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Ayala Land acquiring part of Puerto Azul

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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