MANILA, Philippines - Property giant Ayala Land Inc. (ALI) and casino operator Bloomberry Resorts Corp. are teaming up for an upscale shopping center in Solaire Resort & Casino.
In a disclosure to the Philippine Stock Exchange, ALI said it signed the terms of reference with Bloomberry’s subsidiary Sureste Properties Inc. for the retail area to be opened in the integrated casino complex.
“ALI will be the leasing and marketing agent of the said retail area with a gross leasable area of more than 5,000 square meters. The retail component will have premium brands to complete the offering of Solaire,†the property firm said.
ALI’s Greenbelt shopping center in Makati accommodates upscale brands like Hermes, Louis Vuitton, Prada, Gucci, Salvatore Ferragamo and Rolex.
Bloomberry has allotted $450 million for the Phase 1A expansion that includes a 300-all-suite hotel, 3,900 parking slots, a shopping center with luxury brand stores and an entertainment theater. Phase 1A, the hotel and entertainment building in Solaire, is expected to be completed this year.
The deal marks the first partnership between ALI and Bloomberry, both owned by the two of the wealthiest families in the Philippines. The development exposes the property arm of the Ayala conglomerate to the booming gaming sector while giving port tycoon Enrique K. Razon Jr. a partner in the retail segment of the casino complex.
ALI is into the development and operations of residential buildings, shopping malls, office centers, convenience stores, department stores, and hotels and resorts. It committed to spend P70 billion this year, up from P66.26 billion in 2013, to complete ongoing developments and new launches to help sustain the company’s growth trajectory in the coming years.
For its part, Bloomberry recorded P1.46 billion in net income in the first quarter, turning around from a P1.05-billion net loss a year ago due to robust revenues and efficient operations despite the absence of a third-party management company. The $750-million Phase 1 of Solaire, which has 500 rooms, 18,500 square meters of gaming space and 15 luxurious dining options, started commercial operations in March last year.
The casino complex is situated in Entertainment City, a 120-hectare property reclaimed from Manila Bay and owned by the Philippine Amusement and Gaming Corp.