Biz Buzz: Gaisanos going public

IF the Metro Gaisano group has been quietly raising its stake in financial services over the years, this is part of plans to establish a bigger business footprint given good growth prospects for its flagship shopping mall and retailing operations.

Banking sources said this particular branch of the vast Gaisano clan—run by siblings Margaret (Gaisano-Ang), Jack, Edward and Frank Gaisano—has sounded off plans for a stock market debut. So it wasn’t a surprise that the Metro Gaisano group—whose holding company is Vicsal Development Corp.—recently struck a deal to take over a leading local investment house, AB Capital and Investment Corp.

Under Vicsal Investment (named after their parents Victor and Sally), the Metro Gaisano group operates eight shopping malls and department stores (four in Cebu and four in Luzon) while a ninth is under construction at the Alabang Town Center. The existing chain includes two department store/supermarkets that act as anchor tenants for Ayala’s Market!Market! in Taguig and Marquee Mall in Pampanga.

Asked to validate the buzz about a prospective stock market debut, ex-BPI executive Senen Matoto, who heads Vicsal Investment, says going public has always been in the pipeline while noting that real estate investment trust (REIT) is likewise a live option.

“Whether it will be a new IPO [initial public offering] or REIT, it still has to be evaluated. It depends on the rules but that’s the natural direction,” given the opportunities for the group to participate in the country’s growth momentum, he adds.

At present, Metro Gaisano owns listed company Filipino Fund Inc., which was bought from BPI in 2003. There were speculations in the past that FFI could be used as a backdoor-listing vehicle for the group’s retailing and shopping mall interests. Whether through the backdoor, front door, REIT or newly acquired AB Capital (whose branding will be retained), expect the Gaisanos to be more active in the equity markets.—Doris C. Dumlao

High networth BF clients

IF you hear some influential lawmakers suddenly “lawyering” for the shuttered Banco Filipino over the next few days, don’t be too surprised.

According to our sources, some honorable senators and distinguished congressmen are among the most surprised when the bank closed its doors to withdrawals last week.

And it doesn’t look like they’ll be too happy with the outcome despite the promises of Philippine Deposit Insurance Corp. of a speedy payout for insured deposits.

Why? Well, let’s do the math: Word from PDIC is that only P9.4 billion of Banco Filipino’s estimated P15 billion in total deposits are covered by deposits insurance.

That amount is divided, however, among 97 percent of the bank’s 177,652 depositors—meaning about 5,200 depositors account for about P5.6 billion in deposits. That’s a lot of money for a small number of clients, many of whom may have been attracted by interest rates allegedly ranging from 10 to 15 percent.

So look out for those lawmakers who make the most noise during the inevitable congressional investigation that will follow.—Daxim L. Lucas

Ateneo-SM face-off

THE Ateneo community has taken up the cudgels for the rest of the Loyola Heights community when it issued last week a statement opposing the construction of SMDC’s 42-story Blue Residences condo along Katipunan Avenue.

According to the statement posted on Ateneo’s website, SMDC was granted an exemption from zoning regulations (the area is largely residential, although it has been succumbing to rapid urbanization in recent years) under unusual circumstances. This exemption was what supposedly allowed SMDC to build a structure that is even taller than most buildings in Makati City.

The Ateneo statement also alleged that SMDC began construction of the building long before an actual building permit was issued by the Office of the City Engineer.

As such, the school is asking SMDC to stop construction of the building—notwithstanding the fact that it is almost completed—pending a dialogue with the stakeholders in the community.

The allegations were, of course, denied by SMDC, which said that the Sy family-controlled firm had complied with all required procedures and obtained all the necessary permits before starting construction on the site.

The company added that, contrary to allegations, it had also studied the vehicular traffic and population density patterns in the locality, and concluded that the building would not aggravate the situation (in any case, Katipunan traffic is already heavy during peak hours).

It remains to be seen, of course, which side will prevail. According to one industry source, however, a compromise of sorts is the most likely outcome, given that the building’s construction could no longer be undone at this point.—Daxim L. Lucas

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