SunTrust adds US$82 million deposit for Manila project

The Suncity Group Holdings has provided an additional US$82 million deposit, through its Philippines subsidiary Suntrust Home Developers, to Westside City Resort World, a subsidiary of Travellers International Hotel Group.

This represents the third refundable deposit following earlier installments of US$20 million and US$46 million, making a total of US$148 million.

Moreover, Suntrust currently has until December 31 to raise at least US$300 million for the construction and development of the project, under the terms of the agreement.

In a separate disclosure, Suntrust announced that it is borrowing PHP7.3 billion (US$146 million) at a 5.25 percent annual rate to be used to finance the project.

In February, Suncity announced that SunTrust had signed a twenty-year lease agreement with Westside to develop and operate its casino hotel.

Last October, Suncity acquired a controlling stake in SunTrust for the rights to build a five-star hotel with at least 400 rooms, a casino with 400 gaming tables, and 1,200 slot machines for both mass and VIP markets, and a 960 space parking lot.

Under the lease agreement, Suntrust will pay an annual rental fee of US$10.6 million, commencing on the first day of commencement of the casino and payable in two installments on a semi-annual basis.

The lease agreement is set to run until August 19, 2039, but can be further extended for a period not less than 25 years unless otherwise agreed upon by both parties.