Manila, Philippines — The 12.4-hectare beachfront property in Cebu, initially designated for the ambitious Emerald Bay Resort Hotel and Casino, has been placed on the market by China Banking Corporation (Chinabank). This decision follows financial difficulties faced by PH Resorts Group Holdings Inc. (PHR), led by businessman Dennis A. Uy, in fulfilling its financial obligations.
The announcement was made by Hans Sy, Chairman of Chinabank, who confirmed the property is now available for purchase to interested parties, although the identities of potential buyers have not been disclosed. This development marks a significant turn for the site slated to host the long-delayed casino project in Lapu-Lapu City.
In October 2023, PHR subsidiary Lapulapu Leisure Inc. (LLI) entered a debt restructuring agreement with Chinabank, involving multibillion-peso obligations. As part of the arrangement, the property was sold to Chinabank with a leaseback provision, allowing PHR an option to repurchase the land by March 2025. This restructuring facilitated PHR’s settlement of a P3.1-billion loan received from Chinabank in 2018.
Despite efforts to secure a repurchase option, PHR could not exercise this right. Sy highlighted that the bank had afforded significant latitude to PHR, including an extension, but ultimately decided not to renew the agreement, stating, “It’s already in our name.”
The Emerald Bay project, plagued by delays since its inception in 2017, has seen failed negotiations with multiple investors. Most recently, in December, PHR engaged EEI Corporation, a public construction firm, to resurrect the stalled casino development through a memorandum of agreement aimed at financing and completing the project.
EEI represents the fourth venture partner to engage with the Emerald Bay site after previous withdrawals by Tiger Resort Leisure and Entertainment Inc., AppleOne Properties Inc., and Bloomberry Resorts Corp., led by tycoon Enrique Razon Jr. These exits have been attributed to concerns over the project’s valuation and viability.
The listing of the property highlights the ongoing challenges facing Udenna Corporation, PHR’s parent company, as it navigates the complexities of large-scale casino development in Cebu. Chinabank’s decision underscores a pragmatic step in addressing the financial uncertainties surrounding this high-profile project.