Leisure Resorts & World Corp. will no longer pursue a plan to build a $550-million world-class integrated resort and casino in Boracay Island in partnership with Macau-based Galaxy Entertainment Group Ltd.
LRWC acting chairman Eusebio Tanco said in a recent interview the company would keep the property in Boracay for land banking.
“I’m keeping that piece of land and just hold on to it. I will just land bank it,” Tanco said.
He added talks with GEG were not proceeding.
GEG in December 2017 said was looking at the possibility of developing a world class beach resort and casino in Boracay island with LRWC.
LRWC said the integrated resort would redefine the standards of luxury resorts in the country with the bulk of the gross floor area allocated to premium hotel rooms and other amenities, like wellness centers, bars, lounges and fine dining restaurants.
The casino and gaming area’s maximum footprint, according to the conceptual design, will not exceed 7.5 percent of the total floor area of the resort.
Construction was supposed to start in 2020, with completion scheduled after two years.
President Rodrigo Duterte in April last year rejected plans to build a casino on Boracay Island, which is one the top tourist destinations in the Philippines.
Meanwhile, Tanco said it will focus on expanding LRWC’s core businesses and rationalizing the group.
The company will redeem next year all its outstanding preferred shares worth P1.65 billion.
The 1.65 billion worth of preferred shares, issued in 2013, will be redeemed on January 21, 2020 at a price of P1 per share.
Tanco said the company would use the proceeds from the recent private placement to fund the redemption of preferred shares.
LRWC early this year raised P4.4 billion from the issuance of 1.2 billion shares through a private placement.
LRWC is a holding company with interests in property development and focusing on leisure business, gaming and recreation.
The company owns Bingo parlors across the Philippines and has a license agreement with the Cagayan Economic Zone Authority to develop, operate and conduct internet and gaming enterprises and facilities in the Cagayan Special Economic Zone Freeport. It is also engaged in the hotel and recreation business.