posted May 23, 2017 at 08:06 pm by Jenniffer B. Austria
Property developer Filinvest Land Inc. said Tuesday it is set to open a new shopping mall as a part of a 5.2-hectare townscape project in Tagaytay City.
Filinvest Land said Fora Mall, a commercial development with 48,000 square meters of leasable space, would open within the second quarter this year.
The shopping mall will have Metro Gaisano as one of its anchor tenants and will offer a number of retail brands and restaurants targeting residents and tourists.
Fora Mall is envisioned to be the newest exciting destination in Tagaytay and will offer other amenities such as a centerpiece amphitheater for weddings, outdoor activities and other events; a botanical garden; canopy walk; and a sky garden.
Filinvest said it was on track with the development of the 5.2-hectare Fora townscape project and recently held the topping off ceremony of its condotel component. Fora is envisioned to be the largest integrated themed destination in Tagaytay City.
The condotel, which will offer 280 units, is expected to be fully operational by end of 2018.
Filinvest Land earlier allocated P4 billion to develop the whole property, representiong the company’s first mixed-use development in Tagaytay.
Centrally located at the heart of the Rotunda junction, next to churches, hospitals and commercial centers, Fora boasts of a 360-degree accessibility carefully designed with the convenience, comfort and ease for visitors.
Filinvest Group of the Gotianun family has extensive experience in developing similarly massive master-planned township projects, such as the 244-hectare Filinvest City in Alabang, the 677-hectare Timberland Heights in San Mateo, Rizal and the 50-hectare City di Mare in Cebu.
Share price of FIlinvest Land closed higher by 1.2 percent to P1.65 Tuesday.
The property firm reported a net income of P1.41 billion in the first quarter, up 7 percent from the same period last year on the back of higher sales from residential and leasing businesses.
First-quarter consolidated revenues jumped 26 percent to P5.9 billion, on significant growth in sales recognized from its residential development business and the continued strong demand for its business process outsourcing space.
posted May 23, 2017 at 08:12 pm by Darwin G. Amojelar
The Transportation Department abandoned the auctions for the P108.2-billion contracts to develop, operate and maintain five regional airports under the public-private partnership scheme.
“We received confirmation that the procurement of the much-anticipated Regional Airport PPP Projects [Development, Operations and Maintenance of New Bohol (Panglao), Davao, Iloilo, Laguindingan and Bacolod Airports] has been terminated,” the PPP Center said in a statement.
The PPP Center said the implementing agencies―the Transportation Department and the Civil Aviation Authority of the Philippines ― decided that the projects would be implemented through other modes.
The Regional Airport PPP Projects were originally approved under a bundled PPP structure by the Investment Coordination Committee and the National Economic and Development Authority board.
The Neda board approved the unbundling of the five airport projects in November 2016.
The five provincial airports in the PPP are the P20.26-billion Bacolod-Silay International Airport, the P30.4-billion Iloilo International Airport, the P14.62-billion Laguindingan Airport, P2.34-billion New Bohol (Panglao) Airport and P40.57-billion Davao International Airport.
The Transportation Department earlier pre-qualified Maya Consortium led by Aboitiz Equity Ventures, Philippine Airports Consortium of Metro Pacific Investments Corp., San Miguel Holdings Corp.-IIAC Airport Consortium, GMR-Megawide Consortium and Filinvest-JATCO-Sojitz Consortium for the projects.
“While the PPP Center believes in the credibility of these airport projects structured as PPP, and gratefully acknowledges the solid interest of the private sector, we respect DOTr’s and CAAP’s authority and their decision to terminate the projects,” the agency said.
The PPP Center said despite the latest development, it remained ready and committed to support government agencies in their infrastructure and development projects.
“The critical foundations of the PPP program have been laid down, and the institutions, both in the public and private sectors, are ready to deliver,” it said.
The agency said the effectiveness of the PPP program was shown by the awarded PPP projects that were now benefitting countless Filipinos such as the Mactan Cebu International Airport Passenger Terminal Building, Naia Expressway, PPP for School Infrastructure Project and the Automated Fare Collection System or Beep Card.
“It is clear that PPPs remain as a viable option in the procurement of infrastructure projects, especially those that require an integrated approach [i.e. design-build-operate-maintain] in order to save on procurement timing, reduce interface risks, and avail of private sector’s technology and efficiency,” the PPP Center said.
The PPP Center, as the main driver of the PPP program, said it continued to collaborate with government agencies and the private sector to fulfill the country’s infrastructure requirements, significantly contribute to the government’s “Build-Build-Build” program and deliver much-needed public services.
Philippine Daily Inquirer / 05:08 AM May 24, 2017
Who bought a 25-percent stake in Phoenix Petroleum of up and coming businessman Dennis Uy?
That’s what everyone wants to know after it was announced the other day that a certain ES Consultancy Group Inc. shelled out P4 billion for a quarter of Uy’s flagship firm.
Officially, the little known ES Consultancy is a firm involved in financial strategy, capital mergers and acquisitions, including joint venture deals. Dig a little deeper and one finds that its parent is a firm incorporated in Singapore that, in turn, answers to a Luxembourg-based holding company.
The ES Financial Group—“ES” stands for Espiritu Santo—according to its website, invests mainly in Portugal, but also has interests in Europe, Brazil, Angola “and numerous other locations around the world.”
What’s clear is that it represents high networth clients quietly in some very big deals across the globe.
So the question remains: Who’s behind this particular investment, especially since nothing is ever as it seems where the dynamic Dennis Uy is concerned nowadays?
Given how Uy’s deals have unfolded of late, it is but natural that suspicion immediately fell on his recent partners. We’re talking, of course, about the SM group, which had lent its financial muscle to the Davao-based businessman when he took over logistics firm 2GO a few weeks ago.
Phoenix, of course, disclosed that the P4 billion in proceeds from the buy-in would be used to finance Uy’s other big venture, a new integrated casino resort that will rise in Cebu, near the Mactan-Cebu International Airport.
This would make sense given the SM group does have some expertise in the casino space, being the landlords for Melco Crown’s City of Dreams in Pagcor Entertainment City.
As of yesterday, at least two knowledgeable sources queried by Biz Buzz have pointed to the SM group as the likely buyer of the 25-percent Phoenix Petroleum stake—a symbol, they claimed, of the ever tightening, mutually beneficial embrace between the two business groups.
Uy himself declined to confirm or deny the talk, sharing instead in a phone message a joke he received from a friend who was equally curious about the deal: “Who’s ES? Enry Sy?”
Well, maybe not Enry Sy, but the de facto head of the business group ‘Essie Sy. —DAXIM L. LUCAS
A major partnership is in the works between a Manila-based conglomerate and a dynamic and aggressive bulk water young gun Tubig Pilipinas to establish a major foothold in addressing Bacolod’s water shortage.
The City of Smiles has been experiencing water supply shortfalls of up to 10,000 cubic meters a day lately, caused mainly by the momentum of development now going on all over the city. Major property conglomerates are building massive townships in Bacolod and its surroundings.
Our sources say the planned P5-billion water project should run tandem with the frenetic infrastructure developments and business investments to ensure the adequate delivery of potable water to the city’s 550,000 growing population. The source also highlighted that the water project will cause “significant convergence” with the specific goal of providing the people the quality service they need and deserve.
With the continuing favorable business and investment environment and the potential tourism industry boom, reliable water services will be one less problem for this first-class municipality. The city is not only the Sugar Bowl of the country but is also home to various investments in the field of trade and industries. Thousands of tourists as well flock to this part of the Negros region for the conventions it hosts and the famous Masskara Festival.
Two other conglomerates previously submitted a joint-venture proposal to the water body, but were subsequently rejected outright. A third conglomerate is now looking to partner with Tubig Pilipinas as the young water company is said to have succeeded in establishing inroads and the right relationships with the city’s leaders. —DAXIM L. LUCAS
The multi-awarded Ibiza Beach Club Inc. of the Cebu-based Manny O. Group, which boasts of the best of “lifestyle dining and unrivaled entertainment,” is set to make its hip and happening presence felt in more bustling destinations here and abroad.
First stop is the island paradise of Boracay, where Ibiza is tentatively scheduled to start shaking up the local scene before the end of the year. At the same time, there are advanced talks to bring Ibiza to Shanghai and Beijing. There are also parties interested to bring the Ibiza brand of fun and food to Malaysia.
Not only that, a part of Cebu will also find its way abroad as the Ibiza concept goes beyond just the food, wine and entertainment, to include the patented chairs—proudly designed and assembled in Cebu—the look, the signature aqua color scheme and uniforms designed by Cary Santiago. In short, the entire DNA.
Manny O. group founder and CEO Manny Osmeña could not be happier as Ibiza is pretty much the embodiment of his own philosophy of “living life well.” That philosophy first came to life in Manny O.’s Movenpick hotel in Mactan, Cebu, which was then brought last year to BGC.
If plans come to fruition, then it may just be a matter of time before even Ibiza itself embraces what Ibiza now stands for—a philosophy and not just a mere product. —TINA ARCEO-DUMLAO
DOTr to pursue P108-B modernization projects
By: Miguel R. Camus – @inquirerdotnetPhilippine Daily Inquirer / 05:10 AM May 24, 2017
The Public-Private Partnership (PPP) program, already suffering from the perception its projects are being sidelined in favor of government loans overseas, received another blow yesterday after the Department of Transportation (DOTr) canceled plans to bid out contracts to modernize, operate and maintain five regional airports in Davao, Bacolod, Iloilo, Laguindingan and New Bohol.
A DOTr spokesperson said the department would pursue the modernization and development of the projects, estimated to cost P108 billion, using funds from the government or through overseas development assistance (ODA) loans.
While no decision has been made, the DOTr insisted “the change in the procurement mode will not necessarily delay the implementation of the projects.”
Some individuals closely watching the progress of PPPs under President Duterte were skeptical. They also worried about the role of PPPs in the current administration, which said it was keen on tapping loans from China and Japan.
The regional airports PPP, whose bidding under President Aquino was postponed since it fell too close to the May 9, 2016, polls, was not the first to be terminated since Mr. Duterte came to power in July last year.
A slew of other big-ticket DOTr PPP projects under implementation were placed on review or were quietly removed from the PPP pipeline. Among these were the P170.7-billion South Line of the Philippine National Railways, the P75-billion Naia project and the P19-billion Davao Sasa project.
“We are still trying to figure out what projects are going to be pursued under PPP,” Michael Sagcal, the country head of Washington D.C., US-based Astris Finance, said in an interview yesterday.
He said there were clients in Europe and the United States that were keen on the regional airports.
“Some investors are now looking elsewhere like Vietnam and Indonesia,” said Sagcal, who was also a former DOTr spokesperson.
In its statement announcing the decision by the DOTr and the Civil Aviation Authority of the Philippines, the PPP Center sought to combat the perception that PPPs would play a diminished role.
It cited successful PPPs under Mr. Aquino that gave Filipinos the first steps toward a modernized Mactan Cebu International Airport, two new expressways in Metro Manila and more public classrooms.
“It is clear that PPPs remain as a viable option in the procurement of infrastructure projects, especially those that require an integrated approach (i.e. design-build-operate-maintain) in order to save on procurement timing, reduce interface risks and avail of private sector’s technology and efficiency,” the PPP Center said.
By contrast, Mr. Duterte’s economic managers communicated their preference for the government to first build the projects and then bid out the operations and maintenance contracts to the private sector later on.
Tagged as a “hybrid” approach, they argued this would lower the cost of public services since there would be no heavy investments for the private sector to recover.
Five groups were earlier prequalified to bid for the regional airport PPPs. These were Metro Pacific Investments Corp., San Miguel Corp. with South Korea’s Incheon Airport; Aboitiz Equity Ventures with VINCI Airports; Megawide Construction Corp. and India’s GMR Infrastructure, and the Filinvest Group with Japan’s Sojitz and Jatco.
“We have been looking forward to an expanded private sector role in operating and maintaining most of the functions at key regional airports, as seen in the Cebu terminal project,” said John Forbes, senior adviser of the American Chamber of Commerce of the Philippines.
“We therefore hope to learn more about the plans of DOTr for improving operations of airports through privatization using the hybrid approach of the new administration,” he added.
Would-be bidders, meanwhile, expressed support, but called on the DOTr to expedite the modernization of the air gateways.
“It is crucial for the airport development project to be implemented immediately because efficiencies in the airport system are greatly hampered by the lack of proper infrastructure,” Louie Ferrer, chief marketing officer at Megawide Construction Corp., said in a text message.
“We acknowledge the government’s decision to terminate the PPP process for the regional airports in favor of other modes of procurement,” Randall Antonio, chief operating officer of Aboitiz InfraCapital, said in a statement.
“We remain committed to supporting the government’s push to build the infrastructure necessary to promote inclusive economic growth for our people,” he added.
But Tungpalan pointed out that the Neda-ICC in 2015 recommended an annual capacity of eight million.
“This time around, because of increased flights in Clark, both domestic and international, they (BCDA) have requested the ICC to allow them to go back to the eight million passengers” a year capacity, Tungpalan said.
“The numbers have improved in terms of the traffic and therefore it merits getting [the capacity] up to eight million, which was previously approved by the ICC,” Tungpalan added.
The BCDA and Clark International Airport Corp. committed to finance the P12.5-billion project, likely through borrowings and equity, so that funding would not have to be sourced from the national budget, according to Tungpalan.
The Neda official said the ICC’s Cabinet committee would support the BCDA’s proposal and include it in the agenda of the Neda Board meeting to be chaired by the President tentatively scheduled on June 13.
Last week, the Management Association of the Philippines (MAP) called for a holistic solution to greater Manila area’s clamor for a more modern, spacious and efficient aviation system, backing the redevelopment of both the Ninoy Aquino International Airport (Naia) and the Clark International Airport.
“The rapid increase in the volume of visitors to the Philippines, most of whom pass through the Naia, calls for immediate action and the harnessing of all available resources to promptly provide the needed infrastructure and management support for the growing number of air passengers,” MAP said in a position paper.
“Upgrading the existing Naia facilities now will provide early and welcome relief to the present problem of severe passenger and aircraft traffic congestion at a time well within the term of the current administration. Pending completion of the upgrades, one quick way of mitigating the congestion in Naia is to make Clark attractive as an alternate departure and arrival airport through appropriate inducements,” MAP said.
He said GT Capital was on the lookout for new businesses, such as in infrastructure, logistics and retail-oriented commercial property or shopping malls.
“Within the group we are already in a steady state. We’re looking at (opportunities) outside,” Suarez said.
In the case of infrastructure holding firm Metro Pacific Investments Corp., where the group held a 15.55-percent interest, Suarez said GT Capital remained “opportunistic.” “So if there’s an opportunity to further grow our direct stake, at the right price, of course (we’ll take it),” he said.
As a strategy, Suarez said GT Capital was growing based on “concentric” circles, referring to several circles with the same centerpoint. The first circle is organic growth—expansion and modernization of different companies under the group while the second circle is extracting synergy by cross-selling across different groups.
“The third circle is new business, like when we invested in Metro Pacific. It’s an entirely new business not within the group,” Suarez said.
Asked what new businesses the group would like to pursue, Suarez said GT Capital was keen on logistics and retail commercial. Investments in logistics, he said, would likely be through Metro Pacific. If Metro Pacific is able to close the deal to acquire Air21 from the Lina group, for instance, Suarez said this would be a big acquisition.
On retail commercial development, Suarez said it was important to build recurring income. While property arm Federal Land can build its own leasing portfolio, Suarez said this was still a very small business at present.
“It’s possible to acquire. It could be through Federal Land, or through Pro-friends (Property Company of Friends Inc.),” he said. With a landbank of 1,600 hectares, Suarez said one option would be to carve out a portion of the property and devote this to retail commercial development.
He said GT Capital could also pursue infrastructure projects outside Metro Pacific. In the past, Suarez said the group had looked at investing in a port. Had such project prospered, Suarez said it would have catered to Toyota Motor’s pre-inspection requirements.
At present, he said the vehicles imported by Toyota were taken from the port to the Sta. Rosa facility. If GT Capital had its own port, he said the imported vehicles could be brought straight from the port to the dealer.
GT Capital sees capital spending this year, reaching P47 billion.