Suncity Group Holdings Ltd has revealed that its majority-owned Philippines subsidiary, Suntrust Home Developers Inc, has now signed an Operation and Management Agreement with Westside City Resorts World Inc for the operation and management of the main hotel and casino at Westside City Resorts World in Manila’s Entertainment City.
The O&M Agreement, which took effect from 4 May 2020 and runs through 11 July 2033, is among the final remaining conditions precedent to Suntrust completing its US$200 million payment for use of the project site, as agreed under a co-development agreement entered into late last year.
However, there are also come conditions precedent still to be met under the O&M Agreement, including Westside obtaining the relevant licenses and approvals to enter into the agreement. Westside already holds a PAGCOR-issued gaming license as co-licensee of Travellers International Hotel Group Inc, operator of Resorts World Manila.
Suncity announced in January that Suntrust had paid an initial US$20 million deposit for the site with the remaining US$180 million to be paid within 10 days of the remaining conditions precedent being fulfilled.
Under the terms of the O&M Agreement revealed on Tuesday, Suntrust will be entitled to all gross revenues of the main hotel and casino, with the exception of 1% of VIP GGR of the main casino and 3% of mass table and slot machine GGR, to be paid to Westside on a monthly basis.
Westside City Resorts World is a sprawling, multi-billion dollar leisure and entertainment township being developed on 31 hectares by Philippines construction giant Megaworld Corporation and Travellers.
Suncity’s hotel and casino development is set to cost US$700 million and cover an area of around 44,000 square meters, with a building floor area of 182,000 square meters.
The project will include 400 gaming tables and 1,200 slot machines across both VIP and mass gaming, plus 400 five-star hotel rooms and 960 parking spaces, and is due to open in 4Q22. The Westside City Resorts World township will also offer additional facilities such as a Grand Theatre, shopping malls and 2,000 parking spaces.