SUNCITY Group Holdings Ltd. said it looks to raise $30 million to finance its venture into the local gaming business.
The company said it is eyeing to raise the fund by July 31, 2020, following its unit Suntrust Home Developers Inc.’s inking of a third supplemental agreement with Westside City Resorts World Inc.
The amount will be used for the construction and development of the site where the company will operate a casino-hotel at the Westside City Resorts World in the Bay area.
In February, Suncity said through Suntrust, it has signed a leasing agreement with Westside City Resorts World Inc. and Travellers International Hotel Group Inc. for a $10.6-million annual rent for the site.
The company said the contract will run for 25 years and is renewable by another 25 years, “commencing from the latter of the first day of commencement of operation of the casino establishment of the main hotel casino and the fulfilment of the conditions precedent.”
Suntrust said rent was determined “by reference to the assessment of an independent valuer on the indicative market value of the project site” of $340 million, and will be paid on “two installments payable on a semi-annual basis.”
“The lease agreement is subject to conditions precedent, including obtaining by Suncity Group Holdings Limited of the necessary approval of its shareholders to the Lease Agreement and the transactions contemplated thereon. It is also subject to announcement requirements of the Hong Kong Stock Exchange,” Suntrust said.
The signing of the lease agreement follows the completion by Suncity of its entry into Suntrust early this year in preparation for its venture into the Philippines’ gaming/tourism industry.
The Suncity Group is known to have extensive experience in the leisure and entertainment business, and is actively seeking investment opportunities in integrated resort projects worldwide including Cambodia, Philippines, Myanmar, South Korea, Japan, Russia and Vietnam.
Other than investment in integrated resorts, the Suncity Group is also engaged in integrated resort consultancy services as well as travel related products and services.
As of the first half of last year, the Westside City developers already spent P96.5 billion on the project that will start operations before 2023.
“Suntrust believes that the tourism sector, which has seen significant growth in recent years, will continue to show sustainable growth and attract more investments. Suntrust is also optimistic that with the support of its shareholders, it will be able to drive more growth for the company and contribute to the tourism industry,” Suntrust then said in a statement.
