As of July, 2024, the Reef Resort is not yet up and running, but the minimum cost to rent a room for a night will be between 2,500 PHP and 5,000PHP. Depending on the Occupancy Rates, we can assume a certain return based on the cost to build the Glamphouse. In the example calculations below, we are assuming the operational and maintenance costs will total 25% of incoming revenue, which is a generally accurate estimation. In addition to this cost, if a room is being rented out by Resort Management, an additional 8% fee will be incurred on profits only.

Construction Cost: ₱921,600

Daily Rental Rate: 

(100% Occupancy): 

₱2,500 x 365 = ₱912,500 Annual Revenue 

(50% Occupancy): 

₱2,500 x 182.5 = ₱456,250

100% Occupancy:
Annual Revenue: ₱912,500

Expenses (25%): ₱912,500 x 0.25 = ₱228,125

Net Revenue: ₱912,500– ₱228,125 = ₱684,375


Management Fee (8%): ₱684,375 x 0.08 = ₱54,750

Final Income: ₱684,375– ₱54,750 = ₱629, 625 Annual Percentage Yield (APY): (₱629,625 / ₱921,600) x 100% ≈ 68%

50% Occupancy:
Annual Revenue: ₱456,250

Expenses (25%): ₱456,250x 0.25 = ₱114,070

Net Revenue: ₱456,250– ₱114,070= ₱342,180

Management Fee (8%): ₱342,180x 0.08 = ₱27,374

Final Income: ₱342,180 – ₱27,374= ₱314,872 Annual Percentage Yield (APY): (₱314,812 / ₱921,600) x 100% ≈ 34%

When compared with traditional rental properties, which often see returns of 5% – 15% annually, Floating Real Estate has the potential for significantly improved returns.

This is not a monthly cost. The cost of ownership detailed on this page is for a single transaction, a one time only payment for permanent ownership of a single unit (called Glamphouses) in the resort. If you would like to make a larger transaction than what you are capable of right now, please contact us on Facebook and we can work out payment plans on an individual basis.

The Reef Resort combines a luxury floating resort with an aquaculture farm, offering a unique experience of living on water while enjoying high-end amenities. Guests can partake in activities like in-resort fishing, scuba diving, and snorkeling, boat rides, and more. We will have a better built-in aquarium than anywhere in the world, as you can watch our tens of thousands of fish swim in circle beneath your feet during feeding time, or enjoy the floating aquariums that will soon be under construction.

Reef Resort incorporates local culture through its design, culinary offerings, and partnerships with local artisans and businesses, as well as local fishermen. It will also be engaging with the local community by providing job opportunities and supporting local initiatives.

Construction is slated to begin before the end of August, 2024. Our Construction timeline will take less than 6 months, and with good weather and no delays on behalf of our logistics partners, we may be able to open up the Reef Resort before Christmas, 2024. Otherwise, our worst case scenario would be opening before the end of Q1, 2025.

Unit Owners, besides being entitled to 92% of the profits of their unit, are also entitled to have a voice in the operations of the Resort itself. This includes how much money is spent on Marketing, Cleaning, Maintenance, and other operating expenses. As far as it pertains to your individual room, these operating expenses are deducted from the revenue your room will generate, before the remaining profits are given to you.

Reef Resort is built with robust materials and engineered to withstand extreme weather conditions. The region in which the Resort will be constructed, near Samal Island, is free of most extreme weather events like Typhoons. Typhoons in the Philippines generally tend to only form north of the island of Mindanao, the southern end of which is where Samal is located. In addition to being insulated from Typhoons, Earthquakes cannot effect structures floating on water, making this location much safer than a normal city in the event of an Earthquake. In addition to that, Tsunamis, while extremely rare, are large waves that build over long distances and only ‘break’ when they near land, affecting coastal real estate. Floating structures sufficiently far out at sea harmlessly roll over tsunamis, again meaning that it is coastal real estate which is primarily in danger.

In the event of extreme weather however, even if not posing an immediate threat, the Resort will be pre-emptively evacuated.

The resort will attract guests through its unique amenities, prime location, and exposure to the natural marine ecosystem that cannot be replicated by any other resort. We have an internal team that will develop marketing strategies and run continuous marketing campaigns all year long, so as to maximize occupancy and the value of the rooms that we offer.

The ownership options that are available are the following:

Full ownership

50% Ownership (in which the other half of the unit is owned by a different owner)

25% Ownership (in which at least 4 people own a unit together)

12.5% Ownership

6% Ownership

3% Ownership

1.5% Ownership

0.75% Ownership

Any of the above options can be mixed and matched until 100% ownership is reached. If the numbers do not match to reach exactly 100% ownership, the remaining amount of ownership will go to the resort management, which will cover the remainder of the cost for construction

When building Floating Infrastructure, electricity must be generated in-house, this usually implies a generator, solar panels, or wind turbines as part of the structure. Small generators are rarely cost effective to provide the bulk of power to any small or medium sized resort or neighborhood. Reef Resort is opting for a solar-based energy production method, which over a 20 year period will provide cost savings when compared to even current grid-based energy. Because of this, electricity is guaranteed to unit owners at a 20% discount compared to the current market rate for electricity, in Davao City, Philippines.

At the time of writing, the average rate for electricity in Davao City, Philippines would be 19 cents (USD equivalent) per kilowatt hour, meaning that the guaranteed rate of electricity for each unit in Reef Resort will be 15.2 cents per kilowatt hour. This is another one of the major advantages of owning Floating Real Estate. Keep in mind that this rate applies only for solar electricity, while electricity produced by the emergency backup generator will be billed at a higher rate, but in most cases, these generators do not need to be turned on.

Yes! As an owner you have absolute control and flexibility over your own property. Whether you own a full unit, half of a unit, or only 1.5% of a unit, it does not matter, you are always entitled to be able to sell your ownership to whoever you wish, and at least once per year the Resort Management will set terms available to all owners offering to buy them out, depending on the annual revenue of the resort. This is to make it easy to get in, and easy to get out, based on what financial situation you are in at any time. The goal of this system is to make ownership of floating real estate as easy as possible.

As seen in the map above, Reef Resort is scheduled to be constructed off the coast of Samal Island, near Davao City, Philippines.

• Bylaws
• Certificate of Authentication
• SEC Approved Cover Sheet
• Articles of Incorporation
• BIR Registarion
  
  Documents are available upon request.