Gatchalian will use his prime property on UN Avenue across Manila Hotel, where his Waterfront Manila Hotel and Casino (formerly Hotel Pavilion, to back up Manila Waterfront City’s (MWC) borrowings of up to the “maximum of P8 billion”
The land is owned by Acesite Realty Inc. (ARI), the property arm of Acesite Hotels which is 55 percent owned by Gatchalian. The loans will be channelled to Waterfront Manila Premier Development, Inc. (WMPDI) which will develop the 318-hectare reclamation project together with the City of Manila.
“In order to partially finance the project, the third party mortgage of the Waterfront Manila Hotel and Casino is required by the creditors thereof. In return for the accommodation, ARI, a fully owned subsidiary of ACE, will have the option to purchase one hectare of land at the MWC at a 50 percent discount from the price first offered by WMPDI to the public when the reclaimed land is made available for sale. This presents an excellent opportunity for ACE to expand its high-end hotel portfolio in the future CBD (central business district) of the Manila Bay area,” said ACE in its disclosure.
ACE will call a special stockholders’ meeting to approve the financial transaction.
Gatchalian is getting the ball rolling on the fifth integrated resort in the Entertainment city after the Supreme Court compelled the Philippine Amusement and Gaming Corp. to issue his company last year. Gatchalian had applied for a casino license in Entertainment City in 2008 but Pagcor sat on its bid while allowing four other developers – Resorts World Manila, City of Dreams, Solaire Resort and Casino and Okada Manila. Gatchalian sued Pagcor in 2015.