SunCity’s Philippines subsidiary, Suntrust Home Developers is doubling down on its Philippines casino business by offloading its non-core property business.
According to a filing to the Hong Kong Stock Exchange, Suntrust on Thursday disposed of its remaining 24.27 percent interest in First Oceanic Property Management Group (FOPM), a company that is primarily involved in the management of real estate properties in the Philippines.
In the filing, Suncity said it made the decision to dispose of the shares in FOPM as its business is “entirely unrelated to the casino and entertainment market of the Philippines in which the Group is investing,” and that “the Disposal allows the Group to dispose of its non-core business, focus on and deploy its resources to its principal businesses.”
Suncity said it intends to apply the net sale proceeds from the Disposal as general working capital and to partially finance the construction of Westside City Resorts World.
The purchaser is a 50% owned company of Megaworld, a company that holds a 34 percent interest in SunTrust and is co-developing the Philippines casino resort.
MGM China is expecting strong results during the Summer holidays and hopes that the recent Golden Week holiday may have marked a turning point for the industry, according to President and Chief Financial Officer Kenneth Xiaofeng.
The renewed outbreaks of Covid-19 have significantly clouded the recovery prospects for both Genting Singapore and its sister company Genting Malaysia, with analysts at Nomura cutting their estimates for both companies.
For this edition of our magazine, we focus on Southeast Asia, with a particular look at the Philippines. The country’s casino industry has been among the hardest hit in Asia, with the integrated resorts in Manila’s Entertainment City having remained mostly closed to the general public since the beginning of the crisis last year.
The world is bouncing back, or at least coming to grips with the fact that going forward not much will be the same as before. Commendably, this industry quickly understood the need to adapt to a new normal, and that the days of targeting the low hanging fruit of the VIP sector are gone.