Ongpin mulls sale of 20% stake in Alphaland to foreigners
Roberto “Bobby” V. Ongpin
Businessman Roberto V. Ongpin is in talks for the potential sale of around 20 percent of his stake in property development arm Alphaland Corp. to foreign investors.
“Alphaland is presently evaluating a number of foreign investors [principally from Thailand and China] interested in investing in Alphaland. At the moment, however, no investment agreement has been signed,” the company said in a press statement on Friday.
Under the Philippine Constitution, foreigners can own up to 40 percent of companies involved in real estate.
Asked how large he was willing to sell to a foreign investor, Ongpin said, “around 20 percent.”
Alphaland’s first semester comprehensive income surged to P3.36 billion this year, or over four times the P781 million income in the same period last year. This increase was attributed to brisk reservations for its Baguio Mountain Lodges project and new sales of private villas at beach club Balesin. In addition, the company reported strong performance in rental income from Alphaland Southgate Tower and Alphaland Corporate Tower.
Alphaland also plans to introduce two- and three-bedroom lodges in its Baguio project, which will sell for half the price of the current large four-, five- and six-bedroom lodges. This is seen to translate to stronger sales for the second half of the year.
Alphaland is also constructing four more Balesin private villas, which will be for sale to large corporations for use as incentive for their customers. These private villas will be completed before the end of the year.
Alphaland also launched earlier this year a 250-room luxury serviced apartments project, The Alpha Suites. In just three months, the company said this has contributed to the company’s profitability.
The 27,000-square meter Alphaland Corporate Tower at Makati Place is now also fully leased.
Alphaland said it continued to hold a strong balance sheet, with debt covering only 8.6 percent while equity accounted for 91.4 percent, the opposite of most property development companies.
Alphaland’s equity as of end-June stood at P64.7 billion. —DORIS DUMLAO-ABADILLA
