Posted on November 04, 2011 07:30:32 PM [ BusinessWorld Online ]
A RESORT developer has moved to purchase additional land in Boracay and implement a lease deal for a property in Cebu after failed attempts to forge a joint venture for a golf complex in Cavite.
Friday’s Holdings, Inc., the subsidiary of Boulevard Holdings, Inc., agreed to buy from developer Altus Land and Realty Management Corp. a 729-square-meter, beachfront property in Balabag, Boracay in Aklan province for $1.31 million.
"A down payment of $50,000 will be paid upon signing of the memorandum today and the balance will be paid at yearend," Boulevard Holdings said in a disclosure to the local bourse on Friday.
Boulevard Holdings said will contribute $930,000 for the purchase and spend approximately $1.9 million to build 14 premiere suites.
Friday’s Holdings expects to grow sales to P180 million by June 2012, versus P144 million booked in June this year, with the new suites contributing an additional P75 million in revenues for June 2013.
Boulevard Holdings went on to disclose that it has agreed to a lease deal covering a 300-hectare, beachfront property in Moalboal, Cebu with Tri-Island Corporate Holdings, Inc.
According to the deal’s terms, Boulevard Holdings will receive 30% of gross leases on every new lease rental signed up for a period of two years, with an average leasing covering 1,000 square meters costing around P1 million per month.
This comes a month after Boulevard Holdings failed to close a long-term joint venture with Korean-based Resom Resort Co. Ltd. for an existing golf course and hotel spa in its resort development in Puerto Azul, Cavite last month.
The Korean firm instead chose a Subic site.
Boulevard Holdings shares rose by 1.41% to 22 centavos on Friday from 22 centavos at its previous close.
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