lessee.
Suncity will also recognise US$184.5 million in Right-of-Use Asset and another US$184.5 million as lease liability under in its consolidated financial statements.