Joint venture agreement to focus on undertaking projects at the Montemaria Shrine
AbaCore Capital Holdings Inc. (PSE:ABA) announces that its subsidiary, Philippine Regional Investment Development Corporation (“PRIDE”), has entered into a Memorandum of Agreement (“MOA”) with Highsource Prime Building Inc. (“Highsource”) to undertake various projects at the Montemaria Shrine — a tourist destination in Batangas owned by ABA.
Under the MOA, the two companies will organize a joint venture corporation that will develop the following facilities:
● A 4-star hotel
● A land and water amusement park
● The 3D Glass Paradise
● 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 Php 1.6 billion — for at least 40% share in the joint venture. Meanwhile, Highsource will invest up to Php 2.6 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,” Raul B. De Mesa, President, Chairman, and CEO of ABA, said. “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.”
Abacore would also like to acknowledge renowned economist Bernardo Villegas’s insights on this development.
“In a forum with Tourism Secretary Christina Frasco, it was mentioned that the Philippines is the number one beach tourist destination in the world,” he said. “This bodes well for ABA as it has many beach front properties that stand to gain from investors and appreciate in value as the national government promotes Philippine beaches to the international market.”
This year, ABA 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, ABA entered into a joint venture with Oriental Vision Mining Philippines Inc. (“ORVI”) to monetize its coal assets. Under this agreement, ABA will receive royalty fees in the course of exploration work that ORVI will conduct.
Elsewhere, ABA is in the process of securing regulatory approvals for the sale of a 40% 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. “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.”