Philippine fertiliser product distributor Calata Corp is forming a partnership with U.S.-based Sino-America Gaming Investment Group LLC – and the latter’s subsidiary Macau Resources Group Ltd – for the construction of a casino resort on Mactan (pictured), an islet linked by bridge to the Philippine holiday island of Cebu.
Calata made the announcement in a Tuesday filing to the Philippine Stock Exchange.
“Calata has partnered with Sino-America Gaming and Macau Resources Group for the creation of a corporate vehicle intended for the future establishment of a real estate and investment trust (REIT) which shall be used for the ‘Mactan Leisure City’”, the Philippine firm stated.
The REIT – to be majority owned by Calata – still needs to receive appropriate corporate and regulatory approvals, the firm stated.
Under the Philippines’ constitution and public land laws, only Filipinos, or entities owned at least 60 percent by Filipino citizens, are allowed to own land.
In comments about the deal to the Manila Standard newspaper, Calata corporate secretary Jose Marie Fabella said his firm would acquire the land for the planned development and sign a lease agreement with Sino-America Gaming and Macau Resources Group for the development of the casino and resort project.
Sino-America Gaming controls British Virgin Islands-registered Macau Resources Group after acquiring a 73.6 percent stake in September 2014.
In a story published by GGRAsia in April 2015, Sino-America Gaming managing director Michael Foxman provided several details about the group’s plans for Mactan. At the time, Calata’s name was not mentioned.
In its Tuesday filing, Calata said Sino-America Gaming and Macau Resources Group “shall initially be infusing around PHP836.1 million [US$18.0 million] into the project, PHP234 million of which shall be put into Calata” before being invested in the project. The Mactan Leisure City “shall only be one of the numerous projects” involving the three partners, Calata stated.
The Mactan Leisure City was presented by the firm in its filing as “a PHP65-billion integrated resort incorporating three hotels, casino and entertainment complex, commercial, retail, and conference facilities, and yacht club, situated at a 14-hectare property located on Mactan Island, Cebu”. It is expected to start operations in 2020.
The firm added that the resort would include “celebrity branded themes including [those of British singer] Sir Elton John, [U.S. basketball player] Shaquille O’Neal and other licensed brands, and incorporate a variety of state-of-the-art entertainment and family leisure concepts.”
Calata said it estimated Mactan Leisure City to generate gross annual revenue of around PHP55.74 billion.
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Amount that each Macau casino operator paid for the circa six-month extension of their respective contract