AbaCore leases Montemaria site with option to purchase

LISTED holdings firm AbaCore Capital Holdings, Inc. (ABA) has entered a lease-with-option-to-buy deal for its 100-hectare Montemaria tourism project in Batangas City, aiming to accelerate the development of the estate.

In a statement on Tuesday, ABA subsidiary Philippine Regional Investment Development Corp. (PRIDE) said it signed a memorandum of agreement (MoA) with Montemaria Resort OPC (MMR) and Highsource Prime Building, Inc. (Highsource) for the Montemaria Shrine development in Pagkilatan, Batangas City.

The agreement replaces the previous joint venture to develop the project, the company said.

The lease covers phase one of the 100-hectare Montemaria Shrine project, which includes the Mother of All Asia Monument.

“By transitioning from a joint venture to a lease with option to buy, this streamlines project operations and speeds up development of our Montemaria tourism estate,” ABA Chairman and President Antonio Victoriano F. Gregorio III said.

The deal is expected to provide steady revenue and increased property value for ABA while supporting the long-term growth potential of the area through MMR and Highsource’s development of the Montemaria estate.

Under the MoA, MMR and Highsource will lease the first 20 hectares at P540 per square meter per year, equivalent to 6% of P9,000 per square meter for the first five years. After five years, the lease rate will be adjusted based on market value. The 25-year lease can be renewed twice for an additional 25 years.

MMR and Highsource may purchase the leased land at P9,000 per square meter within the first five years. Upon completion of at least half of phase one, the partners can expand the property by 40 hectares as part of phase two.

The parties also finalized implementing agreements, including MMR and Highsource’s acquisition of the Cenacle Building land and improvements for P25.6 million, and the lease of Miracle Walk, parking spaces, and parts of the Montemaria monument.

“The signed agreements indicated the commencement of the project’s expanded development phase,” ABA said.

MMR and Highsource President Guoan Wu said the deal aligns with the company’s vision to create a world-class tourism destination in Batangas.

At the local bourse on Tuesday, ABA shares rose 1.33% or 0.5 centavo to close at 38 centavos apiece. — Beatriz Marie D. Cruz