The ₱4.2 billion partnership is off, but the land deal is on.
Abacore Capital Holdings Inc. has dropped its joint venture plan for the Montemaria tourism project in Batangas City and is now shifting to a simpler setup. Instead of sharing development risk with partners, Abacore will act more like a landlord and earn lease income, with an option for the tenants to buy later.
In a disclosure, Abacore said its unit Philippine Regional Investment Development Corp. agreed with Montemaria Resort OPC and Highsource Prime Building Inc. to wind down the joint venture entity and replace it with a lease with option to buy arrangement.
This follows Abacore’s 2022 tie up with Highsource and Shanlin Real Estate Ltd., where Highsource was supposed to fund a major buildout including a 4 star hotel, a land and water amusement park, residential communities described as a “3D Glass Paradise,” and commercial areas on Abacore’s land near the Mother of All Asia Tower of Peace in the Montemaria Complex.
Under the new deal, Montemaria and Highsource will lease an initial 20 hectares within Abacore’s roughly 100-hectare property in Pagkilatan, Batangas City. The land lease is priced at ₱540 per square meter per year for the first five years, which is based on 6% of ₱9,000 per square meter.
After five years, the lease rate will be adjusted based on fair market value, with escalation tied to published Bangko Sentral ng Pilipinas annual interest rates. The lease term is 25 years, extendable twice for another 25 years each.
The tenants can also buy the phase 1 land at ₱9,000 per square meter within the first five years. After that, the buying price shifts to fair market value when the option is exercised. If the group completes at least 51% of phase 1 development, it can expand into another 40 hectares under phase 2, also priced at fair market value at the time, based on a development plan agreed by the parties.
Abacore said the parties also signed implementing agreements at the same time. Montemaria and Highsource bought the Cenacle building and improvements for ₱25.6 million, and immediately executed leases covering the Miracle Walk, parking facilities withinpPhase 1, and portions of the Montemaria monument. Abacore said the new structure gives it anchor tenants, recurring cash flow from the start, and an uplift in the value of its surrounding properties as development progresses.
