After the expiration of a leaseback agreement with PH Resorts Group Holdings Inc.,China Banking Corp. has confirmed it is proceeding with the sale of the 12.4-hectare beachfront property in Mactan, Cebu, once intended to house the Emerald Bay Resort and Casino. This decision comes after PH Resorts, led by businessman Dennis Uy, failed to exercise its buyback option before the March 31, 2025, deadline.

Sale follows end of leaseback arrangement:

The property was originally transferred to Chinabank in October 2023 under a sale and leaseback agreement that formed part of a broader debt restructuring plan. Through its subsidiaries, Lapulapu Leisure Inc. (LLI) and Lapulapu Land Corp. (LLC), PH Resorts was able to continue operating on the land with the possibility of repurchasing it before the deadline. The restructuring allowed PH Resorts to repay a P3.1-billion bridge loan extended in 2018.

According to Chinabank chairman Hans Sy, the bank will now offer the property to interested investors. “We have it already. It’s already in our name. We’ll start opening up to people who showed interest,” he said. He further clarified, “We gave Dennis a chance to redeem. Of course, they asked for an extension and we already gave them more than a year. It’s already in our name.”

Sy emphasized that there would be no renewal of the agreement: “No more na. It’s expired na, we’re not renewing anymore.” The SM Group, also chaired by Sy, is reportedly not pursuing the purchase due to ongoing development commitments elsewhere.

The Emerald Bay project was originally pitched as a luxurious five-star integrated resort positioned to rival developments in Manila’s Entertainment City. According to The Philippine Star, plans included a large gaming floor, a hotel with over 800 rooms, pools, dining and retail outlets, and extensive conference facilities. A soft launch had been scheduled for March 2022, but progress stalled due to the COVID-19 pandemic and related construction delays.

PH Resorts had previously entered discussions with several high-profile investors to revive the development, including AppleOne Properties Inc., Bloomberry Resorts Corp., and Tiger Resort Leisure and Entertainment Inc. (TRLEI), operator of Okada Manila. However, none of these discussions led to finalized deals. TRLEI officially exited talks in July 2023, following the earlier departures of Bloomberry and AppleOne.

New partnership in the works:

Despite losing the option to reclaim the land, PH Resorts has not ceased efforts to salvage the Emerald Bay development. The group, through its parent company Udenna Corp., signed a memorandum of understanding in December with construction giant EEI Corp. The agreement sets the stage for EEI to potentially finance and complete the project, subject to final terms and necessary approvals.

As of late April, discussions between PH Resorts and EEI were ongoing, and PH Resorts stated in its annual report that it was “working on a possible repurchase option following the expiration of its leaseback deal.”

In January, EEI made advances totaling P300 million to LLI, routed through Udenna. According to PH Resorts, the funds were used to partially cover interest and lease payments to Chinabank.

What remains uncertain is whether interested investors plan to resume development of the resort as originally conceived or repurpose the land entirely. While Chinabank has confirmed multiple parties are showing interest, no official announcements have been made regarding future plans for the site.

The Emerald Bay property is strategically located along the Punta Engaño peninsula on Mactan Island, a highly sought-after location for tourism and entertainment developments. Given its location and existing groundwork, the site could still hold appeal for developers aiming to build a premium destination outside Metro Manila.