Tuesday, October 27, 2009 | MANILA, PHILIPPINES [ BusinessWorld Online ]
A HOLDING company of Andrew Tan reported a turnaround in profits from January to September, buoyed by the good performance of its associate property firm.
Based on its financial statement, Suntrust Home Developers, Inc.’s nine-month profit stood at P3.47 million from a net loss of P7.27 million in the same period last year.
"Over the years, Suntrust Home has continued to focus on real estate development through its associate Suntrust Properties, Inc.," Suntrust President Ferdinand B. Masi told stockholders yesterday. "Since 1997, the property company has led the way in providing affordable homes and in strategic locations.
"The property firm delivers a high standard of comfort to the needs of low- to moderate-income Filipino families, making it the developer of choice in the affordable housing sector," he added.
Suntrust Properties is currently developing Cybergreens, Governor’s Hills and Sunrise Hills, all of which are located in Cavite, and Sta. Rosa Heights in Laguna.
Among its recently launched projects are Suntrust Adriatico Gardens and Suntrust Parkview in Manila and the Gentri Heights in General Trias, Cavite, which it launched earlier this year.
Suntrust Adriatico is a joint venture project with the Manila government while Suntrust Parkview is a six-tower condominium complex. Gentri Heights is a gated community offering single-detached homes along Governor’s Drive.
About 85% of Suntrust Properties’ revenues come from its mass housing subdivisions while the remaining 15% comes from the sale of its condominium units.
Suntrust Home used to have a 60% stake in low-end property company Suntrust Properties, which counted among its major investors Andrew Tan-led Megaworld Corp.
In July 2008, however, Suntrust Properties increased its authorized capital stock by 300 million to 500 million shares, of which 262.5 million shares priced at a peso each were subscribed to Mr. Tan’s middle-income housing unit Empire East Land Holdings, Inc. This effectively reduced the holding firm’s stake in the property firm to a fifth.
Because of this, Suntrust Properties was deconsolidated from the listed firm’s financial statement last year and is now recognized as Suntrust Home’s associate instead of a subsidiary.
Shares in the holding company jumped by 22.64% or P0.12 to P0.65 yesterday. — KJRL
_____________________________________________________________________________________
