Fil-Estate allots P5B for Camp John Hay

Listed holding firm Fil-Estate Corp. (FEC) is setting aside P5 billion this year for the continued development of Camp John Hay in Baguio City into an integrated community that will house an IT park, a commercial center, and a casino.

FEC chairman Robert John Sobrepeña said the bulk of the capital budget, or P2 billion, will go to the construction of residential buildings and other vertical structures.

Sobrepeña said the company signed Monday a preliminary agreement with a major locator for the proposed development of an IT campus and a commercial building which shall make available 128,000 square meters of retail space. "We hope to finalize everything within the next 60 days," he said.

Sobrepeña said the signing was timely as both houses of Congress approved a bill reinstating all special economic zone benefits.

FEC’s stake in Camp John Hay Development Corp. (CJHDC) will increase to 83 percent from 76 percent upon the acquisition of Fil-Estate Management Inc’s shares in CJHDC. In exchange, FEMI will receive P450 million worth of new shares in FEC.

On Oct. 1996, CJHDC was awarded the contract to lease and develop the 247-hectare Camp John Hay into an eco-tourism and resort destination for a period of 50 years.

Other facilities that had been completed within Camp John Hay include the 18-hole golf course, condotel, residential villas, hotels, and a trade and cultural center.

Sobrepeña said ongoing and future projects shall cover 20 hectares. Under construction are suites and a second condotel which shall have 316 units, of which 41 had been completed and 36 ready for occupancy.

He said plans also include the construction of leisure homes which will have five to 10-storey buildings, targeting foreigners looking for an ideal site for retirement.

Sobrepeña said that should the group fail to get a gaming license, it would instead put up a convention hotel to accommodate more guests.

According to Sobrepeña, the increased investment in CJHDC would give FEC renewed balance sheet strength and increase future revenue potential as a result of new projects.

With the increased investment, FEC’s capital stock and assets shall amount to P998.4 million and P2.22 billion, respectively.

Sobrepeña said another flagship project, the MRT, needs around $100 million to accommodate additional 48 trains in order to satisfy peak-hour ridership demand.

He said the MRT has already reached its full ridership capacity which is 400,000 a day. "If we can’t add more trains, the system will break down," Sobrepeña said.