Iris Gonzales (The Philippine Star) – May 20, 2019 – 12:00am
MANILA, Philippines — Gotianun-led Filinvest Group is pouring in more than $200 million for its first ever integrated casino resort in Clark.
Under FHC subsidiary Mimosa Cityscapes Inc., Filinvest has a provisional license granted by the Philippine Amusement and Gaming Corp. (PagCOR) for a casino integrated resort in Filinvest Mimosa. FHC or Filinvest Hospitality Corp. is a subsidiary of Filinvest Development Corp., the Gotianun-led holding company.
More than $200 million has been allotted to the project, which includes a casino, lifestyle mall, five-star hotel and events venue.
FDC intends to engage a third-party casino operator to manage the casino operations.
FDC president and CEO Josephine Gotianun-Yap said the conglomerate marks a new phase with its participation in the development of the New Clark City.
“We start a new phase in the FDC story with our entry into infrastructure and logistics parks in New Clark City. Not only will these provide balance to our more cyclical property and banking segments and add another layer of diversity to our income mix, but these will also complement existing investments in the dynamic Clark corridor,” Yap said.
The Filinvest group, under Filinvest Land Inc., recently broke ground for its 288-hectare development in New Clark City, a joint venture with the Bases Conversion Development Authority (BCDA).
This year, the group expects to start construction of Phase 1 of Filinvest at New Clark City.
The project is a 64-hectare innovation and logistics park which is targeted for completion in 2020.
FDC is a lead consortium member with a 42.5 percent stake in Luzon International Premier Airport Development Corporation (LIPAD) which recently signed a 25-year concession agreement to develop commercial assets, operate and maintain project facilities and fit-out the new terminal in the Clark International Airport.
Other members of the consortium are JG Summit, Changi Airports Philippines (I) Pte. Ltd. and Philippine Airport Ground Support Solutions Inc.
In the first quarter of the year, FDC posted a consolidated net income of P3.9 billion, up 50 percent than the same period in 2018.
Net income attributable to equity holders of the parent company reached P2.8 billion, up 61 percent from a year ago.
Excluding one-off expenses in the first quarter of 2018, consolidated net income increased by 37 percent, the company said in a filing last week.
FDC attributed its strong performance on the back of revenue growth of 22 percent, largely composed of contributions from its core businesses in property (43 percent) and banking (42 percent). The balance was contributed by its power segment (11 percent) and the sugar group (four percent).
Among the different business segments, the property – composed of the real estate and hospitality segments – continues to be a strong source of growth for the group, contributing more than half of FDC’s bottom line.
Filinvest Land’s net income grew by P2.8 billion during the quarter, up 61 percent.
The group is targeting a combined office and retail gross leasable area of 1.7 million square meters by 2023.
FDC’s banking and financial services subsidiary, East West Banking Corp. also delivered net income of P1.3 billion in the first quarter, up 36 percent.