By Neil Jerome C. Morales (The
Philippine Star) | Updated April 4, 2014 - 12:00am
MANILA, Philippines - Panlilio-owned
property firm Boulevard Holdings Inc. (BHI) has entered into talks with a
company willing to put up a new hotel and residential segment in Puerto Azul in
Cavite even as the due diligence and permitting process of Ayala Land Inc.
(ALI) is progressing well.
BHI said it expects the Puerto Azul
deal to boost the company’s cash by P1 billion despite the continuing
operational troubles in its Boracay resort.
“BHI has received a letter of intent
from a very reputable realty developer, who have current dealings with ALI,”
the firm said in a disclosure.
The property company said it might
allow a pocket deal of hotel site lease and residential of around 30 hectares
if the interested party moves fast enough with a downpayment.
Last month, the Panlilio family agreed
to sell certain parcels of the 3,000-hectare Puerto Azul complex in Ternate,
Cavite to BHI. The transaction, which encountered several delays, was valued at
P2.3 billion.
“After the ALI final closing, we shall
not allow too many other interested parties, since Ayala Land Premier is quite
the super premium developer with the best reputation, whilst there would be
really very few who could guarantee the same quality product,” BHI said.
The deal is expected to be finalized
in the next three to four months following requisite approvals and completion
of the due diligence.
BHI said it expects the first delivery
of several hundred resort realty products, transforming the area as a
residential space outside Metro Manila, as early as 2017.
BHI said there are weekly meetings and
constant communication between the two firms’ managers.
“We are doing great here, and hope
adding nearly a billion pesos in cash directly and indirectly to our market
value in June to August at the latest will help the company with yearly
recurring income and modestly move up shareholder satisfaction,” BHI said.
The Panlilio family is keen on
reviving Puerto Azul, which was once dubbed “Asia’s Paradise Resort” and the
“World’s Golfing Capital.”
Meanwhile, the company said it
continues to suffer from the disruption of operations in Friday’s Boracay Beach
Resort of subsidiary Friday’s Holdings Inc. (FHI).
In February, almost a third of the
land frontage up to the back portion of the resort was overrun by 200 armed
civilian men led by Datu Yap and other children of the lot’s former owner.
The armed men have walled off half of
the restaurant, occupied 17 rooms in the building, drained the pool, and
started walling with hollow blocks lot, BHI said.
BHI said its directors agreed to pay
an additional P95 million to Yap and his siblings. However, Yap then cut the
discussion, opting to look for other buyers.
In 2009, BHI bought the 1,538 square
meter lot for P40 million through a final and executory court settlement.
“Our business during this high season
has fallen off rapidly,” BHI said, adding that its general manager has left
while 150 staff were also affected.
“From the usual P4-5 million in sales
per week with P2 million gross profit, we are now down to almost zero in
profit,” BHI said.
The company earlier projected P40-50
million income from Friday’s Boracay in the fiscal year 2013-2014 that will end
in May.
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