MANILA, Philippines (UPDATE) - Andrew Tan's Empire East Land Holdings is teaming up with the group of Japanese billionaire Kazuo Okada to develop a luxury residential resort condominium project in Entertainment City Manila.
In a statement, Empire East said it signed a joint venture agreement with Okada Group, Tiger Resort Leisure and Entertainment Inc. and Eagle 1 Landholdings Inc. to take a majority stake in the 12.95 hectare project.
ELI President Anthony Charlemagne Yu said the company believes Entertainment City Manila will be the biggest tourist hub in the Philippines in the next few years, as well as a residential area.
"We foresee that this world-class city will attract 1 million tourists yearly, and will be a big draw for foreign investors and retirees. Many of these visitors may opt to buy properties for a longer stay or retirement. With Empire East's participation in Entertainment City, we intend to make this place not just a great resort for tourists, but also a great resort community for people to live in," he said.
The Empire East Elite brand specializes in luxury residential condominiums with resort amenities. The high-end luxury project in Entertainment City will have more than 25 residential towers in several phases.
ELI recently approved an increase its authorized capital stock from P23.4 billion to P33.4 billion, which is expected to be completed within the year.
Shares of Empire East Land rose as much as 7.5 percent after it said it signed an agreement with the Okada group to take the lead in developing luxury residential towers, part of a $2-billion casino-resort project near Manila Bay.
Philippine property developer Empire East hit 86 centavos in early trade, its highest in almost a year. It was the most actively traded stock by volume, with over 62 million shares changing hands, more than four times the average full-day trades in the past 90 days.
The broader market gained 1.2 percent.
Shares of Empire East were also the third most actively traded by turnover. The stock has gained around 36 percent so far this year as of Friday, outpacing the 29 percent gain in property sub-index.
Empire East, a unit of conglomerate Alliance Global through its property arm Megaworld Corp, said it would take the lead in building more than 25 high-end residential towers in a 13-hectare development within the Entertainment City casino-resort complex. It did not give the value of the deal.
Okada, who owns Universal Entertainment, is also in talks with Robinsons' Land for the retail and casino operations of the gaming and leisure project set to open in 2014. - With Reuters