A stalled Philippines casino resort project faces new challenges as its lender plans to sell the land, leaving the future of Emerald Bay uncertain.
Key Takeaways:
- PH Resorts Group’s Emerald Bay project encounters another setback
- China Banking Corp. announces intention to sell the resort’s land
- The $314 million development has been idle since the pandemic
Emerald Bay’s Troubled Journey
PH Resorts Group, led by Dennis Uy, has faced a series of obstacles in its quest to complete the Emerald Bay casino resort in Mactan, Cebu. The project, initially valued at PHP17.5 billion ($314 million), has been plagued by financial difficulties and failed partnerships.
Failed Partnerships and Investor Search
The company made multiple attempts to secure investors, including discussions with Tiger Resort Leisure & Entertainment Inc., Bloomberry Resorts, and AppleOne Group. However, these potential deals fell through, leaving the project in limbo.
A Glimmer of Hope
In December, a memorandum of understanding with construction firm EEI Corp. seemed to offer a lifeline. EEI Corp. paid PHP300 million to partially fund lease and interest payments to China Banking Corp. (Chinabank), the primary lender. Additionally, Udenna Corp, PHR’s parent company, pledged ongoing support to repay debts to former partner Bloomberry.
Chinabank’s Decision to Sell
Despite recent discussions between PHR and EEI Corp., Chinabank has announced its intention to sell the 30-acre beachfront property. Chinabank Chairman Hans Sy stated that “a couple of interested parties” are considering the land, though potential buyers were not identified.
Emerald Bay: A Pandemic Casualty
The Emerald Bay project, once touted as “a luxury leisure experience unlike any other,” was designed to feature a five-star hotel, multiple pools, dining outlets, and extensive gaming facilities. It was planned to join other casino resorts in Cebu, including Nustar and the upcoming Mactan World.
Construction began in 2017 with an anticipated 2021 opening. However, the COVID-19 pandemic halted progress, and work never resumed.
Chinabank’s Final Decision
With the expiration of the leaseback agreement with PHR, Chinabank has decided to move forward with selling the property. Hans Sy explained, “We gave Dennis a chance to redeem. Of course, they asked for an extension. But we already gave them more than a year. It’s already in our name. … We’re not renewing anymore.”
The sale of the Emerald Bay land casts doubt on the future of this ambitious casino resort project, leaving industry observers wondering about the potential impact on Cebu’s developing gaming market.
