SM Investments Corp., the holding company of the SM Group, yesterday said it is spending P5 billion to P6 billion over the next five years for the development of the first phase of Pico de Loro, a residential/commercial project in its Hamilo Coast eco-tourism development project of SMIC in Nasugbu, Batangas.

In his speech at yesterday’s launch, SMIC vice chairman Henry Sy Jr. said the development of the 37-hectare Pico de Loro Cove would jumpstart that of the 5,700-hectare Hamilo Coast, SMIC’s first venture in eco-tourism.

"With amenities and facilities to enhance modern living, Pico de Loro Cove is geared towards the Filipino family’s lifestyle," Sy said.

Jose T. Sio, SMIC executive vice president and chief financial officer, said SMIC would form separate subsidiaries for the 13 coves of Hamilo Coast to oversee the development of each. But there are no details for the development of the 12 others, adding that the firm would make sure each cove development is adequately funded progressively.

Sio added that this year alone, SMIC would be spending P2 billion for Pico de Loro.

Josefino C. Lucas, executive vice president of SMIC, said the first phase of Pico de Loro development would take five years. This would contain the 11 mid-sized, 6 to 7-storey residential buildings, the beach and country club, the boardwalk, which is the retail/commercial component and townhouses.

Prices have yet to be revealed. Besides the residential condominiums, Pico de Loro will have a beach and country club, an entertainment area, facilities for snorkeling, swimming and other water sports as well as hiking, biking and adventure trails.

"This is our first time in tourism and we have exciting land assets near Metro Manila which is an interesting tourist destination. Tourism real estate is a good market but is largely untapped," Lucas said.

Lucas said preliminary site development started two months ago.

For the first phase, Lucas said, SMIC is initially eyeing two residential buildings comprising of 227 units. On a limited offering, these units would be targeted for those living in Metro Manila who want a second home, expatriates and those looking for places to retire.

All told the condominiums and townhouses would have 1,500 units.

"This is our first time in tourism. We have exciting land assets near Metro Manila which is an interesting tourist destination. There is opportunity there. Tourism real estate is a good market but is largely untapped," Lucas said.

Lucas said SMIC would invest in the ferry terminal, and if necessary, in boat facilities that would bring the tourists/residents to the cove from SM BayCity. Once operational, the ferry service would shorten travel time to just an hour and a half compared to land travel of two and a half hours.

Sy said SMIC can provide a big can provide a big boost to the country\s tourism industry.

SM has been known for property development and management along with its flagship retail operations.

"For the last several years, the SM Group has been a firm supporter of Philippine tourism through our tourism-oriented developments; Taal Vista Hotel, Tagaytay Highlands and the SM Supermalls," Sy said.