April 03, 2014

CPG gets court restraining order vs. Okada group

In its disclosure to the Exchange yesterday, Century Properties Group Inc (CPG) said it was able to secure a court order directing the Okada group to refrain from terminating an investment agreement with the former.

Among others, the 20-day court protection order restrains the Okada group from dealing with any other party for the development of the commercial and residential component of its integrated leisure and resort project at the PAGCOR Entertainment City. It was also ordered to refrain from dealing with any potential new partner for the this portion of the project.

Our take: CPG has earlier said it would explore all legal options to assert its right to exclusively develop the residential and retail component of the project. While the Okada group can proceed with the development of the gaming facility, it remains to be seen if it can proceed with the facility's operations without a local partner as foreigners are currently banned from owning land in the country.

It has to address the land ownership issue lest its gaming franchise will be revoked. In the meantime, any delay in the construction and operations of the facility would benefit Bloomberry Resorts Corp (BLOOM) and Melco Crown Phils (MCP) being the first two locators in the area. – WealthSec