By Zinnia B. Dela Peña (The Philippine Star) Updated January 04, 2012 12:00 AM
MANILA, Philippines - Alcantara-owned Alsons Consolidated Resources Inc. (ACR) is intensifying efforts on real estate development to capitalize on the strong demand for housing in Davao.
In a statement, ACR said it is planning to develop a 21.27-hectare property in Lanang, Davao City, owned by C. Alcantara & Sons Inc. (CASI), into an integrated resort complex.
ACR acquired 72 percent of CASI for P1.23 billion from Alsons Development & Investment Corp. (Aldevinco).
The purchase price, which represents the market value of the Lanang landholdings of CASI as determined by an independent third-party appraiser, was paid by way of a reduction of receivables from Aldevinco.
ACR director Conrad Alcantara said the company is in discussions with several major developers to maximize the value of the property. He refused to name the realty firms, saying the company is “still evaluating their offers since the project is very promising”.
“The project will most likely be developed into a resort/commercial/ and residential complex,” he said.
Property developers like Vista Land, Ayala Land and Phinma Property Holdings Corp. have stepped up their presence in Davao, which has increasingly become a preferred site for business.
Davao, the largest city in Mindanao, has experienced a surge in property development in the past two years.
CASI was incorporated on Dec. 18, 1962 to engage in the general business of manufacturing, buying, and marketing plywood, veneer, doorskin, particle board, chipboard and all other related products.
It also controls Alcorp Transport Corp., an equipment leasing and construction contractor. It likewise holds a minority stake in Sarangani Agricultural Co. Inc., a company engaged in cattle breeding production.
Aside from this, ACR is going full blast in power generation. It is in talks with Thailand’s Electricity Generating Co. and Japan’s Toyota Tsusho Corp. for a possible partnership in a 200-megawatt coal-fired power plant project in Sarangani province, estimated to cost around $280 million.
The project, being undertaken by subsidiary Sarangani Energy Corp., is aimed at helping plug the looming acute power shortage in Mindanao. It is targeted to commence operations by June 2014.
Alsons intends to replace the existing diesel plants in locations where these are now embedded with coal-fired power plants using circulating fluidized bed boilers with capacities of 200 MW in Sarangani and 100 MW in Zamboanga.
ACR likewise signed a power supply agreement with South Cotabaco Electric Cooperative to assure there will be an offtake for the plant’s capacity.
The company grew its profit by 58 percent in the nine months ending September 2011 to P402.4 million. Gross revenues slightly went up to P2.08 billion from P2 billion a year earlier.