By JAMES A. LOYOLA
Suntrust Home Developers, Inc., controlled by Fortune Noble Ltd. of the Sun City group and an affiliate of Megaworld Corporation, has entered into a Lease Agreement with Westside City Resorts World, Inc. and Travellers International Hotel Group, Inc.
Under the agreement, Suntrust will lease from Westside City and Travellers the project site where a hotel and casino complex will be built and operated.
The Lease Agreement is subject to conditions precedent, including obtaining by Suncity Group Holdings Limited of the necessary approval of its shareholders to the Lease Agreement and the transactions included in the deal.
The property will be leased for US$10.6 million a year starting from the start of operations of the casino to August 19, 2039 based on the indicative market value of the project site of US$340 million. The lease will be automatically renewed for another 25 years.
Travellers had earlier committed to invest US$1.1 billion, or roughly ₱57 billion, to build the Westside City Resorts World complex.
Under the new agreement, Westside and Travellers are to lease the Project Site to SunTrust for development of the Main Hotel Casino and Westside is to appoint SunTrust as the sole and exclusive operator and manager of the Main Hotel Casino.
“Suntrust believes that the tourism sector, which has seen significant growth in recent years, will continue to show sustainable growth and attract more investments,” the firm said.
It also expressed optimism that, with the support of its shareholders, it will be able to drive more growth for the Company and contribute to the tourism industry.
Fortune Noble Limited is a wholly-owned subsidiary of Suncity Group Holdings Limited, a listed company on the Hong Kong Stock Exchange.