Global Estate to raise capital to jumpstart P20-B tourism projects

MANILA, Philippines -  Global Estate Resorts Inc. (GERI), a 60 percent-owned subsidiary of the Andrew Tan-led holding firm Alliance Global Group Inc., is planning to raise capital either through equity or debt to jumpstart two massive tourism-oriented projects in Boracay and Batangas that will cost around P20 billion.

In a briefing following the company’s special stockholders meeting yesterday, GERI assistant vice-president Alain A. Sebastian said the fund-raising activity could either be a private placement, follow-on offering or rights issue.

Sebastian said the company has doubled its capitalization to P20 billion to ensure it has enough shares available for issue, should it opt to undertake an equity offering.

“Given the magnitude of its projects in the pipeline, GERI foresees the possibility of raising capital in the future, either in the form of debt or equity financing,” he said.

Sebastian, however, could not give a timetable for the capital-raising activity, saying everything is still under study.

As it aims to raise the bar for the tourism industry, GERI is building Boracay Newcoast, a P15-billion master-planned integrated resort that will house four world-class hotels with a total of 1,500 rooms; private villas, specialty and boutique beachfront hotels, as well as a variety of health and wellness centers.

The project, which encompasses 14 percent of the island, will include an 18-hole championship-grade golf course, which is seen to attract 350,000 more tourists to Boracay each year.

“GERI is in a strong position to become a game-changer in Philippine tourism. Through our integrated tourism estate projects, we aim to redefine experiences for foreign visitors and local tourists and, ultimately, uplift the reputation of the country as an international tourist destination,” Sebastian said.

GERI plans to develop over 1,000 hectares of prime property located in various tourism hotspots such as Boracay, Tagaytay and Nasugbu in Batangas into world-class tourism estates.

In Batangas, GERI is spending P5 billion to build the 1,000-hectare Twin Lakes, which is touted to become a premier medical and educational tourism destination in the country.

Initial phase of the project will include the first and only vineyard in the region, a chateau, hotel and spa, shops, residential villas and condominiums and a sports and country club. Succeeding phases will feature a golf course, more residential projects, international hotels, plantations and botanical gardens, health and wellness centers and boarding schools with medical amenities.

The project will also offer distinct themed phases from residential villages and golf course villas to a plantation community and lakeshore enclave with a view of Taal Lake.