Growth prospects of real estate developer Landco Pacific Corp. (Landco) remain on track, the owners said on Monday, even as talks on potential changes in ownership continue.

Currently, Landco, a developer of high-end leisure, urban, and hometown communities, hotels and resorts, malls and central business districts (CBD) complexes, is owned by listed company Metro Pacific Investments Corp. (MPIC), and the block of AB Holdings Corporation (ABHC) and the Xerez-Burgos family. The two groups have a 51 percent and 49 percent stake, respectively.

Each group has plans to either partner with another investor or raise their own funds to buy the other out.

MPIC is rationalizing its investment in Landco after it extended a P500 million loan to settle maturing loans, support working capital requirements, and speed up the completion of its projects. The company has successfully pre-sold some of its projects, with sales increasing up to 91 percent in 2007.

The loan was part of MPIC's effort to build Landco as a major real estate player. MPIC, however, is still ready to dispose its stake in the subsidiary. "At this point, MPIC is just rationalizing its investment in Landco given the size of its investment portfolio including infrastructure, utilities and healthcare," MPIC president Jose Ma. Lim explained.

"MPIC would like to assure Landco's other stakeholders that if MPIC buys out ABHC's stake in Landco, ABHC and the Xerez-Burgos group will retain a 10 percent stake in Landco. At the same time, Mr. Xerez-Burgos and the management team have agreed to stay on to ensure stability and continuity of the business," Lim said.

If MPIC buys out ABHC's share in the property firm, it would justify the move to increase its equity in Landco since it will now be of significant size to be more competitive in the industry.

Meantime, Alfred Xerez-Burgos Jr., vice-chair of ABHC, also said that they are now looking for an investor who will acquire MPIC's share in Landco. ABHC has the option to raise 49 percent of its share in the short-term loan and exercise its option to buy MPIC's 51 percent stake up to November.

"In any scenario, Landco's growth and sustainability is assured," commented Xerez-Burgos.