GSIS to transform Puerto Azul property into condotel


Posted at Feb 17 2009 02:09 AM | Updated as of Feb 17 2009 10:10 AM

State-owned pension fund manager Government Service Insurance System is going into a new property venture by transforming the repossessed Puerto Azul beach property in Ternate, Cavite into a condominium hotel.

GSIS president and general manager Winston Garcia said in a statement that they will transform the 340-room Puerto Azul Beach Hotel, closed down in 1995, to maximize the return of GSIS' assets.

"We envision it to be a condotel and we are going to set up a condominium corporation to unitize the property. The units will be tied with golf shares at the Puerto Azul Country Club, which means that if you buy a unit, you also acquire shares at the golf club," said Garcia.

The 26-hectare Puerto Azul Beach Hotel is inside the 3,300-hectare leisure complex known as the Puerto Azul Beach and Country Club owned and developed by the Ternate Development Corp. of the Panlilio family in the late 1970s that features various sports and recreational facilities including an18-hole golf course.

Garcia pointed out that the agency has entered into a memorandum of agreement with Ternate Development Corp. director Jose Marcel Panlilio last February 11 paving way for the development of a condotel project in Puerto Azul.

Under the agreement, he explained that GSIS would have a perpetual right of way at the Puerto Azul Beach and Country Club minus community dues.

The pension fund manager, according to Garcia, took over the hotel in 2007 after Ternate Development Corp. failed to settle its P92 million loan that was used to finance the construction of the 17-building hotel.

The property is a covered by a 25-year, lease-purchase agreement with the GSIS.

This is the second foray of GSIS into property. It previously entered into a 50-50 equity and income venture with San Miguel Properties to build a P1.7 billion luxury service apartment hotel in Legaspi Village in Makati City.

The pension fund manager would provide the 1,766-square meter property while the property arm of food and beverage giant San Miguel Corp. would provide the initial funding for the construction and development of the hotel.

Commercial operations for that venture is slated to start in January 2011.