BCDA land leases lower capital burden for leisure developers in Clark and Baguio

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BCDA land leases Clark & Baguio

Highlights

BCDA signed three lease agreements with private sector commitments totaling at least P85 million for leisure, tourism, and dining projects in Clark and Camp John Hay.
Lease structures allow developers like Grace Farm Nature Resort Corp. and Zoo and Theme Park Services, Inc. to allocate capital to projects instead of costly land purchases, a key advantage amid high borrowing costs.
Tourism-focused developments could support hotel occupancy, rental rates, and retail demand in Clark and Baguio, though broader commercial impact relies on sustained visitor growth.

Lease structure supports project spending

As reported by BusinessWorld Online, the Bases Conversion and Development Authority has signed three lease agreements covering leisure, tourism and dining projects in Clark and Camp John Hay, with private sector commitments of at least P85 million. The deals include a 15-year lease with Grace Farm Nature Resort Corp., which has committed at least P50 million for a leisure and recreational development in Clark.

In Camp John Hay, Zoo and Theme Park Services, Inc. has committed at least P20 million over 10 years for an educational family adventure park, while Anrey, Inc. has pledged at least P15 million for a 500-square-meter Sizzling Plate restaurant.

Savills Philippines Research Manager Jamie Dela Cruz said government-owned properties can give developers access to sizeable land areas without the substantial upfront investment required for outright purchases. She said the financial appeal of such arrangements still depends on factors including lease duration, rental rates, renewal provisions and government approval processes.

Cushman & Wakefield Philippines Director for Research, Consulting & Advisory Services Claro dG. Cordero, Jr. said long-term government leases allow developers to direct capital into the project itself rather than into land acquisition. He added that with borrowing costs still elevated, this capital efficiency is a decisive advantage over outright purchases in Northern Luzon, although developers must recover their investments and returns within the lease period.

Tourism gains depend on visitor demand

Property consultants said the planned projects could support tourism activity in Clark and Baguio, but any wider effect on nearby land values and commercial rents depends on whether the developments generate sustained visitor traffic. Cordero said projects of this scale are more likely to act as demand catalysts than immediate price drivers.

He said a P50-million nature resort and a 5.8-hectare adventure park could give visitors more reasons to stay longer, supporting hotel occupancy and weekend room rates before any clearer movement in land values emerges. Initial gains, he said, are likely to be felt first by food and beverage outlets and convenience retailers near the sites.

Dela Cruz said the projects could further strengthen Clark and Baguio as established tourism destinations. She added that rising visitor arrivals and spending could lift demand for commercial space and accommodation over time, potentially supporting rental rates and property values, while noting that the extent of these benefits still hinges on actual demand.

The consultants also pointed to broader opportunities for leisure developments outside Metro Manila, supported by domestic tourism. Dela Cruz said the local tourism market could encourage developers to pursue ecotourism and integrated leisure projects even as international visitor arrivals continue to trail some Southeast Asian peers.

Our earlier article on India’s alternative accommodation market highlighted how rising tourism demand is straining traditional hotel room supply, creating faster growth for homestays, villas, and holiday homes. It noted that online interest and digital listings for these stays are increasing, while traveler behavior is shifting toward shorter booking windows and more price-sensitive decisions. The piece also pointed out that expanding capacity and maintaining consistent service standards will be key as demand spreads beyond established destinations.

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