Calata Partners Sino-America and Macau Resources Group for Mactan Island Casino Project

Philippines-listed distributor of farming products Calata Corp. today announced in a filing to the Philippine Stock Exchange that it has partnered Sino-America Gaming Investment Group, LLC and Macau Resources Group Ltd., with the three organizations forming a REIT for the establishment of a 14-hectare integrated casino resort on the Mactan Island, part of the Cebu Province.

Mactan Leisure City, as the complex will be called once finished and launched, will cost developers the amount of PHP65 billion. The large-scale project is expected to be completed in 2020. Under original plans, the resort will feature three luxury hotels, a full-fledged casino, as well as a number of non-gaming options.

Calata said in today’s filing that Mactan Leisure City will create tens of thousands of temporary and permanent job positions and will annually generate gross revenue of around PHP55.74 million. The complex will be intended to attract visitors not only from the Asia-Pacific region but also from the rest of the world.

Mactan Leisure City is also expected to turn into a game-changer in the region in the provision of “family leisure tourism” options as well as gambling options. Developers aspire to build Southeast Asia’s first seven-star hotel and to provide future guests with a wide diversity of “state-of-the-art entertainment and family leisure concepts.”

Under the agreement between the three developing parties, Sino-America and Macau Resources will infuse the initial amount of PHP836 million into their joint project. Of those, Calata will receive PHP234 million. The money will then be invested in the Philippine company’s majority-owned vehicle. The remaining PHP602.1 million will go directly to the said majority-owned corporate vehicle.

Through the REIT structure, interested investors will be able to invest in the finished product that will already be generating money. Calata opted for the REIT agreement due to a certain REIT law introduced in the Philippines in 2009 that necessitates the distribution of 90% of a property’s full-year income.

Specializing in the distribution of different farming products, including animal feeds, seeds, soya, agro-chemicals, fertilizers, and many more, Calata said in its filing to the Philippine Stock Exchange that Sino-America had also expressed interest in investing in the country’s agriculture, seeing in it an exciting business opportunity.

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