Suncity Group reported to the Hong Kong Stock Exchange on Thursday that it had gained shareholder approval to invest in land in three parcels of land located at Manila Bayshore Integrated City.
Suncity told the exchange it had written approval to pay, through Suntrust Home Developers, an initial US$200 million as provided under a co-development and lease agreement with Westside City Resorts World and Travellers International Hotel Group.
The shareholders also approved Suntrust’s lease agreement with Westside and Travellers as lessor of the parcels of land.
The lease covers an original term until August 2039, renewable automatically for another 25 years. Annual rental fees will be in the amount of US$10,600,000, exclusive of the applicable taxes.
The agreement comes as part of moves by Suncity to operate a casino in the Philippines, which began in October last year when Suncity acquired a controlling stake in SunTrust for the rights to build a five-star hotel with at least four hundred rooms and a casino with four hundred gaming tables and 1,200 slot machines for both the mass and VIP markets.