After multiple delays, PH Resorts Corp finally secured an investor last year for its long-stalled resort project in the Philippines. However, the lender is now moving to sell the property.
Dennis Uy’s PH Resorts Group made three unsuccessful attempts to secure an investor for its Emerald Bay casino resort in the Philippines.
Potential partners—Tiger Resort Leisure & Entertainment Inc. (operator of Okada Manila), Bloomberry Resorts led by Enrique Razon, and AppleOne Group—all expressed interest at various points, but none of the deals materialized.
In December, PH Resorts Group (PHR) finally signed a memorandum of understanding with construction firm EEI Corp to move forward with the PHP17.5 billion ($314 million) Emerald Bay resort project in Mactan, Cebu. The following month, EEI provided PHP300 million to a PHR subsidiary to help cover lease and interest payments to its main creditor, China Banking Corp (Chinabank). Parent company Udenna Corp also pledged “continuing support” to help PHR repay its former investment partner, Bloomberry Resorts.
As recently as April 30, PHR stated that discussions with EEI were still ongoing as the parties worked to finalize deal terms.
However, Chinabank appears to have other plans. The bank recently announced its intention to sell the land beneath the stalled project, casting doubt on Emerald Bay’s future.
According to the Philippine Daily Inquirer, Chinabank Chairman Hans Sy confirmed that “a couple of interested parties” are evaluating the 30-acre beachfront property, though he did not name the potential buyers.
A pandemic casualty
Once envisioned as “a luxury leisure experience unlike any other,” Emerald Bay was designed to feature a five-star hotel, four swimming pools, 18 dining options, retail outlets, and conference and exhibition facilities. Its gaming floor was expected to house over 700 electronic gaming machines and 140 gaming tables.
The project was set to join a growing cluster of integrated resorts in Cebu, including Nustar, developed by Universal Hotels, and Kevin Tan’s PHP22.3 billion Mactan World, which is scheduled to break ground in 2026.
Construction on Emerald Bay began in 2017 with an initial opening target of 2021. However, the Covid-19 pandemic disrupted progress, and work on the site has remained stalled ever since.
Now, with the leaseback agreement with PHR expired, China Banking Corp (Chinabank) is preparing to sell the property.
“We gave Dennis [Uy] a chance to recover,” Chinabank Chairman Hans Sy told reporters. “They requested an extension, but we’ve already given them over a year. The property is now under our name… and we’re not renewing.”
