MANILA, JUNE 7, 2007
(STAR) By Zinnia B. Dela Peña - Two of the major players in the country’s real estate industry – Fil-Estate Land Inc. and Megaworld Corp. – are teaming up to develop a leisure and tourism estate in a 731-hectare property located at the Taal Ridge in Laurel, Batangas.

In separate disclosures to the Philippine Stock Exchange, FELI and Megaworld said they have agreed in principle to form a special purpose entity to pursue the development of Twin Lakes, a residential resort community.

Both companies will infuse an initial capital base of P2 billion into the project. In addition, about P3 billion worth of preferred shares in the project vehicle will be issued to help finance the project.

Moreover, FELI said it agreed to issue stock warrants entitling Megaworld to subscribe up to one billion shares in FELI, at a price of P1.25 each share within five years from issue date.

The partnership is envisioned to complete the Twin Lakes project capitalizing on the complementary strengths of both organizations, FELI said.

“We are very confident that Megaworld and Fil-Estate can collaborate closely to forge a successful partnership starting with the Twin Lakes Project. We believe Fil-Estate’s strengths in the area of land banking, tourism/leisure development and marketing will complement Megaworld’s liquidity, its urban development capability, strong products and capital markets performance,” said FELI chairman Robert John Sobrepeña.

FELI has long been on the lookout for partnerships with other entities to develop its large-scale projects.

Megaworld earlier said it was considering venturing into leisure development to further boost its revenues.

FELI has earmarked P2.5 billion for its capital expenditures this year. It has lined up six to seven projects this year which include the development of Manila Southwoods’ Phase 5, the Nasugbu Harbor Town in Batangas, Boracay villas, Camp John Hay cabins, and the Sta. Barbara Residential and Golf Estates.

Most of these projects are in various stages of development while the others have yet to start construction.

Other projects of the company include Cathedral Heights in Quezon City, Eight Sto. Domingo Place (a residential condominium building in Quezon City), Parco Bello (a residential development with golf course in Muntinlupa), Renaissance 5000 Center and New Port Hills.

FELI is expected to generate cash flow from these projects within the year or next.

FELI has a total landbank of 3,050 hectares, which is sufficient for future development for 10 years. This landbank is seen to generate P120 billion in revenues for the company over the next 10 years.

Its properties are scattered all throughout Metro Manila and the Calabarzon. Of the total landbank, 2,000 hectares are for joint venture developments and the balance of 1,050 hectares valued at P2.5 billion is solely owned by the company.

Chief News Editor: Sol Jose Vanzi

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