Two years after breaking up its alliance with British fund Ashmore, property developer Alphaland Corp. has warmed up to the idea of bringing in new foreign partners and even listing offshore to oil its expansion program.
In May this year, Alphaland was approached by three foreign investors who expressed interest in investing in Alphaland and in listing the company in a foreign stock exchange.
“Discussions with the three foreign investors are ongoing,” Alphaland said in a statement Wednesday, a day after the company had its annual stockholders meeting.
Alphaland, led by chair Roberto V. Ongpin, reported on its new projects, including the acquisition of a 68-passenger ATR 72-500 aircraft and its Baguio Mountain Lodges project. Ongpin also talked about the company’s Balesin Gateway project, which comprises 1,000 hectares and which will include an international airport and a hotel complex. The project is located in Patnanungan Island, which is 22 nautical miles from Balesin Island.
Alphaland’s long-time president Mario Oreta’s retirement as president of Alphaland also took effect last Tuesday. At the cocktail party hosted by Ongpin to honor Oreta, he also introduced the new president, his daughter Anna Bettina Ongpin.
Anna was Alphaland’s executive vice president, chief operating officer and assistant to the chair. After early schooling in England, she graduated from Wellesley College in Massachusetts. She had lived and worked principally as a management consultant for a number of firms while she lived in the US. After much pleading from her father, she agreed to move back to the Philippines to help out at Alphaland in 2013.
For 2015, Alphaland reported a comprehensive net income of P7.2 billion, up 30.9 percent from the previous year. The company’s net worth increased by 19 percent to P44.7 billion in 2015.
The company’s earnings per share stood at P4.50 last year and the net book value per share ended at P35. These respectively marked an increase of 120 percent and 32.8 percent.
On the company’s balance sheet, Alphaland ended last year with P5.1 billion in debt versus P44.7 billion in equity, or an 11-89 debt-to-equity ratio—the exact opposite of most property companies where the equity is typically much lower than the debt component.
Meanwhile, the prospective listing of Alphaland in a foreign bourse opens up opportunities for the company to access the equities market if and when it needs fresh funds for its expansion program.
The Philippine Stock Exchange (PSE) ordered the involuntary delisting of Alphaland in 2014. That same year, Alphaland and Ashmore were locked in a shareholder squabble but they eventually struck a deal dividing the assets of the company. Ashmore group—in partnership with businessman Eric Recto—acquired the following: 100 percent of Alphaland Makati Tower Inc.; 100 percent of Alphaland Marina Club Inc. and Alphaland Marina Corp.; 50 percent of Alphaland Bay City, and 60 percent of Boracay Gateway project.