By Zinnia B. Dela Peña (The Philippine Star) Updated August 30, 2010 12:00
MANILA, Philippines - Fil-Estate Land Inc. (FELI) has gone back to the negotiating table with Megaworld Corp. for the joint development of two multi-billion peso large-scale projects.
On the sidelines of the company’s annual stockholders’ meeting last week, FELI chairman Robert John Sobrepeña said it has resumed talks with Megaworld for the development of Twin Lakes at Taal Ridge in Laurel town, Batangas and Sta. Barbara, a mixed-use complex in Iloilo.
The global economic crisis of 2007 has prompted both parties to put these two projects in the back burner.
The 731-hectare Twin Lakes project was supposed to cough up roughly P40 billion in revenues over a development period of eight to 10 years. The first phase, which was to consist of a golf course and land development and basic utilities, was estimated to cost at least P1 billion.
Megaworld and Fil-Estate had infused P2 billion worth of assets — land and cash-in what was proposed to be the joint venture of the two companies.
The Iloilo project, on the other hand, sits on a 150-hectare lot.
Development cost of the first phase was earlier placed at P150 million. Other phases of the project will include condominium-hotels, a cyberpark and other high-rise developments.
Fil-Estate expects to rake in P17 billion over the next two or three years from its current inventory of projects.
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.
Fil-Estate’s strategy is to forge alliances with other real estate developers or entities to fund its big-ticket projects.
The company is eyeing to raise as much as P6 billion from the sale of its 56-hectare Park Lane along Daang Hari in Tagaytay as well as lot pads within the 126-hectare Fairways and Bluewater in Boracay.