The project will rise on a 55-hectare property in Batangas.
Under the agreement, Sta. Lucia will develop the property into an exclusive residential enclave. In exchange for its investment, Sta. Lucia will get half of the net saleable area after the properties have been developed while the other half will be shared by the group of ASB Realty Corp., Sto. Tomas Agri-Farms Inc. (STAFI) and Novoland Development Corp.
ASB Realty and STAFI will each get 43 percent of the remaining half of the net saleable area while Novoland will get 14 percent.
The property was earlier the subject of a joint project agreement between ASB Realty, STAFI and Novoland whereby ASB Realty and Novoland contributed a sum of money while STAFI provided the land.
The ASB Group said it expects to earn at least P100 million from the proposed project which, in turn, will go to its asset pool which can be used to settle obligations.
Julio C. Elamparo, the incumbent rehabilitation receiver for the ASB Group, said the approval of the joint venture agreement is for the best interest of ASB and its creditors as it will lead to the recovery of its investment.
ASB filed for receivership with the SEC in May 2000 after failing to settle liabilities amounting to over P12.7 billion from both unsecured and secured creditors. The company’s unsecured creditors consist of 700 individuals while its secured creditors compose of 14 banks.