Alliance Global to complete unfinished projects of FELI

MANILA, Philippines - Alliance Global Inc. (AGI), the holding company of business tycoon Andrew Tan, is in the process of quantifying how much it will have to spend to continue projects left unfinished by Fil-Estate Land Inc. (FELI), though sources revealed that Tan is committed to completing them and making them more marketable, company officials told The STAR.

Late last year, Tan acquired the controlling stake in FELI, the real estate development arm of the Sobrepena group. Through AGI, Tan poured in an initial P5 billion into FELI which was renamed and reorganized into Global Estate Resorts Inc. (GERI).

GERI is now 60 percent owned by AGI, 20 percent by the public, and 20 percent by the original FELI owners (Sobrepena group). But even after Tan’s takeover, he chose to retain Atty. Ferdinand Santos of Sobrepena’s group as GERI president and Sobrepena as vice-chairman.

Several unfinished projects of FELI were assumed by GERI. These include the so-called big ticket projects of FELI, namely the 1,300-hectare Twin Lakes in Tagaytay, the development of which has not commenced; Harbor Town in Nasugbu, Batangas; the 600-hectare Southwoods project; and Fairways and Bluewaters in Boracay.

But aside from the four, there were other unfinished FELI projects which were assumed by AGI, which also owns a real estate group consisting of Megaworld Corp., Suntrust Properties, and Empire East Land Holdings Inc. This meant that FELI’s down-line subsidiaries such as Fil-Estate Properties Inc. and Sherwood Hills Development Inc. (DevCo.) will now be majority owned and managed by Tan’s group.

DevCo. is the developer of Sherwood Hills Residential Estate and Sherwood Hills Golf Club Inc. in joint venture with the landowner La Paz Holdings Development Corp. DevCo is 55 percent owned by FELI (now GERI) and 45 percent by La Paz.

Last Feb. 10, Suntrust signed a co-development and financing agreement under which it committed to provide an interest-free P200 million credit line in favor of DevCo. and the Golf Club. Suntrust will take charge of crafting and implementing a comprehensive redevelopment plan whose priority includes rehabilitating and enhancing the club’s golf course, completing the clubhouse, developing and constructing family-oriented amenities, and helping deliver the commitments of DevCo. and the Club to their clients and members.

Suntrust president and now Sherwood Club president Harrison Paltongan told The STAR that while 80 percent of Sherwood Hills Residential Estate has already been sold, only a few of the buyers have actually built their houses (some of them do not want to move in) because of the undelivered commitments of the previous owners. These include the unfinished perimeter wall, the still-to-be-developed clubhouse of the residential estate, and the road networks.

But with only 20 percent of the 260-hectare residential estate unsold, Suntrust can only do so much. So as part of the agreement, Suntrust will also develop an adjacent 42 hectares also owned by DevCo. and sell smaller lots and more affordable houses characteristic of Suntrust developments there. Suntrust will also introduce new amenities, such as a fishing wharf.

As far as the Golf Club, which is already owned by the members, is concerned, Paltongan said they have decided to advance funds to the club to finance the completion of the clubhouse and to rehabilitate the irrigation system.

Paltongan expressed confidence that with the new working board, the Golf Club will be able to restore its lost glory. Plans are to transform it into a resort-type and family-oriented haven where everyone, including non-golfers can enjoy their stay. Aside from constructing a gameroom/gym, plans are afoot to build a swimming pool, a signature boardwalk, fishing wharf, mini-putting area, to name a few.

There are also plans over the long term to build an additional nine holes (third nine) if the club members’ patronage improves.

In the next four months, Paltongan said tangible works in various stages would already be visible in the club. At present, most major works are still on the drawing board.

He added that members of Fairways and Bluewaters in Boracay now have something to look forward to. Paltongan revealed that if the lands owned by AGI and Fil-Estate are combined, they would account for 15 percent of the whole Boracay Island. Fairways would complement AGI’s plans for the development of its raw lands in the island, and that says a lot.

Paltongan said they have no idea yet how much additional funds AGI will invest to complete FELI’s (GERI) unfinished projects since AGI is still in the process of quantifying the cost.

Two other unfinished projects of FELI are now under Suntrust — the 334-story Capitol Plaza (renamed Suntrust Capitol Plaza) near Sulo Hotel located in a 2,600 square meter property, and the three uncompleted residential towers of 8 Sto. Domingo located in a three-hectare property along Sto. Domingo St. both in Quezon City. Suntrust plans to develop the Sto. Domingo property into a mixed-use project while the Capitol Plaza project will be purely residential expect for a few commercial stalls below.