Calata partners with investment, gaming firms for P65B casino resort in Cebu
MANILA, Philippines – Listed agribusiness company Calata Corporation has partnered with a US-based investment group and a Macau-based gaming operator to create a real estate and investment trust (REIT) for a P65-billion, 14-hectare casino resort on Mactan Island, Cebu.
Expected to be opened in 2020, the development will introduce 3 luxury hotels, an entertainment complex featuring a full-scale casino, and retail shopping.
REIT is a stock corporation created primarily for the purpose of owning income-generating real estate assets.
Calata told the Philippine Stock Exchange (PSE) on Tuesday, August 23, that it has teamed up with Sino-America Gaming Investment Group, LLC and Macau Resources Group Limited for the REIT that will be used for the 14-hectare casino resort called Mactan Leisure City. (READ: Rockwell to build resort in Cebu, hotel in Makati)
A 'game-changer' in Cebu
Calata said in the regulatory filing that Mactan Leisure City will "generate tens of thousands of employment opportunities" and is expected to have a gross revenue of about P55.74 billion yearly.
The listed firm added that Macau Group and Sino will initially be infusing around P836.10 million into the project.
Around P234 million of that will then be poured into Calata, which in turn will invest the funds into its majority-owned corporate vehicle.
The remaining P602.10 million will be directly infused from Sino into Calata's majority-owned corporate vehicle, the local firm told the PSE.
After the announcement, shares of Calata ballooned by 28.16% to P3.55 each on Tuesday.
Look into agri-related deals
Calata said Mactan Leisure City will be just one of the many projects the firm and its partners will be handling.
Sino and Calata will be looking into agri-related projects and other related opportunities, as the US-based investment firm views the Philippine agriculture sector as a business opportunity.
According to Calata, Sino wants to invest in Philippine agriculture "not only to increase profitability, but also to stabilize regional food supply, and reduce door cost while providing fresh locally grown produce." – Rappler.com