MANILA, Philippines - The consortium of Belle Corp. and Leisure Resorts World Corp. is pinning its biggest bet ever on what is touted to become the largest and most modern integrated entertainment resort complex in the country.
In an interview, Belle vice-chairman Willy N. Ocier said development of the world-class integrated resort complex, The Belle Grande Manila Bay, is moving full steam ahead with the state-of-the-art casino facility targeted for soft opening by the last quarter of 2011.
With more than 200,000 square meters gross leasable area, this integrated complex, estimated to cost around $1 billion, will be the most unique shopping, gaming and leisure destination for Filipinos as well as tourists. The project is Belle’s biggest investment so far and is seen to drive international and regional tourism in the country.
“We aim to be the country’s largest and most modern integrated resort complex,” Ocier said, pointing out that the project would be almost double the size of Resorts World Manila, a luxury casino resort located in Newport City across the Ninoy Aquino International Airport.
Ocier said the group recently signed a P5.6-billion loan facility with Banco De Oro to fund the construction of the Las Vegas style casino complex. The casino is part of a bid to lure big spenders from across the Asian region.
“This puts to rest any doubt about the project’s certainty. Our operating partner, LRWC, was also a signatory to the agreement,” Ocier said.
Ocier said LRWC, Belle’s local partner for the gaming component of the multi-billion peso project, is in the final stage of negotiations with a Macau-based gaming firm which shall help the group manage the casino facility.
“We are going with a Macau-based group to capture a part of the growing Asian gaming market,” Ocier said.
Studies show that the Asia’s gaming market could eclipse the US in three to five years as the region’s moneyed class flock to gambling hubs such as Macau.
International consulting firm PricewaterhouseCoopers forecasts that revenue from casinos and other gambling venues in Asia will rise at least 14 percent annually beginning this year, making it the fastest-growing gaming market in the world.
While Macau has already overtaken Las Vegas in gaming revenue, other Southeast Asian nations like South Korea, Singapore and the Philippines, are opening casinos, or considering legalizing gambling, as they capitalize on the exploding popularity of the high-rollers gaming market.
Belle/LRWC’s gaming operation will be developed in three phases over a five-year period. The first phase will include the construction of the casino featuring 100 VIP suites as well as two 15-storey hotel towers of 500 rooms with a Planet Hollywood theme. The casino will have 1,500 slot machines and 250 tables.
Belle’s entry into the gaming market was formalized last year following its acquisition of Premium Leisure and Amusement Inc. from SM Commercial Properties Inc. The PLAI holds a franchise from Pagcor for the operation of a casino complex in the 800-hectare Bagong Nayong Pilipino Manila Bay Entertainment City.
Together with the SM Group, Belle has committed to inject $1 billion into the project over a 25-year period. Of the total, P500 million will be shouldered by the high-end leisure property developer and gaming firm.
The SM Group will be in charge of non-gaming developments which include hotels, a sports arena, museum, and an oceanarium.
Shares of both Belle and LRWC have been appreciating for the past two weeks, closing at P3.95 and P3.10 apiece, respectively, Friday.
The Belle Grande Manila Bay will form part of a $20 billion project which PAGCOR hopes will turn 120 hectares of reclaimed land on Manila Bay into one of Asia’s biggest gaming and resort destinations.
The Bagong Nayong Pilipino-Manila Bay Integrated City project is expected to inject a total of up to $3 billion into the Philippines economy, comprising investments in hotels, casinos, entertainment complexes and a golf course.