WATERFRONT Philippines, Inc. (WPI) on Monday said its board of directors gave the green light for a P1.5-billion credit line extended by Philippine Bank of Communications (PBCom).
In a disclosure to the stock exchange on Monday, the Gatchalian-led firm said PBCom had approved the credit line for its units Waterfront Philippines, Inc., Waterfront Cebu City Casino Hotel, Inc., Waterfront Mactan Casino Hotel, Inc., Davao Insular Hotel, Co., Inc., Pacific Rehouse Corporation and Crisanta Realty Development Corporation.
The credit facilities will be secured by the real estate mortgage and chattel mortgage over several operating assets by Waterfront Cebu City Casino Hotel; the deed of assignment over leasehold rights on Mactan Cebu International Airport Authority-owned land where Waterfront Cebu Casino stands; deed of pledge of the shares of stocks representing ownership of WPI in Waterfront Cebu Casino and Davao Insular Hotel.
Further, the company said the credit facility will be secured by the real estate mortgage on 23 parcels of commercial lots with improvements registered under Davao Insular, chattel mortgage on various operating assets used by Davao Insular, and the real estate mortgage on a 70-hectare agricultural property in Matina, Pangia, Tolomo, and Davao under the names of Pacific Rehouse and Crisanta Realty.
Incorporated in 1994, WPI serves as the holding firm for the hotel, leisure, and tourism businesses of the Gatchalian family. Its hotels and resorts are primarily located in the Visayas and Mindanao region.
Earlier this year, the company announced plans to overhaul its hotels, in a bid to take advantage of the growing tourism market. WPI has allocated a total of P1.65 billion for the renovation of five hotels, namely Manila Pavilion, Waterfront Cebu City Casino Hotel, Waterfront Airport Hotel and Casino Mactan, and Waterfront Insular Hotel Davao.
WPI’s net income attributable to the parent for the first half of 2017 was flat at P238 million, as the slowdown in the April to June period offset its 27% growth in the first quarter. Revenues, meanwhile, slid to P994 million, 4.6% lower year on year.
Shares in WPI fell by 6.87% or nine centavos to close at P1.22 each at the stock exchange on Monday. — Arra B. Francia
