Manila Court on Century Properties against Okada

Manila-listed Century Properties Group said the group of companies controlled by Japanese billionaire Kazuo Okada had received a Philippine court order to stop terminating a $2 billion Manila Bay Resort (pictured rendering) co-development deal, a major casino and real estate project.

The company said in its July 25 ruling that "..."The court ordered Okada Group to issue a provisional injunction prohibiting the effect of termination of its contract," it told the Philippine Stock Exchange on Wednesday.

The injunction prohibits what is referred to in the document as "Okada Group" from making deals with other regional partners. It is essential for Mr. Okada and his companies to have a local partner for the land in order to proceed with the project.

The court order blocks Mr Okada's parties from "dealing with any party in connection with the sale, disposal or original issuance of any kind of shares of Eagle I." This is a reference to the company, whose casino resort will have a 44-hectare (109-acre) plot to rise.

The court also barred the Okada company from negotiating a new deal with any party to develop commercial and residential projects, as originally agreed with Century Property, according to a filing Wednesday.

The court overturned a previous ruling in May that rejected Century Property's prohibited relief.

The original contract, signed in October 2013, would have led Century Properties to own 36 percent of Eagle I Landholding Ltd. The Philippine Developer was also to build luxury residential and retail properties on a five-hectare plot of land in the complex.

GGRAasia approached Okada companies Tiger Resort, Leisure and Entertainment Inc. for comment on the court ruling, but was told it was not available for comment at this stage.

Century Properties has filed petitions seeking temporary protections against Eagle 1, Eagle 2 Holdco, and Brontia Inc., an affiliate of President Okada. The deal fell apart in March this year after First Paramount Holdings 888 - a third regional participant in the deal - backed out of a deal to take a 24% stake in Eagle 1. Otherwise, the two regional companies would have combined to control 60% of Eagle 1, which would have satisfied local regulations.

Mr. Okada's group holds one of four licenses distributed by the Philippine Entertainment Gaming Company, a Philippine gaming regulator and casino licensee, for casino resort projects in an area known as Entertainment City.

According to the country's constitution and public land law, only Filipinos, or organizations that are at least 60% owned by Filipino citizens, are allowed to own land, thus limiting Mr. Okada or his majority-owned companies to only 40% ownership.

The first phase of the Manila Bay resort is scheduled for 2015. However, Pagco's chairman reiterated last month that the project will only be able to get permission to open if it has a local partner.
 

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