With Melco's PH entry, LRWC hikes stake in casino venture
MANILA, Philippines - With the entry of Macau and Australian billionaires into the casino venture of the Sy family, another player, listed Leisure & Resorts World Corp. (LRWC), is asserting its role in the upcoming integrated casino and entertainment complex in Manila.
In a statement on Monday, October 29, LRWC said its agreement with the Sy-led Belle Corp. has been revised to take into account a planned increase in LRWC's stake in the US$1-billion Belle Grande Integrated Resort and Casino Project.
LRWC's role as operator of the hotel and casino project has been assumed by Melco Crown Entertainment Inc, a Macau-based casino operator led by Australian billionaire James Packer. Melco, Belle and LRWC's unit Premium Leisure and Amusement, Inc. (PLAI) sealed their deal recently.
LRWC asserted that it will acquire a 30% stake in the venture in exchange for a P4 billion financing plan. LRWC said this was part of the deal Belle and Melco had forged.
In exchange for its contribution, LRWC's wholly-owned subsidiary AB Leisure Global, Inc. (ABLGI) will be "entitled to 30% of the fixed yearly income generated from the leasing of all commercial space in the project, inclusive of the hotel, retail and casino premises."
ABLGI will also be "paid fees equivalent to a 30% of PLAI’s 50% share of the earnings before interest, taxes, depreciation, and amortization from casino operations or 30% of PLAI’s 15% share of the net win, whichever is higher, after deducting PLAI's royalty, which is based on gross win."
LRWC also said it is in talks with bank to raise most of the P4 billion funds.
The casino and tourism projects at the Pagcor Entertainment Complex in Pasay are expected to put the Philippines on the world gambling map. The Philippines billionaires are betting on business opportunities, ranging from real estate development, retail, communications, among others. - Rappler.com