AbaCore unit, partner plan four-star hotel in Batangas
ABACORE Capital Holdings, Inc. on Thursday said its subsidiary executed a memorandum of agreement with a partner to develop a four-star hotel with an amusement park in Batangas.
In a disclosure to the stock exchange, the listed holding firm said the deal was forged on Nov. 23 between its unit Philippine Regional Investment Development Corp. (PRIDE) and Highsource Prime Building, Inc.
“The agreement provides that the two parties will organize a joint venture corporation that will develop a four-star hotel, a land and water amusement park with supporting facilities, 3D Glass Paradise,[and] a residential community and commercial establishments,” AbaCore said.
It said Highsource would invest up to $400 million in the development, which will have two phases. The project will be located in the Pagkilatan, Batangas tourism site.
Under the project’s first phase, PRIDE will contribute to the joint venture the mountaintop land of its subsidiaries overlooking Batangas bay and the Verde island passage. The land spans 17 hectares valued at P9,000 per square meter for a total value of P1.6 billion for at least a 40% share in the joint venture, the company said.
In turn, Highsource will invest up to P2.6 billion in cash and development for the first phase, with an “increasing share in the joint venture as it reaches certain milestones,” it added.
AbaCore said the second phase of the project calls for PRIDE to contribute another 20 hectares of the mountaintop land of its subsidiaries at a reappraised value.
The contribution will translate to a minimum of another 40% share, while Highsource “will contribute the proportionate amount in cash or development,” it said.
“Considering the quick appreciation of property values in Batangas, especially for tourism-oriented land near the beach front or along the shore, both parties have agreed that any delay in development will allow PRIDE to have its land reappraised to updated market values and adjust higher the actual value of its land contribution to the joint venture which could increase its share in the joint venture,” AbaCore said.
On Thursday, shares in AbaCore surged 6.81% or P0.13 to finish at P2.04 apiece.