ldquo;Subject to the issuance of construction permits and Tourism Infrastructure and Enterprise Zone Authority approval, site works on the Mactan Leisure City is targeted to begin this January 2017,” the agribusiness company told the Philippine Stock Exchange on Friday.
Sino and Macau Group want to complete the entertainment and gaming complex located within a 14-hectare property on Mactan Island in Cebu by mid-2020.
Calata recently partnered with Sino and Macau Group to create a corporate vehicle they will eventually list on the stock exchange as a real estate investment trust (REIT) that will count Mactan Leisure City among its assets.
Sino and Macau Group expect to secure a license to operate a casino within Mactan Leisure City from the Philippine Amusement and Gaming Corporation (PAGCOR) within the first year of development
“A license is expected to be secured by the end of 2017,” Calata said.
“The gaming license for the casino and entertainment complex shall be subject to compliance with PAGCOR policy, for which the company will be placed to meet these explicit requirements at the date of submission,” it noted.
Sino and Macau Group have obtained “letters of no objection and support” -- a requirement for all gaming projects outside the Entertainment City in Parañaque -- from the governor of Cebu, mayor of Lapu-lapu City, business, civic groups and the church.
The project proponents have received “resolutions of no objection” from the city council of Lapu-Lapu City and barangay council of Mactan as well. Hence, a complete application can be submitted to PAGCOR by late October 2017, according to Calata.
Sino and Macau Group also aim to submit an application for construction permits and finalize an application with the Tourism Infrastructure and Enterprise Zone Authority by October 2017. They have secured endorsement and development approval from the concerned barangay so far.
Sino and Macau Group will initially invest around P836.1 million. The investment group from the United States and the gaming operator incorporated in the British Virgin Islands will course P234 million through Calata and the remaining P602.1 million directly to the corporate vehicle 51% owned by the Philippine-listed firm.
“The formed corporation shall initially be used to acquire various real property which shall then be leased to developers and third parties. It is intended that this corporation shall eventually be transformed into a REIT,” Calata noted.
“The parties intend to have the corporation formed on or before the month of September. Thereafter, the parties shall pursue the corporation’s transformation into a REIT and execute such plan at the soonest practicable time,” it added.
Shares in Calata advanced by 20 centavos or 6.33% to P3.36 apiece on Friday.