CEBU-BASED property developer AppleOne Properties, Inc. is looking to invest in two subsidiaries of Dennis A. Uy-led PH Resorts Group Holdings, Inc. that could cover the latter’s gaming project.
In a regulatory filing on Tuesday, PH Resorts said that its subsidiaries Lapulapu Leisure, Inc. and Lapulapu Land Corp. signed a “non-exclusive and non-binding” memorandum of understanding (MoU) with AppleOne for an investment plan.
PH Resorts is the gaming and tourism holding company of Mr. Uy’s Udenna Group. The company previously said that it was looking for investors to help bankroll the Emerald Bay project.
“The MoU establishes broad parameters whereby AppleOne can make an investment in the subsidiaries, with the intention of obtaining at least a majority of the equity interest in the subsidiaries, or an asset purchase of the land and improvements of the Emerald Bay Project,” PH Resorts said.
The Emerald Bay project, situated in Mactan, Cebu, is a planned integrated resort and casino.
“The consideration for the investment and resulting percentage of ownership are still subject to final negotiations by the parties, which are expected to be completed within 60 days, based on the MoU,” the company added.
The final details of the planned investment have yet to be completed, PH Resorts said, adding that it will release the required disclosures when the deal terms are finalized and the definitive agreements have been signed.
Meanwhile, PH Resorts said its two subsidiaries had restructured their existing outstanding indebtedness with China Banking Corp. (Chinabank) via the execution of agreements for the sale, leaseback, and an option to buy back certain land and improvements.
The company said the restructuring covers the properties of the two subsidiaries in Lapu-Lapu City spanning 12.5 hectares, plus improvements.
“The restructuring also allows the subsidiaries to repay the peso bridge loan facility extended by Chinabank in 2018, while, at the same time, grants them continued possession and use over the property in order to finish the construction and development of the Emerald Bay Project,” PH Resorts said.
It added that the restructuring’s buyback option allows the subsidiaries or their nominees to reacquire the properties, “if so desired.”
Emerald Bay is planned to have a total of 146 gaming tables, 729 electronic gaming machines, 780 hotel room bays, and five villas. PH Resorts started the construction of the project in December 2017.
Based on its website, AppleOne is led by enterprising couple Ray and Venus Manigsaca. The company has property development projects in the residential, hotel and resort, commercial, and healthcare sectors.
Some of AppleOne’s projects are the VisayasMed City Center Cebu City, Sheraton Cebu Mactan Resort, and AppleOne Banawa Heights.
On Tuesday, shares of PH Resorts at the local bourse improved five centavos or 8.06% to close at 67 centavos apiece. — Revin Mikhael D. Ochave