BUSINESS BUZZ
Central bank spurns magnate-politico
Philippine Daily Inquirer
First Posted 02:15:00 08/13/2008
Filed Under: Human Interest, Real Estate, Central Banks, Restaurants & catering, Personalities
This influential businessman-politician was lusting after a large piece of foreclosed property in Antipolo City that the central bank, Bangko Sentral ng Pilipinas (BSP), wanted to let go. Talk of location, location, location: The land is located where the new C-6 highway will pass, almost guaranteeing it of becoming the next prime urban hub.
The property was originally owned by none other than the politician’s own company. It was used as bank loan collateral but was foreclosed. It was unloaded by the creditor through a special purpose vehicle, and eventually landed in the BSP’s asset pool.
As the property market bounced after the crippling Asian currency turmoil, the company wanted it back.
But because the transaction value was substantial (about P160 million)—and way beyond the authority of the BSP’s technical committee on loans and assets—the sale had to be elevated to the policymaking Monetary Board, which decided to invite other bidders.
It turned out that other parties felt the property was worth a lot more than what the businessman-politician was willing to pay. At the end of the day, he was outbid—by the city government of Antipolo.
Clue: He is one of the richest in the Senate. Doris C. Dumlao
His very own ‘Bahay na Puti’
Senate president and real estate wunderkind, Manuel Villar Jr. wasted no time in showing off to an adoring public a few days ago his newest real estate acquisition: the historic “Villa Pacencia” mansion along Shaw Boulevard, which used to belong to former president Jose P. Laurel.
The mansion had a fresh coat of white paint on the outside, giving it some resemblance to the fabled “Bahay na Puti” (of a family that has included a former president) in the Cubao area of Quezon City.
The Villar white mansion features a recently painted yellow, green and orange floral pattern, split-type air-conditioning units, new doorknobs, etc.
Many guests couldn’t help but comment how “presidential” the affair was (an awarding ceremony for the senator’s pro-entrepreneur advocacy). Most telling was the Villar portrait hanging in the ante-lobby. It reminded of presidential portraits hanging on the entrance walls leading to Heroes’ Hall in Malacañang.
There was even a showbiz feel to the whole thing (de riguer for any serious politician), as Villar was interviewed in one corner—with klieg lights and all—by Ricky Lo and Lolit Solis for their gossip TV show.
Just about the only thing that was “un-presidential” about the whole thing is the fact that Laurel was no longer president of the Philippines when the mansion was built in 1957. Daxim L. Lucas
New blood, brains
The BSP has hired US-educated economist (and INQUIRER.net business advice columnist) Dr. Johnny Noet Ravalo as its newest managing director, not for economic research but to beef up the talent pool of the supervision and examination sector and help its overworked Deputy Governor Nestor Espenilla.
Ravalo, who cut his teeth doing policy research for the Bankers Association of the Philippines, has switched camps and turned into a banking regulator himself. His appointment was confirmed last week by the Monetary Board. Doris C. Dumlao
‘You recapitalize me, I recapitalize you(r bank)’
It’s all hush-hush for now. The BSP will release the P30 billion that the national government plans to plow into United Coconut Planters Bank (UCPB) as long-term deposit only on one condition: that the government first pumps into the central bank the P40 billion in remaining capital it was promised when it was established 15 years ago.
Engineers of this quid pro quo deal hope that it will materialize within the next four months. UCPB, meanwhile, will have to cross its fingers—but not hope to die—that big brother BSP gets the dough soonest so the sequestered bank gets its own also sooner than soon. Doris C. Dumlao
Resurrected Ramcar
Less than a decade after almost collapsing under P8 billion in debts, the Ramcar group—which manufactures car batteries and operates fast-food chains—is back in a buying mood.
Last month, Ramcar acquired the Tokyo Tokyo Japanese fast-food chain from Ivan Ramos (of the Ramos family that owns National Bookstore) and all of its 55 branches nationwide. This was confirmed by former Ramcar chief financial officer Jess Montemayor, who is now president of the group’s KFC restaurant chain.
Montemayor professes being not privy to the transaction price, but other sources tell us that the chain costs Ramcar a cool P1 billion, funded through a leveraged buyout arranged by Banco de Oro Unibank. Daxim L. Lucas
Another Port Irene in the works
A port city worth “billions of pesos” is set to sprout in Aurora province, northeast of Manila, where infrastructure projects have been slow because of the mountainous terrain.
The port city will complete a multi-modal development for the province after it was announced earlier that the Dingalan, Baler and Casiguran ports in Aurora were to be linked via roll-on roll-off (ro-ro) services.
Ports in the neighboring provinces of Quezon, Isabela and Cagayan will also be linked to those in Aurora.
Bellaflor J. Angara-Castillo, the governor of the province, and supporters of the project envision a maritime hub within a special economic zone (SEZ) in Casiguran.
It remains to be seen whether this port will attain the same level of success (or notoriety) as the SEZ of Port Irene to its north. Riza T. Olchondra
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