SM Investments Corp. Bets Big on Clark with $300 Million Casino Resort

SM Investments Corp., the Philippines’ most valuable company, is planning to invest at least $300 million in an integrated casino and resort in the Clark Freeport Zone, Pampanga. This development marks a significant expansion for SM, which continues to diversify its vast portfolio that already spans shopping malls, banking, real estate, retail, mining, and logistics.

The ambitious project is spearheaded by Premium Leisure Corp., a subsidiary of SM’s Belle Corp. According to two sources who talked with Reuters, Premium Leisure has already applied for a license to build and operate the new casino and resort in Clark. The Pampanga resort will feature not only a casino but also a convention center and a hotel, aiming to attract both local and international tourists.

The news of this expansion had immediate repercussions in the stock market, according to Reuters. Shares in Belle Corp. plummeted by 7.26%, reaching a 10-week low, while SM’s share price climbed by 2.56%.

Premium Leisure, which recently delisted from the Philippine Stock Exchange to become a privately-held unit of Belle Corp., is no stranger to the gaming industry. The company is a key investor in the City of Dreams Manila, a $1 billion-plus casino resort operated by Melco Resorts & Entertainment Ltd., a Nasdaq-listed firm.

Juan Paolo Colet, managing director at China Bank Capital in Manila, emphasized the potential of Clark’s market, noting that the former U.S. military airbase is poised for significant growth.

“Clark is emerging as a promising growth market for gaming and leisure. It could become the next major integrated resort hub,” Colet was quoted as saying in a Reuters report released on July 18.

This sentiment is echoed by the plans of Hann Resorts, another major player in Clark, which is preparing for an initial public offering (IPO) valued between PHP 15 billion ($256.6 million) and PHP 20 billion ($342.2 million) early next year.

Hann Resorts currently operates a casino-resort in Clark with 147 gaming tables and 868 slot machines, further cementing the area’s reputation as a burgeoning center for gaming and entertainment. The planned IPO is expected to fund further expansions, reinforcing Clark’s status as a key player in the Philippine gaming industry.

SM Investments Corp.’s venture into the Clark Freeport Zone represents a significant bet on the future of gaming and tourism in the Philippines. With a $300 million investment, the new integrated resort is set to enhance the region’s appeal and attract a diverse clientele, from gaming enthusiasts to business travelers.