A subsidiary of Summit Ascent Holdings – the operator of Russia’s Tigre de Cristal in Vladivostok – has entered into a Subscription Agreement with Suntrust Resort Holdings under which it has conditionally agreed to subscribe to Convertible Bonds up to HK$1.17 billion (US$146.3 million).
Full conversion of the bonds by SA Investments, as well as previous bonds issued, could see the shareholding interest of Summit Ascent’s parent company, LET Group, rise from 51.0% currently to as much as 89.8%.
Suntrust is the group’s Philippine-listed entity developing a hotel and casino in Manila’s Entertainment City – part of Megaworld’s broader Westside City precinct.
The new tranche of Convertible Bonds, to be issued in a minimum denomination of Php10 million (US$177,000) each and with a default interest rate of 8.0% per annum, follows on from a 2020 Subscription Agreement through which SA Investments subscribed to Convertible Bonds in the amount of HK$798.9 million, a 2022 agreement for Convertible Bonds worth HK$913 million and 2023 Convertible Bonds worth HK$1.93 billion – the latter of which is expected to be completed by August of this year.
In explaining the reasons for the latest subscription agreement, Summit Ascent also revealed that the construction cost of its Manila hotel and casino – currently due to open in 4Q25 – has risen to US$1.25 billion from a previous estimate of US$1.1 billion. Of this, US$964 million has already been raised and US$688 million paid.
Summit Ascent said that the construction of structural works and major facade systems up to roof level has been completed while the mechanical, electrical and plumbing, and fire protection systems in major plantrooms have been substantially completed. Architectural builders and fit-out works, external civil and landscape works are in progress, it added.
“The Main Hotel Casino is anticipated to develop into a premier, world-class entertainment resort that delights and captivates its domestic and international visitors,” the company explained.
Once complete, the property will boast 475 luxury hotel rooms and suites, a pool deck, spa, state-of-the art wellness center with views of Manila Bay, a ballroom capable of accommodating 550 people with support facilities such as meeting rooms and a bridal room, a 1,000-seat and two 800-seat theaters, a grand opera house, a 3,000-seat performing arts theater, a mall composed of food and beverages and retail units and four cinemas, and a parking facility with over 1,000 slots. The casino itself will at opening offer 281 gaming tables, 1,126 slot machines and 134 electronic table games for both the mass and VIP markets.
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