Landing International Development's $1.5 billion casino project in Manila, Philippines is subject for cancellation pending reviews as per instruction from President Rodrigo Duterte.
Presidential spokesman Harry Roque announced Duterte's decision minutes after the Hong Kong-listed firm broke ground in the country on Aug. 7. Chinese property tycoon Yang Zhihui controls landing.
The Philippine Amusement and Gaming Corporation, a government-owned and controlled firm under the Office of the President, gave Landing its license to build the casino in July. The lease agreement was supposed to run for 50 years renewable for 25 years. Landing signed the lease contract on 10 hectares of land with the Nayong Pilipino Foundation.
Duterte tasked Philippines' Department of Justice to review Landing's lease contract. Roque said the president found a 75-year deal as a "ridiculous long period of time."
"Sorry to burst your bubble, people, but the president said that is grossly disadvantageous to the government," Roque told a media briefing according to Reuters. Duterte had also fired 10 officials of the state-owned foundation who processed the contract.
The casino resort was supposed to have a lease contract with a monthly rent of $649,826 per month. More so, 10 percent of the net profit of the casino's planned themed parks will supposedly go to the government. The whole project was supposed to include hotels, a convention center, water parks, and gambling areas with 155 tables and 239 slot machines. It was planned to open in 2022.
In a statement, Landing said the project will still push through.
"Unless the lease contract is canceled or nullified on solid legal grounds by the courts, Landing has reason to believe that it is a valid leaseholder and can legally proceed with the project," Landing said according to Bloomberg.
Shares of landing dropped by as much as 6 percent as of Wednesday after the announcement, the South China Morning Post reported. This was a 28 percent decrease since July 26 when the company has first announced about its casino resort project.
Landing's was the second casino project that suffered Duterte's unpredictability. In April, the president has also shelved a plan by Macau's Galaxy Entertainment Group to build a $500 million casino resort on the island of Boracay. This was made a month after it received a contract from the Philippine Amusement and Gaming Corporation. Duterte canceled Macau's project due to environmental concerns.
Galaxy shares fell in a month on Aug. 2 after the Philippines' cancellation plans.
