Manila Jockey Club Inc. (MJC) will lease its horse racing facilities in Carmona, Cavite, to Hapi Jockey Club Inc. (HJCI) after recently announcing the shutdown of its 155-year-old horse racing operations to focus on real estate development.
In a disclosure on Monday, MJC said the specific terms and conditions of the lease were yet to be finalized.
The deal is also subject to the approval of the board of directors of both companies and relevant government regulators.
“The company shall disclose the specific terms and conditions of the lease as soon as the definitive agreement/s have been executed by the parties,” MJC said.
HJCI is a corporation organized by horse owners and a grantee of a 25-year legislative franchise for horse racing. In May, it broke ground for its fourth race track in Batangas.
No franchise renewal
MJC, one of Asia’s oldest horse racing clubs, said last month that it would not renew its legislative franchise that would expire on Oct. 23.
But depending on market conditions, MJC said it was planning to file an application for a new horse racing franchise either under its own name or via a new wholly owned subsidiary. “The board expects no significant impact on the company’s financial condition in 2022 and in the years to come. The cessation allows the company to pivot to more stable revenue streams,” the listed company said. These include rental income and interest income from existing properties and investments; and investment income from proceeds from the sale of its idle assets.
In the first half, Manila Jockey registered P1.31 billion in net income, a reversal from the P94.58-million net loss in the same period a year ago. This was supported by the revenue it recognized from the sale of a P1.47-billion investment property.
Revenues from club races during the period rose by 92 percent to P54.6 million from P28.4 million a year ago.
Manila Jockey started as a social club of horse racing aficionados from prominent Spanish, American and Filipino families in Manila in 1867. MJC itself was established as a business entity in 1937. It was granted a congressional franchise for horse racing in 1997.