Development of Suncity Group’s US$1 billion Manila hotel and casino project will continue as planned despite the arrest of Suncity Chairman Alvin Chau this week, according to the group’s Philippines subsidiary.
In response to queries from the Philippine Stock Exchange, Suntrust Home Developers Inc, which is 51% owned by Suncity, said it “does not expect that the issue surrounding Mr Chau … will have any direct material adverse impact on the financial position, business or operations,” of the company.
“Suntrust currently does not have commercial operations and the construction of its 5-star hotel and casino complex is progressing as scheduled.
“At the time of this announcement, the above development is not expected to have a material impact on the timeline of the construction.”
Suntrust added that it currently boasts cash and cash equivalents of around Php7.7 billion (US$152.8 million) to support immediate construction and working capital requirements.
Chau was arrested by Macau authorities on Saturday and was sent to Coloane Prison on Monday to await trial for alleged criminal association, illegal gambling and money laundering. The Public Prosecutor’s Office has alleged Chau established an online betting platform in the Philippines which offered proxy betting services to customers in mainland China, then funnelled proceeds to bank accounts held by Macau-based companies.
Chau this week stepped down as Chairman and director of both Suncity Group and Summit Ascent Holdings, although neither is directly linked to Suncity Gaming Promotion Company Limited, the entity wholly-owned by Chau that operates Suncity-branded junket rooms.
Due for completion in 2024 and part of the Westside City Resorts World project in Manila’s Entertainment City, Suntrust’s hotel and casino will incorporate a 450-room hotel, a casino boasting 400 gaming tables and 1,200 slot machines, a new hotel brand by Suncity and multiple entertainment options.
