Stock News 2013: $4B Manila mega-casino complex to open in March

English: Hotel / Casino New York-New York in Las Vegas. Français : L'hôtel-Casino New York-New York à Las Vegas, dans le Nevada. (Photo credit: Wikipedia)

A $4-billion mega-casino complex is set to open in Manila in mid-March when the first of four franchise-holders starts commercial operations, the parent firm said in a disclosure released Wednesday.

The $1.2-billion Solaire Manila Resorts is one of four gaming operations licensed to operate at Manila’s bayside Entertainment City, a government project designed to compete with Macau, Las Vegas and Singapore as a gaming hub.

Boasting 500 hotel rooms set in modern resorts, Solaire will open its doors on March 16, parent company Bloomberry Resorts Corp. said in a disclosure to the Philippine Stock Exchange.

“[We] confirm that [Bloomberry’s] Solaire Manila Resorts and Casino has collected the top former operating officers of world-renowned casinos in Las Vegas and other parts of the world,” it said in a letter to the exchange.

The Feb. 5 letter, released by the bourse Wednesday, said these personnel include around 400 Filipinos who have worked in gaming and hotels across the world.

Solaire plans to add 300 more hotel rooms after two years, said Bloomberry, a listed firm controlled by port tycoon Enrique Razon.

Two other franchise-holders—one involving Australian billionaire James Packer and Macau gaming tycoon Lawrence Ho as shareholders and another with Japanese gambling tycoon Kazuo Okada—are also building at the complex.

The 100-hectare (247-acre) Entertainment City, a project of the state-owned gaming regulator Philippine Amusement and Gaming Corp., required each of the franchise-holders to invest at least $1 billion.

A unit of global leisure and entertainment group Genting Hong Kong Ltd. is a key investor in the fourth franchise.

Bloomberry said it could not confirm a local news report that the entire Entertainment City project would generate annual revenues of at least $10 billion by 2017, putting it among the world’s gaming big leagues.

http://business.inquirer.net/106351/4b-manila-mega-casino-complex-to-open-in-march

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Stock News 2012: Manchester International raises public ownership to 11.84%

Hard Rock Hotel Macau (Photo credit: Wikipedia)

Manchester International Holdings Unlimited Corp. (MIH), the local backdoor listing vehicle of the Melco casino group of Macau, has boosted its public ownership to 11.84 percent, eliminating risks of trading suspension.

MIH, in a disclosure to the Philippine Stock Exchange on Friday, said a substantial stockholder had sold shares in the company, thereby complying with the 10-percent minimum public float required to remain listed on the PSE. Prior to this transaction, MIH had a public float of only 6.79 percent.

MIH complied with the requirement ahead of the Melco group’s tender offer to minority shareholders in early 2013. Melco, through its local holding firms, will make a tender offer at about P3.15 per share for MIH’s class A (open only to local investors) and at about P3.55 for its class B (open to both local and foreign investors) shares.

The tender offer period will run from Jan. 11 to Feb. 11 next year.  Minority stockholders who will tender their shares will be paid in cash and in full on settlement date targeted by Feb. 18. The tender offer agent is ATR Kim Eng Securities.

Melco is a developer and owner of integrated resort facilities focused on the Macau market. Its “City of Dreams” complex is a highly successful project that houses a gaming facility, an upscale retail operation, restaurants and bars, and hotels such as Crown Hotel, Grand Hyatt Hotel and Hard Rock Hotel. The complex is also known for “The House of Dancing Water” show.

The Macau casino group—which is co-owned by Lawrence Ho Yau Lung, son of casino mogul Stanley Ho Hung Sun and Australian billionaire James Packer—is building its second integrated resort in Macau called “Studio City.” The group sees its experience in developing world-class integrated resorts such as the City of Dreams in Macau to allow it to take advantage of the anticipated growth in the leisure and tourism industries in the Philippines.

http://business.inquirer.net/100031/manchester-international-raises-public-ownership-to-11-84

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Stock News 2012: Casino developers pool funds for P15-B road

Entertainment City (Photo credit: Cajie)
Four of the country’s biggest conglomerates are pooling their resources to build a P15-billion megastructure that will connect the 100-hectare Pagcor Entertainment City along Manila Bay to the Ninoy Aquino International Airport (NAIA) and the Skyway.

The STAR learned that the groups granted separate licenses by the Philippine Amusement and Gaming Corp. (Pagcor) to operate casinos at the Entertainment City are financing P6.5 billion of the projected P12 billion to P15 billion cost of building the bridge/road infrastructure that will connect NAIA Terminal 3-Skyway to the Entertainment City.

The four include Bloomberry Resorts and Hotels Inc. of port operator Enrique Razon that will build the 16-hectare Solaire Manila luxury casino and hotel-resort project; the Tiger Resorts project to be jointly undertaken by Japanese billionaire Kazuo Okada in partnership with the Gokongwei Group and taipan Andrew Tan (the latter for land development); Tan’s Alliance Global Group Inc. (Travellers International) for the 31-hectare Resorts World Bayshore project in partnership with Genting Hong Kong Ltd.; and a consortium led by retail king Henry Sy in partnership with Macau casino giant Melco Crown Entertainment-owned by Australian billionaire James Packer and Lawrence Ho, son of Macau gaming tycoon Stanley Ho.

Pagcor chairman Cristino Naguiat Jr. told The STAR that Pagcor and the Department of Public Works and Highways (DPWH) are scheduled to sign an agreement this week or next for the project, which will be undertaken without any cost to the government, except probably for the acquisition of right-of-way.

Of the estimated project cost, P6.5 billion will be shouldered by the four proponents while the balance will have to be spent by the group that will bag the contract to undertake the construction of the infrastructure project. DPWH will undertake the bidding for the project, which Naguiat described as a hybrid Public-Private Partnership (PPP) project.

The project will have a ramp to NAIA Terminals 1, 2, and 3 to facilitate the travel of visitors to and from the casinos at the Entertainment City, which Naguiat expects will have an edge over those of Singapore and Macau.

“In Singapore and Macau, there is nothing to see because these places are so small. Entertainment City, on the other hand, will just be a small part of a bigger tourism package. It will become part of the Department of Tourism’s national development plan,” Naguiat added.

Bloomberry’s casino will be the first to go onboard by the first quarter of next year, followed by the Belle-Melco project by the end of 2013. Next will be the Okada-Gokongwei joint venture which will start end of 2014, followed by the Alliance Global casino by the last quarter of 2015 or early 2016.

Pagcor has required all licensees to put in a minimum $1-billion investment in each integrated resort (to be spent before the term of President Aquino ends in 2016), build a minimum of 250,000 square meters of floor area and complete 800 hotel rooms with an average room area of 40 square meters. The Los Angeles Lakers are close to a deal with free agent forward Antawn Jamison, according to Rick Bonnell of the Charlotte Observer. Jamison was also considering signing with the Charlotte Bobcats because it would have meant he could close out his career close to home.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=828171

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Stock News 2012: Leisure & Resorts World to invest P3 B in Sy-led casino venture

Las Vegas Strip (Photo credit: Wikipedia)
Leisure & Resorts World Corp. (LRWC) will invest as much as P3 billion in a $1 billion casino venture with Sy-led upscale leisure developer Belle Corp. and Macau casino firm Melco Crown Entertainment.

LRWC turned over to Melco the task of managing and operating the integrated casino and hotel complex Belle is building within the 100-hectare Entertainment City along Manila Bay, in exchange for a share in the project’s earnings.

LRWC was originally supposed to manage the casino and split EBITDA (earnings before interest, taxes, depreciation and amortization) evenly with Belle for a 10-year time frame. Belle and LRWC, however, decided to amend their earlier arrangement to make way for the entry of Melco.

Sources said LRWC is likely to get a maximum 30 percent share of the lease rental payments to be made by Melco to Belle for the casino property.

Aside from that, LRWC is expected to get up to 15 percent of the casino’s revenues.

Sources said LRWC would invest up to P3 billion in the entertainment complex, which will come from a combination of cash and debt.

LRWC was tapped by Belle in 2011 to handle the gaming component of the integrated resort given the latter’s lack of gambling experience. Formerly Atlas Fertilizer Corp., LRWC operates professional bingo and interactives games licensing at the Cagayan Economic Zone Authority.

The Sy family’s flagship company SM Investments Corp. is involved in five core businesses – retail merchandising, mall operations, property, banking and hotel and leisure.

Belle was initially looking at teaming up with US-based Harrah’s Entertainment Inc., which owns over 50 casinos under the Bally’s, Caesars, Horseshoe and Rio brand names but talks bogged down. Belle eventually picked LRWC as its partner for the project.

The huge financing requirement and the Philippine Amusement & Gaming Corp.’s requirement for a minimum 800-room hotel to be in place before casinos could operate within the Entertainment City, hindered the development of the project, prompting Belle and LR to find a foreign strategic partner.

Belle may have found the perfect fit in Melco, which has placed a large bet on expanding to one of the world’s emerging casino markets. Melco expects to invest up to $580 million over the course of project.

The project, located in an area that is envisioned to become the Philippines’ version of the Las Vegas strip, would be Melco’s first outside Macau, where it operates the City of Dreams and Altira Macau casinos. The company is developing its third casino, Studio City, which is slated for opening in 2015.

Melco said it was entering the Philippine gaming market because the country is a popular tourist destination and close to major sources of tourists including South Korea, Taiwan, Japan and China.

Melco said it wanted to “take advantage of the anticipated growth in the leisure and tourism industries in the Philippines, which will cater to an increasingly affluent and growing Asian middle class who continue to seek new travel destinations and experiences.”

Gambling revenues in Philippines are forecast to grow from $1.3 billion in 2011 to $3 billion in 2015 once four new resorts are completed.

Three other groups with casino licenses in the Entertainment city include port tycoon Enrique Razon’s Bloomberry Resorts Corp., Travellers Group (a joint venture between Malaysian casino company Genting Hong Kong Ltd. and property tycoon Andrew Tan’s Alliance Global Group Inc.), and Universal Entertainment Corp. of controversial pachinko billionaire Kazuo Okada.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=825452

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Stock News 2012: Sy group, Macau casino operator forge $1-B gaming complex deal

MACAU, CHINA - FEBRUARY 01: Singer Coco Lee poses for the media wearing a copy of the iconic white rhinestone glove worn by Michael Jackson during the opening ceremony of the MJ Gallery at Ponte 16 Resort-Macau on February 1, 2010 in Macau, China. Michael Jackson famously wore his white rhinestone glove at the 1983 Motown 25 Television Special, where he premiered the moonwalk to the world. (Image credit: Getty Images via @daylife)Belle Corp., controlled by the family of retail tycoon Henry Sy, has struck a partnership with Melco Crown Entertainment Ltd., paving the way for the entry of the Macau casino operator into the rapidly gaming market in the Philippines.

Belle vice-chairman Willy N. Ocier said an agreement has been signed yesterday between the company and Melco on their collaboration involving a $1-billion casino-hotel project along Roxas Blvd.

“We’re announcing tonight. Done already,” Ocier said as of presstime yesterday.

Ocier said the terms of the deal would be crafted in the next 60 days.

He pointed out that their original partner, Leisure & Resorts World Corp., is still very much part of the project amid speculations it would be bought out by Melco Crowne, which is backed by the sons of Macau gambling kingpin Stanley Ho and the late Australian casino-and-media magnate Kerry Packer.

Melco is one of only six casino license holders in Macau, the world’s largest gambling market. It runs two casino-resort properties in the Chinese territory and has a 60 percent stake in a project that is undergoing construction.

The Belle-Melco partnership is seen as a big boost to the Philippines’ goal of becoming a major gaming haven in Asia.

It will also provide Melco a foothold in the Philippine gaming market, which it has long cast its eyes on.

Packer was earlier reported to be increasingly turning to casinos to expand his business as he aims to create a Pan-Asian gambling empire. His company, Crown Ltd., owns about a third of Melco Crown, which owns fast-growing casinos in Asia’s gambling capital of Macau.

The project, Belle Grande Manila Bay, will have a gross floor area of more than 25 hectares when it opens its doors to the public in 2013.

http://www.philstar.com/Article.aspx?articleId=824419&publicationSubCategoryId=66

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Stock News 2012: Belle in casino talks with Aussie, Macau tycoons

English: Gold Bars At Grand Emperor Casion in Macau (Photo credit: Wikipedia)
Belle Corp., a leisure developer and gaming firm controlled by the family of the country’s richest man Henry Sy, is in discussions with Melco Crown Entertainment Ltd., a the casino operator run by Australian billionaire James Packer and Macau gambling tycoon Lawrence Ho, for a possible casino venture in the Philippines.

Belle vice chairman Willy N. Ocier said talks are still ongoing and nothing final has been agreed.

The Australian Financial Review newspaper reported that Packer and Ho were set to sign a deal with the Sy family to expand their casino empire into the Philippines.

When asked whether the deal would involve an investment by Melco Crown in the venture, Ocier said: “We’re not sure about that. We’re still talking.”

Belle is building Belle Grande Manila Bay, a $1-billion integrated entertainment resort that has attracted interest from some of Asia’s richest tycoons.

Packer was earlier reported to be increasingly turning to casinos to expand his business as he aims to create a Pan-Asian gambling emptire. His company, Crown Ltd., owns about a third of Melco Crown, which owns fast-growing casinos in Asia’s gambling capital of Macau.

Packer and Ho earlier signified their interest to make their presence felt in the Philippines, which is seen to become a major gambling destination similar to Macau and Singapore.

Located at the more than 100-hecare Entertainment City along Roxas Blvd., Belle Grande Manila Bay will have a gross floor area of more than 25 hectares when it opens its doors to the public in 2013. The complex will house 1.8 hectares of gaming space with around 350 gaming tables and 1,900 slot machines.

The main podium will feature six luxury hotel towers with more than 800 rooms under three brands of five-star and six-star quality.

The resort complex will also contain more than two hectares of retail and dining operations. The mall, with a gross floor area of 60,000 to 80,000 square meters, is expected to be completed within 12 to 18 months.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=821627

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Stock News 2012: Solaire Manila to open by 1st quarter of 2013

The first phase of Solaire Manila, a new resort and gaming complex in Pagcor's Entertainment City, is expected to open by the first quarter of 2013, according to Bloomberry Resorts Corp.

In a disclosure to the stock exchange, Bloomberry said construction of phase 1 of Solaire Manila is expected to be completed by the fourth quarter of 2012.

Bloomberry, a property company led by ports magnate Enrique Razon, owns Solaire Manila through its subsidiary Sureste Properties Inc.

Phase 1 of Solaire Manila will consist of 27,700 square meters of gaming area. The casino will have 1,200 slot machines and 300 gaming tables. It will have a hotel with 500 rooms, several restaurants, multilevel parking building with 3,000 parking slots, as well as a grand ballroom, spa and bayview promenade.

Bloomberry said Solaire Manila will provide a first-glass gaming experience to customers, from mass market to VIPs. The company aims to provide VIP gaming experience at par with international casinos.

Solaire Manila has hired former casino executives from Macau and Las Vegas to be part of its management team. Michael French a, former senior vice-president of City of Dreams Macau, was named chief operating officer. Xingyu (Ed) Chen, ex-financial controller of Wynn Resort Macau, was named chief financial officer.

http://www.abs-cbnnews.com/business/04/06/12/solaire-manila-open-1st-quarter-2013