Robinsons Land Corp. (RLC), controlled by Gokongwei, signed a preliminary agreement with Okada’s Universal Entertainment Group for the project, the Manila-based developer and Tokyo-based Universal mentioned in separate statements yesterday. They didn’t deliver the cost or any economicinformation. Universal Entertainment shares rose as much as 7 % to 1,416 yen, headed for the largestgaingiven that Feb. 22, just before trading at 1,371 yen at 9:28 a.m. in Tokyo nowadays.
Okada, who isin a dispute more than the redemption of his stake in Wynn Resorts Ltd. (WYNN), holds one of 4 casino licenses awarded by the Philippine government, which aims to make a gaming hub in Manila. The Philippines can surpass Las Vegas and “challenge” Macau and Singapore in gaming revenues within thenextfive years with the opening of these casinos, according to the Manila-unit of house consultant CBRE Group Inc.
“Okada gets a companion who features apowerfulknowledgeof the domestic industry, when Gokongwei gains entry into a sunrise sectorwhich will complement his businesses,” Jonathan Ravelas, chief market place strategist at Manila-based BDO Unibank Inc., mentionedinside aphone interview.
The final contract is going to be signed by Jan. 31, based on Universal’s statement. “Robinsons Land will probably be in charge in the development of industrial facilities and spending budget hotels and housing facilities for the casino resort project,” Universal stated.
Shares of Robinsons, a unit of Gokongwei’s JG Summit
Holdings Inc. (JGS), jumped to a record in Manila
trading yesterday just after the Philippine Each day
Inquirer reported the developer is close to reaching an
agreement with Okada on the casino venture.
Tourism Increase
As part of the agreement, Robinsons Land, a builder of offices and properties, will obtain majority of Eagle I Land Holdings Inc., which owns 30 hectares inside the government’s PAGCOR Entertainment City project, and acquire a minority stake in Tiger Resorts, Leisure and Entertainment Inc., which owns the license to create and handle a casino resort inside thecomplicated, in line with the statements.
The partnership announcement comes as the Philippines
government upgrades airports and roads in a bid to bring
in more tourists and increaseeconomicdevelopment. The
government predicts tourist arrivals to rise to ten
million by 2016 from a four.five million target this
year.
Shares Get
Universal (6425), which makes the pinball-like machines applied in pachinko parlors exactly wherebuyers play for prizes, mentioned in September 2011 it would invest $2.three billion within a casino resort venture inside the Philippines.
Shares of Universal rose four.fivepercent to 1,323 yen in Tokyo yesterday, its sharpest achievesince July 13. Robinsons Land rose four.1 % to 21.50 pesos in Manila yesterday, the highest level depending onprices going back to January 1990.
JG Summit climbed two.9 % to 38.90 pesos in Manila yesterday, the highest closing level according toprices going back to August 1993.
Okada and Gokongwei’s venture will compete with partnerships between Philippine billionaire Andrew Tan and Genting Hong Kong Ltd.; a venture of Philippine billionaire Henry Sy and Melco Crown Entertainment Ltd.; and Bloomberry Resorts Corp. (BLOOM), controlled by port magnate Enrique Razon.
Robinsons Land is the nation’s second-largest buying mall operator, while parent JG Summit’s other ventures incorporate Cebu Air Inc., the nation’s biggestprice range carrier.
“This diversification into casinos is afantasticstage and value enhancing for Robinsons Land,” James Lago, an analyst at PCCI Securities Brokers Corp. in Manila, saidinside aphone interview. “A casino is really a high-risk, high-margin business enterpriseusing a steady cash flow.”
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