Belle Corp, SM reach deal on P14-billion gaming project

MANILA, Philippines - Leisure developer and gaming firm Belle Corp. has struck a deal with the SM Group to take charge of the gaming component of a project within the Bagong Nayong Entertainment City that will require an investment of around P14 billion.

The SM Group is one of the major investors in the 120-hectare Bagong Nayong Pilipino Manila Bay Entertainment City, which is envisioned to become the country’s biggest tourism development and the government’s biggest job-generating project ever.

In a disclosure to the Philippine Stock Exchange (PSE), Belle said its board has approved a proposal to acquire from SM Commercial Properties Inc. the entire outstanding capital stock of Premium Leisure and Amusement Inc. (PLAI), a member of a consortium of companies which was granted a provisional license by the Philippine Amusement & Gaming Corp. (Pagcor) to develop a world-class entertainment and gaming hub along Manila Bay.

The acquisition will be done through a share swap, subject to the approval of regulatory authorities.

Under the plan, Belle will be issuing 2.7 billion common shares in exchange for 100-percent ownership of PLAI.

“The final terms of the share swap, however, will be set forth in a memorandum of agreement to be executed by the parties,” Belle said.

With the acquisition, Belle will now be handling the gaming operations of the project such as the setting up of a casino and other gaming facilities while the SM Group will be providing the entertainment facilities which include hotels, a sports arena, museum, and an oceanarium.

The SM-Belle project is estimated to cost at least $1 billion. Included in the new entertainment complex is the already-developed section spanning about 300 hectares that contains the sprawling Mall of Asia complex.

Belle is open to partnering with foreign and local entities to help develop a reclaimed land along Manila Bay into a mini-Las Vegas.

“These arrangements shall be subject to Pagcor’s supervision in accordance with the terms of the provincial license,”

The Bagong Nayong Pilipino Entertainment City will house an integrated resort with a world-class theme park, casinos, residential areas, shopping malls, fine dining restaurants, and other leisure activities.

When completed, it is expected to boost tourist arrivals in the country to over three million annually, generate 450,000 new jobs and dramatically increase government earnings.

Aside from the SM group, other investors in the multi-billion dollar project are Malaysian conglomerate Genting Group and Alliance Global Group Inc. of tycoon Andrew Tan.

AGI has forged a joint venture with international cruise operator Star Cruises Ltd., an affiliate of the Genting Group, to build an integrated tourism zone on a 40-hectare property in the reclamation area.

The project will host an array of leisure and entertainment facilities, including a theme park, theaters, amusement and cultural centers, retail and gaming centers and hotels.