
Planned development for Westside City
Suntrust Resort Holdings Inc, a Philippine-based company responsible for a casino hotel project in Westside City, Manila, has indicated a lack of “sufficient information available” regarding the potential impact of the Tigre de Cristal licensee sale on its business.
Summit Ascent Holdings Ltd, a longstanding investor in the Russian casino resort Tigre de Cristal in Vladivostok, recently declared non-compliance with Hong Kong Stock Exchange rules, following the resignation of five directors on January 15. The resignations were linked to a disapproved deal involving the sale of G1 Entertainment LLC, the gaming license holder of Tigre de Cristal, for US$116 million, due to uncertainties arising from the ongoing Russia-Ukraine conflict.
Andrew Lo Kai Bong, the only remaining director of Summit Ascent, also serves as the chairman of LET Group Holdings Ltd, Summit Ascent’s Hong Kong-listed parent. LET Group, controlling 51 percent of Suntrust, confirmed the resignation of its board members, except Mr. Lo, due to disapproval of the Tigre de Cristal licensee sale.
Suntrust’s management expressed the need for more information to assess any potential impact on its associates. Additionally, Summit Ascent Investments Ltd, a unit of Summit Holdings, holds PHP5.60 billion (US$99.7 million) of Suntrust’s convertible bonds from 2020 and PHP6.40 billion from 2022.
In 2023, Suntrust and Summit Investments agreed on a PHP13.51 billion convertible bond subscription by Summit Investments, intended to offset Suntrust’s outstanding obligations under the 2020 and 2022 convertible bonds, but as of the latest filing, the PHP13.5-billion convertible bond is yet to be issued.
Although the Primorye region in Russia was initially positioned as a competitor to Macau, with a projected revenue of up to $5 billion from eight planned casino projects (as indicated by a 201 feasibility study by Global Market Advisors), the Philippines has now taken center stage as a significantly more prominent gaming market.
The uncertain duration of the international sanctions imposed on Russia creates a potential distraction from their Manila project. Hence, it was a logical decision for them to divest from Vladivostok, allowing them to concentrate entirely on their endeavors in the Philippines. Therefore, it comes as no shock that the LET Group will now concentrate on a project situated a mere eight minutes away from the vibrant Ninoy Aquino International Airport. This project can rely on a local gambling market and is not burdened by substantial capital constraints stemming from ongoing conflicts.