Manila Jockey ventures into tourism

MANILA, Philippines - Horse racing operator Manila Jockey Club Inc. (MJC) of the Reyno family is venturing into the tourism business, moving forward with a plan announced two years ago.

Following a regular meeting, the board of directors of MJC “approved the subscription of the corporation to 80 million common shares amounting to P80 million of the expanded capital of Apo Reef World Resorts Inc. (ARWRI).”

The transaction will allow MJC to secure a 50.6-percent stake in ARWR, which owns 122 hectares of beachfront and valley properties in Mamburao, Mindoro Occidental.

Apo Reef Natural Park is the second largest contiguous coral reef in the world and the largest in the Philippines, according to the United Nations Educational, Scientific and Cultural Organization (UNESCO).

Apo Reef Natural Park is in UNESCO’s tentative list, an inventory of properties that each state party intends to consider for nomination in the World Heritage Site List.

“The equity infusion of the company into ARWRI is in line with the corporation’s leisure-oriented property development plans as previously disclosed in May 2011,” MJC said.

MJC said it would pay 25 percent of the subscription price in cash 15 days from the execution of the investment agreement.

In March, the listed horse racing operator announced its plan to put up a football complex as part of the redevelopment of the San Lazaro Leisure and Business Park in Carmona, Cavite.

In 2012, MJC assigned a P600-million portion of the San Lazaro Tourism and Business Park in Manila to affiliate MJC Investment Corp., which will build a hotel given tourism prospects in the metro.

MJC earlier announced a P15-billion investment until 2022 to develop three township projects with a combined area of 300 hectares.

MJC was incorporated in March 1937 to operate and maintain a racetrack and conduct horse races.  It has racing operations in a 77-hectare property in Carmona, Cavite while operating off-track betting stations.

In the first quarter, MJC’s net losses narrowed to P4.65 million from P20.85 million a year ago as gross expenses declined 20 percent to P105.24 million from P132.1 million last year.