Koreit Asset Management Co., a unit of Korea Real Estate Investment & Trust Co., will team up with Dawon Co., South Korea’s leading landscaping firm, to develop a premium 27-hole golf course and residential complex near New Clark City in the Philippines, in one of the largest overseas leisure developments led by a Korean asset manager.
The project, located about 100 kilometers north of Manila in the province of Tarlac, covers roughly 150 hectares of land formerly part of a US Air Force base now managed by the Bases Conversion and Development Authority (BCDA).
Koreit secured a 44-year lease on the site through 2068 after signing a deed of assignment with BCDA in September, following the agency’s board approval, according to people with knowledge of the matter on Wednesday.
The deal makes Koreit the only developer recognized by t that secures both land lease and development rights for the property from the Philippine government.
Koreit began legal, tax and market due diligence in late 2023 and signed a sale and purchase agreement earlier this year.
The project will be financed through two private real estate funds each with a maturity of five years — Koreit Momentum General Private Real Estate Investment No. 1 and No. 2 — with combined commitments of about 610 billion won ($430 million).
The first fund will invest 55 billion won to build the golf course and clubhouse, targeting an internal rate of return of roughly 15% annually over five years.
Eighteen holes are scheduled to open in January next year, with the remaining nine expected within three years.
The second fund will deploy 6 billion won ($4 million) to develop a high-end villa complex on a 21-hectare portion of the site.
Dawon will also participate in the project as a strategic investor.
The company established a local subsidiary in the Philippines in 2018, while working on Posco E&C Co.’s apartment landscaping project in the country. It has since completed numerous public and private projects for the Clark Development Corp.
Koreit handles financing and licensing, while Dawon is leading design, construction, and operations.
Of the total land, 21 hectares will be dedicated to a residential villa complex, which Koreit plans to launch for sale in the first quarter of 2027.
The Korean company is in talks with a global hotel brand to co-manage the property and plans to include an artificial lagoon developed by Crystal Lagoons, a world-renowned water amenity company.
“By combining golf, lodging, leisure and tourism, the complex will attract a steady flow of visitors and deliver stable returns,” said a Koreit Asset Management official.
The Clark region is known for its clusters of golf resorts and reasonably priced green fees, emerging as a favorite destination among Korean tourists.
By Gyeong-Jin Min
min@hankyung.com
Yeonhee Kim edited this article.
