Philippine Regional Investment Development Corporation (PRIDE), a subsidiary of AbaCore Capital Holdings Inc., has entered into an agreement with Highsource Prime Building Inc. to undertake various leisure projects at the Montemaria Shrine at an initial cost of P4.2 billion.
In a disclosure to the Philippine Stock Exchange, Abacore said PRIDE and Highsource will organize a joint venture corporation to undertake the project at the shrine which is a tourist destination in Batangas owned by AbaCore.
Under the MOA, the joint venture corporation will develop a 4-star hotel, a land and water amusement park, the 3D Glass Paradise, a residential community, and commercial establishments.
The MOA will be undertaken in two phases. Under the first phase, PRIDE will contribute land totalling 17 hectares — valued at P1.6 billion — for at least 40 percent share in the joint venture while Highsource will invest up to P2.6 billion in cash and development.
Under the second phase, PRIDE will contribute another 20 hectares of land at a reappraised value at the time of commencement of this phase. Highsource will then contribute the proportionate amount in cash or development.
“We are pleased to undertake this joint venture with Highsource in addition to the various growth initiatives we have announced throughout the year,” said AbaCore Chairman, President and CEO Raul B. De Mesa.
He added that, “Given the sustained appreciation of land values in Batangas and influx of tourists in the province, we believe that this venture shall further enhance the value ABA is providing to its shareholders.”
This year, AbaCore has been proactive in leveraging its capabilities to maintain its strong performance in the markets it operates in.
In Batangas, the company sold land to the Gaisano group and a national meat-processing chain for these two entities to mark their entry into the province.
In Surigao del Sur, AbaCore entered into a joint venture with Oriental Vision Mining Philippines Inc. (ORVI) to monetize its coal assets. Under this agreement, Abacore will receive royalty fees in the course of exploration work that ORVI will conduct.
Elsewhere, the firm is in the process of securing regulatory approvals for the sale of a 40 percent stake in Philstar Development Bank to a consortium of investors led by Demry Cheng, CEO of Philippine Dragon Media Network.
“Despite the operating environment we are in, the year 2022 has been excellent for us given we are launching various ventures across different industries,” De Mesa said.
He noted that, “We believe these ventures will be excellent long-term investments on our part, and so we are committed to ensuring we will fully realize the economic gains we can achieve.”