Razon enters Pagcor Bay Shore project

Businessman Enrique K. Razon Jr., head of multinational port operator International Container Terminal Services, Inc. (ICTSI), has bought a gaming company that will build a casino at the Bagong Nayong Pilipino project. In a statement, Razon said he had acquired a controlling stake in Bloombury Investment Holdings, Inc. from Jose Ch. Alvarez, owner of Columbian Motors Corp. "[Razon] has acquired a controlling interest in Bloombury from fellow businessman Jose Ch. Alvarez, and is set to infuse fresh equity of P5 billion or $100 million," according to the statement. Bloombury is one of four companies granted a provisional license by the Philippine Amusement and Gaming Corp. (Pagcor) to set up and operate gaming and entertainment facilities at the Bay Shore Bagong Nayong Pilipino Entertainment City project at the Manila Bay reclamation area in Parañaque. Other companies granted licenses were Travellers International Hotel Group, Inc., the partnership between the Andrew L. Tan-led Alliance Global, Inc. and casino-resort operator Genting Hong Kong Ltd., SM Investments Corp. and Universal Entertainment Corp. (formerly Azure Corp.), which makes gaming machines and is a co-investor in the Wynn chain of casino hotels in Las Vegas and Macau. Rafael Butch A. Francisco, president and chief operating officer of Pagcor, earlier said construction at the Bay Shore Entertainment City was expected to start in the latter part of the year. Razon’s entry into the Pagcor project came after his exit from the power transmission business. Last month, Henry Sy Jr.’s OneTaipan Holdings, Inc. bought Monte Oro Grid Resources Corp. from Razon’s group for $350 million. Monte Oro owns 30 percent of the National Grid Corp. of the Philippines, the private utility that runs the country’s power transmission highway. Razon’s statement said Bloombury was in the final stages of design development for its project in Bay Shore. Construction is expected to start in the third quarter at an estimated cost of $400 million for the first phase. "The complex will include two five-star luxury hotel towers of over 1,000 rooms within a world-class entertainment and convention facility," the statement said. The complex will be "fully operational in two years and is expected to stimulate growth not only in the hotel and restaurant sector, but also in the construction and services sectors." Razon’s ICTSI operates the Manila International Container Terminal. Other key operations are in Brazil, Poland, Ecuador and Madagascar. At the end of 2009, ICTSI’s revenues dropped by 9 percent to $421.7 million. Net income fell by 15 percent to $54.9 million due to declining global trade. ICTSI shares gained 25 centavos to P23.50 on Monday. — Emilia Narni J. David, BusinessWorld