Calata Corp. takes in partners for real estate and investment trust

Calata Corp. has partnered with Sino-America Gaming Investment Group LLC and Macau Resources Group Ltd. to establish a real estate and investment trust (REIT).

REIT is a company created for the purpose of owning income-generating real estate assets.

In a disclosure to the Philippine Stock Exchange on Tuesday, Calata said the REIT shall be used for the Mactan Leisure City, which is expected to start commercial operations in 2020.

The Mactan Leisure City is a P65-billion integrated resort incorporating three hotels, casino, and entertainment complex, commercial, retail, and conference facilities, and yacht club. The site is a 14-hectare property on Mactan Island in Cebu.

"This project and the interests of Calata Corp., will be generating tens of thousands of employment opportunities for the people of the Philippines, where Mactan Leisure City has forecast a gross annual revenue of around P55.740 billion," the company noted.

Calata said the Macau Group and Sino-America will initially infuse P836.1 million into the project, P234 million of which will be put into the company. The funds will be invested in its majority-owned REIT.

"The remaining P602.1 million to be directly infused into Calata’s majority-owned corporate vehicle," it added.

Calata is in the business of distribution, retail, and farming of animal feeds, fertilizers, agro-chemicals, seeds, soya, meat, and swine livestock. — Ted Cordero/VDS, GMA News