BHI raises stakes in Boracay, Cebu
Boulevard Holdings Inc. has raised its stake in Boracay with the acquisition of a new beachfront property in Barangay Balabag through its resort subsidiary Friday’s Holdings Inc.
In a separate deal, BHI has assumed the role of property lease manager for Cebu resort estate landowner Tri-Islands Corporate Holdings Inc. for the latter’s 300-hectare property in Barangay Saavedra, Moalboal, Cebu. This will be under a two-year “tryout” period.
For Boracay, a memorandum of agreement was signed to acquire Altus Land and Realty Management Corp.’s beachfront parcel of land, a building, machinery, furniture and fixtures all located at Sitio (sub-village) Pinaungon for $1.32 million.
A down payment of $50,000 was paid when the agreement was signed while the balance will be paid at year’s end.
In a disclosure to the Philippine Stock Exchange, BHI said Friday’s had won the bid among several offers for the property because of its nine-year relationship with the French owners, having managed the nine villas and duly accounting for the owner’s share for that length of time.
As part of the deal, BHI will help Friday’s pay for the parcel in the amount of $930,000 and subsequently invest by the middle of next year, or during the low season, some $1.9 million to build 14 premiere suites at P6 million each. Currently, the resort has six premiere suites fetching a price between P18,000 and P21,000 a night during mid and high season.
Friday’s produced sales for its fiscal year ending June 2011 amounting to P144 million. For the fiscal year ending June 2012, budgeted sales amounted to P180 million.
“With the additional suites, it can grow revenue by [another] P75 million for June 2013,” BHI said.
For Cebu, the land for which BHI will act as property manager is located at Barangay Saavedra, Moalboal—a well-known tourist destination especially for diving and beach activities in Cebu. It is about two hours southwest from Cebu City.
In exchange for such services, BHI will receive a fee of 30 percent of the gross leases on every new lease rental signed up with mainly foreign lessees for a period of two years effective Nov. 8 this year. The company will most likely assign subsidiary Friday’s to handle the lease management.
Friday’s also owns some land in the same area and plans to set up Friday’s Moalboal. Doris C. Dumlao
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