Belle in talks with lenders for P16-billion loan for Manila Bay project

MANILA, Philippines - High-end property developer and gaming firm Belle Corp. is in talks with local and foreign banks and financial institutions on an estimated P16-billion loan to finance part of the planned $1-billion integrated resort on a reclaimed land along Manila Bay.

“We’re finalizing funding for a P16-billion loan for the initial phases of the integrated resort. Our gearing is very healthy and we believe in the viability of the venture,” Belle vice-chairman Willy N. Ocier said in an interview with The STAR.

Ocier said Belle is talking to Banco De Oro and other lenders, including foreign financial institutions, to jumpstart the multi-billion peso project.

He said the world-class integrated resort will feature, hotels, condotels, serviced apartments, swimming pools, spa, retail shops, restaurants, theaters, indoor and outdoor theme park, parking and meeting facilities.

“Our country needs to boost tourism by attracting investments to improve its tourism infrastructure. Hopefully, the negative effects of the hostage killings will be history by then,” Ocier said.

The Aug. 23 hostage crisis, which claimed the lives of eight Hong Kong nationals, has resulted to booking cancellations from China and Hong Kong. The cancellations were made after the Hong Kong and Chinese governments warned their citizens against travelling to the Philippines following the 12-hour hostage-taking by a dismissed police officer.

The Philippines, which boasts some of the world’s most beautiful white-sand beaches, is aiming to double tourism revenues in six years.

Last year, the number of foreigners who visited the country stood at a little over three million as tourism worldwide retreated amid the global financial crisis. For this year, the Aquino government expects tourist arrivals to hit 3.3 million.

Ocier said Belle is committed to promoting the country to foreigners as a travel destination with its planned integrated resort rise within the 800-hectare Bagong Nayong Pilipino Entertainment City along Roxas Boulevard.

Together with the SM Group, Belle will plunk in $1 billion into the project over a 25-year period. The SM Group will provide the entertainment facilities which will include hotels, a sports arena, a museum and an oceanarium.

In a disclosure to the Philippine Stock Exchange yesterday, Belle corporate information officer Jason Nalupta said the company “deems it necessary to be prudent in capital expenditure and operating budgets and to avoid building ‘white elephants’ in order to ensure a suitable return on its investments.”

While talks with Las Vegas-based Harrah’s Entertainment Inc. had bogged down, Belle expects to conclude shortly negotiations with a foreign group that will manage its planned casino complex.

Slated for completion in the third quarter of 2011, the casino complex will be developed in three phases over a five-year period. The first phase will comprise the casino with around 100 VIP suites and two 15-story hotel towers of 500 rooms with a Planet Hollywood theme.

The project, when completed, is expected to boost Belle’s cashflow. Belle’s crown jewel to date is its flagship 1,500-hectare Tagaytay Highlands. It also generates equity earnings from Pacific Online Corp., the exclusive online lottery systems provider in the Visayas and Mindanao, as well as from upscale property firm Highlands Prime.