Company Exec Says New Casino Operator to Be Chosen Next Month
MANILA, PHILIPPINES - What will be the largest casino in the country is still on track to open two years from now despite setbacks in finding an overseer to run its casino operations.
Belle Corp., the leisure and gaming company partnering with mall and banking magnate Henry Sy's SM Group in a US$1 billion undertaking to develop a leisure complex at the Bagong Nayong Pilipino, said that despite negotiations with Harrah's Entertainment, Inc. falling through it sees no delays in the start of operations of its planned US$350 million casino facility in 2012.
Belle Corp Executive Vice-President and Chief Financial Officer Manuel A. Gana said that "(t)he target is still first quarter of 2012", referring to the opening of the casino. He said that a new casino operator will likely be chosen next month adding that it's partner, listed gaming firm Leisure and Resorts World Corp. (LRWC), was already in talks with several potential operators.
Last month, Belle Corp and Harrah's Entertainment failed to resolve an issue over financial matters resulting into both parties mutually agreeing to end the partnership. Sources said that the Las Vegas-based Harrah's was not ready to infuse equity into the casino project that led to the collapse of the agreement.
This has led to Belle Corp, through LRWC to look for new partners to operate its casino.
According to Gana:
"Leisure and Resorts World is our operating parnet but (it) still (has) to look for other (partners). We certainly need help in running the operations of the casinos -- how to manage cash and how to make sure there will be enough cash for people who want to play."
When completed, the US$350-million casino facility within the integrated Manila Bay leisure and entertainment complex will be the largest in the country with 250 gaming tables and 1,500 slot machines. LRWC will be bringing in the casino equipment and will also be handling VIP casino services. Phase One of the construction of the complex includes the casino and VIP suites numbering 100 units. A 500-room hotel will then be built.
The project, located on reclaimed land along Roxas Boulevard in the City of Manila, is expected to boost tourism and help raise the Philippines' profile as a gaming mecca, offering an option besides Macau, Genting, and Singapore.
To finance the project, Belle Corp is in talks with possible lenders composed of local and international banks and financial institutions. It is seeking an estimated PHP16 billion for the initial phases of the project.
Source: BusinessWorld and Belle Corp.
