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Diversifying entertainment firm embarks on property project

Posted on January 02, 2013 10:12:36 PM [ BusinessWorld Online ]
ENTERTAINMENT FIRM Premiere Horizon Alliance Corp., which is diversifying into real estate, has bared plans to invest in a serviced apartment redevelopment project in Makati City via its recently incorporated affiliate, First Ardent Development Corp., Premiere said in a disclosure yesterday. 
 “For its initial venture, First Ardent is participating in the Y2 Residence Hotel project,” the disclosure read.
“The project is a redevelopment of a 90% completed building located along Makati Avenue, Makati City into a boutique serviced residence.”
Premiere Horizon and First Ardent officials were not immediately available yesterday to elaborate on the project.
“It is expected that the [Premiere Horizon’s] participation in the project will contribute to the company’s income and revenue stream once the same has been completed via unit sales or rental income,” the disclosure added.
“The redevelopment project is expected to be completed by August 2013,” it added.
“The project will also expand the company’s business activities to include the booming tourism related real estate industry.”
Last Dec. 19, Premiere’s board approved equity investment equivalent to 40% in First Ardent but no details were disclosed.
Yesterday’s disclosure showed that Premiere subscribed to 25.6 million primary shares of First Ardent at a par value of P1 per share.
First Ardent, a property firm, was incorporated on Nov. 28 last year with an authorized capital stock of P160 million and a paid-up capital of P20 million.
It currently has 41.6 million outstanding and subscribed shares, all with a par value of P1 apiece.
First Ardent’s primary purpose is to “engage in, conduct, manage, operate and carry on the business of acquiring by purchase, lease, exchange, bequest, devise or otherwise and to own, use, improve, develop, subdivide, sell, mortgage, exchange, lease, develop and hold for investment or otherwise real estate of all kinds and to improve, manage, develop, sell or otherwise dispose of, either alone, or through partnerships or joint venture arrangements, condominiums, buildings, apartments and other structures of whatever kind or nature,” the disclosure read.
Premiere, for its part, debuted on the Philippine Stock Exchange in 1997, becoming the country’s first publicly listed film production firm.
It later shifted its business focus to gaming and entertainment amid the perceived decline of the local film sector.
As of end-September last year, Premiere operated 17 Philippine Amusement Gaming Corp. e-Games Stations in Metro Manila, Antipolo City, Bulacan, and Cavite, which are all open 24 hours a day, seven days a week, according to the company’s financial report covering the nine months to September last year.

In December 2011, the Securities and Exchange Commission approved amendments to the company’s incorporation articles to reflect a change of name from Premiere Entertainment Philippines, Inc., as well as an additional secondary purpose allowing the firm to engage in mining, real estate, information technology, and other related businesses.
In line with its foray into mining, the company in April last year acquired a 66.90% controlling stake in mining contractor Redstone Construction & Development Corp.
Premiere Horizon grew its net income more than fourfold to P10.92 million as of September last year from a mere P2.42 million in the same nine months in 2011, buoyed by higher revenues earned in the period.
In the same comparative periods, gross revenues -- which include commissions and earnings from service contracts -- more than doubled to P178.74 million from P73.88 million, while cost of services nearly tripled to P124.18 million from P44.99 million.
The listed company’s shares fell by 1.5 centavos or 4.55% to 31.5 centavos apiece yesterday from 33 centavos on Friday last week.
Philippine financial markets were closed on Monday and Tuesday for the New Year holiday. -- F. J. G. de la Fuente            

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