MANILA, Philippines - Bloomberry Resorts Corporation, through its hotel and gaming subsidiaries, have signed a management services agreement with Global Gaming Philippines LLC (GGAM) for a five years plus five years term.
The firm's wholly owned unit Sureste Properties Inc. owns the hotel component of the $1 billion Solaire Manila project in the PAGCOR Entertainment City while Sureste's 100 percent subsidiary Bloomberry Resorts and Hotels Inc. owns the casino component.
Under the agreement, GGAM will provide management services through a management team nominated by GGAM and approved by Bloomberry as well as other department heads and officers and personnel.
GGAM will be compensated based on certain percentage (2-6 percent) of the EBITDA generated by the Solaire Manila facilities including the EBITDA generated by local high roller table games.
There is also an incentive fee which will entitle GGAM to an additional graduated fee (6-40 percent) for achieving certain EBITDA thresholds with respect to the EBITDA generated by foreign high roller tables and foreign juncket players for each fiscal year.
The three principals of GGAM are William Weidner (former president of Las Vegas Sands), Bradley Stone (former president of Global Operations and Construction of Las Vegas Sands), and Garry Saunders (former chief operating officer of Melco Crown).
Bloomberry said the three have extensive experience in the construction, fit-out and operation of large scale and world class casino resorts.
Prime Metroline Transit Corporation, the controlling shareholder of Bloomberry, has agreend to grant GGAM an option to buy 10 percent of PMTC's shareholdings in Bloomberry for $15 million plus 10 percent of PMTC's cost of investment in the Solaire Manila project, exercisable before start of commercial operations of Solaire Manila.
As part of its strategy, Bloomberry intends to leverage on GGAM's direct customer relationships as well as existing relationships with regional junket operators.
It will also leverage GGAM's global network to identify new gaming trends. It will ensure Solaire Manila has current and relevant gaming facilities to offer a globally comparable experience.