Universal Entertainment terminates sale agreement for land near Okada Manila

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Universal Entertainment terminates sale agreement for land near Okada Manila

Universal Entertainment Corp announced the termination of the partial sale of the land near the Okada Manila casino resort in Manila, Philippines. According to a statement, the noncurrent asset is owned by Eagle I Landholdings Inc, an affiliate in which Universal Entertainment holds about 40% interest.

Due to the ongoing pandemic, the company received official documentation to extend the settlement of the sale, accompanied by a security deposit. With the slow easing of the restrictions in the Philippines, both parties were prepared to move forward with the deal. However, last week the safety measures in the country were once again tightened at least until 4 April, and due to new strains of the virus, the Philippines government still doesn’t allow foreign nationals to enter the country. Universal Entertainment stated it was difficult to negotiate the extension under these conditions, as “there was no prospect of resuming economic activities in the future.”

The company took other inquiries about the land into consideration and decided to terminate the existing land sale agreement as of 31 March, but added the company will negotiate with other buyers and will proceed with the sale.

The company announced the sale of the 36,610 square meters of land near the Manila casino on 14 February, 2020. The total value is approximately PHP13.18bn ($260.7m). Universal Entertainment was reportedly looking to attract a hotel brand to acquire the land to provide wider accommodation for the guests of the casino, as the occupancy rate in Okada Manila exceeded 98% in 2019.