SBF locator to return idle properties to SBMA

The Philippine Guarantee Corporation (PhilGuarantee) is set to return to the Subic Bay Metropolitan Authority (SBMA) a total of 22.6 hectares of idle properties as part of a settlement agreement between both parties.

SBMA Chairman and Administrator Jonathan D. Tan and PhilGuarantee President and CEO Albert Pascual signed a memorandum of agreement (MOA) and Deed of Dacion en pago at the SBMA boardroom on Thursday.

According to the Chairman, PhilGuarantee is set to turn over the leasehold rights of 14.6-hectare of the El Kabayo Stables, 2.4 hectares of the Times Square Complex, and 5.6 hectares of the Triboa Bay Lots, which amount to ₱2,777,650,836.01.  

Tan said that the agreement is in partial consideration or settlement of the company’s outstanding obligations as since October 27, 2020.

“I have been tasked by President Marcos to revive the Subic Bay Freeport Zone. There are so many facilities and land areas that have been left alone and are rotting away. I believe that the SBMA should get back these leased facilities and repurpose them for other companies to invest upon,” he cited.

The company came into possession of the aforementioned land properties from the Home Guaranty Corporation (HGC) after it merged with Philippine Export-Import Credit Agency (PhilEXIM), which was later renamed PhilGuarantee.

In 2004, through a foreclosure and subsequent Compromise Agreement, HGC acquired these land properties from the Financial Building Corporation (FBC). These properties were developed by the FBC through land leases with the SBMA in preparation for the Asia Pacific Economic Cooperation (APEC) Leader’s Summit held here in 1996.

HGC was able to dispose of all of the properties acquired from the FBC except for the properties being turned over. The company failed to dispose of the properties due to unpaid rental arrears of the said properties.

“From the period of 2007 to 2018, these three properties steadily deteriorated and rental arrears piled up, exceeding P3-billion,” Tan said.

On September 24, 2018, the SBMA issued a Notice of Default on PhilGuarantee for the pre-termination and repossession of the Subic properties should the company fail to settle its rental arrears. The company offered the assignment/ dacion to the SBMA of the three properties with a valuation of P3.291 billion.

“The SBMA counter-offered with a valuation of P2.263 billion, but both parties later settled for P2,777,650,836.01,” Tan said.

“Since the dacion is insufficient to settle all of PhilGuarantee’s obligations, the SBMA and the company have agreed to submit to arbitration the remaining arrears amounting to P375 million. And to help PhilGuarantee to cover its losses, the SBMA will give the company a share in the rental revenue generated by the agency when it is able to lease out the properties to third parties,” he added.

The company sought the help of the Office of the Government Corporate Counsel (OGCC) on the agreement, wherein the OGCC stated that PhilGuarantee needs the authorization of the Commission on Audit (COA) on the matter.

COA issued Decision No. 2022-489 dated December 5, 2022, which PhilGuarantee received only last April 26, 2023.

The COA ruling stated, “Wherefore, the request of the Subic Bay Metropolitan Authority and the Philippine Guarantee Corporation for this Commission’s authority to enter into a Memorandum of Agreement and Deed of Dacion en pago, is hereby GRANTED.” (MPD-SBMA)

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Taiwan firm unveils P2-B Subic seafront condo project

A Taiwanese construction company will be building a luxury beachfront condominium complex at Triboa Bay in this free port, eyeing the growing expatriate business community in the economic zones of Subic, Clark and Bataan as target market.

MSK Group Work Inc., which is into construction and subleasing of warehouses and factories, will construct the Triboa Majestic Bay Residences project near the APEC Villas, the site of the 1996 summit of the Asia-Pacific Economic Cooperation nations. The project is set for completion in two years.

MSK has initially taken over the former APEC Villas clubhouse and used it as venue for the project launch last Saturday, October 14. The clubhouse will form an integral part of the beachfront condominium complex.

According to company spokesman Kelly Uy, the firm has committed an investment of P2 billion for the project and will be selling the property to the A and B-class market, specifically Asian expatriates and other foreign nationals.

The firm will be offering competitive prices for the 157 condominium units which will all be facing the Triboa Bay, Uy also said.

In the same occasion, Dr. Gary Song-Huann Lin, representative of the Taipei Economic and Cultural Office (TECO) in the Philippines, noted that the proposed Triboa Majestic Bay Residences has “good timing,” as it coincides with the New Southbound Policy of Taiwan, which calls for greater economic and cultural ties with Southeast Asian countries.

The Taiwanese official also pointed out that Taiwan was the first country to invest in the Subic Bay Freeport, with a total of 52 Taiwanese companies now operating in the Subic Bay area.

Meanwhile, Subic Bay Metropolitan Authority (SBMA) Director Stefani Saño , who also graced the project launch, congratulated the investors for their confidence in the Subic Bay Freeport and assured them of full support from the SBMA.

SBMA OIC-Deputy Administrator for Business Kenneth Rementilla also pointed out that the MSK project would likely succeed because Subic is now the biggest free port in the country and is home to more than 1,500 companies with total investments of $10 billion.

The Triboa Majestic Bay Residences project is the first foray of MSK Group Work into residential properties. Officials said the firm will build a “personalized palatial home by the sea,” some of which will feature in-suite sky garage, a first in the country.

Aside from condominium units, MSK will also build public facilities like a 5,000-squre meter atrium garden, basement parking spaces, outdoor swimming pools, business center, conference room, shops and restaurant, library, playroom, gym, yoga room, and multimedia room.

The MSK Group, which is headed by brothers Michael, Simon and Kevin Su, has earlier committed P350 million to expand its warehouse and factory subleasing operations in the Clark Freeport Zone. (HEE/MPD-SBMA)

PHOTO:

Michael Su of MSK Group Work Inc. (4th from right) and guests give the thumbs-up sign after viewing a scale model of the proposed Triboa Majestic Bay Residences project to be located in the Subic Bay Freeport. With him are former SBMA Chairman Roberto Garcia (5th from right), SBMA DA for Seaport Rani Cruz, SBMA Director Stefani Saño, and SBMA OIC-DA for Business Group Kenneth Rementilla. (AMD/MPD-SBMA)

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Multi-million dollar leisure project coming up in Subic Freeport

Former Taiwan Vice President Annette Lu visited last week the site of a $20-million leisure project in the Subic Bay Freeport that would include the redevelopment of the Triboa Clubhouse and the construction and management of condominium buildings and luxury villas in the Triboa Area here.

On hand to welcome Lu was Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Roberto Garcia.

“This project strongly underscores the positive business climate in the Freeport, as well as the fast-growing tourism industry here and in the rest of the country,” Garcia said, referring to the 21 per cent growth in the number of hotel rooms in the Freeport since June last year.

Upon completion, the investment project will feature three 10-storey buildings, consisting of a 40-room hotel, a 20-unit VIP condo with a car elevator, and a regular condo with 90 units. Also included in the project is the construction and development of five luxury seaside villas with a marina facility.

According to Garcia, the redevelopment of the Triboa Clubhouse, which was the site of the 1996 APEC summit, is expected to be completed within the year while the rest of the facilities would take two to three years to be fully developed.

“Aside from enhancing the tourism value of Subic, it will also generate an additional employment of 800 for our local communities,” he noted.

The project, which was approved by the SBMA board in November last year, would be undertaken by the MSK Group through its affiliate companies, Xantheng (Subic) international Corp., Weihsin Subic Bay Corp., and Zangyueh Development Corp. (AMF/CorComm-SBMA))

Photo:

Subic Bay Metropolitan Authority Chairman and Administrator Roberto Garcia (left) listens intently to former Taiwan Vice President Annette Lu during her visit to the site of a US$20-million leisure project in the Subic Bay Freeport. (AMF/MPD-SBMA)

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