Fil-Estate Land incurs P138-M losses in Oct-Dec 2010
MANILA, Philippines - Fil-Estate Land Inc. , a property firm recently taken over by tycoon Andrew Tan, incurred a net loss of P138.12 million in the first quarter of its fiscal year ending September 2011, a sharp turnaround from the P16.12 million profit reported in the same period a year earlier.
The loss was due to lower sales and increased finance cost and other charges.
In a financial report submitted to securities regulators, Fil-Estate said revenues fell 41.2% in the October to December period last year to P90.06 million from P153.17 million. Sales of real estate and golf club and resort shares amounted to P39.4 million, down 20.2%.
Sales were derived from sale of condominium units and residential lots Forest Hills in Antipolo City, Riverina in San Pablo City, Puerto Real De Iloilo in Iloilo City and golf club and resort shares in Fairways and Bluewaters in Boracay.
Equity in net earnings and other income was P22.25 million, compared with P79.27 million a year earlier.
Cost and expenses jumped 71.9% to P230.29 million as interest and other charges swelled more than three-fold to P121.9 million.
As of end-December last year, the company had total assets of P15.95 billion.
Fil-Estate is now virtually debt-free with the full payment of a revolving credit facility and the redemption of convertible bonds issued in 2008, using the fresh capital infused by Tan’s listed flagship firm Alliance Global Group Inc.
Tan acquired a 60% stake in Fil-Estate for P5 billion. The purchase was done via the subscription to Fil-Estate’s increase in capitalization from P5 billion to P10 billion.
Tan is now the chairman and president of Fil-Estate, which will be renamed Global Estate Resorts Inc.
The group of businessman Robert John Sobrepeña retained a fifth of Fil-Estate, which used to be a premier real estate developer until the 1997 currency crisis gripped Asia.
AGI’s purchase of a majority stake in Fil-Estate is expected to boost the latter’s bid to reclaim its leading position in the industry, backed by the financial muscle of the real estate firm’s new majority owner.
AGI is also seen to benefit from the purchase as it gives them ample landbank for future expansion and positions itself on the growing tourism industry.
Fil-Estate owns more than 1,000 hectares of tourism-oriented communities in the country’s prime tourist spots which include Tagaytay and Nasugbu, Batangas.
AGI is an active player in a wide range of industries from tourism and real estate development to food and beverage, quick-service restaurants and hotels and resorts development. Among its units include Travellers International Hotel Group, Megaworld Corp., Emperador Distillers Inc. and McDonalds.