Pride, Highsource ink Batangas deal

ABACORE Capital Holdings Inc. subsidiary Philippine Regional Investment Development Corp. (Pride) and Highsource Prime Building Inc. (Highsource) announced they have signed a memorandum of agreement for the development of several properties in Batangas.

The two companies will organize a joint venture corporation that will develop a four-star hotel, land and water amusement park with support facilities, 3D glass paradise, and a residential community and commercial establishments at the Montemaria tourism site in Pagkilatan, Batangas.

Highsource will invest up to $400 million in the development. For the development’s first phase, Pride will contribute the mountain top land of its subsidiaries overlooking Batangas Bay and the Verde Island passage located at Pagkilatan, Batangas City, with a total area of 17 hectares at P9,000 per square meter for a total value of P1.6 billion for at least 40-percent share. Highsource will invest up to P2.6 billion in cash and development cost for the first phase, with a corresponding increase in its share in the joint venture as it reaches certain milestones.

The second phase will have PRIDE contribute another 20 hectares of mountaintop land at the reappraised value at the time of commencement of construction for a minimum of 40-percent equity while Highsource will contribute the proportionate amount in cash or development cost.

Due to Batangas’ quick appreciation of property values, especially for tourism-oriented land near the beachfront or along the shore, both parties have agreed that any delay in development will allow Pride to have the land reappraised to update market values and adjust the actual value of its land contribution to the joint venture.