By Zinnia B. Dela Peña Updated November 17, 2008 12:00 AM
[ philstar.com ]
Fil-Estate Land Inc. (FELI) and the SM Group are hammering out an agreement to jointly develop a 1,269-hectare property in Batangas into a tourism and residential complex to be called Nasugbu Harbortown.
FELI chairman Robert John Sobrepeña said the terms of the agreement are currently being firmed up and that an accord is expected to be signed in a week or two.
Sobrepeña said the project, which will include an 18-hole golf course, condominium buildings, a luxury hotel and an exclusive subdivision of vacation villas.
“The MOA with the Sy family will lead to the development of Harbortown,” Sobrepeña said.
The property forms part of the 8,650.78-hectare Hacienda Looc which is envisioned to be the largest tourism project in the country.
The SM Group, through SM Investments Corp. (SMIC), is currently building the first phase of the 5,800-hectare Hamilo Coast beach resort community in Nasugbu, Batangas. The initial phase called Pico De Loro will span 140 hectares and will feature 11 condominium buildings consisting of 1,500 units.
FELI was originally looking at building a yacht marina in Harbor town, envisioned to be part of a circuit of yachting destinations that includes Subic, Mindoro, Boracay and Hong Kong.
After successfully trimming debt and operating costs, Fil-Estate is now focused on accelerating completion of its projects and generating sales to boost its cashflow.
Bank debts and payables to suppliers, contractors and other creditors were reduced through asset swap arrangements utilizing its real estate and golf and resort shares inventory.
FELI’s strategy is to forge alliances with other real estate developers or entities to fund its large-scale projects.
Sobrepeña said the company is also teaming up with the Ayala Group for the establishment of 8 to 10 BPO office buildings beside Trinoma in Quezon City.
The company is aiming to raise as much as P1.5 billion from the sale of assets to complete some real estate projects, pay down debt and fund its shift to socialized or affordable housing.
FELI has a total landbank of 3,050 hectares, which is sufficient for future development for 10 years. This landbank is seen to generate P120 billion in revenues for the company over the next 10 years.
Of the total landbank, over 1,000 hectares are wholly-owned and 2,940 are joint venture properties.
FELI is primarily engaged in horizontal development of residential subdivision lots, integrated residential, golf and other leisure-related properties and vertical development of mixed-use towers in Metro Manila.
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