Hong Kong-listed Suncity Group has announced that by March 28 it will complete a US$200 million (MOP1.6 billion) payment required for the use of the land site in Manila where an integrated resort project will be developed.
On January 20 Suncity’s recently acquired subsidiary, Suntrust Home Developers, Inc. (SunTrust), reached a supplemental agreement with two Philippines companies, Westside City Resort World Inc. and Travellers International Hotel Group, for the payment schedule of a US$200 million payment for use of the site where the 5-star hotel and casino complex Westside City Resorts World will be at Entertainment City and construction costs incurred.
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 predicts that a refundable deposit of US$20 million shall be paid on or before January 31, with the remaining to be be paid within 10 days from the date on which all the conditions precedent under the Co-Development Agreement are fulfilled.
If these conditions are not met by March 28 the deposit shall be refunded by Westside to SunTrust within 10 business days.
Westside and Travellers will lease the area to SunTrust at an annual rental of US$10.6 million for a term of 20 years, commencing from the date of the handover to SunTrust and automatically renewable for a further term of 25 years.
The hotel – of which SunTrust will be the exclusive operator – will be a 5-Star hotel with at least 400 rooms, the average standard room size of which shall not be less than 34 sq.m.; plus a casino with 400 gaming tables, 1,200 slot machines for both mass and VIP markets and 960 car parking slots.