MANILA, Philippines - Boulevard Holdings Inc. (BHI) of the Panlilio family has delayed anew the completion of its partnership with property giant Ayala Land Inc. (ALI).
In a regulatory filing, BHI said taxation concerns arose from last month’s meeting between the tax experts and lawyers of both property firms.
“The result of the meeting was a remote chance that 21 years from now, the Bureau of Internal Revenue (BIR) would get back and rule that the transaction was an unincorporated joint venture, and we both would be subject to higher taxes and penalties, though remote,†BHI said.
“One party did not want to take such risk, and both agreed that the new BIR has no record of granting tax rulings of late. So, the deal had to be reworked,†it added.
The parties earlier expected to sign a memorandum of agreement for the partnership in a Cavite resort development in December or January. In April, ALI agreed to acquire certain landholding assets of BHI, which owns a vast landbank in Ternate, Cavite that includes the 3,000-hectare Puerto Azul complex.
“The reworked deal still gives BHI growth and long term stability,†BHI said, adding that its board of directors will meet to re-approve the deal late this month.
BHI earlier tapped international planning and design service firm AECOM to formulate a masterplan for the resort development. AECOM is the designer of 2012 London Olympics legacy masterplan, Abu Dhabi’s Saadiyat Island masterplan, Universal Studios Island of Adventure Theme Park in Florida, Disney’s California Adventure Park and Universal Studios in Singapore.
The Panlilio family is keen on reviving Puerto Azul, which was once dubbed as “Asia’s Paradise Resort†and the “World’s Golfing Capital.â€
Under its previous plan, BHI intends to build 11,563 residential units over a period of 20 to 25 years starting with 350 units of apartment residences. The resort component also involves the development of hotels, golf courses, country club, marina, theme park, sports and recreation facilities.