Acesite (Phils) Hotel Corp. of the Gatchalian family plans to mortgage Waterfront Manila Hotel and Casino to raise P8 billion and fund a major reclamation project in Manila Bay.
Acesite said in a disclosure to the stock exchange the mortgage of the hotel and casino project, its main asset and formerly known as Manila Pavilion Hotel, was required by creditors of the proposed reclamation project. The 22-story hotel with 493 rooms occupies a large piece of land along UN Ave. in Ermita, Manila. A fire gutted the hotel in March 2018.
The company said it would conduct a special stockholders meeting in June to secure shareholders’ approval for the proposed mortgage of Waterfront Manila Hotel and Casino.
Acesite is developing the 318-hectare Manila Waterfront City reclamation project in partnership with Waterfront Manila Premier Development Inc. and the city government of Manila. Acesite is 55.49-percent owned by Waterfront Philippines Inc.
The Philippine Competition Commission approved last month the proposed joint venture between Manila and Waterfront Manila Premier Development Inc. to reclaim 318 hectares of Manila Bay and develop it into a mixed-used project.
Once developed, the project would include a central business district, a gateway, a marina, a waterfront and entertainment, health and education hubs. It also aims to decongest Manila and boost business opportunities in the city.
The PCC said it approved the joint venture because it would not result in the substantial lessening of competition in the market for commercial and residential real estate development in the city.
Under the joint venture, Waterfront will spend for and build the reclamation project, while Manila will contribute rights over municipal waters where the project will be developed.
MWC is envisioned to be the future central business district of Manila with commercial, institutional, office, retail and residential components.
Acesite said to partially finance the project, the third-party mortgage of the Waterfront Manila Hotel and Casino was required by the creditors of the project.
Acesite said that in return, unit Acesite Realty Inc. would have the option to purchase one hectare of land at the MWC at a 50-percent discount from the price first offered by WMPDI to the public.
“This presents an excellent opportunity for Acesite to expand its high-end hotel portfolio in the future CBD of the Manila Bay area,” the company said.
Acesite operates a chain of hotel facilities under the Waterfront brand in Manila, Cebu City, Mactan and Davao City.
The share price of Acesite fell 3.4 percent Wednesday to P1.99. Prior to this, Acesite’s stock had been rising since the start of the year and reached a 52-week high of P2.14.