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Century Properties to sue Okada companies for terminating investment deal
By DANESSA O. RIVERA, GMA News
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(Updated 6:39 p.m.) Century Properties Group Inc. is pursuing legal action against Japanese gaming magnate Kazuo Okada for dropping its casino project in the Philippines covered by an investment contract with the Antonio-led property developer.
In a disclosure to the Philippine Stock Exchange Thursday, Century Properties said it received on March 26 a Notice of Termination of the investment agreement from Jose Lis Leagogo of Eagle I Landholdings Inc., Eagle II Holdco Inc. and Brontia Limited.
Eagle 1 is the local affiliate of Universal Entertainment Corp. Eagle I owns the site for the casino project in PAGCOR Entertainment City, while the casino license is under the name of Okada's Tiger Resorts.
"The company will shortly be replying to the Notice of Termination," the disclosure read.
In a separate statement to GMA News Online, Eagle I cited the reason fro sending the notice of termination to Century Properties.
“This investment agreement was executed by three parties. We now have to stop the negotiation since one of the three parties withdrew from the agreement. Therefore, we sent a notice of termination to Century Properties.”
In a briefing Thursday, Kristina Garcia, Century Properties director for investor relations, told reporters the Okada group proposed to change the deal structure, mainly covering exclusivity rights.
"It was more on the exclusivity to do the residential and commercial... which we did not sign, because what we wanted was the original structure that they proposed," she said.
However, she declined to specify the proposed changes. "When we file our response the notice of termination, we'll specify the changes we were not amenable to," Garcia noted.
The company noted in the disclosure the appointment of Atty. Isabelita Sales and Puno & Puno Law Offices (PPLO) to protect and enforce its legal rights and interests in the investment agreement, memorandum of agreement and subscription agreement before any court of law.
"CPG is of the strong legal position that the Notice of Termination is not only premature, but also is unfounded as it lacks legal and contractual basis," the disclosure read.
Dispute notice
The company said it sent a Notice of Dispute to Eagle I, Eagle II, and Brontia Limited last March 21, starting a mandatory twenty-one day discussion period by the parties.
"Such twenty-one day period is still effective, yet Eagle I Landholdings Inc., Eagle II Holdco Inc. and Brontia Limited sent such Notice of Termination," the property developer said.
"We allocated resources, we did the master plan and we spent considerable amount of time working on the transaction and planning of the development," Garcia said.
Century has allocated $12 million for the development, sourced from its existing cash balances available as of 2013, but has not released the funds yet pending the closure of the agreement.
Even after the Okada group dropped the deal, Century Properties said it was ready and still is ready to proceed with the deal: “if our dispute is resolved in a constructive manner in the days to come, and if all conditions are met to protect the interest of our shareholders."
In October 2013, Century Properties Group Inc. entered into an agreement with Okada-led Eagle I to develop a portion of the 44-hectare Manila Bay Resorts in Pagcor Entertainment City.
Under the plan, Century Properties will put up luxury residential and retail properties within the five-hectare lot that will contain over 300,000 square meters of gross floor area once completed.
Before the deal with Century Properties, Universal Entertainment was in talks with Gokongwei-led Robinsons Land Corp. which eventually broke down in May 2013.
Andrew Tan's Empire East Land Holdings Inc. also dropped out of the agreement with the Okada group in November after "careful consideration of several variables affecting such a venture." The agreement was signed in July.
Expected to open in 2015, Manila Bay Resorts is described as a “world class casino resort complex” that will boast luxurious hotels, classy restaurants, commercial facilities, hotels, residences, “Vegas-style” water fountains, and an enormous indoor pool with a sand beach covered by a huge glass dome. – VS/VC, GMA News
In a disclosure to the Philippine Stock Exchange Thursday, Century Properties said it received on March 26 a Notice of Termination of the investment agreement from Jose Lis Leagogo of Eagle I Landholdings Inc., Eagle II Holdco Inc. and Brontia Limited.
Eagle 1 is the local affiliate of Universal Entertainment Corp. Eagle I owns the site for the casino project in PAGCOR Entertainment City, while the casino license is under the name of Okada's Tiger Resorts.
"The company will shortly be replying to the Notice of Termination," the disclosure read.
In a separate statement to GMA News Online, Eagle I cited the reason fro sending the notice of termination to Century Properties.
“This investment agreement was executed by three parties. We now have to stop the negotiation since one of the three parties withdrew from the agreement. Therefore, we sent a notice of termination to Century Properties.”
In a briefing Thursday, Kristina Garcia, Century Properties director for investor relations, told reporters the Okada group proposed to change the deal structure, mainly covering exclusivity rights.
"It was more on the exclusivity to do the residential and commercial... which we did not sign, because what we wanted was the original structure that they proposed," she said.
However, she declined to specify the proposed changes. "When we file our response the notice of termination, we'll specify the changes we were not amenable to," Garcia noted.
The company noted in the disclosure the appointment of Atty. Isabelita Sales and Puno & Puno Law Offices (PPLO) to protect and enforce its legal rights and interests in the investment agreement, memorandum of agreement and subscription agreement before any court of law.
"CPG is of the strong legal position that the Notice of Termination is not only premature, but also is unfounded as it lacks legal and contractual basis," the disclosure read.
Dispute notice
The company said it sent a Notice of Dispute to Eagle I, Eagle II, and Brontia Limited last March 21, starting a mandatory twenty-one day discussion period by the parties.
"Such twenty-one day period is still effective, yet Eagle I Landholdings Inc., Eagle II Holdco Inc. and Brontia Limited sent such Notice of Termination," the property developer said.
"We allocated resources, we did the master plan and we spent considerable amount of time working on the transaction and planning of the development," Garcia said.
Century has allocated $12 million for the development, sourced from its existing cash balances available as of 2013, but has not released the funds yet pending the closure of the agreement.
Even after the Okada group dropped the deal, Century Properties said it was ready and still is ready to proceed with the deal: “if our dispute is resolved in a constructive manner in the days to come, and if all conditions are met to protect the interest of our shareholders."
In October 2013, Century Properties Group Inc. entered into an agreement with Okada-led Eagle I to develop a portion of the 44-hectare Manila Bay Resorts in Pagcor Entertainment City.
Under the plan, Century Properties will put up luxury residential and retail properties within the five-hectare lot that will contain over 300,000 square meters of gross floor area once completed.
Before the deal with Century Properties, Universal Entertainment was in talks with Gokongwei-led Robinsons Land Corp. which eventually broke down in May 2013.
Andrew Tan's Empire East Land Holdings Inc. also dropped out of the agreement with the Okada group in November after "careful consideration of several variables affecting such a venture." The agreement was signed in July.
Expected to open in 2015, Manila Bay Resorts is described as a “world class casino resort complex” that will boast luxurious hotels, classy restaurants, commercial facilities, hotels, residences, “Vegas-style” water fountains, and an enormous indoor pool with a sand beach covered by a huge glass dome. – VS/VC, GMA News
Tags: centurypropertiesgroup, kazuookada
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