Biz Buzz: Mall in the House

Recurring income is the holy grail of the property industry these days as investors consider rental portfolio to be the quintessential hedge against the cyclical nature of the residential segment.

As such, mass housing developer 8990 Holdings (which trades on the local bourse under the “HOUSE” stock code) is soon bound to join the club, infusing mall development into its upcoming condominium projects in the metropolis.

Earlier, 8990 announced that the first of such integrated malls would rise on its property along Ortigas Avenue Extension.

The mall is envisioned to be the main attraction of the 13-hectare development of mixed-use, mid-rise, low cost condominiums that will cater to the working class.

Another site where an integrated mall is being planned is the group’s 8.47-hectare property in Tondo, Manila, on which 8990 intends to build a low-cost mid-rise residential condominium community.

But being a newbie in the retail property segment, 8990 may likely team up with a veteran in this business—one with a similarly mass market orientation and a leading player in the country’s property trade.

In the boardroom 8990, there is one who is related to (a niece of) an influential SM Investments Corp. official, giving 8990 strategic access to the SM group.

As it likes to serve all segments of the market and given the cutthroat competition in the metropolis, we won’t be surprised to see the SM group getting into such a shopping mall venture with 8990. Doris C. Dumlao

Backdoor rush

If some hardly traded companies are seeing a sudden resurgence in activity in the stock market, it’s not because stock pundits are rotating money from pricey large-cap stocks.

There is talk in the market that the Philippine Stock Exchange may introduce new measures to tighten the back-door listing framework, which means that those who have back-door listing plans must execute those ahead of a looming change.

One company that has seen an extraordinary rise in share price and trading volume recently is the Westmont group’s Union Resources & Holdings Corp. Inc. (stock code is UNI).

On Wednesday, Unioil’s stock virtually hit the roof, rising by 50 percent, or the maximum daily price increase.

Thursday, it gained by another 13.13 percent to close at 56 centavos.

No longer directly engaged in oil exploration and mineral development, Unioil is now a holding firm with interests in investment banking and other related concerns like equity and quasi-equity fund mobilization.

All the oil exploration assets and liabilities had been spun off into another oil exploration company called Phoenix Energy Corp., in exchange for notes, which are now carried on its books as long-term receivables.

Its subsidiaries include Westmont Investment Corp., B.U. Properties Corp., Wincorp Securities Inc., Westmont Forex Corp. and Landwest Corp.

So what’s brewing in Unioil? There is talk that a debt-to-equity conversion is in the works, which may lead to a backdoor-listing—that is, of course, before the backdoor becomes narrow. Doris C. Dumlao

Protecting minority rights

Looking after the interests of minority shareholders in this country can sometimes be an uphill battle, but a group of industry professionals are determined to move this issue forward.

Enter the Shareholders Association of the Philippines (Sharephil), which will hold its 7th annual membership meeting on Nov. 7 to assess how far it has come in protecting the rights of small stockholders of listed firms, as well as to take stock of what still needs to be done. (We can tell you that that will be a long list.)

Sharephil, which is headed by Accralaw’s Francis Lim, has invited Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. to speak at its annual meeting.

The central bank chief is expected to talk about how the public and private sectors can work together to achieve greater financial literacy, and inclusion, among Filipinos.

During next week’s event, the book entitled “Your Best Guide to Investing in Stocks” will also be launched.

The book is being supported by the Metro Pacific group as it draws heavily on the insights provided by MPIC head honcho Manuel Pangilinan.

The book will be available in National Bookstore starting Nov. 15.

Finally, Sharephil will also announce a new set of board directors at the event. Interesting times ahead. Daxim L. Lucas

Tycoon’s son in media

Word on the street is that the son of one of the richest men in the Philippines is now a key shareholder in one of the newest media organizations in the country.

According to our sources, the son recently became a part owner of the media organization with the help of a businessman who has become his “mentor,” as well as an adviser in the on-again, off-again disputes and jockeying that has been known to happen in the particularly large and extended family of this tycoon.

In any case, it’s not surprising that the businessman-mentor (who himself has quite a colorful history in the local business scene) led the tycoon’s son into the fold of this relatively young and aggressive media organization.

That’s because the businessman-mentor’s own son is also involved in the media organization via a company that owns a stake in the venture.

In an interesting coincidence, the media organization recently came out with an article that raised eyebrows across the business community. In the article, the returning CEO of a company reacquired recently by the family of the tycoon’s son came out swinging to hit the previous leadership of the firm. In the article, the former chief of the company in question was basically accused of exaggerating his achievements, including bringing the firm back into the black.

Given that the faction of the tycoon’s son now controls the firm, it is no surprise then that the normally soft spoken CEO came out with guns blazing.

Then there is the fact that a key member of the faction in charge of the reacquired firm also has a stake in the media outfit involved. Coincidence? Abangan. Daxim L. Lucas

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