Agribusiness company Calata Corp. has teamed up with a US-based investment group and Macau-based gaming operator to create a real estate investment trust for a proposed P65 billion ($1.4 billion) integrated resort on Mactan Island, Cebu.
Expected to open in 2020, the 14 hectare development will include three luxury hotels and an entertainment complex featuring a full-scale casino and shopping facilities.
It is envisioned to be a “world class development” with an aspiration to be a host to Southeast Asia’s first seven-star hotel.
According to a filing to the Philippine Stock Exchange from Calata on Tuesday, Calata confirmed it has partnered with Sino-America Gaming Investment Group and Macau Resources Group for the REIT.
Calata in its filing said the Mactan Leisure City would “become a game-changer in the region’s family leisure tourism and gaming offering where tourists from all parts of the world will converge to experience luxurious resort life in a tropical paradise while enjoying a variety of family entertainment experiences.” It is expected to “generate tens of thousands of employment opportunities” with gross revenue of about P55.7 billion yearly, said the company.
The US and Macau group is expected to initially contribute around P836.1 million into the project, of which P234 million will go to Calata, which in turn will be invested in its majority-owned corporate vehicle The remaining P602.1 million will be directly invested in Calata’s majority-owned corporate vehicle.