Universal Entertainment is reported to be in negotiations with a potential partner in Manila that could help the Japanese company jump-start its plans to develop an integrated resort and casino there.
A Philippine entity called Empire East Land Holdings has begun talks with Universal Chairman Kazuo Okada on a possible purchase of land where the machine gaming tycoon is licensed to build the IR, which Universal pegs at a cost of US$2 billion.
“Talks are very preliminary,” said Empire East President Anthony Charlemagne Yu, speaking at a recent press conference in the capital city.
He declined to say whether the discussions involve the entire 40-hectare site or just part of it, according to Reuters. Universal could not be reached for comment, the wire service said.
A deal with Empire East, a unit of Philippine real estate conglomerate Alliance Global, could put Mr Okada’s first venture in resort development back on track. It is slated to go up as one of four IRs licensed for 100 hectares of reclaimed land on Manila Bay called Entertainment City which the government hopes will transform the capital into a regional leisure destination.
Alliance Global is already involved in one of the projects, Resorts World Bayshore, through a partnership with Genting Hong Kong called Travellers International Hotel Group. It is slated to open in late 2015 or early 2016. PSX-listed Bloomberry Resorts opened the first phase of its $1.1 billion Solaire Resort & Casino in March. The fourth resort, Belle Grande Manila Bay, a joint venture of Macau’s Melco Crown Entertainment and Philippine retail and property giant SM Corporation, is scheduled to open next summer.
Universal had a partner in Philippine developer Robinsons Land Corp. but the two failed to agree on terms. The breakdown left Universal in a dispute with the government over its local ownership structure. A Universal subsidiary called Eagle I is the registered owner of the company’s Entertainment City plot. But an opinion from the Philippines Justice Department last year said that since Eagle I is 64% controlled by Aruze USA, a company controlled by Okada, it is in violation of the country’s 40% cap on foreign ownership.
Universal maintains that it is doing business in the country lawfully and says it intends to develop the resort whether it secures a partner or not.
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