Korean firm to invest $250M in Subic retirement facility

A Korean firm is investing $250 million in Subic for the development of an integrated beach, golf and retirement facility in the Freeport zone.

“I cannot give the name of the firm yet but they will be putting in $250 million in the first half of the year for the development of the facility,” Subic Bay Metropolitan Development Authority (SBMA) Administrator Armand C. Arreza told The STAR.

In an interview, Arreza said the $250 million represents the initial investment only.

Over a period of five years, Arreza the investment is expected to increase as the firm puts up additional facilities like a retirement home.

The Subic Neocove, which is located in the 400-hectare beachfront area of the Freeport zone, will initially house a golf course and beach facilities.

Arreza said the golf course will be world class given the Korean’s penchant for golf.

The retirement area will be built in three to five years.

“The investment covers a big area so we cannot expect the development to happen in a period of one year,” he noted.

Arreza said the Korean firm is paying $25 million for land acquisition alone.

Arreza reported that the SBMA and the Korean firm is already finalizing the land acquisition. The name of the firm, he said will be made public once a deal is signed.

Last year, three Korean firms invested in the freeport’s leisure and tourism industry.

Kyung An Co. Ltd. invested $80 million for a casino and hotel project.

The Paradise Consulting & Development Corp. placed $36.7 million for a condominium-type hotel and related leisure facilities.

Wide Tree Leisure and Development Corp. infused $12 million for a hotel and restaurant business.

New investments in Subic Bay Freeport grew 17 percent in 2007 to $1.688 billion from the $1.42 billion a year ago as foreign businesses expand their operations in the country.