SUNTRUST Home Developers Inc. said it has signed an agreement with Westside City Resorts World Inc. for the operation and management of the main hotel casino in the latter’s Westside City Resorts World in the Manila Bayshore Integrated City in Paranaque City.
Suntrust said the agreement takes effect upon its execution and has a term of until July 11, 2033. It shall be automatically extended or renewed, unless terminated earlier in accordance with the provisions of the agreement.
The agreement follows the signing of a lease agreement between Suntrust and Westside City and Travellers International Hotel Group Inc. on the site where the former will operate a casino-hotel in the latter’s Westside City Resorts World.
The annual rent is $10.6 million.
Suntrust said the contract will run for 25 years and is renewable by another 25 years.
Suntrust, which is 51 percent owned by Macau’s Suncity Group Holdings Limited, 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 has 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.
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, developers of Westside City have spent P96.5 billion on the project that will start operations before 2023.