GGRAsia – Suntrust gets new US$17mln loan for Manila hotel casino

Suntrust gets new US$17mln loan for Manila hotel casino

Jun 20, 2024 Newsdesk Latest News, Philippines, Top of the deck

Suntrust Resort Holdings Inc, the developer for an under-construction hotel casino (pictured in an artist’s rendering) at Westside City in the Philippine capital Manila, says its board agreed to receive a US$17-million loan from LET Group Holdings Ltd.

The decision was made at a meeting held on Wednesday, said the company in filing to the Philippine Stock Exchange.

The proceeds are “intended to fund project costs and the construction of the main hotel casino,” said Suntrust. The loan is payable within 10 years of the execution date.

Hong Kong-listed LET Group indirectly controls Suntrust, which is due to start operations at its hotel casino in the “first quarter of 2025”.

Suntrust stated the loan agreement “is not expected to have any adverse effect on the business, operations, and financial condition of the company as it is expected to redound to the benefit of the company”.

In April, Suntrust said it had agreed to a US$38-million loan from LET Group, as the company races to complete construction of the hotel casino.

In June last year, Suntrust stated it had mortgaged “all or substantially all of the company’s assets and properties” under a loan facility of up to PHP25.00 billion (US$425.3 million currently), provided by China Banking Corp.

The new gaming property will use the casino licence of Travellers International Hotel Group Inc, the operator of the Newport World Resorts casino complex in Manila.

In an interview with GGRAsia earlier this month, the head of the Philippine Amusement and Gaming Corp (Pagcor), Alejandro Tengco, said he had received assurances regarding the opening of the hotel casino being developed by Suntrust.

“I am very confident that the project will open, primarily because they’re using Travellers’ licence,” Mr Tengco, chairman and chief executive of the country’s gaming regulator, told GGRAsia.

He added: “I had a dialogue with the top management of Travellers, and I got assurances that they would definitely make sure that the project will be completed.”