MANILA, Philippines - Manila Jockey Club Inc. (MJC) is allocating a P600-million portion of the San Lazaro Tourism and Business Park (SLTBP) in Manila for development works of an affiliate company.
The move will allow MJC Investment Corp. (MIC) to build a hotel on the site, riding on the tourism promotion efforts of the City of Manila.
“The board directors of MJC in its meeting yesterday has given the go-ahead for the transfer of a portion of SLTBP consisting of 7,500 square meters, more or less, with a net value of P80,000 per sqm to its affiliate MIC,” the company said in a disclosure to the stock exchange.
The deal will be finalized through a property-for-share arrangement pursuant to an agreement dated July 24, 2008.
“The board of directors of MJC further resolved to consider strategic investors to invest in the development of SLTBP,” the gaming firm said.
The property is expected to host a world-class hotel within the Philippine Economic Zone Authority (PEZA)-registered SLTBP.
“The hotel complements the government’s tourism program in the City of Manila,” MJC said.
Horse racing operator MJC is spending at least P15 billion over the next 10 years into three township projects with a combined area of 300 hectares, as it hopes to ride on the expected tourism wave.
MJC is in the middle of a 10-year development plan that had them relocating and developing the San Lazaro Leisure Park from Manila to a 77-hectare property in Cavite.
The Manila racetrack is under development for a township project after it was transformed into the PEZA-registered San Lazaro Tourism and Business Park.
The site will also feature a 250-room Mercure hotel under an agreement between MJC’s subsidiary and Accor Group affiliate, AAPC Singapore Pte. Ltd. The Accor Group, one of the top hotel managers in the world, operates and manages 4,163 hotels with 498,617 rooms in 90 countries.
This was after MJC signed a similar deal for state-run Philippine Amusement and Gaming Corp. to open a casino in the hotel.
MJC was incorporated in March 1937 to operate and maintain a racetrack and conduct horse races.
It has racing operations in Carmona, Cavite while operating off-track betting stations. The company engages in the development of its real estate assets through joint ventures.