Tourism secretary Joseph Ace Durano expressed confidence that the Lucio Tan group is going to pursue the development of the 36-hectare property in Mactan Island, formerly the location of the defunct Coral Reef Resort.
Despite the ongoing legal battle against the Philippine National Bank (PNB), which foreclosed the property against the former owner Palm Tree Estate Inc., and Bell Air Golf and Country Club, Durano said Lucio Tan’s group will soon announce the start of the rehabilitation of the property.
Although, he said that he is not privy as to when the company will start the construction, only said the foreclosed properly will be developed by the Lucio Tan’s property arm, Eton Properties very soon.
Although the former owner of the property, Palm Tree Estate Inc., led by Japanese investor Kenichi Akimoto is currently fighting to get back the property from PNB, Durano said “as far as the government is concerned, the issue is closed already.”
Coral Reef was foreclosed by the Lucio Tan led PNB in September of 2005.
Palm Tree Estate Inc. and Bell Air Golf and Country Club was able to secure a loan from PNB in 1997 of P340 million, and second loan of P80 million, for the development of the resort’s expansion to build condominiums and exclusive golf club.
The construction of the expansion project started in 1994. The company was granted the loan three years later while the economic crisis hit the Asian region, affecting badly the Philippine economy.
PNB reportedly released the loans in tranches which crippled the company’s ongoing project that time.
Akimoto, through his counsel Romulo Senining earlier said a civil case for “illegal mortgage and foreclosure” against the bank is now pending in the court.
In a separate interview earlier with Akimoto he said that the company will not surrender the resort to PNB. Palm Tree plans to resume operations of the resort, as soon as the legal issues are solved.
But, Durano reiterated PNB has now the right the re-develop the huge property, after the SC released its decision.
Cebu, which is deemed as the tourism center of the Philippines, should provide at least 60,000 room accommodations, especially high-end resort facilities in the next 15 years to realize the 3.5 million tourism arrival target for Cebu.
Durano said he is sure that the interest of the Lucio Tan Group to develop the 36 hectare property is bullish, while other investors are constantly looking at properties in the province to develop more tourism related facilities. – Ehda M. Dagooc