HK’s Suncity Group eyes participation in Suntrust-led development

MANILA, Philippines — Hong Kong listed Suncity Group Holdings Ltd. plans to participate in the operations of the integrated casino project of tycoon Andrew Tan’s Westside City Resorts World.

In a filing in Hong Kong, Suncity Group, controlled by Alvin Chau Wa, said there would be a co-development agreement between a Philippine-listed entity called Suntrust Home Developers Inc. and another firm called Westside City Resorts World Inc.

Under the agreement signed on Oct.28, Westside City and Travellers International Hotel Group will lease the project site to Suntrust for development of the main hotel casino.

The area covers three parcels of land located at Manila Bayshore Integrated City in Paranaque City in Manila.

Travellers is the joint venture between Alliance Global Group Inc. and Hong Kong-listed Genting Hong Kong Ltd., which also runs the Resorts World Manila casino resort.

Suncity Group, through its subsidiary Fortune Noble Ltd., acquired an aggregate of 1.15 billion Suntrust shares, representing a 51 percent stake in the company for a price of P1.1 billion.

The shares were acquired from sellers Townsquare Development Inc. and First Centro. Inc.

In a separate press statement, Suntrust said it is increasing its capital base from P3 billion to P23 billion as it shifts its focus into tourism development.

About five billion common shares will be subscribed by Fortune and Megaworld.

“Post the capital hike, Fortune Noble will continue to own and maintain its majority controlling interest in Suntrust, while Megaworld will have at least 34 percent stake,” Suntrust said.

“Suntrust believes that the tourism sector, which has seen significant growth in recent years, will continue to show sustainable growth and attract more investments. Suntrust is also optimistic that with the support of its shareholders, it will be able to drive more growth for the company and contribute to the tourism industry,” it added.

The Suncity Group is known to have extensive experience in the leisure and entertainment business. It is actively seeking investment opportunities in integrated resort projects worldwide.

These include Cambodia, Philippines, Myanmar, South Korea, Japan, Russia and Vietnam. Other than investment in integrated resorts, the Suncity Group is also engaged in integrated resort consultancy services, as well as travel related products and services.