Westside City in Paranaque – From the website of Summit Ascent Holdings
MANILA, Philippines — Integrated gaming resort developer Suntrust Resort Holdings Inc. has issued new convertible bonds to an overseas affiliate as it prepares to open the $1.25-billion Westside City gaming hub in Parañaque by year-end.
The total construction and development cost of the main hotel-casino is estimated to hit $1.25 billion, of which $964 million has already been funded, Summit Ascent Holdings Ltd. said in an April 16 disclosure to the Hong Kong Stock Exchange.
Summit Ascent said its wholly-owned subsidiary, SA Investments, had agreed to subscribe to P8.63 billion convertible bonds issued by Suntrust.
Based on a separate financial report filed by Suntrust, construction of structural works and major facade systems up to roof level has been completed as of end-2024.
“The mechanical, electrical and plumbing and fire protection systems in major plant rooms have been substantially completed and part of the system has commenced testing and commissioning,” Suntrust said.
“Management aims to commence the operations of a five-star hotel and casino establishment in the fourth quarter of 2025,” it added.
Westside City casino is the last of the four gaming resorts to rise at Pagcor Entertainment City, a reclaimed area along Manila Bay envisioned to be the Philippines’ micro version of the Las Vegas entertainment strip.
Solaire Resort & Casino, City of Dreams Manila and Okada Manila had opened in the area way ahead, all of which are now grappling with the decline in high-roller players amid tougher competition with other properties abroad. This is alongside the explosion of digital gaming options for the mass market.
Ownership structure
Suntrust used to be a subsidiary of tycoon Andrew Tan-led Megaworld Corp. until 2019, when China-based SunCity Group — later on renamed as LET (Leisure, Entertainment, Taste) Group Holdings Ltd. — acquired a 51-percent interest.
Suntrust’s direct parent company now is Fortune Noble, incorporated in the British Virgin Islands. This is part of LET Group, likewise the controlling shareholder of Summit Ascent Holdings.
Suntrust had previously issued convertible bonds to Fortune Noble to build the local gaming resort, which will include a five-star hotel with 450 rooms, 400 gaming tables and 1,200 slot machines for both mass and VIP markets.
If all issued bonds would be converted into equity, LET group will hike its interest in Suntrust from 51 percent to as much as 89.8 percent, while the remaining stake held by Megaworld group will go down from 34.7 percent to 7.2 percent. Public ownership, on the other hand, could go down from 14.3 percent to as low as 3 percent, below the minimum requirement for continued listing on the Philippine Stock Exchange.
READ: Manila Bay casino developer seeks P25-B loan from China Bank
Exposed to Russia
Aside from the Westside City project in the Philippines, Summit Ascent holds a 77.5-percent interest in Tigre de Cristal, one of the largest integrated resorts located in the Primorye Integrated Entertainment Zone of the Russian Far East.
Tigre de Cristal has been operating since late 2015. Summit Ascent holds a gaming license granted by the Russian government for an indefinite period.
In a recent filing in Hong Kong, the group said operations in Russia “continue to face significant challenges and uncertainties due to the ongoing and escalating Russia-Ukraine conflict, along with the associated sanctions levied against Russia.”
“The Group has diversified its investments in one of the most rapidly growing emerging gaming markets in Asia – the Philippines, as well as non-core business of property development [on] Miyako Island of Japan,” it said.
The group is now “actively seeking opportunities to divest its property development on Miyako Island of Japan, a non-core business, it said.