SEC okays sale of membership shares in SM proj

Pico De Loro Beach and Country Club, an integral component of the 5,700-hectare eco-tourism project of SM Investments Corp., may now start selling membership shares to the public following clearance from the Securities and Exchange Commission.

Pico De Loro sought the registration of 4,000 common shares consisting of 3,200 Class A and 800 class B shares, each representing one proprietary club membership. The shares will be sold at P400,000 per share or a total price of P1.6 billion.

Pico De Loro has an authorized capital stock of P10 million divided into 10,000 common shares with a par value of P1,000 each.

Proceeds from the sale will be used to recover the development cost of the beach resort as well as the cost of the land.

Pico De Loro will feature a beach and country club, an entertainment area, facilities for snorkeling, swimming and other water sports as well as hiking, biking and adventure trails.

It is the first phase development of SMIC’s Hamilo Coast, an integrated residential and resort complex located in Nasugbu, Batangas.  It involves the construction of 11 buildings consisting of a total 1,500 condominium units estimated to cost around P6 billion.

Pico de Loro, which covers 40 hectares, aims to lure retirees and those buying vacation homes.  The beach club is slated for completion on May 2008 while the country club is due to open on April 2009.

Aside from proceeds from the sale, Pico De Loro intends to fund the construction of the facilities through equity infusion from SMIC and major shareholders in Costa Del Hamilo, such as Manila Southcoast Development Corp. and Mountain Bliss Resort & Development Corp.