The board of Manila Jockey Club has approved a capital buildup program for its hotel and tourism estate development arm MJC Investments Corp. (MIC) in order to fund a project at the San Lazaro Business and Tourism Park in Santa Cruz, Manila.
The project is estimated to cost P3.7 billion.
In separate disclosures to the Philippine Stock Exchange Thursday, MJC and MIC reported that the capital-raising program would also involve the additional subscription of a Hong Kong-based strategic investor. At stake is 875 million shares of stock.
The new investor group is represented by Teik Seng Cheah, managing director of ECM Libra Financial Group Berhad, a listed Malaysian boutique financial services group.
The subscription will be taken from the increase in the authorized capital stock of MIC to P5 billion.
“The funds generated from the subscription shall be used for the ongoing construction of the hotel and entertainment project in Sta. Cruz, Manila,” the company said in a statement.
“It is expected that MJC Investments will continue its capital raising program, which it may execute through future mechanisms of either debt or raising additional equity.”
The MIC board has also mandated Datem Inc. to be the general contractor for its hotel and entertainment project in Sta. Cruz, Manila.
Datem is among the Philippines’ leading general construction contractors, with extensive experience in commercial, residential and hospitality high-rise construction.
The estimated value of the contract awarded to Datem is P926 million.
Based on previous reports, an initial 33 percent stake in MIC was sold for P450 million (450 million shares at P1 each) to the same Hong Kong investor consortium.
The Sta. Ana project will involve the construction of an 18-story five-star all-suite international branded luxury hotel, and an expansive podium, which will be home to high-end restaurants, a columnless ballroom and over 5,000 square meters of themed indoor entertainment space.
The MJC group now conducts its racing operations in a facility in Carmona, Cavite.
It also operates off-track betting stations and is expanding its OTB network in Metro Manila as well as in provincial areas.
It has ventured into gaming operations with the establishment of a casino known as the Pagcor Club San Lazaro located on the third floor of the Turf Club at the San Lazaro Leisure Park in Carmona, Cavite.