Hong Kong-listed Suncity Group indicated that it has requested for a waiver in order to speed up the payment of US$200 million for a project site in Manila in order to confirm its right to operate the 5-star hotel and casino complex Westside City Resorts World being developed at Entertainment City.
The group had announced in October its intentions to acquire a controlling share in a Philippines company Suntrust Home Developers, Inc. (SunTrust) for PHP1.1 billion (MOP174 millions/US$21.5 millions).
Suntrust and two Philippines companies, Westside City Resort World Inc. and Travellers International Hotel Group, have reached a Co-Development Agreement with SunTrust to lease three parcels of land located at Manila Bayshore Integrated City in Paranaque City, where the integrated resort is to be erected.
The US$200 million payment to SunTrust is for the use of the Project Site and reimbursement of the costs incurred on the project site and construction works done.
Suncity specifically requested the Hong Kong Stock exchange to excuse the company from calling a shareholder meeting to vote on the payment, which if granted could fast-track the deal with SunTrust, since Suncity’s controlling shareholder – Fame Select Limited, a company held by Suncity’s chairman and an executive director Alvin Chau – will just issue a written approval without convening a general meeting.
Westside and Travellers will lease the area to SunTrust at an annual rental of US$ 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.