Global Gaming Asset Management has acquired a 9 percent stake in Bloomberry Resorts Corp., owner and developer of the upcoming Solaire Manila casino-hotel.
In a disclosure to the Philippine Stock Exchange on Wednesday, Bloomberry said Global Gaming Philippines Llc, the local unit of the Las Vegas-based firm, had exercised its option to buy 921.18 million shares in Bloomberry from businessman Enrique Razon Jr.-led Prime Metroline Holdings at a price equivalent to $15 million plus 10 percent of the latter’s cost of investment in Solaire Manila project.
This is thus equivalent to a price of P1.67 per share, the disclosure said.
Bloomberry has signed a five-year management contract with GGAM that is renewable for another five years.
GGAM, which also operates in Las Vegas, Macau and Singapore, was expected to exercise this option before Solaire Manila opens.
GGAM was given the option to buy shares in Bloomberry to give it an incentive to “get the best people in this industry,” Razon earlier said. The president of Bloomberry, Michael French, used to be the chief executive officer of Macau’s City of Dreams.
GGAM is an investor, developer and manager of casino resort properties based in Las Vegas.
Its three principals have decades of integrated tourism resort and gaming experience, a substantial portion of which was in senior management positions with Las Vegas Sands in the US and Macau.
Under the terms of the management services agreement, GGAM provides planning technical and other advisory services to the Solaire Manila project during its construction and fit-out stage and will provide management services when it starts commercial operation next year.
Based on an earlier disclosure, GGAM will be paid 2-6 percent of the earnings before interest, taxes, depreciation and amortization (EBITDA) generated by Solaire Manila facilities, including local high roller table games.
A separate “incentive fee” will allow GGAM to be paid a graduated fee for achieving certain EBITDA thresholds in relation to foreign high roller tables and junket players.
Bloomberry’s $1-billion “Solaire” gaming and hotel complex is expected to be the first to open in the Philippine Amusement Gaming Corp. (Pagcor)’s Entertainment City —the country’s version of the Las Vegas or Macau strip—by next year.