Philippine gaming regulator Pagcor is set to auction off two parcels of land in Manila’s Entertainment City precinct currently occupied by Solaire Resort & Casino.
According to a document files on Pagcor’s website late last week, the two parcels of land cover a combined 160,359 square meters with a minimum asking price of Php37.23 billion (US$727 million) when they go to auction on 27 November.
The land is currently being leased to Sureste Properties – a subsidiary of Solaire owner and operator Bloomberry Resorts – who under the terms of the auction will be given last rights to match any bid to purchase the parcels. The current lease is through until 11 July 2033 “and is extendable for another term under certain conditions,” the document says.
“The properties are subject of a long-term lease initially in favor of Bloomberry Resorts and Hotels Inc. which built and operates the Solaire Resort and Casino. However, the leasehold rights were later assigned to Sureste Properties Inc. (lessee),” Pagcor said.
“The lessee has a right to match the highest complying bid for the properties.”
Under local laws, only Philippine citizens are allowed to buy the property while at least 60% of capital must be locally owned if purchased by a corporation or partnership.
The document also stipulates that the land must continue to be used “exclusively for the purpose for which it was intended … that it serves as an integral part of the Pagcor Entertainment City Project and is to be utilized for the purpose of developing and maintaining thereon a world-class integrated resort in accordance with the plans approved by the lessee and Pagcor.”
It adds that, “It is understood that the ownership of the property does not confer to the winning bidder the right to operate gaming facilities and business. A casino license or license to operate gaming operations is NOT part of the sale of the property.”
