GGRAsia – Universal Ent affiliate to develop land next to Okada Manila

Universal Ent affiliate to develop land next to Okada Manila

Mar 24, 2023 Newsdesk Latest News, Philippines, Top of the deck

Japanese gaming conglomerate Universal Entertainment Corp says that one of its affiliate companies is planning to develop a plot of land close to the Okada Manila casino resort (pictured) in the Philippine capital, Manila. The update was part of a revision of the group’s business results forecast for 2023, published on Thursday.

In the latest statement, Universal Entertainment said Tiger Resort, Leisure and Entertainment Inc – a group subsidiary and promoter of Okada Manila – cancelled a portion of its land lease contracts with Eagle I Landholdings Inc. Eagle I is an affiliate of Universal Entertainment, in which the latter group has a 40 percent interest.

The parent company also said that Eagle I “intends” to develop a land plot with a total area of 9.4 hectares (23.2 acres) alongside Okada Manila. As such, it announced the cancellation of a lease contract for a 6.1-hectare portion of the land plot.

In March 2021, Universal Entertainment said it had terminated a deal to sell the plot of land near Okada Manila. The group stated at the time that the total value of the land sale amounted to approximately PHP13.18 billion (US$242.8 million, at current exchange rates).

The Japanese company said previously it had real estate development aspirations related to Okada Manila, and a wish to collaborate with third parties in order to “entice major brand hotels” to the Philippine market.

As a result of the land lease cancellation, Universal Entertainment stated on Thursday it was upping its forecast for full-year net income to JPY20.00 billion (US$152.9 million), from JPY10.00 billion. That was based on cost savings associated with the cancellation of rental contracts, among other factors linked to the land lease.

The Japanese conglomerate posted a net profit of nearly JPY11.51 billion for full-year 2022, on group-wide sales that rose 55.9 percent year-on-year, to just below JPY141.00 billion. That compared with a JPY19.05-billion loss in 2021.

In separate developments, Universal Entertainment said earlier this week that it was seeking to terminate a deal with United States-listed 26 Capital Acquisition Corp that would involve the listing in the U.S. of the operator of the Okada Manila.

26 Capital – a special purpose acquisition company (SPAC) listed on the Nasdaq stock market in the U.S. – said in a statement to GGRAsia that it was pursuing legal action against four entities linked to Universal Entertainment because they “were not honouring their contractual obligations” regarding the deal.