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Empire East drops joint venture with Okada group


Empire East Land Holdings Inc. said it is no longer pursuing joint venture talks with the group of Japanese gaming magnate Kazuo Okada with respect to a $2-billion integrated resort along Manila Bay.

In July last year, Empire East and the Okada group forged a joint venture agreement that would have allowed the former to take the lead in the development of a 12.95-hectare luxury residential resort condominium project at Pagcor's Entertainment City.

"The management has decided not to pursue any further discussion with the Okada group after careful consideration of several variables affecting such a venture," Empire East said in a disclosure to the Philippine Stock Exchange.

The move follows the signing by Okada's Universal Entertainment Corp. of a property deal with Century Properties Group Inc. and privately-held company First Paramount Holdings. The deal would give the two Filipino companies 60-percent ownership of Eagle 1 Landholdings Inc., which owns the 44-hectare land where Okada's Manila Bay Resorts will rise as part of the 120-hectare integrated casino and tourism hub in Manila.

With the deal, Okada has successfully addressed the land ownership issue, which prevents  foreigners from owning more than 40 percent of Philippine businesses.

Empire East said issues hounding Okada and concerns raised by its public shareholders have  prompted the Tan-owned company to withdraw from any further discussions with the Okada group.

Okada is embroiled in a series of lawsuits for allegedly giving improper payments to Philippine gambling regulators. In August, the Philippine Economic Zone Authority cleared the Okada group of corruption with respect to its casino venture in the country. — BM, GMA News

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