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Transfer of lease for Rota Resort OK’d
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Posted on Dec 28 2004
The Marianas Public Lands Authority approved Monday the lease transfer of the 150-hectare Rota Resort & Country Club property, paving the way for major improvement plans for the hotel.
The lease was transferred to the newly formed Rota Resort Inc. from Shirayama Shokusan Co., which is selling its shares in SNM Corp., the existing hotel operator.
MPLA’s current lease agreement with SNM Corp. for the 150-hectares public property in Rota was signed on Aug. 30, 1990. The lease was originally granted to remain effective for 25 years, but the Legislature subsequently extended the lease term to 40 years.
As part of the lease requirements, any transfer of the lease to a new owner must have the consent of the MPLA board of directors.
In an interview, MPLA deputy commissioner Frank Eliptico said the board issued its conditional approval of the lease transfer during a meeting on Rota Monday.
One of the conditions is that the MPLA staff should ensure the lessee’s conformity with the original lease agreement. All financial documents and requisite information relating to the lease are also required to be submitted within 30 days from time of request.
These financial documents include audited financial statements and revenue projections, among other things.
The Rota Resort and Country Club facility includes an 18-hole golf course and a hotel.
Rota Resort Inc., which will be taking over the facility, is a Japanese-owned corporation formed in 2002. Its sole shareholder is Reicos Fund (Cayman) Inc. Ltd.
Major upgrades to the existing hotel and construction of additional hotel facilities are reportedly being planned for Rota Resort.
