SunTrust Home Developers Inc, the majority-owned Philippines subsidiary of Suncity Group, which is currently planning development of a hotel and casino project in Manila’s Entertainment City precinct, has announced the sale of its non-gaming assets to a local partner.
According to a Hong Kong Stock Exchange filing overnight, Asian E-Commerce Inc, of which Megaworld Corporation owns 50%, will acquire SunTrust’s entire 24.27% stake in the FOPM Group for a consideration of Php153.7 million (US$3.2 million).
FOPM Group comprises real estate management firm First Oceanic Property Management, Inc and transportation company CityLink.
Suncity Group acquired a majority 51% stake in SunTrust in 2019 as part of a complex agreement with Megaworld and Resorts World Manila operator Travellers International Hotel Group to develop and operate the main hotel and casino at Westside City Resorts World. Megaword currently holds a 34% stake in SunTrust.
Likely to open in 2023, the casino project is said to include 400 gaming tables and 1,200 slot machines across both VIP and mass gaming, plus 400 five-star hotel rooms.
Outlining the reasons for offloading SunTrust’s non-gaming businesses, Suncity said, “Given the principal business of the FOPM Group … is entirely unrelated to the casino and entertainment market of the Philippines in which the Group is investing, the Disposal allows the Group to dispose of its non-core business, focus on and deploy its resources to its principal businesses.
“The Group intends to apply the net sale proceeds from the Disposal as general working capital and to partially finance the construction of the Main Hotel Casino that is currently under development by SunTrust.”
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