Leisure Resorts World raising P1.125 billion via private placement

MANILA, Philippines - Leisure Resorts World Corp. (LRWC) is raising P1.125 billion from a private placement of shares to partly fund a $1-billion integrated resort complex along Roxas Boulevard in Manila.

In a disclosure to the Philippine Stock Exchange, LRWC said its board authorized the issuance of 150 million shares, representing around 15 percent of the company’s total shares, to Pacific Online Systems Corp., Vantage Equities, and Grand Shares Corp. at P7.50 apiece.

Of the total offer shares, 100 million will be issued to Grand Shares and 25 million each to Pacific Online and Vantage Equities.

LRWC was mandated by Belle Corp. to operate and manage the gaming component of Belle Grande Manila Bay for a period of 10 years, renewable subject to a mutual agreement.

Pacific Online is the online system provider of the Philippine Charity Sweepstakes Office (PCSO) in Visayas and Mindanao. It is 28 percent owned by Belle.

Grand Shares is a private-equity group that invests in gaming ventures while Vantage Equities is a publicly-listed holding company whose main focus lies in making strategic investments in companies within the financial services industry.

Major investments of Vantage Equities include e-Business Services (a steadily emerging money remittance company), Philequity Management Inc. and Yehey.com (the largest web portal in the country and acknowledged leader in online advertising space).

Negros Occidental Rep. Alfredo “Albee” Benitez, majority owner and former president of LRWC, said this transaction completes the company’s fund-raising program for Belle Grande Manila Bay, targeted to be the biggest and most modern integrated resort complex in the country.

Benitez said the company has committed to infuse a total of $200 million in Belle Grande Manila Bay, which will have its soft opening in the fourth quarter this year or first quarter of 2012.

“We are fully funded for our share of the costs for this year, which amounts to $60 million. With the private placement and the P2-billion loan, everything is fully covered,” Benitez said.

AB Leisure Global Inc., a wholly-owned unit of LRWC, recently secured a P2 billion loan from Banco De Oro to fund the set-up of Belle Grande Manila Bay, estimated to cost around $710 million.

Willy N. Ocier, vice-charman of Belle, said total project cost is $1 billion over 25 years including common infrastructure and facilities that the Philippine Amusement & Gaming Corp. (Pagcor) will require the licensees to co-invest in.

Belle Grande Manila Bay will make available 15,000 to 20,000 square meters of gaming space in the next three years with a total of 1,600 slot machines, 300-320 tables and 1,500 hotel rooms.

Belle Grande Manila Bay forms part of the four-casino complex called Entertainment City that has been put together by Pagcor.

Others that were granted a provisional license to establish and operate a casino by the government are Aruze, a partner in Wynn Resorts, and Genting Bhd of Malaysia, as well as Bloombury of the group of businessman Enrique Razon.

LRWC is engaged in realty development focusing on leisure business as well as in professional bingo gaming through subsidiary Bingo Bonanza Corp.

Through another subsidiary, First Cagayan Leisure & Resort Corp., LRWC has an existing license agreement with the Cagayan Economic Zone Authority to develop, operate and conduct internet and gaming enterprises and facilities in the Cagayan Special Economic Zone Freeport.

LRWC also owns 30 percent of Binondo Leisure Resort Inc., a company engaged in the hotel and recreation business.