Posted on March 14, 2014 07:51:23 PM [
BusinessWorld Online ]
BOULEVARD Holdings, Inc. has agreed to
sell to Ayala Land, Inc. a part of its Puerto Azul property in Ternate, Cavite
for a total of P2.3 billion, payable over 18 years, the resort firm said in a
disclosure on Friday.
The land concerned "will be used
to develop a high-end mixed-use community using the Ayala Land Premier"
brand.
Mauro B. Badiola, Boulevard
vice-president for finance, said in a telephone interview on Friday that the
acquisition involved “about 400 hectares or 13% of the 3,000-hectare Puerto
Azul property”.
Boulevard said it expects to seal the
deal "within the next three to four months", subject to due diligence
and required approvals, among other closing requirements.
It described the property as having a
small bay, a beach cove, "a backdrop of mountains", and ocean view
and forests.
Negotiations were first reported by
media in May last year.
Boulevard said proceeds of the sale
"will be used to further develop various projects".
Boulevard also disclosed separately
that its board of directors approved in a meeting on Friday acquisition of Cala
Paniman, Inc. for P3 million, payable within one year. This transaction
involves purchase of 250,030 shares at P12 apiece.
It described Cala Paniman as a holding
and management company formed in 2003 to engage in development and marketing of
real estate.
"Cala Paniman, Inc. will serve as
the vehicle for marketing and financial representation in behalf of the 3,000
hectares of Puerto Azul Complex," Boulevard explained.
Incorporated on July 13, 1994
Boulevard also maintains the Friday resort chain in Boracay and Puerto Galera,
besides Puerto Azul.
Its main subsidiaries, are:
• Friday's Holdings Inc., owner and
operator of Friday's Boracay Island Beach Resort on Boracay Island, Aklan;
• Friday's Puerto Galera, Inc., owner
of Fridays Boquete Beach Resort Hotel at Puerto Galera, Oriental Mindoro
Province; and
• Crown One Land, Inc., which holds
nearly half of Friday's Holdings.
Boulevard's profile on the Philippine
Stock Exchange Web site said it aims "to expand its Friday’s hotel brand
to at least nine different locations throughout Asia in the next 10
years".
Boulevard reported last Jan. 20 that
its net income more than doubled to P3.683 billion in the six months to
November of its June-May fiscal year, "mainly due to the effect of
improved revenues and savings on cost of sales and services".
A 19% hike in service revenues to
P36.35 million from P30.63 million and a 14% rise in sales to P15.63 million
from P13.71 million yielded a 17% increase in total revenues to P51.98 million
from P44.34 million.
A 13% decrease in cost of sales and
services to P17.95 million from P20.53 million and a 31% hike in general,
administrative and selling expenses to P27.25 million from P20.85 million led
costs and expenses to rise 9.24% to P45.20 million from P41.38 million.
Boulevard shares fell 1.3 centavos or
8.18% to close 14.6 centavos apiece on Friday from P15.9 centavos each on
Thursday.
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