Posted on October 11, 2011 09:39:06 PM [ BusinessWorld Online ]
BOULEVARD HOLDINGS, Inc. has lost a Korean investor that would have developed and operated the Filipino firm’s property in Ternate, Cavite, into a golf and spa resort.
Resom Resort Co., Ltd. had instead chosen to lease out a Subic site for more than half the P4.7-million monthly rent Boulevard Holdings had wanted for the Cavite property of subsidiary Cala Paniman, Inc., a disclosure to the Philippine Stock Exchange yesterday showed.
“We lament to report our failure to close a proposed long-term lease deal with Resom Resorts of Korea for a golf course and spa hotel site at Puerto Azul,” Boulevard Holdings said in the dislcosure.
“As of Oct. 10, 2011, even a nearly acceptable counter-offer…has now been shelved,” Boulevard Holdings said.
Boulevard Holdings shares plummeted by 35.81% to 20 centavos apiece yesterday.
The deal would have entailed the upgrade of an existing Gary-Player championship golf course designed by American architect Robert Trent Jones, Jr., the construction of a 400-key branded spa hotel, and the renovation of an existing club house.
However, Resom Resort, said to be Korea’s largest time-share group, chose instead to develop a 230-hectare forest area for a future resort complex in Subic Bay at a P2-million monthly lease rate, Boulevard Holdings claimed.
“Unfortunately, we will not progress [sic] the proposal anymore,” Resom Resort said in an e-mail to Boulevard Holdings dated Sept. 22 which was attached to the disclosure.
Last month, Boulevard Holdings authorized recently acquired subdivision developer Cala Paniman, Inc. to negotiate with Resom Resort.
Nevertheless, Boulevard Holdings said it will continue to scout for foreign partners for its Puerto Azul project, but will announce deals only until contracts are signed and partial monies are collected.
Boulevard Holdings also plans to construct an entertainment and retail complex dubbed The Wharf and a 250- to 300-key branded hotel on Paniman beach.
The company also looks to develop 30,000 hillside residences built around resort hotels, 10 large resort hotel sites, 60 sites for small 20-key bed-and-breakfast lodges, and is eyeing a joint venture for a 25-hectare commercial lease center. -- FJGDLF