Stock News 2013: P10B project in Lapu-Lapu

The departure hall of Mactan Cebu International Airport on Mactan Island. (Photo credit: Wikipedia)

Megaworld Corp., one the country’s biggest property developers led by tycoon Andrew Tan, is creating its first ever masterplanned township project in the Queen City of the South that is Cebu, as it targets to provide an unrivalled lifestyle of luxury and convenience in the Visayas.

Located in Lapu-Lapu City, the 16-hectare Mactan Newtown is set to replicate what Megaworld has created in Eastwood City and its other townships within the metropolis, according to Noli Hernandez, president of Megaworld Cebu Properties Inc.

Rising in the middle of Cebu’s hottest tourist destination, this live-work-play township is envisioned to provide a consummate lifestyle in which people need not venture out for work, leisure or recreation.

It has recently officially opened for business with the grand opening of the biggest McDonald’s outlet in Central Visayas. Once completed, the Mactan Newtown will boast a masterful mix of residential enclaves, office towers, commercial establishments and recreational facilities.

THE 16-HECTARE Mactan Newtown is set to replicate Megaworld’s previous township developments in Metro Manila.

“At Mactan Newtown, we will be giving the Cebuanos more time for things that really matter and allow them to live more fulfilling lives. This vision sprang from the simple recognition of the need for more intelligent communities that actually work, and it’s a vision that has been translated so far to Megaworld’s other phenomenally successful townships in Metro Manila,” Hernandez explains.

“Megaworld has been known for its previous masterpieces in Manila such as Eastwood City, The McKinley Hill and Newport City. As in these other developments, local and foreign investors can expect nothing less than a solid and steady appreciation of property values, given the synergies that can only be created when world-class components of living, working and playing are put together,” he further says.

According to Hernandez, future residents of the P10-billion development can “look forward to a unique lifestyle that is both dynamic and laidback, luxurious but accessible, visionary but real and tangible.”

He stresses that buying a unit at The Mactan Newtown is not simply about acquiring a dwelling place, but rather about becoming part of a community.

MANGO Trees line the Mactan Newtown’s wide pedestrian lanes.

“[It is] where even the smallest studio unit provides access to a full suite of recreational facilities, from a fully-equipped gym, a 20-meter lap pool, an aqua gym, a rock-climbing wall, a tennis court, an indoor spa, culinary station and a function room, not to mention an ultra modern hotel-like lobby,” Hernandez notes.

The township’s proximity to various resorts and the availability of water sports activities, Hernandez adds, also highlights the uniqueness of the community. And if these weren’t enough, stepping out of one’s residential tower also means being served a feast of various international dining and shopping options located within the township.

http://business.inquirer.net/105519/p10b-project-in-lapu-lapu-to-change-cebu

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Stock News 2012: 7 property giants eye P10.2-billion FTI property

Department of Public Works and Highways in Manila, Philippines (Photo credit: Wikipedia)
Seven of the country’s biggest business groups are vying for the government’s Food Terminal Inc. (FTI) property, which is up for bidding next month for a minimum price of P10.2 billion, the Department of Finance said yesterday.

The potential bidders are the Gokongwei group’s Robinson’s Land Corp., Andrew Tan’s Empire East Land, the Ayala group’s Ayala Land Inc., the Lopezes’ Rockwell Land Corp., the Sy family’s SM Land Inc., Andrew Gotianun’s Filinvest Land Inc. and Century Properties Group Inc., owned by the family of Jose Antonio.

The seven property firms obtained the necessary documents and are expected to participate in the public bidding set on Aug. 8 for 74 hectares of the 103-hectare FTI Complex.

The government tried but failed to bid out the FTI property in the past, with the Macapagal-Arroyo administration even lowering the floor price to P7 to P8 billion. One valuation pegged the value of the property at P12 billion.

The last attempt to auction FTI was in 2009 when private companies snubbed a public bidding for the property.

In an interview, Finance Secretary Cesar Purisima said the P10.2-billion floor price, though lower than the P12-billion valuation, is based on the current market price.

“There is no plan to drop the valuation. We believe in markets,” Purisima said.

The remaining 29 hectares of the complex will be used for other various purposes including a five-hectare integrated bus terminal, which is being constructed by the Department of Transportation and Communication (DOTC) and the Department of Public Works and Highways (DPWH).

PMO chief Karen Singson said that following the failed bidding of the 103-hectare FTI complex in October 2009, the government has designing a place to optimize the use of the property.

“PMO continues to coordinate with other government agencies to ensure that the privatization of FTI complements the broad array of infrastructure building and agriculture initiatives of the government,” Singson said.

Proceeds of the sale will go to the Department of Agrarian Reform for the Comprehensive Agrarian Reform Program and to the Department of Agriculture.

The 103-hectare FTI agro-industrial complex is one the largest industrial complexes in Metro Manila and is currently home to more than 300 companies.

It provides industrial and commercial lots for medium-to-long term leases, and industrial buildings with standard-sized stalls for office, warehouse or small-scale processing operations.

http://www.philstar.com/Article.aspx?articleId=830213&publicationSubCategoryId=66

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Stock News 2012: Casino developers pool funds for P15-B road

Entertainment City (Photo credit: Cajie)
Four of the country’s biggest conglomerates are pooling their resources to build a P15-billion megastructure that will connect the 100-hectare Pagcor Entertainment City along Manila Bay to the Ninoy Aquino International Airport (NAIA) and the Skyway.

The STAR learned that the groups granted separate licenses by the Philippine Amusement and Gaming Corp. (Pagcor) to operate casinos at the Entertainment City are financing P6.5 billion of the projected P12 billion to P15 billion cost of building the bridge/road infrastructure that will connect NAIA Terminal 3-Skyway to the Entertainment City.

The four include Bloomberry Resorts and Hotels Inc. of port operator Enrique Razon that will build the 16-hectare Solaire Manila luxury casino and hotel-resort project; the Tiger Resorts project to be jointly undertaken by Japanese billionaire Kazuo Okada in partnership with the Gokongwei Group and taipan Andrew Tan (the latter for land development); Tan’s Alliance Global Group Inc. (Travellers International) for the 31-hectare Resorts World Bayshore project in partnership with Genting Hong Kong Ltd.; and a consortium led by retail king Henry Sy in partnership with Macau casino giant Melco Crown Entertainment-owned by Australian billionaire James Packer and Lawrence Ho, son of Macau gaming tycoon Stanley Ho.

Pagcor chairman Cristino Naguiat Jr. told The STAR that Pagcor and the Department of Public Works and Highways (DPWH) are scheduled to sign an agreement this week or next for the project, which will be undertaken without any cost to the government, except probably for the acquisition of right-of-way.

Of the estimated project cost, P6.5 billion will be shouldered by the four proponents while the balance will have to be spent by the group that will bag the contract to undertake the construction of the infrastructure project. DPWH will undertake the bidding for the project, which Naguiat described as a hybrid Public-Private Partnership (PPP) project.

The project will have a ramp to NAIA Terminals 1, 2, and 3 to facilitate the travel of visitors to and from the casinos at the Entertainment City, which Naguiat expects will have an edge over those of Singapore and Macau.

“In Singapore and Macau, there is nothing to see because these places are so small. Entertainment City, on the other hand, will just be a small part of a bigger tourism package. It will become part of the Department of Tourism’s national development plan,” Naguiat added.

Bloomberry’s casino will be the first to go onboard by the first quarter of next year, followed by the Belle-Melco project by the end of 2013. Next will be the Okada-Gokongwei joint venture which will start end of 2014, followed by the Alliance Global casino by the last quarter of 2015 or early 2016.

Pagcor has required all licensees to put in a minimum $1-billion investment in each integrated resort (to be spent before the term of President Aquino ends in 2016), build a minimum of 250,000 square meters of floor area and complete 800 hotel rooms with an average room area of 40 square meters. The Los Angeles Lakers are close to a deal with free agent forward Antawn Jamison, according to Rick Bonnell of the Charlotte Observer. Jamison was also considering signing with the Charlotte Bobcats because it would have meant he could close out his career close to home.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=828171

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Stock News 2012: Andrew Tan's Empire East sets P20-billion capex over 5 years

English: Pasig Rainforest in Pasig City, Philippines (Photo credit: Wikipedia)
Empire East Land & Holdings Inc., the middle-income residential property arm of tycoon Andrew Tan, is setting aside up to P20 billion over the next five years to accelerate product launches, put on stream new phases in ongoing projects, and tap into new growth opportunities as well.

In a briefing following the company’s annual stockholders meeting yesterday, Empire East president Anthony Charlemagne C. Yu said they are planning to roll out 5,000 new residential units this year as the company aims to double its reservation sales to P15 billion.

The firm expects net profit to rise 15 to 20 percent this year, Yu said.

In the first quarter this year, Empire East raked in reservation sales of P3.25 billion, an unprecedented growth of 121 percent from P1.47 billion the previous level. The figure is already more than 40 percent of Empire East’s reservation sales for the whole of 2011.

Notwithstanding the uncertainties on the global front, Empire East remains optimistic on the real estate sector given strong overseas remittances, increased revenues from the BPO sector, and a booming tourism industry, Yu said.

He said the company is committed to making home ownership an affordable and accessible reality by focusing on innovation, quality engagement, operational excellence and cost optimization.

Empire East is building Rochester, a combination of 10 mid- and high-rise buildings in Pasig City with a total of 2,100 residential units; and Kasara, a resort-inspired residential community near C-5 Road in Pasig.

With Kasara, the company hopes to tap an underserved market of Filipinos moving toward healthy, green and stress-free living.   The project features 2,000 studios and one- to three-bedroom homes.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=816593

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Stock News 2012: Alliance Global unit hits record sales in Q1

The property group of tycoon Andrew Tan’s Alliance Global Group Inc. (AGI) is off to a strong start, with reservation sales growing 52 percent in the first quarter to a record P16.4 billion.

Given a buoyant property market and a low interest rate regime, AGI said it is optimistic growth will continue for the rest of the year with reservation sales seen hitting P55 billion or an increase of 48.6 percent from the P37 billion recorded in 2011.

The group sells real estate products under Megaworld Corp., Empire East Land Holdings Inc., Suntrust Properties Inc. and Global-Estate Resorts Inc. (GERI). Each of the companies caters to niche markets ranging from the luxury, middle-income and affordable home sectors to the vacation homes segment.

Megaworld, one of the country’s leading residential condominium developers and the largest BPO office developer and landlord, showcases a variety of township projects all over Metro Manila. Each of these live-work-play-learn-shop communities, including Eastwood City, Newport City, McKinley Hill, Manhattan Garden City and Uptown Bonifacio, offers at least 500,000 square meters of residential space and 200,000 square meters of BPO office space.

“Megaworld’s strong performance for the first quarter of this year can be attributed to superior product offerings that address on a large scale the Filipinos’ need for quality, affordable homes in the very best locations,” said Megaworld senior vice-president for marketing Noli Hernandez.

Sales of Empire East and Suntrust, AGI’s middle-income and affordable housing brands, respectively, came from the strong marketing of the companies’ multi-tower condominium developments in the metro and sprawling residential communities in the Calabarzon.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=803330

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Stock News 2012: Megaworld earns P8B in 2011

Megaworld Corp. grew its 2011 net profit by 60 percent to P8.03 billion on double-digit increases in real estate sales, rental and hotel revenues alongside some one-time gain from a share sale.

This net profit attributable to equity holders of the parent company resulted in 13.18 percent return on equity from only 8.7 percent in 2010, based on the company’s regulatory filing.

Consolidated total revenues surged by 39.35 percent to P28.63 billion resulting from strong property sales and increased leasing income and nonrecurring gain from the sale of shares.

Megaworld, which is led by Andrew Tan, booked a 140.66 percent increase in equity share in net earnings of associates, interest and other income to P5.33 billion due to increase in equity in net earnings of associates and non-recurring gain from sale of shares.

Among product portfolios, the bulk of consolidated revenues came from the sale of condominium units and residential lots amounting to P15.89 billion in 2011, up by 21.18 percent from the previous year.

Group-wide sales mostly came from the following projects: Eight Forbestown in Fort Bonifacio Taguig; Eastwood Le Grand in Eastwood City; Mckinley West, Morgan Suites and The Venice Luxury Residences in Mckinley, Taguig City; Manhattan Heights in Quezon City; and Newport Palmtree Villas, 81 Newport Boulevard and Newport City in Pasay.

Rental income contributed 13.37 percent to the consolidated revenue and amounted to P3.83 billion, up by 42 percent from the previous year. This was fueled by the completion of additional leasing properties and increase in demand for office space from business process outsourcing companies.

The group’s hotel operations grew by 68.49 percent to P392.17 million in 2011, an increase of 68.49 percent. This was attributed to the increase in the number of hotel rooms and hotel occupancy rates.

http://business.inquirer.net/54049/megaworld-nets-p8b-in-2011

Stock News 2012: Alliance Global posts record P11.6-B profit

Casino logo (Photo credit: Wikipedia)
Alliance Global Group Inc. (AGI), the listed holding firm of real estate tycoon Andrew Tan, jacked up its net income by 68 percent last year to a record P11.6 billion on robust growth of its property business.

In a financial report submitted to the Philippine Stock Exchange, AGI said revenues hit an all-time high of P66.1 billion or an increase of 48.5 percent from the year before.

AGI chief financial officer Dina Inting said the company booked a non-recurring gain of P3.1 billion from the acquisition of a subsidiary during the period. The recurring portion alone translated into a 22 percent year-on-year profit growth.

As of end-December 2011, AGI’s total cash and cash resources stood at P49 billion.

Property arm Megaworld Corp. chipped in P28.6 billion or 40 percent of AGI’s total revenues. The amount is 39 percent higher than the 2010 level.

As a result, Megaworld reported a 60 percent growth in net income to P8.15 billion, boosted by a non- recurring gain of P2 billion from the sale of AGI shares of stock. Without this, its profit is still up 21 percent year on year.

Megaworld’s performance was backed by strong sales from its residential projects in Newport City, McKinley West and McKinley Hill, Eastwood City as well as strong leasing income from its BPO and retail portfolio.

Revenues and profits from the food and beverage, quick services restaurants and integrated tourism businesses likewise grew in line with targets, AGI said.

Food and beverage arm Emperador Distillers produces Emperador, Generoso and Emperador Light brandies and a line of flavored alcoholic beverages called The Bar.

Golden Arches Development Corp. operates the quick service restaurant business under the McDonald’s brand while Travellers International Hotel Group, a joint venture with Genting Hong Kong, operates Resorts World Manila, the first integrated tourism estate in the country.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=801327

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Stock News 2011: Megaworld income jumps 25%

Image via Wikipedia
Tycoon Andrew Tan-led Megaworld Corp. reported a 25-percent rise in its profit last year to a record P5.1 billion on robust sales of its residential, office and retail property portfolios.

Megaworld on Thursday disclosed to the Philippine Stock Exchange that its consolidated revenue hit P20.5 billion last year, up by 16 percent. Rental income from office and retail developments grew by 35 percent to P2.7 billion from a year before.

Tan is among the four tycoons in the country who made it to Forbes Magazine’s roster of the world’s billionaires (in dollar terms).

Megaworld said it remained in a strong net cash position, with cash and cash equivalents in its book amounting to P22 billion.

http://business.inquirer.net/money/topstories/view/20110317-326010/Megaworld-income-jumps-25