Discovery World allots P800M for Club Paradise redevelopment

MANILA, Philippines - Boracay, resort developer Discovery World Corp. is spending up to P800 million to redevelop newly-acquired Club Paradise into a world-class vacation destination as it makes a strong push into the tourism industry.

On the sidelines of the investors briefing for the company’s P550 million initial public offering Wednesday night, Discovery World president John Tiu said renovation works at Club Paradise, located in Dimakaya Island, Coron, Palawan, would commence in the third quarter next year involving the construction of 80 new rooms.

“We’re planning 80 keys, new rooms in different sizes.  Some will be villas, some hotels. Aside from that, we will be putting in place new facilities like a new pool, clubhouse, and some restaurants,” Tiu said.

Discovery World acquired the 40-hectare Club Paradise for P264 million. The Coron-based resort, which enjoys “AA” accreditation rating from the Department of Tourism, currently has a total of 56 guest rooms.

Tiu said the company would need another P250 million to expand Discovery Shores in Boracay.  The project will include the development of 12 additional  luxury villas as well as food and beverage outlets beginning in the first quarter of 2014.

He said Discovery World remains keen on acquiring the beach properties of  Palawan Cove Corp. in San Vicente, Palawan and expects to conclude a deal next year.  The company intends to convert the resort into a five-star facility catering to the upper class.

Discovery World is planning to raise about P551 million from an initial public offering of its shares to bankroll its expansion projects.  The company will be the first pure hotel play in the stock market when it begin trading on Nov. 21.

The offering, which will run from Nov. 8 to 14,  involves 168 million shares at P3.28 per share.

Abacus Capital & Investment Corporation is the  issue manager and underwriter of the offering.

Tiu said the group is no longer pursuing the acquisition of  Enderun Colleges Inc as it wants to focus on the tourism business.

Discovery World will be the third company of the Tiu family to be listed in the PSE after i-Remit Inc and TKC Steel Corporation. The family also has investments in financial services through Sterling Bank Asia and is into manufacturing of steel pipes and billets as well as vinyl floors.

Discovery Shores Boracay said it was dropping a plan to acquire a fifth of Enderun Colleges Inc to concentrate on the tourism business. It is also delaying the development of beachfront properties owned by Palawan Cove Corp. following its acquisition of Club Paradise.