Mactan casino project to secure PAGCOR license by end 2017

CEBU, Philippines - Listed agribusiness firm Calata Corp. expects to secure a license from the Philippine Amusement and Gaming Corp. (PAGCOR) for the P65-billion casino resort in Mactan Island, Cebu by end of 2017.

"The gaming license for the casino and entertainment complex shall be subject to compliance with PAGCOR policy, for which the company will be placed to meet these explicit requirements at the date of submission," Calata said in a Philippine Stock Exchange disclosure.

Calata is the local partner of Sino-America Gaming Investment Group, LLC and Macau Resources Group Ltd to establish a Real Estate Investment Trust (REIT) for the 14-hectare casino resort.

Calata said that Letters of No Objection and support, which are mandatory PAGCOR application requirements for all gaming projects outside of Manila's Entertainment City, have been issued from the governor of Cebu, mayor of Lapu-Lapu City, business and civic groups and the Church.

"The target submission of the complete application with PAGCOR will be by late October 2017," the listed company said.

Calata also announced that site works on the Mactan Leisure City is targeted to begin in January 2017, noting this still needs the construction permits and approval from the Tourism Infrastructure and Enterprise Zone Authority (TIEZA).

The company also targets to submit the application for construction permits and TIEZA approval by October next year. It added endorsement and development approval from Barangay Mactan in Lapu-Lapu City has already been secured.

The integrated casino resort project, expected to generate thousands of job, is projected to be completed by middle of 2020.

Calata and its two foreign partners are set to create a corporation which is intended to be transformed into a REIT.  

Shares of Calata were trading at P3.74 apiece at noon yesterday.

Calata said Sino-America and the Macau Group will initially invest P836.1 million into the project, P234 million of which will be put into Calata which shall then be investing the said fund into its majority-owned corporate vehicle. The remaining P602.1 million will also be directly infused into the corporate vehicle.

REIT is a stock corporation with a purpose of owning income-generating real estate assets.

The Philippines has recently emerged as one of the rising gambling hubs in Asia, with PAGCOR saying the country holds a big revenue potential in the casino industry. Macau in China is considered as the world's biggest gaming center. (FREEMAN)