Mangal Estates

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Mangal Estates PROJECT SUMMARY Project Name/Title Mangal Estate Project Proponent Mangal Estate Inc. Sector/Industry Tourism Sector/Eco-Tourism Development Classification of Project (leasehold or long-term lease of prime beachfront lots for resort locators) Location Mangal Estate, Barangay Don Pedro, Mansalay, Oriental Mindoro The Island of Mindoro, which is a beautiful island in its own right, is flanked by Boracay and Palawan, two of the best islands in the world, according to Travel + Leisure. Total Land Area 155 hectares master-planned by Palafox Associates Title Type Transfer Certificate of Title or TCT in the name of Mangal Estate Inc. Special Classification Tourism Zone under the Master Tourism Plan of the Local Government of Mansalay; approved by the Sangguniang Bayan (Municipal Legislative Council) of Mansalay and the Sangguniang Panlalawigan (Provincial Legislative Council) of Oriental Mindoro Quality Classification Mangal Estate is committed to global best practices in the tourism industry, including (a) initiating and supporting the establishment, management and enforcement of an adjacent 200-hectare marine protected area and (b) requiring each resort locator to adopt “zero waste” practices, install its own wastewater treatment system and maximize solar energy use. Project Cost (of Resort Depends on the magnitude of the resort built on leased premises. For Locator) example, La Sersita Resort (the first locator leasing a beachfront parcel of 2 hectares) has an estimated project cost of ₱200 million (US$4 million) when fully built. An international-class resort locator can expect a project investment of US$2 to 3 million per hectare of leased premises. Project ROI (of Resort Depends on the business model of the resort locator. Locator) Project Description A resort locator selects any one (or any number) of the nine (9) beachfront lots (ranging from 2 to 4 hectares and each having 50 meters of beachfront) in Phase 1 of the Estate, enters a 20-year lease agreement on its selected lot(s), then constructs and operates its resort on the same. For additional information, please click on the following links: Mangal Estate Brochure, Mangal Estate Phase 1. If a resort locator elects to lease at least 5 hectares, then it can qualify as a Tourism Enterprise Zone or TEZ under the purview of the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) and avail of attractive fiscal and non-fiscal incentives granted by the national government. Proposed Local Partner * The 20-year lease arrangement on beachfront lots is specifically intended to address current foreign restrictions on land ownership in the Philippines. FFICE PHILIPPINE TRADE AND INVESTMENT CENTER – GUANGZHOU Rm. 713, Main Tower, Guangdong International Bldg. +86.20.83312431 +86.20.83312391 339 Huanshi Donglu Guangzhou 510098, PROC www.dti.gov.ph [email protected] DEMOGRAPHIC PROFILE OF PROVINCE Province Oriental Mindoro Total Area 4,238.38 km2 Total Population 844,059 (2015 census) Population Density 200/km2 Labor Force (skilled & 70% of the population is engaged in agriculture and fishing, and only 30% unskilled) living in urban centers; there is generally no shortage of skilled and unskilled labor in Oriental Mindoro No. of College graduate Higher Education Enrollment by Discipline Group: AY 2018-19—note: (with breakdown on enrolment, not graduates specialization) “Half of those who enter college or university were able to reach the fourth year of studies. Moreover, the average graduation rate is only 61%, which means that only 3 in every 5 students in the fourth year of study actually graduate within the fourth year. The overall completion rate for the higher education system, therefore, is about 30%.” PASCN Discussion Paper No. 2001-12, Allan B. Bernardo These figures are for the entire Philippines. Municipalities 14 Districts (Barangays) 426 Income Classification ANNUAL INCOME & BUDGET PER CITY/ MUNICIPALITY City/Municipality Income in ₱ Budget in ₱ Baco 107,525,778.94 109,084,877.30 Bansud 124,093,020.31 125,493,022.75 Bongabong 190,599,645.49 211,549,561.86 Bulalacao 114,943,195.68 119,060,422.60 Calapan City 630,029,044.72 637,935,286.67 Gloria 119,477,818.57 125,422,960.81 Mansalay 155,150,062.72 156,638,918.59 Naujan 234,282,200.85 248,048,596.51 Pinamalayan 213,203,491.58 216,307,192.00 Pola 92,684,238.45 92,906,094.36 Puerto Galera 150,022,205.42 149,104,623.00 Roxas 126,157,525.56 127,305,789.56 San Teodoro 93,980,451.81 96,990,183.23 Socorro 125,132,610.74 218,807,013.20 Victoria 129,538,794.33 147,265,879.48 Total 2,506,820,085.17 2,781,920,421.92 Sources: Provincial Offices of Treasury and Budget, 2016 Oriental Mindoro Facts and Figures 2016 Airport/s Nearby / 1. Regular flights from Manila and Clark to San Jose Airport, Occidental Accessibility to Airport/s Mindoro (1.5 hour scenic drive to Mansalay) 2. Wasig Airfield (Mansalay) to be upgraded to a regional airport like San Jose Airport and Caticlan Airport in Boracay 3. Mangal Estate itself is constructing a 575 meter airstrip for ultralight, light sport and STOL (Short Take-Off and Landing) recreational aircrafts and will serve as the base of a residential airpark—where aircraft owners can hangar their planes next to their homes. Seaport/s / Accessibility to 1. Masalay Port, which has been used to offload cement and other Seaport/s construction materials in bulk for road and school projects in the region. In addition, 100 hectares of Mansalay Bay is currently being developed into a world-class marina to bridge the recreational sailing/yachting clusters of Luzon and Palawan, and serve as the nucleus of the burgeoning “Philippine Riviera.” 2. Roxas Port, 30 minute drive north of Mansalay, which is a Roll-On/Roll- Off (RORO) capable port and the gateway to Boracay (“the best island in the world” in 2012, Travel + Leisure). 3. Bulalacao Port, 30 minute drive south of Mansalay, which is also a Roll- On/Roll-Off (RORO) capable port and the gateway to both Boracay and Coron (Palawan, “the best island in the world” in 2020, Travel + Leisure). FFIC DEMOGRAPHIC PROFILE OF PROVINCE Tourism Arrivals TOURIST arrivals in the Mimaropa (Occidental Mindoro, Oriental Mindoro, Marinduque, Romblon and Palawan) or Region 4B, was projected to hit some 2.81 million in 2019. Target Tourism Market High-value eco-adventure tourism segment of the following countries: SEA North Asia North America N. Europe Australasia Philippines Taiwan1 USA UK Australia Indonesia S. Korea Canada Ireland New Zealand Singapore Japan Norway Guam Malaysia Hong Kong W. Europe Sweden Thailand China Germany2 Denmark Middle East Vietnam France Saudi Arabia Netherlands S. Europe Israel South Asia Switzerland Spain India Austria Italy E. Europe Belgium Russia 1 La Sersita Resort, first resort locator, opening after the pandemic 2 second resort locator, under negotiations Resort activities at the Estate would include scuba diving (locally, including Apo Reef in Occidental Mindoro), kayaking in Bongabong River, kite- boarding in Bulalacao, paragliding at the Panaytayan Mangyan Village, rock-climbing at the Pocanil cliffs, sailing, deep-sea fishing and just meandering around the Estate on an ultralight. Arable Land Area Total Rice Area: 107,732 hectares Total Coconut Area: 50,354 hectares High Value Crops Area: 35,630 hectares Major Crop/Livestock Major Crops: Rice, Corn, Coconut, Banana, Mango, Calamansi, Rambutan, Lanzones, Durian, Coffee Livestock: Carabao, Cattle, Goat, Hog, Chicken, Duck Export Market Negligible or Nil GENERAL COST OF DOING BUSINESS IN THE PROVICE Labor Rates The Philippines has daily minimum wage rates that vary from region to region, ranging from P290 (US$5.70) to P537 (US$10.61) a day. Labor rates in Oriental Mindoro would be in the lower end of this range. Land Lease Rates For the first three (3) resort locators that execute a 20-year lease agreement, Mangal Estate is offering to CIFIT participants an “early bird” land lease rate of ₱100,000 (US$2,000) per hectare per month, which is a 50% discount to the post-pandemic land lease rate of ₱200,000 (US$4,000) per hectare per month—subject to a nominal annual escalation. Utility Rates (water, power, ₱11.2366/kwh or US$0.25/kwh (Nov 2014) (electricity). By investing in etc.) rooftop solar panels systems, resort locators can lower their cost of electricity. ₱30/m3 or US$0.60/ m3 (water) Logistics / Freight cost (if In spite of Mindoro being an island apart from the main island of Luzon, the applicable) nautical highway infrastructure, including the regular schedule of Roll- On/Roll-Off (RORO) vessels between Batangas (Luzon) and Calapan (Mindoro) ensures competitive access to construction materials, among other goods required, for the construction and operations of resorts. In addition, Oriental Mindoro has many capable local contractors with experience in building substantial infrastructure projects like roads and schools, which resort locators can hire to build their resorts. FFIC TIMELINES Expected Start Date After executing a 20-year lease agreement, a resort locator can reasonably expect to start construction of its resort within a period of six (6) months or after securing the necessary government permits. Expected Completion Date Depends on the construction schedule of the resort locator. In the case of La Sersita Resort (the first locator), the construction period (in spite of the global pandemic) is approximately 18 months. *In case the need arises as prescribed in the Foreign Investment Act. Enclosures: Location Map and Project Proposal with financial projections FFIC .
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