SM group eyes P1.6-B sales from Pico de Loro country club

Costa del Hamilo, Inc., the project developer of leisure development Hamilo Coast, will raise P1.6 billion from the sales of 4,00 common shares representing proprietary club membership in Pico de Loro Beach and Country Club, Inc. The beach club has filed with the Securities and Exchange Commission to register 4,000 common shares consisting of 3,200 class A common shares and 800 class B common shares at P400,000 each. The offer price, which has been determined based on the estimated cost of developing the club facilities, is subject to adjustment according to prevailing market conditions. Development cost is worth P768.58 million while estimated land cost is P24.95 million. "The provision of beach and country club facilities seek to enhance the existing natural beauty of Pico de Loro Cove not only to those who have residential units in the area but also to those who wish to enjoy Pico de Loro on a more transient basis," document from the SEC read. Only members, dependents and their guests wil have the right to use the facilities of the beach club. "The developer’s marketing strategy essentially rests on giving a prospective buyer value for his/her money while cognizant of market prices of similar membership clubs within and outside Nasugbu, Batangas," it said Costa del Hamilo will use a portion of the proceeds to recover the development cost of the project as well as cost of the land. Any excess amount will represent profits. The beach club and the developer intend to partly fund the construction of the facilities through equity infusion from Sy-led holding company SM Investments Corp. through the two majore shareholders of Costa del Hamilo — Manila Southcoast Development Corp. and Mountain Bliss Resort and Development Corp. Up to 60% of the funding requirements, however, will come from bank borrowings. The beach and country club is constructed within the first phase site of the Hamilo Coast development project. Located on the northwest end of the Hamilo-Cutad access road, it is already in the implmententation stage. - Ruby Anne M. Rubio/BusinessWorld