Universal Entertainment is reported to be in negotiations with a potential partner in Manila, Philippines, that could help the Japanese company jump-start its plans to develop an integrated resort and casino there.
A Philippine entity called Empire East Land Holdings has begun talks with Universal chairman Kazuo Okada on the possible purchase of land which Universal pegs at a cost of US$2bn. “Talks are very preliminary,” said Empire East president Anthony Charlemagne Yu. He declined to say whether the discussions involve the entire 40-hectare site or just part of it.
A deal with Empire East, a unit of Philippine real estate conglomerate Alliance Global, could put Okada’s first venture in resort development back on track. It is one of four IRs licensed for 100 hectares of reclaimed land on Manila Bay called Entertainment City, which the government hopes will transform the capital into a regional leisure destination.
Universal had a partner in Philippine developer Robinsons Land but the two failed to agree on terms. The breakdown left Universal in a dispute with the government over its local ownership structure.
A Universal subsidiary called Eagle I is the registered owner of the company's Entertainment City plot, but an opinion from the Philippines Justice Department last year said that since Eagle I is 64 per cent controlled by Aruze USA, a company controlled by Okada, it is in violation of the country’s 40 per cent cap on foreign ownership.
Universal maintains that it is doing business in the country lawfully and says it intends to develop the resort whether it secures a partner or not.
