Successful Solaire Land Bid May Boost Share Value of Bloomberry

Bloomberry Resorts and HotelsBloomberry Resorts Corporation which is a Philippines-based company is looking forward to boosting its value, depending on the outcome of a bid to acquire land rights for Solaire Resorts and Casino. PAGCOR or Philippine Amusement and Gaming Corp which is a government run casino operator put up two significant large parcels in Manila’s Entertainment City for auction last week.

The two parcels of land having an area of 160,359 square meters or 1.73 million square feet are occupied by Solaire. According to the official website of PAGCOR, both these plot of lands have a minimum starting bid of PHP 37.23 million or US$ 72.6 million, and the amount has to be paid in cash.

Bloomberry which is currently the owner and operator of Solaire is leasing these plots from PAGCOR. As a result of which, the company has the advantage of matching the highest available bid that would be made for both these plots. As per the earlier lease agreement between PAGCOR and Sureste Properties Inc; the purchasing unit of Bloomberry; the terms of the deal is valid till July 2023 and would be extended for another time based on certain conditions.

The banking firm Morgan Stanley is of the opinion that the shares of Bloomberry will be valued at a premium and its prices may rise based on the successful winning of the PAGCOR bidding and procurement of the Solaire land.

Solaire Resort and Casino

Solaire Resorts and Casino was the first ever casino that was built in the exclusive “Entertainment Zone” which is an area reclaimed from the sea. Many casinos started to develop in the nearby land of Solaire in due course of time. The value of both these plots has increased in value by almost seven times in the past half-decade.

Bloomberg reported that value of real estate occupied by now standing casinos in Manila Bay area is likely to grow in importance by 30% and may reach the figure PHP 250,000 or US$ 4,900 per square meter. The analysts are of the opinion that purchase of continuously increasing land and scheduled construction by Bloomberry for another casino resort in Manila’s Quezon City will undoubtedly enhance the value of the company. In a report published recently, the company has made a profit of 31% in Q3 of fiscal 2017 which amounts to PHP 1.9 billion or US$ 37 million.

If Bloomberry insists on the purchase, the worst scenario would be the purchasing of the land by Bloomberry at the minimum bid price, the net debt of the company increased by PHP37 billion. The analysts speculate that by the year 2018, the enterprise value/earnings, taxation, depreciation and amortisation (EV/EBITDA) could push from 2.6 times to 10 times. The minimum bid deal may push down return on invested capital to 15% from 24%, and it would reduce the expected 2018 dividend.

Successful Solaire Land Bid May Boost Share Value of Bloomberry
Article Name
Successful Solaire Land Bid May Boost Share Value of Bloomberry
Bloomberry Resorts Corporation which is a Philippines-based company is looking forward to boosting its value.
Publisher Name
Publisher Logo
Jay Stevens

Jay Stevens

Hi, my name is Adam Jay Stevens. Welcome to Top10-CasinoSites. Explore the online casino world with my site.

Related Articles

Casino Operators in Macau Asked to Prepare for ‘Mock Attacks’

Six major casino operators in Macau had a meeting with Judiciary Police as well as with the gaming regulator to

PAGCOR Might Soon Stop Operating Casinos In The Philippines

Philippine Amusement and Gaming Corp or PAGCOR is the gaming regulator in the country of Philippines. According to some local

Lucky Dragon Casino Puts Up Notice of Foreclosure Sale

The Asian-themed Lucky Dragon Casino in Las Vegas that came into existence last year and was expecting to generate lots

No comments

Write a comment
No Comments Yet! You can be first to comment this post!

Write a Comment