MANILA, Philippines -- For the casino side of its US$1.2 billion PAGCOR Entertainment City Manila project, Bloomberry Resorts Corp. is engaging Global Gaming Philippines LLC (GGAM) in a five-year management contract.
Under the agreement between the two companies, GGAM will provide Bloomberrry with management services of the latter's gaming business at Solaire Manila. It was reported recently that major infrastructure works for the first phase of Solaire Manila has been completed and that Bloomberry is eyeing to start operations in the second half of this year. While the term of the management contract with GGAM is only for five years, Bloomberry noted that it can be renewed for another five years.
GGAM is expected to nominate its own personnel to make up the management team but these would be subject to Bloomberry's approval.
According to Bloomberry:
"GGAM will be compensated based on a certain percentage (2 to 6 percent) of the EBITDA generated by the Solaire Manila facilities including the EBITDA generated by local high roller table games. There is also an incentive fee which will entitle GGAM to an additional graduated feee (6 to 40 percent) for achieving certain EBITDA thresholds with respect to the EBITDA generated by foreign high roller tables and foreign junket players for each fiscal year."
Part of the agreement will also allow GGAM the option to buy 10% of Bloomberry through controlling shareholder Prime Metroline Transit Corp. (PMTC) for US$15 million "plus 10% of PMTC's cost of investment" in the property.
According to Bloomberry, GGAM is composed of executives with vast experience "in the construction, fit-out and operation of large-scale and world-class casino resorts."
