Leisure and Resorts World Corp (LRWC) says it expects to earn at least US$100 million a year from its planned US$500 million integrated resort to be built on Boracay island in the Philippines, a joint venture with Macau casino operator Galaxy Entertainment Group.
The company also revealed that the partnership would mirror that between Premium Leisure Corp and Melco Resorts, with the latter leasing land from its partner and paying them a percentage of annual gaming revenue.
Addressing the media following confirmation by Pagcor that it has granted a provisional license for the Boracay project, LRWC corporate secretary Katrina Nepomuceno said, “Apart from LRWC’s share of the gaming revenue, we will be getting lease income from Macau’s Galaxy Entertainment Group and revenue on the property side.
“We own the land in Boracay on which the development will be built and Galaxy will pay us. We will already be earning even during the construction period.”
She added that revenue was expected to amount to more than US$100 million annually.
In a filing to the Philippines Stock Exchange on Thursday, LRWC said it had already discussed the commercial arrangement for their planned IR after purchasing a 23-hectare site in Boracay earlier this week. The company said the arrangement “would be similar to what the company had with City of Dreams Manila.
“The joint venture company will earn revenues from real estate in the form of lease payments and a share in the gaming revenue.”
The full details of the agreement are yet to be finalized.
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