Alphaland knocks on PSE’s doors for help in airport plan

Property developer Alphaland Corp. plans to return to the Philippine Stock Exchange (PSE) and raise fresh funds to develop a 750-hectare property at the southern tip of Patnanungan Island in Quezon, envisioned to be the international gateway to plush Balesin Island Club.

“I think it makes sense for Alphaland to relist. I think Patnanungan is a huge deal,” Alphaland’s incoming president Dennis Valdes said in a media chat last week. Valdes has resigned as president of Philweb Corp. to join Alphaland effective Feb. 1 this year.

Patnanungan is a shoe-shaped fifth-class island municipality facing the Philippine Sea.

“What I like about Patnanungan is it’s a huge development in an area in the Philippines that nobody has invested in. So imagine if you build an airport there and a [sea] port there. At some point, you’re bringing development to an under-resourced area of the country. There’s got to be a lot of people who will benefit from that. So there’s a social development aspect of Patnanungan that I like,” Valdes said.

Alphaland’s flagship project, leisure estate Balesin Island Club which is 21 nautical miles from Patnanungan Island, cost about P6 to P8 billion to be developed fully. Since Patnanungan Island is 150 percent the size of Balesin, Valdes estimated that development could cost around P10 billion.

“So it doesn’t seem to make sense to find totally in-house funding,” Valdes said, noting the need to find significant partners and raise fresh funds from the stock market.

He said Alphaland chair and founder Roberto V. Ongpin (RVO) would want to list Alphaland again.

“He still believes in the Philippines. He looked at Bangkok. He looked at Singapore but in his heart of hearts, RVO has always been a Pinoy investor so I think he will relist Alphaland this year or next depending on timing,” Valdes said.

In a letter to shareholders in 2018, Ongpin already expressed interest to go back to the PSE after a five-year recess. He added they were in discussions with groups that have potential to become “anchor” investors.

In 2014, the PSE ordered the delisting of Alphaland and issued a ban against top executives from sitting on the boardroom of any company applying for a stock debut. The company was also prohibited from applying for relisting within a period of five years from the effective date of delisting. The five-year ban ended in late 2019.

“The Balesin Gateway project consists of 750 hectares on Patnanungan Island where we intend to build an international airport so that overseas guests and members of Balesin can bypass the mess in Manila and be able to enjoy Balesin Island much more easily,” Ongpin said.

The Balesin International gateway will have a 2.5-kilometer runway and international airport, an 18-hole championship golf course, five branded hotels and about 2,000 residential sites. It will be open to the public, unlike the members-only Balesin. INQ