Korean investor eyeing Coral Reef Resort lot Regina Aguilar Cebu Daily News
November 14, 2006
A Korean investor is planning to develop a multi-million-peso retirement village in the foreclosed Coral Reef Resort property in Mactan Island.
Chang Nam Moon, who is an investor in a Korean consortium, said that the property, once re-developed, is an ideal destination for Asian retirees.
“Cebu is the ideal destination for the growing number of retirees in Asia with its very good weather and beaches,” he said in a recent press conference.
Japan alone will have seven million retirees next year, Moon said.
“We're looking at attracting retirees from Korea, Japan, and China,” he told local reporters.
Chang is hoping to start the project as early as possible so that Cebu could benefit from the billion-dollar retirement service industry.
Sea Born and Fil Kotchi consortium, he added, has put up US$100 million to US$200 million capitalization fund to start drawing an investment plan for the idle Coral Reef Resort.
The resort stopped operation in 2001 due to the lack of funds.
During the press conference, Chang urged the Philippine National Bank (PNB) to open a compromise deal and end the legal battle against Japanese national Kenichi Akimoto, the former lead owner of the 36-hectare resort and golf club.
PNB has an ongoing court battle with Akimoto, who accused the bank of illegal foreclosure.
While there is an ongoing court case, any interested buyer cannot negotiate either with the PNB or the former owners led by Akimoto.
In 2004, however, the Korean consortium sent PNB a letter of intent to acquire the property but received no reply, Chang said.
Akimoto, on the other hand, is willing to close a deal with the Korean consortium.
The PNB took over the ownership of Coral Reef in 2001 after Akimoto, chairman of the board of Palm Tree Estate Inc. and Bel-Air Golf Inc., failed to pay a $420-million loan incurred by his two companies in 1997. Palm Tree Estate was the operator of the Coral Reef Resort, while Bel-Air managed the golf club.
Romulo Senining, legal counsel of the two companies, said his clients are open for a compromise deal with PNB.
His clients want PNB to allow them to re-open and operate the resort after partial payment of its debts. They want the resort to earn so that the rest of the loan will be paid on installment basis.
Akimoto, on the other hand, said that many would benefit if the resort resumes operation.
“Unpaid former employees will be paid and can have their jobs back. The host community will also stand to gain (through) the resort’s community outreach programs,” he said.
Since Coral Reef Resort started operation in 1989, Akimoto said the company had invested about US$20 million to US$30 million for the entire development of the 50-room high-end resort.
