Japan’s Universal Entertainment Corp (UEC) said Thursday that an equity-method affiliate that owns a 9.4-hectare parcel of land alongside its Philippines integrated resort Okada Manila now plans to develop the land following the collapse of a previously agreed sale.
The update came as UEC revealed it has cancelled a lease on 6.1 hectares of the land in question, owned by Eagle I Landholdings Inc, with the cost saving estimated to see the company’s net income for FY23 double to JPY20 billion (US$153 million). UEC holds a 40% equity share in Eagle I Landholdings.
While it did not reveal details of the planned development, UEC had previously been pursuing a sale of the land parcel to parties it expected to develop major international hotel brands – effectively boosting nearby room capacity for Okada Manila.
The company initially agreed to sell the land to those unnamed parties for Php13.18 billion (US$268 million) but the deal was terminated in March 2021 due to ongoing uncertainty around the COVID-19 pandemic.
UEC had earlier outlined its vision for a possible Phase 2 expansion of Okada Manila with its Representative Director and President, Jun Fujimoto, stating in December 2019 that plans were afoot to “collaborate with businesses with which we expect to have a synergy and entice major brand hotels.”