GGRAsia – Suntrust starts recruiting for Manila scheme: Summit Ascent

Suntrust starts recruiting for Manila scheme: Summit Ascent

Sep 14, 2023 Newsdesk Latest News, Philippines, Rest of Asia, Top of the deck

Philippine-based Suntrust Resort Holdings Inc is starting to hire workers to operate the casino hotel the firm is developing in Manila, the Philippine capital. The information was disclosed by Hong Kong-listed Summit Ascent Holdings Ltd in its interim report, filed on Wednesday.

Suntrust is indirectly controlled by casino investor Hong Kong-listed LET Group Holdings Ltd. The latter also controls Summit Ascent.

In a separate filing also on Wednesday, Summit Ascent said its shareholders had agreed to a plan for the firm to subscribe to convertible bonds in the principal amount of up to PHP13.51 billion (US$240.0 million) to be issued by Suntrust, as part of the latest “financial assistance” package to the latter firm.

In June, Summit Ascent had said that investors linked to Suntrust would have to inject an additional PHP19.37 billion as cash equity into the project, as part of conditions for a fresh loan facility.

Summit Ascent said in its interim report that Suntrust was “starting the employee recruitment process” for the operations team for its under-construction Manila resort (pictured in an artist’s rendering).

It added that, up to the end of June, Suntrust had already invested a total of US$461.1 million in the project, “representing approximately 42 percent of the estimated total construction and development costs”.

Summit Ascent’s interim report said the topping-off of the 12-level project had already taken place, and “façade works were in progress”.

It added: “Podium is now in a water-tight condition for the commencement of interior fit-out works in the coming months”.

Susntrust has stated previously it plans to launch operations at the property in the fourth quarter of 2024.

In its interim report, Summit Ascent also referred to the impact of the Russia-Ukraine conflict in the operations of the firm’s Tigre de Cristal casino resort, at Primorye, near the Russian Pacific port of Vladivostok.

“The drastic drop in the number of inbound tourist arrivals in the Russian Federation due to geopolitical tensions has been unprecedented,” the firm said, adding that the “uncertainties” associated with the ongoing war were “compounded by Western countries’ sanctions and the ban on Russian airspace”.

“Thus it may not serve our shareholders’ interests to continue deploying capital in building the Tigre de Cristal Phase II,” the firm stated, confirming the expansion plan was currently “suspended”.

Summit Ascent swung to a HKD16.1-million (US$2.1-million) loss in the first half to June 30, compared to a HKD85.2-million profit in the prior-year period, it reported last month.