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Trump
eyes tourism investment in Subic - 3rd November
2008
(Credit:
eTM)
A
group that includes American real estate mogul
Donald Trump is investing as much as $1 billion
to develop a high-end leisure facility in Subic,
Olongapo City.
The
consortium, made up of the Trump Organization,
American Westgate Resorts Asia Ltd. and Korean
Heung-A Property Group, is spending a fourth of
the investment in the first quarter of next year,
it said in a statement yesterday.
The
group is eyeing a 457-hectare beachfront property
in the village of Cawag, where it plans to build
hotels, residential villas, retail shops, casinos,
educational and medical facilities and a convention
center over 10 years.
The
Manhattan-based Trump Organization is the main
company of Donald Trump, a prominent American
real estate developer.
The
company oversees nearly all of the business development
interests of Mr. Trump, such as real estate, hotels
and golf clubs.
The
Subic investment is part of a deal signed by the
three companies to form a venture that will identify
potential investments and development opportunities,
including communities, resorts and other real
estate projects in Asia.
The
first phase of the Philippine project will be
led by Heung-A’s wholly owned subsidiary,
Subic Neocove Corp., and involves the development
of the basic infrastructure and a 54-hole golf
course worth $250 million. It is expected to be
finished by 2011.
Subic
Neocove Chairman Seung Guk Yang told a briefing
the project would be different from other leisure
projects in the area since it would be targeting
long-staying tenants instead of vacationers.
"We
are putting [up] medical and wellness facilities
and international schools so [clients] can treat
this as their second home, which is why we are
not calling it a resort but a master plan community,"
he said through an interpreter.
Robert
N. Aventajado, Neo-cove’s Philippine representative,
said the company would co-own the property with
local firm Neocove Philippines, instead of leasing
it.
Mr.
Seung said the firm is aiming for the high-end
market from Asia, Europe and the US, which has
not been affected too much by the US-led global
economic slow-down. He added that once finished,
Neocove would be the largest high-end master-planned
community in Asia.
A
master-planned community is generally distinguished
by the number of amenities it offers, and the
big land area the community encompasses. Master-planned
communities incorporate recreational amenities
such as lakes, golf courses and parks with bike
paths and jogging trails.
"Our
initial foray into the Subic Bay Freeport Zone
signals the extreme confidence of various highly
funded multinationals with respect to both the
near- and long-term economic and investment prospects
in the Philippines," Mr. Seung said in a
statement.
Heung-A
Director Mitchell Park said the Subic investment
would be the first large-scale property project
of the company, whose main business is shipbuilding.
He
said they had partnered with the Trump Organization
and Westgate so it would be easier to tap international
capital markets amidst a financial crisis in the
US and Europe.
He
said the project would be financed by borrowings
and equity, but declined to say how much each
firm would be contributing.
He
said the Trump Organization would serve as the
lead developer, with Westgate as co-developer.
Westgate,
owned by property developer David A. Siegel, is
the largest privately owned time share company
in the world and operates 28 resorts in 11 US
states.
Greg
Tingle comment...
Donald
Trump is a genius. He's spreading the risk with
the other investors, and investing in a number
of enterprises - not just casinos. At the same
time he's targeted the Philippines, an unsaturated
market, so he's moving his casino type interests
away from Las Vegas which has fallen out of a
favor somewhat (with punters and banks). A wellness
centre and international schools next door to
the leisure facilities, which just happen to include
at least one casino. Now that's what I call the
perfect mousetrap. Victor Gruen would be proud.
For me its hard not to admire the Trump consortium's
holistic approach... a one stop shop - magic.
This may even top the City Of Dreams. Now we need
Richard Branson's Virgin to fly the punters and
high fliers in and out of what appears to be the
worlds next red hot casino tourism mecca. Trump
has outdid himself this time, but you can bet
that James Packer has a few aces up his sleeve.
Mr Packer and Mr Branson, your throw of the dice.
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