The Philippine Tourism Authority (PTA) is inviting investors to purchase its properties, especially in Cebu to generate funds for infrastructure projects.
Of the total 40 estates and eight operating tourism-related entities, three of which are located in Cebu and one in Bohol, are now open for “outright-purchase” deal agreement to interested investors, said PTA chairman and tourism secretary Joseph Ace Durano yesterday.
As of this moment, interested investors of these properties are inclined for lease agreement, which is not in line with the government’s thrust for privatization.
The huge property formerly known as Argao Beach Club, the over 100-hectare PTA-owned Kan-irag estate in Cebu, and also in Moalboal are now up for sale for capitalists who plan to develop an integrated retirement village or other related projects.
The Kan-irag property, which was initially developed by the Gotesco Group about 10 years ago, is now under legal scrutiny as PTA aims to win back its ownership.
Durano said a number of proposals has started pouring in for these properties, however, all of which only states a “lease-only” deal, not a buyout.
According to Durano, the PTA Board has decided to sell the properties, or go into joint venture with a private entity, in order to generate financial revenue for the use of tourism infrastructure, which is now the primary program of the government.
Significantly, he said the government has been careful in choosing the appropriate buyer, saying “we don’t want to give it to developer for speculation. We want it to be developed immediately to add more capacity [for Cebu],” Durano said.
Durano mentioned that there are only few companies or developers in the Philippines that have the capacity to buyout these properties such as the Metro Pacific Inc., Ayala Group, Filinvest, saying these companies are the more reliable developers that have capacity for big ticket investments.
Even the Metro Gaisano Group had expressed interest to lease the Argao Beach Club, but it was turned down by PTA, Durano said because of its serious intent to dispose the property.
Although Durano is not privy on the specific size of the Argao Beach Club, he said “it’s big enough for an integrated retirement facility [development].”
In a separate interview earlier with Metro Pacific chairman Manuel Pangilinan, he said that the company is now looking at properties in Cebu to pursue its plan in establishing a P1.5 billion Spa Hospital here.
“We have so much estates, including hotels and resorts for disposals,” he said adding that these would translate a good amount of money to be used to improve infrastructure, rather than maintaining the idle properties and spending of at least P700 million a year in form of subsidies for these PTA-managed and owned facilities and estates.