Posted on September 24, 2012 10:01:46
PM [ BusinessWorld Online ]
GATCHALIAN-CONTROLLED Philippine
Estates Corp. (PHES) hopes to seal a deal soon with Ayala-led Avida Land Corp.
for the development of the former’s Metrotech Industrial Park property in
Valenzuela City, a top PHES official said yesterday.
“Currently, we are in the final stage
of our negotiations with one of the nation’s leading real estate developers,
Avida Land, for a possible joint venture inside the 60-hectare property where
Metrotech Industrial Park is located. This project will be the first and one of
its kind in the bustling city of Valenzuela,” Elvira A. Ting, PHES president
and chief executive officer, announced at the company’s annual stockholders’
meeting at One Corporate Center, Ortigas Center, Pasig City yesterday.
“We expect to close and conclude the
deal within the next few days,” Ms. Ting added without elaborating.
She declined to give an estimate on
project cost, saying the company will make “further disclosures” when ready.
Officials of Avida Land and those of
its parent, listed Ayala Land, Inc., were not immediately available for
comment.
Metrotech Industrial Park, formerly
known as Plastic City Industrial Park, is located in Barangay Calumay in
Valenzuela City and is one of the properties PHES currently holds for future
development, according to the company’s 2011 annual report.
Last May, PHES authorized the
negotiation of the terms and conditions for a possible joint venture with Avida
Land for the said property’s development.
“The plan is to develop the area into
a mixed-use urban complex consisting of residential condominium and townhouses,
single-detached houses, as well as office condominiums that will be constructed
to cater to the growing housing needs in that area,” Ms. Ting explained.
“We will also build BPO (business
process outsourcing) centers.”
EXPANDING
Ms. Ting said PHES is likely to expand
further in provinces north and south of Metro Manila that are now deemed more
accessible thanks to recent road improvements there.
“A short drive from Manila using the
newly-constructed CavitEx (Manila-Cavite Expressway) is the progressive
province of Cavite. In Imus and General Trias, PHES plans to develop properties
there into a middle-class residential community,” Ms. Ting said.
“Another growth area is Bulacan. The
improvement and expansion of the NLEx (North Luzon Expressway) makes Bulacan an
attractive area for future expansion,” she added.
“We are conducting research and
best-use studies to ensure the success and viability of our future projects
there.”
PHES was first incorporated in 1983 as
Philippine Cocoa Estates Corp. to engage primarily in agriculture, shifting its
business in 1996 to accommodate the entry of The Wellex Group, Inc. as its
primary investor. It currently has one wholly owned subsidiary, Mariano Arroyo
Development Corp.
Some of PHES’ completed projects
include the Pearl of the Orient Tower in Manila, Pacific Grand Residences in
Valenzuela City, Pacific Grand Villas and Pacific Grand Townhomes in Cebu, Jaro
Grand Estates in Iloilo City, Pacific Grand Townhomes in Bulacan, and Pacific
Grand Residences in Cavite.
PHES widened its first-half net loss
to P12.56 million from P6.13 million the previous year, weighed by lower
revenues and higher expenses.
Real estate sales fell 9.19% to P15.62
million versus P17.20 million in the same comparative periods, while cost of
sales was roughly flat at P9.99 million versus P9.97 million.
“The company is continuously
evaluating [a] number of alternatives and measures for generating liquidity to
meet material commitments for capital expenditures for the development of
projects,” PHES said in its end-June financial report.
Shares of PHES rose five centavos or
7.26% to 74 centavos yesterday from 69 centavos on Friday last week. -- Franz
Jonathan G. de la Fuente
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