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China Banking Corp, with the support of the massive SM Investments Corp, is not in a rush to sell the Mactan, Cebu property it owns in relation to the Emerald Bay Resort and Casino, which has been long-stalled. According to GMA News Online, Chinabank Chairman Hans Sy has disclosed that several interested buyers have already made offers for the property, but the bank is waiting for the prices to appreciate before it acts. This measured approach comes after the lender flagged sale plans back in May last year, choosing not to roll over a repurchase agreement with PH Resorts Group Holdings Inc, the Udenna Corp subsidiary that once steered the project. With Cebu’s tourism scene heating up, the bank sees no need to jump at early bids, betting patience pays off on prime coastal real estate even without the casino angle.
Deal Details and Expiry
The setup traces to an October 2023 arrangement where PH Resorts reworked its debts to Chinabank through a sale-leaseback on the Emerald Bay site. That included an option to repurchase specific land parcels and improvements owned by developer units Lapulapu Leisure Inc and Lapulapu Land Corp. The buyback window closed March 31, 2025, with no extension in play, leaving Chinabank in full command of the property. Sy’s comments suggest the bank holds strong cards, eyeing negotiations that reflect rising market rates around Mactan’s beaches and airport proximity. Last month brought another twist when the Philippine Amusement and Gaming Corp pulled PH Resorts’ provisional gaming license, drawing a line under the resort’s casino hopes after years of delays. Chinabank now steers the site’s next chapter, free from prior entanglements.
Project’s Rocky Path
Emerald Bay began with lofty plans, a full-blown luxury resort with accommodations, pools, restaurants, shopping, and gaming, but ran into one wall after another. PH Resorts inherited the project from Udenna, but the pandemic and lack of capital kept the spades down. Chinabank came in as a lender, arranging the debt swap to secure its interests while giving PH Resorts a reprieve that proved to be temporary. The license revocation caps a string of setbacks, shifting focus from integrated resort dreams to straight land play. For Chinabank, SM’s deep pockets and property savvy provide leverage, turning a stalled venture into potential gold as Cebu draws developers chasing non-gaming tourism builds or mixed developments.
Market Dynamics Favor Waiting
Cebu’s growth as a beach and convention hub bolsters Sy’s no-hurry stance, with Mactan land fetching premiums near key draws like the airport and resorts. Offers on the table signal interest, likely from players eyeing hotel or leisure conversions sans gaming regs. Chinabank’s May disclosure set sale expectations, but current talks show strategic foot-dragging to max returns. PH Resorts’ exit via the expired deal clears ownership clouds, making the site cleaner for buyers. As SM’s retail empire eyes Cebu expansion, the bank aligns land moves with group strengths, negotiating from a spot of stability amid the Philippines’ tourism rebound.
Future Buyers in Sight
With PAGCOR out of the picture, Emerald Bay’s footprint opens doors beyond casinos—think standalone hotels, condos, or event spaces tapping Cebu’s visitor boom. Sy’s optimism on value growth mirrors trends where coastal plots appreciate yearly, drawing local tycoons and foreign funds. Chinabank’s patience underscores lender caution post-repossession, avoiding fire sales on assets with upside. As bids evolve, the bank weighs premiums against hold costs, positioning for a deal that boosts books without haste. Cebu’s property heat keeps options alive, transforming a casino bust into a real estate opportunity.
Source: GGR Asia
