Philippines casino operator Bloomberry Resorts Corporation has completed the purchase of the two parcels of land upon which its flagship integrated resort, Solaire Resort & Casino, sits in Manila’s Entertainment City precinct.
In a Monday announcement, Bloomberry revealed that its subsidiary, Sureste Properties Inc (SPI), had now fully paid the purchase price to Philippines gaming regulator PAGCOR and signed the Deed of Absolute Sale for purchase of the land, covering a total of 160,359 square meters. The total purchase price is Php37,333,130,000 (US$710.1 million).
In a recent note, Morgan Stanley said that purchase of the land would save Bloomberry Php500 million (US$9.6 million) on current land rental but could lead net debt to rise to Php31 billion in 2018, declining to Php17 billion in 2019. The financial services firm added that interest expense could also rise to Php3.6 billion in 2018 and Php3.9 billion in 2019, lowering its net profit forecasts 23% and 30% respectively to Php7.7 billion and Php7.9 billion.
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