Upscale real еstatе firm Century Properties Group Inc. is heading into Palawan to capitalize on the world-famous island’s strong tourism sector with a P20-billion integrated resort project.
Century Properties said it has purchased a 56-hectare beachfront property in the municipality of San Vicente which it intends to develop into an integrated resort and real еstatе destination.
“We have long identified tourism as a structural growth area for the Philippine economy and as such we are very pleased to announce the purchase of this development site in San Vicente, Palawan. This is a deal we have been working on for a considerable period of time,” said Century Properties founder and chairman Jose E.B Antonio.
“We have been able to purchase an exceptional block of land and are confident that given Century Properties’ long track record of delivering innovative branded real еstatе, we will be able to unlock the very significant long-term potential from this site. By focusing on larger projects where the local tourism infrastructure is in place or under development, we are taking a careful and prudent approach to capturing the potential in the hospitality and lifestyle sector,” he added.
Antonio said Century Properties is allocating total capital expenditures (capex) of over P20 billion to develop the project over the next 10 years.
He said the project would be developed in phases, with the first phase requiring a capex of P1.5 billion over the next three to five years.
“The pace and timing of subsequent phases will in a large part be driven by the take-up of the sale of hotel villas and the residential investment properties, which will form a significant part of the returns from this project. Given the exceptional potential of the site and the relatively low capital intensity inherent in the low-rise nature of this type of development, we will be able to focus on the long-term margin maximization of this project,” Antonio said.
San Vicente is located northwest of mainland Palawan. It has its own airport which allows regional carriers to fly directly to the town. A new two-kilometer runway and terminal are being constructed for completion this year.
“On their completion the roads and airport infrastructure will be a major catalyst to the growth of Palawan and San Vicente as prime tourist destinations, facilitating larger regional and global arrivals to the Philippines,” said Tim Hallett, chief operating officer for Century Properties Hospitality Inc.
Hallett said Century Properties is initially eyeing the domestic market for its Palawan development, but intends to expand to both regional and international markets as the facilities and accommodation options increase in later phases of the project.
“Palawan is the perfect choice for Century Properties to expand its tourism and lifestyle destination development portfolio. Tourism brings inclusive progress to the country, and our company seeks to contribute to the growth of Palawan as the next tourism hotspot which we feel in time will rival or even surpass the prestige of Boracay as an international beach destination,” Hallett added.
Century Properties is beefing up its resort portfolio as it works towards positioning itself to benefit from the growth potential in the country’s tourism and lifestyle sector.
The company has recently started Phase 1 development of its 142-hectare Batulao project in Batangas.
Hallett said the Philippines as a tourism destination has an edge over its Asian peers.
Source: MSN Money | April 22, 2015