Philippines gaming firm PH Resorts Group Holdings Inc said Tuesday that it has signed a Memorandum of Understanding with Cebu-based property developer AppleOne Properties Inc for potential investment into its stalled Cebu IR development, Emerald Bay.
The non-exclusive and non-binding MoU has been initiated via PH Resorts Group subsidiaries Lapulapu Leisure, Inc and Lapulapu Land Corp with the intention of AppleOne investing money to obtain either a majority of the equity interest in the subsidiaries, or to acquire some or all the assets comprising Emerald Bay and its associated land.
Neither the size of the investment nor resulting percentage of ownership by AppleOne have yet been finalized, the company explained.
PH Resorts Group also revealed that its subsidiaries have successfully restructured their existing outstanding indebtedness with China Banking Corp through the execution of agreements for the sale and leaseback, with an option to buyback, certain “land and improvements” of the subsidiaries.
This restructuring, it explains, covers the 12.5 hectares of land upon which it had been developing Emerald Bay in Mactan, Cebu.
“The restructuring also allows the subsidiaries to repay the Peso Bridge Loan Facility extended by Chinabank in 2018, while, at the same time, grants them continued possession and use over the property in order to finish the construction and development of the Emerald Bay Project,” PH Resorts Group said.
“In addition, the option to buyback … allows the subsidiaries or its nominees to reacquire the properties, if so desired.”
PH Resorts Group – the gaming and hospitality arm of Dennis Uy’s Udenna Group –said in July that it was in the final stages of negotiations with potential investors in a bid to resume construction of Emerald Bay, which has stalled due to a lack of funding.
The company had previously been negotiating with Solaire Resort owner Bloomberry Resorts Corp over a deal that would have seen Bloomberry acquire a substantial share in Emerald Bay and another stalled project known as The Base Resort Hotel and Casino in Clark. Bloomberry ultimately withdrew from that deal in March.
If completed, Emerald Bay would become the second integrated resort on Cebu following the 2022 opening of Nustar.
Phase 1 of Emerald Bay is envisioned to include 146 gaming tables and 729 electronic gaming machines (EGMs) plus 780 hotel room bays and five villas.