Makati court stops Okada group from terminating Century Properties deal

A Makati Regional Trial Court (RTC) stopped the group of Japanese gaming magnate Kazuo Okada from terminating a deal with Century Properties Group Inc. to build the residential and retail component of the $2-billion Manila Bay Resorts in PAGCOR Entertainment City.

 

In an e-mailed statement Wednesday, Century Properties said it was granted a "preliminary prohibitory injunction" under a July 25 court order against the Okada group.

 

Last April, Century Properties filed a civil case before the Makati RTC Branch 66 against the Okada Group – which includes Eagle I Landholdings Inc., Eagle II Holdco Inc., and Brontia Limited – after the group terminated the investment agreement to build the residential and retail component of its casino project in Entertainment City.

 

Eagle I Landholdings, the Philippine affiliate of Okada's Universal Entertainment Corp., owns the site for Universal's casino project in PAGCOR’s Entertainment City. The casino license is held by Okada's Tiger Resorts.

 

The Makati court prohibited the Okada group from "giving effect to the termination of their agreements with Century Properties and from committing any acts that will render the agreements or any portion thereof unenforceable or ineffective or render any part of the dispute moot and academic."

 

The court also enjoined the Okada group from selling shares of Eagle I Landholdings and from forming new deals with any party to develop the commercial and residential project involved in the agreement with Century Properties.

 

The court order will allow the parties involved to start discussions were they left off prior to the termination of the deal, Century Properties director for investor relations Kristina Garcia told GMA News Online.

 

"Now that they can't terminate the agreement, this will allow us to continue talks we started before," she said.

 

"That's what we want from the beginning because we'd like to protect the interest of our shareholders," Garcia added.

 

Earlier, Eagle I Landholdings said it had to terminate the deal since one of the three parties involved withdrew.

 

But Century Properties found the termination "premature" and lacking "legal and contractual basis."

 

In October 2013, Century Properties Group Inc. entered into an agreement with the Okada-led Eagle I Landholdings to develop a portion of the 44-hectare Manila Bay Resorts in Entertainment City.

 

As agreed, 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 an agreement with the Okada group in November after "careful consideration of several variables affecting such a venture." The agreement was signed in July. – VS, GMA News