Abacore locks Montemaria sale, lease income

Listed holdings firm Abacore Capital Holdings, Inc. will generate immediate cash and recurring income after restructuring its Montemaria tourism project partnership into a lease-with-option-to-buy deal, including a P25.6 million property sale.

In a stock exchange disclosure on Monday, the company said its subsidiary, Philippine Regional Investment Development Corp. (PRIDE), signed a memorandum of agreement with Montemaria Resort OPC (MMR) and Highsource Prime Building Inc., replacing their joint venture with a lease arrangement covering part of the 100-hectare Mother of All Asia Monument project in Pagkilatan, Batangas City.

“MMR and Highsource purchased the land and improvements of the Cenacle building… for P25.6 million pesos,” Abacore said.

The partners also leased portions of the project, including the Miracle Walk, parking facilities, and sections of the Montemaria monument, marking the start of the agreement.

Under the deal, the group will lease an initial 20 hectares at 6 percent of P9,000 per square meter, or about P540 per square meter annually, for a 25-year term extendable twice for another 25 years each.

They also have the option to buy the land at P9,000 per square meter within the first five years and may expand to another 40 hectares once development milestones are met.

Abacore said the agreement strengthens the project’s outlook, noting that “MMR and Highsource represent anchor tenants or developers,” and that PRIDE “shall have regular recurring cashflows and income from the effectivity of the MOA.”

The company added the development is expected to increase the value of its remaining Montemaria properties.