Suntrust Changes Objectives Of Manila Casino Scheme

Suntrust Home Developers Inc., a Philippine-listed company investing in a Manila casino hotel scheme that is part of the Westside City Project, has changed its primary objective from development of real estate to “tourism-related business.”

The company said the change in its primary purpose-agreed by the shareholders of the company in December-was approved by the Securities and Exchange Commission of the country on Wednesday.

The primary purpose of Suntrust has thus been shifted from real estate development to tourism-related businesses, including but not limited to ‘acquiring, developing, improving and operating tourism-oriented facilities such as hotels, resorts, private clubs, leisure parks, entertainment centres, restaurants, food and beverage outlets, and other recreational facilities.’

As per Friday’s filings to the Philippine Stock Exchange, the company maintains its current business name.

The company had already increased its authorised capital stock by more than 600 percent to PHP23 billion ( US$ 459.3 million) per share, from PHP3 billion to PHP1.00 per share.

The group is issuing convertible bonds to investors linked to the casino project it is preparing for Manila ‘s Entertainment City gaming district.

Hong Kong-listed Suncity Group Holdings Ltd, managed by Macau casino junket boss Alvin Chau Cheok Wa, is a big subscriber to Suntrust’s convertible bonds on the casinos project.

The Suncity entity is taking such bonds worth PHP7.3billion. To Suncity Group Holdings, the impact of the subscription is to increase its equity interest in Suntrust from 51.0 percent to 74.42 percent.

Mr Chau said he would “soon” be overseeing a groundbreaking ceremony for the casino project in the Entertainment City zone in the Philippine capital in a Suncity Group Holdings filing on June 11.