Abacore tweaks Montemaria deal
AbaCore Capital Holdings, Inc. (ABA) has restructured its Montemaria tourism project in Batangas, entering into arrangement with its partners to lease with option to buy as it winds down their previous joint venture entity.
In a statement, ABA said its subsidiary, Philippine Regional Investment Development Corp. (PRIDE), signed a memorandum of agreement (MOA) with Montemaria Resort OPC (MMR) and Highsource Prime Building Inc..
This covers Phase 1 of the 100-hectare (ha) Montemaria Shrine project in Pagkilatan, Batangas City.
“This new arrangement represents a strategic milestone for ABA and PRIDE. By transitioning from a joint venture to a lease with option to buy, this streamlines project operations and speeds up development of our Montemaria tourism estate,” said Antonio Victoriano F. Gregorio III, chair and president of ABA.
Phase 1 includes the Mother of All Asia Monument. Under the agreement, MMR and Highsource will lease the first 20 ha at a yearly rate of P540 per square meter (sq m) for the first five years. That is equivalent to 6 percent of the P9,000 per sq m value.
After the initial five-year period, the lease rate will be adjusted based on the property’s market value. The lease term runs for 25 years, renewable twice for 25 years more each time.
MMR and Highsource also have the option to buy the leased land at P9,000 per sq m within the first five years.
Upon completing at least half of Phase 1, they may expand to Phase 2, subject to market valuation and approved plans. The latter covers an additional 40 ha.
