Eton Properties studying prospects on 'Coral Reef '

CEBU, Philippines - Lucio Tan group’s real estate arm, Eton Properties Philippines will start a feasibility study on the development of its 36-hectare beach property on Mactan Island, formerly known as Coral Reef Resort.

Eton Properties Sales Corporation vice president for sales Alejandro S. Mañalac said in an interview that the company recently hired a Business Development officer to focus on the feasibility study of the Mactan property, which will cover possible positioning and concept.

At present, Mañalac said it is still too early for the company to announce what it plans to do with the property until its done with the study.

If and when the company finally decides on a concept, which is more likely a tourism-related facility, it will be Eton Properties' initial venture into Cebu's real estate sector.

At present, Eton Properties is focusing on its projects in Manila. “We have 41 ongoing projects in Manila. Our sales force is focusing on these properties.” These projects are into residential subdivision, and condominium, commercial buildings (BPO).

The company has yet to build tourism-related project yet, Mañalac said. If the feasibility study on its Cebu property will dictate on building tourism facility such as a resort, this will be the first entry of Eton Properties to tourism development project.

Coral Reef was foreclosed by the Lucio Tan led Philippine National Bank 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 Resort’s expansion to build condominiums and exclusive golf club.

 Reportedly, PNB has pegged the property's price at P800 million. But, asking price may lower to P750 million, if the interested buyer or developer will have to settle the existing legal problems of the property.

 Prior to the announcement of Eton Properties to develop the property, there had been a lot of investors expressed their interest to buy or pursue a partnership with the Lucio Tan company.

Few years back, a Russian company called Philippine-Russia Inc. (PRI) announced its interest to build a US$800 million re-development project of the “Coral Reef”.

Initially, the company announced that it planned to build a 600-room resort, 300 department buildings, business centers, 20 small villas, and develop the Coral Reef coast line to maximize the potential of the idle property.

In 2006, a China-based group attempted to ink a deal with the PNB to buy the idle Coral Reef Resort property.

The Chinese group supposedly planned to build a medium rise hotel and resort development with convention center, and develop the 9-hole golf course of Coral Reef.

Initial plan of the interested Chinese buyers was to build 1,000 rooms, sensing the big shortage of room in Cebu, but because of the legal problems faced by PNB against the property's former owner, the deal was called off.

According to Mañalac, Eton Properties has no intent of selling the property, as the company is interested to build its own development project immediately after the feasibility study will be completed.— (FREEMAN)