Philippine Amusement and Gaming Corp. (Pagcor) accepted the offer of business tycoon Enrique Razon Jr. to acquire a 16-hectare land within the Entertainment City complex and and near his existing casino and expansion project for P37.33 billion.
Bloomberry Resorts Corp. said in a disclosure to the stock exchange wholly-owned unit Surestre Properties Inc. received a notice of award from Pagcor after accepting the offer price.
Bloomberry said SPI was the sole company that expressed interest in a negotiated sale after two failed biddings.
The purchase price is P100 million above the floor set by Pagcor for the property.
“SPI will complete the transaction, sign the deed of absolute sale and pay the balance of the purchase price within 45 days,” Bloomberry said.
Bloomberry in January submitted an offer to acquire the 16-hectare property in Entertainment City, where Solaire Resort & Casino (Solaire) and its expansion area are located.
SPI currently holds a long-term lease on the property, or up to July 11, 2033. The lease is extendable for another term under certain conditions
Bloomberry early this month obtained P73 billion in syndicated loans with seven banks to finance the bid and refinance existing obligations.
The seven banks were BDO Unibank Inc., BDO Private Bank Inc., China Banking Corp. Philippine National Bank, PNB Savings Bank, Robinsons Bank Corp. and United Coconut Planters Bank.
BDO Capital & Investment Corp. was the lead arranger and sole book runner, while China Bank Capital Corp. was the co-arranger.
Bloomberry in 2017 reported a 161-percent increase in net income to P6 billion on record gaming revenues.
Gross revenues in 2017 hit P48.26 billion, up 18 percent from P40.9 billion in 2016.
The $1.2-billion Solaire Resort & Casino is the first integrated destination resort to open in Entertainment City. The complex includes a five-star hotel with an 800 guest rooms, suites and villas, as well as retail, dining and gaming areas.