Philippine-listed Suntrust Resort Holdings, Inc said Thursday that it has subscribed to 400 million common shares in Westside Bayshore Holding Corporation (WBHC) – the soon-to-be new holding company for Manila’s LETX integrated resort development – as the process to transfer control of the project gets underway.
According to a filing, the 400 million shares represent 40% of the total outstanding and issued common shares of WBHC.
As previously reported by IAG, Suntrust has reached a “strategic working agreement” with Newport World Resorts operator Travellers International Hotel Group Inc and associated companies through which Travellers will assume a controlling stake in LETX in order to expedite completion of the US$1.25 billion hotel and casino development, located in Manila’s Entertainment City. Travellers will also assume operational control once complete.
IAG understands that, under a complex reorganization of the property’s ownership structure, LETX will become the main asset of another newly formed entity called Entertainment City Resorts Corporation (ECRC) of which Travellers parent Alliance Global Group will own 50% and WBHC the other 50%. Travellers will hold the 60% stake in WBHC not assigned to Suntrust – reducing Suntrust’s interest in ECRC to 20%.
In Thursday’s filing, Suntrust said the acquisition of shares in WBHC will see it “effectively hold an indirect interest in ECRC, a subsidiary of WBHC, which assumed all rights and obligations related to the Westside Integrated Resort Project to ensure its timely construction, development, completion and operation.”
The transaction will also see Andrew Lo’s LET Group, which owns 51% of Suntrust, retain around a 10% interest in LETX.
Suntrust had previously outlined a raft of challenges facing the project, with the cost blowing out from an initial US$1 billion and delays seeing the opening timeframe pushed back to 3Q26.
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