Department of Tourism (DOT) Secretary Joseph “Ace” Durano said the Lucio Tan Group is set to develop a mixed-use tourism establishment, including a 1,000-room five-star quality resort, that will have a golf course and a condominium hotel, among others.
While there was no timeline set, he expects the group to break the news soon.
“They will make a formal announcement within this year,” he told a press interview in the sidelines of the opening of Paseo Food and Entertainment Center in Mabolo, Cebu City.
Although Palm Tree Estate Inc. and Bel Air Golf Inc., Coral Reef’s former owners, filed a civil case for illegal mortgage and foreclosure against PNB, Durano said “as far as government is concerned,” Coral Reef is already a PNB property.
“The SC has already decided on the case. And its decision, which is in favor of the PNB, is final,” he said.
Operate
Palm Tree used to operate Coral Reef Resort while Bel Air ran the golf club.
The resort, which started operations in 1989, has been foreclosed by PNB in September 2005 after Palm Tree and Bel Air failed to pay their $420-million loan incurred in 1997 for the purpose of expansion.
Kenichi Akimoto, president and chairman of both Palm Tree and Bel Air, earlier said they are not surrendering Coral Reef to PNB, saying the companies have already invested about $30 million to $40 million funds on the 50-room resort.
He said the companies are planning to resume the operations of the resort, as soon as the case is resolved, foreseeing a boom in Cebu’s tourism industry.
Decision
But Durano said the DOT will only deal with PNB after the SC has released its decision.
He said PNB is already in serious negotiations with a foreign buyer.
Romulo Senining, legal counsel of Palm Tree and Bel Air, earlier said prospective buyers of Coral Reef will have to deal with his clients because of the pending case.
Senining said the main case, which was filed in 2001 yet, seeks to nullify the real estate mortgage to PNB on allegations of vague loan agreements.
“The terms and conditions of the loan agreements, such as that on the value of the peso to the dollar, were changed after the mortgage was constituted. There was also coercion, an imposition on the companies to accept unilaterally the interest pegged by PNB,” he alleged.
Palm Tree and Bel Air incurred the loan in 1997, when the value of the peso to the dollar was still around P24, he said.
A Korean-based investor group called Sea Born and Fil Kotchi consortium, represented by Chang Nam Moon, expressed interest to buy the entire property in November last year. (MMM)
