MANILA, Philippines - Panlilio-owned tourism holding firm Boulevard Holdings Inc. (BHI) has approved the purchase of Cala Paniman Inc. for P100 million in joint venture with local and foreign partners.
Established in 2003, Cala Paniman owns the 21-hectare resort community Crestagrande in Cavite, overlooking China Sea and Corregidor Island.
In its disclosure to the Philippine Stock Exchange, BHI said the deal is payable in seven years. It added it will tap credit facilities from China Banking Corp. to fund the purchase and the ongoing expansion of Fridays Boracay Beach Resort, estimated to cost around $1.6 million.
The company said it likewise approved a P300-million private placement from JP Guilds Inc. at market price.
BHI’s board likewise authorized management to look for other possible private investors.
The listed holding firm, which has a market capitalization of P3.675 billion, also approved the $10-million investment of a foreign consortium led by Sumitomo Mitsui.
In addition, BHI has authorized Cala Paniman to represent Puerto Azul in the lease deal with Resom Resort Co. Ltd.
BHI, chaired by Jose Marcel Panlilio, is also in talks with several groups to develop other parts of the Puerto Azul resort complex in Cavite.
Established on July 1994, BHI has primary interests in hotels and resorts and tourism-related businesses, companies involved in information and technology, and investments in strategic land locations and rentable real estate properties. Its subsidiaries are significant market leaders in their respective market niches for their products, catering to premiere and elite clients to maintain relatively higher profit margins.
BHI is aiming to expand its reputable Fridays Hotel brand to at least nine different locations throughout Asia in the next 10 years. It is also committed to creating long-term value by entering into joint ventures for tourist destination development and commanding a significant share in the primary resort home market outside Metro Manila, especially with current government decongestion efforts to improve travel time via ongoing highway construction.