A brewing legal battle is unfolding between Puerto Azul Golf and Country Club Inc. (PAGCCI) and Tranzen Group after PAGCCI terminated its memorandum of agreement and lease agreement with the company, demanding that it vacate the leased premises in Ternate, Cavite. PAGCCI has also called on Tranzen Group to immediately settle all outstanding financial obligations under the agreements.

The termination notice, signed by Jose Marcel Panlilio, was dated 22 January and was received by Tranzen Group on Tuesday, 28 January. This follows over six months of discussions between PAGCCI and Tranzen Group, represented by chairman and CEO Salvador “Buddy” Zamora II, regarding non-compliance with certain agreement provisions.

PAGCCI noted that Tranzen Group had admitted and promised to comply with its unfulfilled obligations, including settling outstanding real property tax arrears and undertaking renovations to uplift Puerto Azul into a world-class championship golf course compliant with European course standards.

As of 31 December 2024, Tranzen Group had outstanding arrears of P32,455,247.10 in real property taxes, expected to increase to P45,122,789.76 by 31 January 2025. PAGCCI also reported that Tranzen failed to complete renovations to make the golf course compliant with European standards. Additionally, Tranzen has outstanding water bill arrears amounting to P1,146,288.

PAGCCI acknowledged Tranzen’s explanation for the failure to pay real property taxes and the steps being taken to address the issue. However, PAGCCI noted that Tranzen had failed to pay property taxes on the clubhouse improvements since 2023 and remained in arrears for all properties covered by the lease agreement in 2024.

Given the serious financial and contractual disputes, experts suggest the possibility of a lengthy legal battle between PAGCCI and Tranzen Group. Such a protracted dispute could further complicate matters, including the future of the partnership between Zamora and the group led by Toti Carino, which gave rise to Caza del Mar, a residential development offering luxurious beachfront properties and scenic ocean views.

Tranzen Group could not be reached for comment.

In 2016, Boulevard Holdings Inc. (BHI), led by Panlilio, entered into an agreement with Zamora to revitalize Puerto Azul.

The agreement entailed Zamora leasing the 18-hole golf course for 23 years, during which he committee to renovate the course at an estimated cost of $18 million.

Plans also included the construction of a 300 to 400-room hotel with an investment of around $40 million.