Ongpin’s Alphaland to spend P4B for capex, eyes share sale

05/26/2011 | By: Neil Jerome C. Morales, Business World
ONGPIN-LED property firm Alphaland Corp. is spending up to P4 billion for its developments this year with its cash reserves expected to be boosted by a planned share sale, officials yesterday said.

The spending is in line with a P25-billion allotment for the next five to 10 years, the officials said.

“We have budgeted P3 billion-P4 billion [for capital expenditures] this year,” Alphaland President Mario A. Oreta told reporters after the company’s stockholders’ meeting.

If the higher end of the range is met, this will top the P3.5 billion spent last year.

Projects to be funded include initial construction of the P2.2-billion, 34-storey Makati Tower and the three-tower, P2.5-billion Makati Place.

Furthermore, Alphaland is developing the so-called Balesin Country Club, which will have residential units and leisure facilities for members.

It will be built inside a 424-hectare island-resort fronting Quezon’s Lamon Bay that is 33 kilometers off the eastern coast of Luzon.

“Balesin is P3 billion in development cost, without the land,” Marriana H. Yulo, chief finance officer of Alphaland, said.

The firm so far has P5.6 billion assured by credit lines of which only P1.9 billion has been drawn down, said Ms. Yulo.

In the longer term, a 500-hectare, P10-billion project dubbed Boracay Gateway has been planned to start construction in eight to 10 years.

This, after Alphaland signed a deal with Akean Resorts Corp. to develop the listed company’s first leisure and tourism project in the country.

The 500-hectare Alphaland Boracay Gateway resort is adjacent to the Caticlan airport, which is the main gateway to the world-famous white sand beaches of Boracay Island.

The project pipeline also includes the 32-hectare Alphaland Bay City, which will include a P3-billion Marina Club development, will cost the firm P2.5 billion-P3 billion.

Officials added that Alphaland will sell stock to investors this year to comply with the public float requirement of the local stock exchange.

“The objective of this follow-on offering is not to raise money but we must comply,” Alphaland Chairman Roberto V. Ongpin said yesterday.

To date, the company has less than a 1% public float.

On Nov. 30, the Philippine Stock Exchange started implementing the 10% minimum public ownership rule. Companies were given a 12-month grace period before they will be delisted from the bourse as penalty.

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