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DPL, Suwaso sign new lease accord on Coral Ocean Point
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Posted on Aug 16 2011
The Department of Public Lands and Suwaso Corp. signed Friday a 15-year lease extension on the latter’s 25-year public land lease for Coral Ocean Point, following the Legislature’s nod on the lease extension.
Public Lands Secretary Oscar M. Babauta said yesterday that there was only one change made in the draft lease agreement that was presented to the Legislature before lawmakers approved on Aug. 5 the proposed 15-year lease extension.
As the House and Senate required, the final lease agreement gives Suwaso Corp. 120 days—instead of the original 240 days—to submit to DPL evidence of its sources of financing for its upgrade and renovation of Coral Ocean Point as well as for the construction of 200 new guestrooms.
Under the agreement, Suwaso will be paying DPL a minimum annual rental of $110,000 or 3 percent of gross receipts for the first five years of the extended lease.
The annual rental will change to 11 percent of the fair market value of the land or 3 percent of gross receipts during the second five-year period.
On the third five-year period, the guaranteed annual minimum rental will be 12 percent of the fair market value of the land or 3 percent of gross receipts.
The area covered by Suwaso Corp.’s lease is composed of 735,023 square meters in Unai Dangkulu where Coral Ocean Point is located.
The new consortium of investment partners acquired Suwaso Corp. on July 11 from the previous owners composed of Hyakumata Co. Ltd. in Japan and other minority shareholders.
The new investors include Japan-based investor Yusuke Fumoto, CNMI attorney Vincent Torres, and China-based investor Jia Tie Liang, who is the major financier of all infrastructure upgrades and improvements to Coral Ocean Point.
