Latest Stories

Andrew Tan consolidating property firms

Property tycoon Andrew Tan is consolidating key property-related businesses into flagship brand Megaworld Corp.

The three companies that will be folded into Megaworld under a group-wide restructuring are leisure estate unit Global-Estate Resorts Inc. (GERI), middle-income residential development unit Empire East Land Holdings Inc. (ELI) and Suntrust Properties Inc. These companies have a combined market capitalization of about P135.23 billion based on Friday’s closing.

“Megaworld seeks to consolidate the real estate businesses of its affiliates under the Megaworld brand to better capitalize on real estate opportunities and capture the expected growth momentum of GERI, ELI and Suntrust within the next five years,” Megaworld senior vice president Francisco Canuto disclosed to the Philippine Stock Exchange on Friday.

The consolidation process started with Megaworld’s purchase of additional shares in GERI and ELI. On Friday, Megaworld announced the infusion of P5.65 billion worth of shares in GERI and a separate P1.26-billion new equity investment in ELI.

Megaworld subscribed to 2.5 billion new common shares of GERI at a price per share of P2.26 . This represents about 29.4 percent of GERI’s outstanding shares. At present, GERI is directly controlled by Alliance Global Group Inc. with a 63.7 percent interest.

At the same time, Megaworld subscribed to 1.2 billion common shares of ELI, a pioneer in transit-oriented developments, township and mixed-use developments, at P1.05 per share. This represents an additional stake of 9 percent in ELI, where Megaworld already has an interest of 78.8 percent as of the end of March.

In the meantime,  Megaworld earlier increased its stake to 100 percent in Suntrust, which develops affordable homes and master-planned communities in Cavite, Laguna and Manila.

The group-wide restructuring was preceded by speculation a few months ago of a consolidation exercise similar to that currently being undertaken by the SM group with its property units, which will be folded into listed SM Prime Holdings.

But Eagle Equities president Joseph Roxas said the Megaworld move was not the same as that of SM. “I don’t think there are plans to delist any of these units,” he said.

The motivation for consolidation is likewise seen different. The SM group is consolidating its property units to create a leading market position, boost fund-raising capability and harness synergies from rental and property development revenues.

In the case of Megaworld, Roxas said: “I think they’re just trying to gain larger share in something which will make money in the future.” Doris C. Dumlao

Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Andrew Tan , Business , Megaworld , News , realty

  • upupperclassman

    After putting Empire East and Suntrust into Megaworld, Megaworld will become a lemon.

Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


  • Man wins half marathon, dies in Argentina
  • Clouds to bring slight relief from summer heat
  • Canadians rally to legalize marijuana
  • S. Korea ferry transcript reveals evacuation panic
  • Obama, family cause a small stir at Easter service
  • Sports

  • Reigning champs Miami open playoffs with win
  • Spurs subdue Mavericks in playoff opener
  • Wawrinka beats Federer to win Monte Carlo Masters
  • Ageless Hopkins pitches 50-50 Mayweather deal
  • Goodbye MGM, Las Vegas for Pacquiao?
  • Lifestyle

  • Miss America: Don’t suspend teen over prom invite
  • Transitions and resurrection in the performing arts
  • ‘Archaeology tour’ of Cebu’s heritage of faith
  • Historic Fort Bonifacio tunnel converted into a septic tank
  • ‘Imports’ from London, and play of the year
  • Entertainment

  • ‘Captain America’ stays strong atop US box office
  • Easter musings
  • Solenn in shorts
  • Unmerry mix of attention-calling moves on ‘Mini-Me’ TV tilts
  • Persistence pays off for The 1975
  • Business

  • BDO seen keen on bidding for Cocobank
  • Bataan freeport investment pledges up 1,302%
  • Golden Week
  • Bourse to woo Cebu stock mart investors
  • Supper power
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Gigi’s home
  • Palace stonewalls on MRT inquiry
  • Couple of things too
  • There is plenty of water behind Wawa Dam
  • Triduum thoughts of a young boy
  • Global Nation

  • Search for Etihad passengers launched
  • Japan presents $57-B ‘dream plan’ to solve Metro congestion
  • Tim Tebow’s charity hospital in Davao seen to open in 7 months
  • OFW died of Mers-CoV in Saudi Arabia, says family
  • Aquino, Obama to tackle US pivot to Asia during state visit
  • Marketplace