MANILA, Philippines--San Miguel Corp. is looking at increasing its 34-percent interest in Bank of Commerce to gain a controlling stake, company president Ramon Ang said.

Ang said the San Miguel group wanted to acquire a controlling stake in the bank to support the projects of its property arm, San Miguel Properties Inc. (SMPI).

SMPI and SMC Retirement Plan earlier invested P2 billion in Bank of Commerce in exchange for a 34-percent stake in the bank, which will pave the way for a strategic alliance that would support SMPI's aggressive expansion into the property segment.

Bank of Commerce is led by Antonio "Tonyboy" Cojuangco, a nephew of San Miguel chair Eduardo "Danding" Cojuangco.

SMPI plans to spend between P1 billion and P2.5 billion for the initial development phase of its first resort project next year on 28-hectare lot in Boracay.

SMPI is currently doing due diligence on the property owned by Boracay Property Holdings Inc. (BPHI), one of the resort owners on the island. BPHI is led by its chair Demetrio Sonza and president Mariano Araneta Jr., recent documents with the Securities and Exchange Commission showed.

SMPI officials said the company hoped to close a deal on the Boracay property this year with BPHI.

"This is our first leisure-related large-scale venture. Once we close the deal, we hope to start construction by next year," SMPI president Jeronimo Kilayko said.

Kilayko also said the project was seen to take advantage of growing tourist arrivals and the resilient high-end property market.

The Boracay project involves the construction of a five-star hotel, a condominium and a mall.

Lots in Boracay sell for P7,000 to P10,000 per square meter today, sources said.

SMPI is earmarking between P4 billion and P5 billion for residential and mixed-use projects this year and 2009.

SMPI also earlier agreed to team up with the Government Service Insurance System (GSIS) to put up a P1.7-billion luxury condominium-hotel project in Makati. It will be put up on a 1,766-square meter property owned by the GSIS near Greenbelt 1 in Legaspi Village.