By Richmond S. Mercurio
(The Philippine Star) | Updated
MANILA, Philippines -
The ongoing land dispute in its resort in Boracay continues to take its toll on
Panlilio-owned property firm Boulevard HoldingsInc (BHI) as sales plunged more
than half.
In a disclosure to the
Philippine Stock Exchange yesterday, BHI reported a 55- percent drop in
consolidated sales in the first quarter of its fiscal year ending May.
BHI’s consolidated sales
in the first three months of its fiscal year plummeted to P13.08 million from
P23.87 million during the same period last year.
Likewise, the listed
property firm said sales for the month of August alone went down 59 percent to
P5.30 million from P9.02 million in the same month a year ago.
“In line with our
problems at Friday’s Boracay Beach Resort in Boracay Island, Malay, Aklan as
previously disclosed, we report the significant negative effect on sales,” BHI
said.
BHI operates Friday’s
Boracay Beach Resort through subsidiary Friday’s Holdings Inc. (FHI).
Business ( Article MRec
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In February this year,
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 its directors
agreed to pay an additional P95 million to Yap and his siblings but the latter
did not accept the offer and instead opted to look for other buyers, resulting
to months of land dispute and disruption of operations in Friday’s Boracay
Beach Resort.
BHI bought the 1,538
square meter lot for P40 million through a final and executory court settlement
in 2009.
In a disclosure to the
local bourse on Wednesday, BHI said it paid last Sept. 1 “the sum of P50
million out of a price of P65 million for the land of ex-mayor Yap and his
family, including from his Boracay mayor son.”
“This parcel is the
middle of our frontage and exactly where our restaurant is located, and
contiguous to the now forcibly taken parcel we bought from his sister Mila Yap
and son Datu Yap. After this purchase, we virtually own almost all land of
Fridays save for one last undivided parcel interest where we have 75 percent
majority,” the firm added.
Since the disruption in
operations of Friday’s Boracay took place, BHI said its usual weekly sales of
about P4 to P5 million with P2-million gross profit have gone down to almost
zero in profit.
The company earlier
projected P40 to P50-million income from Friday’s Boracay in the fiscal year
2013-2014 that will end in May.
“The end of October up
through July next year is our high season for our resort business that we are
trying to recover. We only have less than 100 days until Christmas to unblock
the barriers and set right the profit direction of BHI,” the company said.
BHI and its
subsidiaries, owned by businessman Jose Panlilio, develops real estate such as
leisure, hotel, and tourist estates, as well as residential and office
condominiums.
Aside from the problems
being encountered by its Boracay asset, expansion of its resort development in
Puerto Galera has also been by stalled as it still awaits further funding for
the project’s completion.
BHI said its Puerto
Galera resort development being undertaken by subsidiary Fridays Puerto Galera,
Inc. remains “a 65-percent completed resort property” and remains at a
standstill following a “disaster” in its Boracay resort earlier this year.
“There are no changes to
this unfinished resort placed in ice and awaiting funding. We had informed
Langdon & Seah, our project manager, we intend to restart on Feb. 1 next
year,” BHI said.
The firm said it is
currently awaiting a deal with property giant Ayala Land Inc. (ALI) to be
finalized regarding its sale of parcels of land worth P2.3 billion in Puerto
Azul.
The Panlilio family last
March agreed to sell certain parcels of the 3,000-hectare Puerto Azul complex
in Ternate, Cavite to ALI.
BHI said cash generated
from the deal will fund the company’s resort branch expansion in Puerto Galera.
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