AbaCore Capital Holdings Inc. said Thursday wholly-owned unit Philippine Regional Investment Development Corp. signed a joint venture agreement to build residential and hotel projects in Batangas province.
AbaCore said in a disclosure to the stock exchange PRIDE agreed to form a joint venture with Highsource Prime Building Inc. to build a four-star hotel, a land and water amusement park, a residential community and commercial establishments on a 37-hectare property in Pagkilatan, Batangas.
AbaCore said Highsource would invest $400 million to finance the whole development, while PRIDE would contribute the land to the joint venture.
The project will be developed in two phases.
PRIDE will initially infuse 17 hectares of land valued at P1.6 billion, or equivalent to 40-percent interest in the joint venture.
Highsource will initially invest P2.6 billion to commence the construction of the project.
PRIDE will contribute another 20 hectares of mountain top land of its subsidiaries at the reappraised value at the time of commencement of phase 2 for another 40-percent stake. Highsource will also contribute the proportionate amount in cash required for the completion of the project.
“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.
AbaCore has businesses involved in coal and gold mining, financial services, leasing of gaming equipment and real estate.
The company said in March that subsidiaries Friendship Management Corp. and Candor Realty Corp. agreed to sell properties in Batangas.
The share price of AbaCore rose P0.15 to close at P2.03 Thursday.