Panlilio group-led Boulevard Holdings Inc. (BHI) has resumed the development of a new Fridays beach resort in Puerto Galera, Mindoro.
This project was derailed by earlier problems on its older leisure estate in Boracay Island.
BHI disclosed to the Philippine Stock Exchange Thursday that its majority shareholder, JP Guilds Inc., had raised funds for the project and committed P150 million to P200 million in cash to continue the construction of the resort.
The company said it was now in the process of bidding out the various components of the project such as the buildings, infrastructure support including electrical and water, and landscape works. Full construction of Friday’s Puerto Galeria is set to begin on Oct. 12.
“Like Fridays Boracay, which grew organically from an eight-bed, land-rented area in the 1980s to a prime resort land owner and operator worth P1.8 billion on appraisal, we hope the only new hotel in the Unesco-recognized Puerto Galera lagoon since 1985, will capture the high-end niche market,” BHI said.
Once completed, BHI projected that the second Fridays resort would add about P12 million to P20 million in monthly revenue during the peak season of November to June. This will create a free cash flow of P6 million to P8 million per month during the “high season.”
“The money we will be receiving is purely equity over equity. The stakeholders are our staff, suppliers, and us, shareholders. There is no bank debt,” BHI said.
BHI recalled that the project had been mothballed at the end of 2013 as the company had to divert more than P190 million to address its problems in Fridays Boracay Resort. In February 2014, BHI reported that “armed civilian men” led by a scion of the family that sold the lot years ago had occupied the hotel-resort. Charges of forgery filed by the previous owner had been dismissed, affirming BHI’s ownership of the property.
When the Puerto Galera project was put on hold, BHI said it had already spent P235 million to complete 60 percent of the resort, a diving academy, housing for three large electrical generators, staff and management facilities, dive and expansive resort pools, golf cart paths, landscape, reception buildings and restaurants.