Okada: Foreign equity limit in Pagcor City project addressed

Japanese gaming magnate Kazuo Okada. AP FILE PHOTO

MANILA, Philippines—The group of Japanese gaming magnate Kazuo Okada has addressed the foreign equity limit for an upcoming integrated gaming and entertainment complex following a property deal with two Philippine companies on ownership of the 44-hectare site at Pagcor Entertainment City.

In a disclosure late Friday, Okada’s Universal Entertainment Corp. said it had signed a deal to take in two local partners  – Century Properties Group Inc. and a privately held firm called First Paramount Holdings 888 Inc. – to co-own Eagle 1 Landholdings Inc.

Eagle 1 is a local affiliate of Universal that owns the 44-hectare land in Pagcor City where Okada’s $2-billion “Manila Bay Resorts” will rise as part of the Philippines’ future Las Vegas-like gaming and entertainment cluster.

Universal said Eagle 1 had agreed to issue 720 million voting preferred shares to Century and First Paramount.  Century earlier announced that its share in this investment deal consisted of 432 million of voting preferred shares, representing 36 percent of Eagle I’s pro forma capital stock.

This deal brings majority control of Eagle 1 to local hands.  In its statement, Universal said the issuance of 720 million voting preferred shares would result in more than 60 percent of Eagle 1’s ownership to Philippine nationals.  The disclosure noted: “…this agreement will create a more favorable situation in response to the land ownership requirements.”

As of press time, there is no information available on the principal backers of the third investor in Eagle 1, First Paramount Holdings which will acquire 288 million voting preferred shares in the local unit.

The partnership with Okada gives Century Properties a foothold in Pagcor City as a landlord after limited licenses had earlier been awarded to four proponents. Apart from Okada’s group, other licensees in Pagcor City are tycoon Enrique Razon’s Bloomberry Resorts, the Melco Crown Entertainment-Belle Corp. group and Andrew Tan-Genting group partnership which has brought their venture Travellers International Hotel Group to public hands. Only Bloomberry’s Solaire Manila is operational so far.