Property giant Ayala Land Inc. (ALI) is reviving talks with Boulevard Holdings Inc. (BHI) to acquire “a large chunk” of the Puerto Azul resort development in Ternate, Cavite three months after it backed out from a deal that had been in negotiation for almost three years.
In a disclosure to the stock exchange, BHI said that Ayala Land Premier head Jose Juan “Giggio” Jugo wants to “make another offer” to buy “a large chunk” of Puerto Azul, “even a thousand hectares.”
Earlier talks between the two involved only 300 to 400 hectares of the 3,000-hectare Puerto Azul.
But in September this year, ALI cancelled its P2.3 billion bid to buy a portion of Puerto Azul, saying that the planned funding for the acquisition was already allotted to a P75-billion development in Porac City.
BHI said ALI assured that they now have sufficient capital to acquire a proposed 1,000 hectares of Puerto Azul.
Aside from the ALI offer, BHI said it has also received expressions of interest from two foreign real estate firms to develop Puerto Azul.
In addition, a certain “local private company, leading another consortium of Indonesians and Chinese who own golf courses and casino resorts,” is also studying the details of the Puerto Azul development.
“With their money to be injected and a consortium of good local expertise, we can revive the vision of the destination. All we can say for now is we are determined to finish this, since both funds are looking for an Asian real estate weighing to their portfolios,” BHI said.
The two options for the Puerto Azul are still subject to discussion by the BHI board of directors and shareholders, the company said.
For the first five months of its fiscal year, BHI sales dropped by 50 percent to P21.2 million from P42.67 million a year ago, dragged down by a land dispute at its Friday’s Boracay Beach Resort.
BHI has been incurring losses since February as hotel room rates at Friday’s Boracay has dropped from P11,000 a night to P8,500 due to the disruption caused by the dispute.
BHI’s resorts and hotels portfolio consists of Friday’s Boracay, Friday’s Boquete Beach Resort at Puerto Galera in Oriental Mindoro and Friday’s Puerto Azul.
BHI was incorporated on July 13, 1994 as a holding company focusing on resorts, leisure, rentable real estate properties and tourism-related businesses.
For the next 10 years, BHI said in their company profile posted at the Philippine Stock Exchange that the company will expand the Friday’s hotel brand to “at least nine different idyllic locations throughout Asia.” The firm will also increase capitalization through joint ventures for tourist destinations outside Metro Manila.