Calata partners with Sino-America Gaming for dev’t of Mactan project
Calata Corp., the listed distributor of agricultural products, is entering its first real estate venture following its partnership with a US investment group and a Macaubased gaming operator that are developing the P65-billion Mactan Leisure City in Cebu.
The Sino- America Gaming Investment Group LLC and Macau Resources Group Ltd. have invested $ 18 million in a newly-incorporated subsidiary of Calata, which will serve as the vehicle for the future establishment of a Real Estate and Investment Trust (REIT).
Part of the funds will be used for the Mactan Leisure City which is expected to start commercial operations in 2020.
Of the $18 million investment, $ 13 million will be directly infused into Calata’s majority- owned subsidiary while the remaining $5 million will be temporarily invested in the company.
“Our primary purpose is to engage in the agricultural business but we also have a secondary purpose which is to manage real estates. As soon as we establish the subsidiary hopefully next month, we will be in full force in acquiring properties, “Calata Corporate Secretary Jose Marie Fabella told The STAR.
The Mactan Leisure City is an integrated resort incorporating three hotels, casino and entertainment complex, commercial, retail, and conference facilities, and yacht club, situated in a 14-hectare property located in Mactan Island.
The development, which aspires to be Southeast Asia’s first seven- star hotel, will house premium brands and incorporate a variety of stateof-the-art entertainment and family leisure concepts.
“It is poised to become a game-changer in the region’s family leisure tourism and gaming offering where tourists from all parts of the world will converge to experience luxurious resort life in a tropical paradise while enjoying a variety of family entertainment experiences,” Calata said.
The leisure project is expected to generate more jobs and is forecast to generate annual revenue of over P55 billion.
Calata’s partnership with Sino-America and Macau Resources may also extend to agri-related projects not only to increase profitability but to stabilize regional food supply as well.
“With the additional business opportunity created from this partnership, it is expected that additional revenues to be generated shall substantially and significantly take corporate and shareholder value to the next level,” it said.