Philippine-listed casino operator Bloomberry Resorts Corp. bagged two parcels of Philippine Amusement and Gaming Corporation (PAGCOR) land on which its integrated resort Solaire Resort & Casino stands.
In a disclosure to the Philippine Stock Exchange, Bloomberry announced that it won the auction for the 16-hectare lot after bidding PHP37.33 billion (US$714 million) for the twin properties within PAGCOR Entertainment City.
Sureste Properties Inc. (SPI), a wholly-owned unit of Bloomberry, accepted the notice of award from PAGCOR after the latest round of bidding. Bloomberry said SPI has plans to complete the transaction, sign the Deed of Absolute Sale and pay the balance of the purchase price within 45 days.
PAGCOR has been wanting to privatize the two Entertainment City lots with a combined area of 160,359 square meters (1.73 million square feet) since in 2017. The starting bidding price for the twin lots was PHP37.23 billion (US$726.6 million), to be paid in cash.
At first, PAGCOR gave SPI the right to match “the highest complying bid for the properties” since the casino operator has the leasehold rights.
The state regulator’s auction, however, failed twice after no one came forward to make a bid for the two properties.
Early this year, SPI submitted a proposal to PAGCOR for the acquisition of the lots after the two failed biddings in November and January. SPI holds a long-term lease on the property until July 11, 2033. The lease is extendable for another term under certain conditions.
“SPI was the sole offeror for the property in a negotiated sale after two failed biddings. The purchase price is P100 Million above the floor price set by PAGCOR for the property,” Bloomberry said in a statement.
The Manila-based operator said that it also secured PHP73.5 billion ($1.4 billion) in syndicated loans to finance its future projects, including the purchase of PAGCOR lots.
Bloomberry’s subsidiary, Bloomberry Resorts & Hotel Inc., will serve as borrower and mortgagor while SPI will act as the mortgagor, pledger and surety, according to the agreement it signed with seven local banks.
