LISTED resorts operator Premiere Horizon Alliance Corp. (PHA) is programming capital expenditure (capex) of P1 billion for this year for the development of its tourism project in Palawan and to fund future partnerships and acquisitions.
In a disclosure to the Philippine Stock Exchange, PHA said its subsidiary West Palawan Premiere Development Corp. (WPP) will spend P400 million for its master-planned beach-side tourism development in Bacungan, Puerto Princesa.
On top of the P400 million, PHA will also infuse P200 million to its infrastructure subsidiary Redstone Construction and Development Corp. (RCDC) to fund RCDC’s own expansion program.
The remaining P400 million will be set aside for future partnership or acquisition opportunities especially in the “cement, iron, water and energy sectors.” PHA said it is currently evaluating several business opportunities in the sectors mentioned.
“The company’s 2017 strategic focus will be on infrastructure and tourism, which will strongly support the current administration’s thrust on sustained countryside development where tourism and infrastructure play major roles. The company plans to raise up to P1 billion for the said expansion,” PHA said.
PHA’s tourism arm WPP is currently developing a 576-hectare master-planned beach-side lifestyle community in Palawan featuring mountainside resorts and beach retreats with exciting themed clubs, amenities and facilities and which is expected to become a prime tourist destination in Palawan.
WPP recently acquired 5 hectares of beachfront property in Nagtabon Beach and is in the process of “putting together a tourism development plan for the area.” Nagtabon Beach is 40 minutes away via cemented national roads from the Puerto Princesa International Airport, which is seen to open in March 2017.
PHA expects the project master plan to be finalized this month while initial developments are set to start in the first quarter of this year.
The WPP project is leveraging on the influx of tourists from Cebu and other key areas nationwide, as well as international visitors, once Puerto Princesa International Airport opens in March.
The Palawan project will position PHA to better serve the expected flow of tourists in the city that has grown by an average of 15 percent per year.
RCDC, on the other hand, will be working with WPP for the tourism project to provide cost-effective site and land development expertise.
With its P200-million budget, RCDC “expects to broaden its operations to include non-mining construction activities starting with the execution of WPP’s site development plans.”
Incorporated in January 1988, PHA is primarily engaged in businesses related to entertainment, gaming, hotel and leisure. The company is working towards becoming a “countryside enabler” investing in profitable businesses that address gaps in mineral resource development, food security, tourism, and shelter in the provinces.