‘One or two’ investors eyeing COD Manila, says SMIC
Sy family-led SM Investments Corp. (SMIC) has confirmed that there are “one or two” investors that have expressed interest in City of Dreams Manila, which Melco Resorts and Entertainment Ltd. manages and operates.
SMIC president and CEO Frederic DyBuncio confirmed to reporters that Melco had informed them about the potential investors, “but so far, nothing definite has happened yet.”
DyBuncio could not likewise confirm if the investors were casino operators.
“But if [Melco] cannot sell [the property] at the price they want, they are just going to continue the business,” he said.
Leisure estate and gaming firm Belle Corp., a portfolio business of SMIC, owns the land on which COD Manila stands, including the physical structure.
On the other hand, Melco, through subsidiary Melco Resorts Leisure Corp., pays Belle rent for the integrated gaming complex, he explained.
In March, Melco said it was weighing “strategic options” on the future of COD Manila.
It had retained investment banks CBRE Capital Advisors Inc. and Moelis and Co. LLC as financial advisors to “assist in the process of exploring potential strategic alternatives for [COD] Manila.”
Macau casino tycoon Lawrence Ho has also hinted at exiting the Philippines, saying they wanted to adopt an “asset-light” strategy.
At the same time, SMIC, whose portfolio already includes real estate, banking and retail, has paused its venture into online gaming because of recent regulatory threats.
DyBuncio confirmed they had originally planned to set up their own online gaming product through Belle, encouraged by the company’s revenues going back to prepandemic levels.
“But we put that on a bit of a pause to see what happens,” DyBuncio said, referring to possible regulatory changes.
Belle recently applied for a second gaming license from the Philippine Amusement and Gaming Corp., specifically to expand in Clark.
DyBuncio said they were just waiting to see whether they had been granted the license.
Impunity, accountability and the Supreme Court