Premiere Horizon buys 55% of Baguio-based real estate developer | Inquirer Business

Premiere Horizon buys 55% of Baguio-based real estate developer

/ 01:00 PM June 05, 2015

PREMIERE Horizon Alliance Corp. (PHA) has entered northern Luzon’s real estate market with a deal to acquire 55 percent of Goshen Land Capital Inc. (GLCI), a Baguio City-based property developer, for P440 million.

“Premiere Horizon’s investment focus and mission of invigorating the countryside is complementary with Goshen Land’s business strategy,” PHA said in a disclosure to the Philippine Stock Exchange on Friday.


Trading on PHA shares was halted until 10 am on Friday to give investors time to digest the transaction, whose valuation accounted for about a third of the company’s market capitalization. The transaction had been approved by the company’s board and a memorandum of understanding signed by the parties.

PHA will invest in GLCI by buying a mix of primary and secondary shares at a price per share of P500. Upon signing of the memorandum of agreement, PHI will initially subscribe to new 270,000 shares plus 280,000 shares from the majority shareholder for a total of 550,000 shares or 55 percent out of the total authorized capital of one million shares. Thereafter, GLCI will increase its authorized capital to 1.6 million shares of which PHA will subscribe to additional 330,000 shares amounting to P165 million, bringing total ownership to 880,000 shares to maintain a 55 percent interest.


The existing shareholders will end up with 720,000 shares or 45 percent stake. The disclosure added that GLCI president and chief executive officer, Alexander Bangsoy – a 2013 Ernst & Young Entrepreneur of the Year finalist – would continue to head the management team of the company.

“Premiere Horizon’s investment will accelerate Goshen Land’s growth and expansion,” the disclosure said.

Incorporated in 2007, GLCI develops innovative master-planned communities of low to mid-rise residential and commercial condominium buildings including student dormitories. It presently has 18 projects with more than 3,800 units located in Baguio, Benguet and La Trinidad. 

Based on its latest financial statement, GLCI has about P1.6 billion in assets as of end-2014. It chalked up a net profit of P80.62 billion in 2014 compared to P67.81 million in the previous year. Revenues from real estate sales amounted to P572.43 million compared to P505.83 million in 2013.

PHA, which has a market capitalization of about P1.33 billion, is an investment holding company which focuses on projects that invigorate the countryside. Its stated mission is to “engage in sustainable countryside development using new technologies and best practices in the fields of food security, natural resources development, life sciences and technology and tourism.”

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TAGS: Alexander Bangsoy, Baguio real estate, GLCI, Goshen Land Capital Inc., PHA, premiere horizon, Premiere Horizon Alliance Corp.
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