Megaworld raises $200M from bond offer

Tycoon Andrew Tan’s property development arm Megaworld Corp. has closed a $200-million offering of seven-year US dollar-denominated debt paper at a coupon rate of 6.75 percent.

The bond deal was priced Friday night near the earlier-stated indicative rate and was priced to yield 6.875 percent, said Lauro Baja, managing director for the Philippines at UBS, which arranged the deal.

The offering by Megaworld, an unrated issuer in the overseas debt market, was oversubscribed even without having to conduct a road show, Baja said. “This indicates investors’ confidence in Andrew Tan’s group,” he said.

Baja said about half of the debt issuance was taken up by Asian investors, mostly domiciled in Hong Kong and Singapore. The rest was snapped up by various global funds.

Megaworld’s return to the bond market was timely given the recent resurgence of global investor appetite on emerging market assets.

Megaworld last tapped the offshore bond market in July 2006 with a $100-million, five-year debt issue.

The lengthening of the maturity to seven years in this latest offering, Baja explained, showed how investors were increasingly comfortable with Megaworld’s creditworthiness. Baja also noted that in a span of a single week, Tan’s group raised $450 million in fresh funds in a mix of debt and equity deals.

Megaworld’s parent Alliance Global Group Inc. earlier sold P9.7 billion in treasury-held shares through a private equity deal with mostly foreign investors. Some of the shares sold were owned by Megaworld itself. UBS likewise arranged the previous equity deal.

Megaworld’s corporate notes will be listed on the Singapore Exchange Securities Trading Ltd. (SGX).

The property firm intends to use the net proceeds from the issue of the notes to refinance some of its outstanding indebtedness and for general corporate purposes.

The Megaworld group comprises foremost high-end property brand Megaworld and its associates Empire East Land Holdings and Suntrust Properties, which focus on medium-cost and affordable housing, respectively. The group is the developer of five live-work-play communities in Metro Manila—Eastwood City in Quezon City; McKinley Hill, McKinley West and the upcoming Bonifacio Uptown in Fort Bonifacio; and Newport City in Pasay City.

Over the last two decades, the Megaworld group has built more than 200 residential and office buildings with a total floor area of around 5.4 million square meters to become one of the country’s leading property developers.

source: Philippine Daily Inquirer, April 11 2011

AGI nets P9.5B in 2010, up 40 percent

Its full year net income attributable to shareholders rose 44 percent to P6.9 billion from a year ago, the company disclosed to the Philippine Stock Exchange on Monday. Earnings per share based on net income attributable to shareholders during the period increased by 44 percent to P0.71 per share.

Property arm Megaworld Corp. contributed 40 percent to AGI's net of minority interest while non-real estate businesses consisting of consumer food and beverage and integrated tourism projects accounted for 60 percent.

"We believe that all our business units will continue to sustain their strong growth momentum in 2011," said AGI chair tycoon Andrew Tan.

"We are ready to fast-track our real estate developments and capture new growth opportunities in the tourism sector, especially with our investment in Global-Estate Resorts. Both real estate development and integrated tourism will be our main drivers of long-term value creation that is sure to benefit our shareholders," Tan said.

Lastly, FYI for related information on the new real estate law, RA 9646, please proceed to www.RA9646.com, the online repository of updated information on Real Estate Service Act of 2009 (RESA).

source: Inquirer, April 18 2011

TWIN LAKES: Fil-Estate, Megaworld in P5B Tagaytay Tourism Development

TWIN LAKES: Fil-Estate, Megaworld in P5B Tagaytay Tourism Development

Andrew Tan takes over as chairman-CEO of Fil-Estate Land

Andrew Tan takes over as chairman-CEO of Fil-Estate Land

TWIN LAKES: Fil-Estate, Megaworld in P5B Tagaytay Tourism Development
The Philippines' Fil-Estate (PSE:FC) has announced it is teaming with Megaworld Corporation (PSE:MEG) to develop more than 1,149 hectares of land in Tagaytay into an estimated US$112.7 million world-class tourism-oriented community to be called Twin Lakes.

In a disclosure to the Philippine Stock Exchange, the real estate company also announced it has just commenced the master-planning of Twin Lakes, a project set to offer resort estates overlooking panoramic views of its very own waterway as well as Taal Lake.

"The entire community will be developed by phases and will become the country's most integrated tourism estates," Fil-Estate vice president Sylvia Hondrade said.

Initial phases of the development will host a luxury hotel, residential villas and condominiums, a shopping village, botanical garden, sports and country club and plantation estates.

The project cost of the initial phases is estimated to exceed P5 billion (US$112.7 million).

"Twin Lakes stretches from Tagaytay's mountain peak down to its lakeside. The project's vast land size opens up a lot of possibilities for development," Hondrade added.

Succeeding phases will offer a golf course, international hotels, boarding schools and a retirement village complete with wellness and medical amenities.

"We want to take advantage of the cool weather in Tagaytay. Our ultimate goal is to transform these resort estates into prime destinations for medical and educational tourism over time," she concluded.

For details on Twin Lakes, you may contact Reby Ramirez @ +63 916.4044.555 / +63 919.699.3572 / +63 922.941.4139 or e-mail: reby_ramirez@yahoo.com

For details on RA 9646 or RESA Law, please visit www.ra9646.com. RA9646.com is the central depository of all updates on the new law for the practice of real estate service in the Philippines.

source: TradingMarkets.com
Monday, Jan 24 2010

Fil-Estate, Megaworld to develop tourism community in Tagaytay

MANILA, Philippines - A new integrated residential-resort development in Tagaytay will soon rise after two real estate companies decided to pursue the project.

In separate disclosures to the stock exchange on Jan. 24, Sobrepeña-led Fil-Estate Land, Inc. and Andrew Tan-led Megaworld Corp said they have teamed up to develop a world-class tourism-oriented project called "Twin Lakes," a 1,149 hectares

"Fil-Estate has just commenced the master-planning of Twin Lakes, a project set to offer resort estates overlooking panoramic views of its very own lake as well as Taal Lake," the disclosure said.

"Twin Lakes stretches from Tagaytay's mountain peak down to its lakeside," it added.

The first phase of development will include

• a luxury hotel
• residential villas and condominiums
• a shopping village
• botanical garden
• sports and country club
• plantation estates

The project cost of the initial phases is estimated to exceed P5 billion.

Succeeding phases will offer

• a golf ourse
• international hotels
• boarding schools
• a retirement village complete with wellness and medical amenities

"We want to take advantage of the cool weather in Tagaytay. Our ultimate goal is to transform these resort estates into prime destinations for medical and educational tourism over time," said Fil-Estate Vice President Sylvia Hondrade.

"The project's vast land size opens up a lot of possibilities for development," she added.

Stalled

The two real estate firms first formed a joint venture in 2007 to develop Twin Lakes, which sits on the Taal Ridge in Laurel town, Batangas.

Fil-Estate and Megaworld were supposed to infuse and initial P5 billion capital in cash plus property into a joint venture firm.

Fil-Estate called off the deal in November 2008, when the global financial crisis, then already in full swing, squeezed credit and slowed down real estate growth.

Meantime, Megaworld's parent, Alliance Global Group, went on with its tourism-related projects.

It opened Resorts World Manila, the country's very first integrated tourism estate, in August 2009.

Resorts World hosts

• high-end hotels (Maxims Hotel, Marriott Hotel, Luxury Hamilton Hotel, Remington Hotel)
• a grand mall
• a world-class theater that seats 1,500 people
• restaurants
• high-end luxury shops
• an exclusive lifestyle club
• spas
• gaming areas
• others

In December 2010, Alliance Global announced that it acquired 60% in Fil-Estate Land in line with the the Tan-led firm's strategy of investing in tourism-related projects outside Metro Manila.

source: ABS-CBN, Jan 24 2011

Andrew Tan takes over as chairman-CEO of Fil-Estate Land

MANILA, Philippines – Real estate tycoon Andrew Tan has taken over the reins of Fil-Estate Land Inc. following the completion of the purchase of nearly 60% of the company.

Tan, through listed investment holding firm Alliance Global Group Inc., has taken over Fil-Estate in a deal valued at P5 billion, P1.25 billion of which had already been paid.

With the purchase, Tan was installed as chairman and chief executive officer of Fil-Estate, which will be renamed Global Estate Resorts Inc.

The group of businessman Robert John Sobrepena has retained a fifth of Fil-Estate, which used to be a premier real estate developer until the 1997 currency crisis that gripped Asia.

AGI’s purchase of a majority stake in Fil-Estate should boost the latter’s bid to regain its strong presence in the real estate industry and allow it to pursue projects that had been hampered by liquidity problems.

“With the infusion of new capital by AGI, Fil-Estate is now in a strong position to pursue various tourism-oriented projects immediately. It has just started with the master planning of the Newcoast Station, a new tourism-oriented community project in Boracay,” AGI said in a disclosure to the Philippine Stock Exchange.

Fil-Estate owns and controls more than 10% of the total land area in Boracay. “This gives it the capacity to improve existing tourist attractions and develop new ones in the island,” AGI said.

AGI said its Newcoast Station project will serve as a catalyst for the growth of the Boracay tourism industry.

With the purchase, AGI will be able to develop more than 1,000 hectares of tourism-oriented communities in the country’s prime tourist spots which include Tagaytay and Nasugbu, Batangas.

AGI, one of the country’s largest conglomerates, 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.

source: ABS-CBN, Jan 14 2011

Tan takes over Fil-Estate; firm renamed Global-Estate Resorts

MANILA, Philippines - The Alliance Global Group, Inc. of property tycoon Andrew L. Tan finally completed its P5-billion acquisition of a majority stake in Sobrepeña-led Fil-Estate Land, Inc., after delays in legal paperwork.

“Closing of the subscription agreement among Fil-Estate Land, Fil-Estate Management, Inc. and Alliance Global Group occurred [yesterday],” both parties said in separate disclosures.

Alliance Global said it paid P1.25 billion in cash, or 25% of the total subscription price for Fil-Estate Land shares.

“With the infusion of new capital by Alliance Global, Fil-Estate is now in a strong position to pursue various tourism-oriented projects immediately,” Fil-Estate Land said. “It has just started with the master planning of the Newcoast Station, a new tourism-oriented community project in Boracay,” it added.

Fil-Estate Land said it owns and controls more than 10% of the total land area in Boracay. The island covers 1,006 hectares.

“The development of Newcoast station, along with the new Caticlan airport ... aims to double the number of tourists to the island in the next three to four years,” Fil-Estate Land said.

Mr. Tan assumed the chairmanship of Fil-Estate Land, which will be renamed Global-Estate Resorts, Inc.

Since last week, the two companies have postponed the completion of the deal twice, sending share prices lower.

Alliance Global announced the purchase of 60% of Fil-Estate Land late last month. The acquisition is expected to fast-track the expansion of Alliance Global’s tourism projects outside Metro Manila as it aims to become the largest tourism player in the country.

Alliance Global wants to develop more than 1,000 hectares of tourism-oriented communities in the country’s prime tourist spots such as Tagaytay, Nasugbu, and Boracay.

The listed holding firm -- which is into tourism (Travellers International Hotel Group, Inc.), property (Megaworld), liquor (Emperador Distillers, Inc.), and fastfood (Golden Arches Development Corp., the master franchise holder of McDonald’s in the Philippines) -- reported a 63% profit hike to P5.39 billion in the nine months that ended in September last year from the previous year’s P3.31 billion.

Shares in Alliance Global closed P0.22 higher at P11.20 each yesterday while shares in Fil-Estate Land dropped by P0.05 to P1.54.

source: ABS-CBN, Jan 13 2011

World Finance Plaza Tower

As proof of its commitment to the local business process outsourcing (BPO) sector, Megaworld Corporation announced the turnover of the new World Finance Plaza tower in McKinley Hill Cyberpark to its locators.

The World Finance Plaza is the 11th BPO building to be finished by Megaworld, who is known to be one of the country’s top BPO landlord and developer over the past three years in this Fort Bonifacio township.

“With the completion of our 11th tower, the entry of more BPO companies and our total employee count of 15,000, we can now say that McKinley Hill Cyberpark is a top BPO location in the country,” said Megaworld FVP for Business Development Jericho Go.

“Even as the entire BPO industry is looking forward to 2016, with estimated export revenues of US$25 billion and employee count of 1.3 million, we are busy preparing for this now. Surely, new developments like the World Finance Plaza will address the office requirements of BPO companies for the next few months and will generate thousands of new employment opportunities for our countrymen over the same period,” he added.

The new building hosts 15 floors and 27,000 sqm of total space for lease. It is fully compliant with the requirements of BPO companies for fiber optic wiring and variable refrigerant flow technology, wherein locators can cool only particular zones anytime of the day. This translates to electricity cost savings.

Since it is located in an IT park accredited by the Philippine Economic Zone Authority (PEZA), the World Finance Plaza offers new tenants income tax holidays and other perks, including the duty-free importation of office equipment.

For details on Megaworld projects, contact Reby Ramirez @ +63 916.4044.555 / +63 922.883.9308 / +63 919.699.3572 or e-mail her at reby_ramirez@yahoo.com.

Source: Manila Bulletin, 06 December 2010

RA 9646, popularly known as Real Estate Service Act ( RESA ) has been approved for implementation when its Implementing Rules and Regulations ( IRR ) was published on July 24 2010 at Philippine Daily Inquirer and Philippine Star. For details on the RESA Law, visit www.ra9646.com, the central repository of all updates on RA 9646.

Megaworld sales up 81%

Andrew Tan-led Megaworld Group posted an 81 percent increase in sales in the first nine months of 2010.

In a disclosure to the Philippine Stock Exchange yesterday, the Megaworld Group said it sold P36.3 billion worth of property and housing units, almost double the P20.2 billion posted in the first nine months of 2009.

The Megaworld group comprises three brands catering to different market segments, namely, Megaworld, Empire East and Suntrust.

Megaworld Corp. had the biggest contribution in total sales, amounting to P29.7 billion.

"The amount came from Megaworld’s ongoing residential projects in Metro Manila including Eastwood City, McKinley Hill, Newport City and Manhattan Garden City," Megaworld said.

Empire East Land and Suntrust Land, posted combined sales of P6.9 billion.

"Empire East and Suntrust are focused on medium-cost and affordable housing, respectively," Megaworld said.

"Both developers have ongoing projects in Metro Manila and in the nearby growth centers of Cavite and Laguna," it added.

Megaworld said that it has five mega-community projects on the rise, namely, Eastwood City in Quezon City; McKinley Hill, McKinley West, and Bonifacio Uptown in Fort Bonifaco; and Newport City in Pasay City.

"Once fully developed, these five mega-communities will be home to around 48,000 families and 202,000 BPO office workers," Megaworld said.

"In the last two decades, Megaworld and its affiliates have completed more than 200 residential and office buildings with a total floor area of approximately 5.4 million square meters," Megaworld added.

For details on Megaworld projects, contact Reby Ramirez @ +63 916.4044.555 / +63 922.883.9308 / +63 919.699.3572 or e-mail her at reby_ramirez@yahoo.com.

Source: Business Insight, October 13 2010

For details on the Real Estate Service Act or RESA Law > www.ra9646.com

AGI predicts 38% income growth for stockholders

Alliance Global Group, Inc. (AGI), in a disclosure to the Philippine Stock Exchange, announced that it expects net income attributable to

shareholders to grow by at least 38 percent to approximately P6.62 billion in 2010 compared to the P4.80 billion netted last year.

It also expects to replicate its growth this year with another 38-percent growth in net income in 2011.

The company is focused on and has leadership positions in high-growth industries that mirror the strength and prospects of the Philippine economy, namely, consumer, business processing outsource (BPO) and tourism.

AGI, led by its founder and chairman Andrew L. Tan, is one of the Philippines? largest conglomerates that operates a diversified range of businesses in the real estate

development, food and beverage, quick service restaurants (QSR) and integrated tourism/resorts industries.

?With the improving global economic climate, backed by the renewed optimism of the local and foreign investors regarding the growth prospects of the Philippines, we are confident that AGI is poised to take advantage of such an environment and build on the momentum we have created in all segments of our business,? AGI president Kingson U. Sian said.

He also stressed that its listed real estate arm, Megaworld Corporation (MEG), has seen a brisk take up in sales of its residential developments.

The MEG group of companies sold P33 billion worth of real estate projects under the Megaworld, Empire East and Suntrust brands in the first eight months of 2010.

?The strong take up in sales is attributable to the strength of our live-work-play-learn communities,? Sian emphasized.

Megaworld is a pioneering developer of integrated live-work-play-learn communities in the country.

To date, it has six township developments under way in the most strategic locations in Metro Manila, in addition to several luxury residential condominium projects in the heart of the Makati central business district (CBD).

For the remainder of the year, MEG is set to launch projects in Manila through Palm Bay, McKinley Hill, the Makati CBD, Newport City and North Bonifacio CBD.

Food and beverage arm, Emperador Distillers, has remained to be the most profitable liquor company in the Philippines.

Meanwhile, QSR arm, Golden Arches Development Corporation, the master franchise holder of McDonald?s in the Philippines, has put in place clear strategies for growth that would take advantage of the prevailing strong consumer confidence.

On the tourism estate development, Travellers International, a joint venture between AGI

and Genting Hong Kong, is operating the country?s first integrated tourism estate called Resorts World Manila.

Just across from Ninoy Aquino International Airport Terminal 3, Resorts World Manila is a world class facility which includes 3 hotels totaling 1,226 rooms, a

1,532 seat Newport Performing Arts Theatre, retail and entertainment facilities.

Resorts World Manila is planning to build additional hotel rooms that will bring total rooms to about 1,500 rooms, making it the largest hotel owner and operator in the country.

AGI further announced that it targets issuance of dividends of at least P0.33 centavos per share, up from P0.18 centavos per share it announced earlier this year.

By next year, total cash resources of the group, including Travellers International, should amount to about P60 billion.

We have built a solid base to ensure a promising future for AGI. With the resources that we have and the strength of each of our businesses, we are confident of our ability to sustain our momentum further in the coming years,? Sian concluded. (PNA)

source: Trading Markets, 05 October 2010

Real estate, tourism to lift AGI earnings next year

Alliance Global Group Inc. (AGI) expects to register strong growth next year on the back of the robust contribution of its real estate and tourism ventures.

The Andrew Tan-led holding company expects its net income attributable to shareholders to increase by at least 38 percent this year to P6.62 from P4.8 billion last year.

“Because of the sheer momentum of the growth of the economy and the business itself, we believe we can do another 38 percent next year on top of [our performance] this year,” Kingson Sian, AGI president, told reporters on the sidelines of the firm’s annual stockholders meeting.

In the first semester, AGI’s profit hit P4.38 billion, up 36 percent from P3.56 billion last year because of the strong contribution of its units.
Sian said the holding firm’s property arm will continue to deliver the bulk of its revenues, followed by its fast-growing tourism ventures and its consumer businesses.

By next year, total cash resources of the group would amount to about P60 billion.

AGI’s real estate arm Megaworld Corp. experienced brisk sales take-up in its residential projects. The Megaworld group of companies, which also includes Empire East and Suntrust brands, have sold P33 billion worth of real estate projects in the first eight months.

For its other projects in Metro Manila, Megaworld plans to replicate the “live-work-play-learn” communities in Eastwood City. It has sold 7,000 condominium units in Eastwood City alone at par with the 15,000 units in Makati, Sian said.

The property developer will also take advantage of its huge land bank, which will be good for the next 15 years. It owns 105 hectares in Fort Bonifacio, 40 hectares in Manila, 25 hectares in Newport City, 25 hectares in Cebu and 54 hectares in Iloilo.

From its total leasable space of 450,000 square meters, Megaworld is looking to generate P3 billion in rental income from its office buildings and commercial outlets.

“By the end of 2010, we’ll have 384,000 square meters of office space, most of it leased up already,” Sian said.

Its upcoming projects include office developments Palm Bay along Roxas Boulevard and One Uptown Place in Fort Bonifacio in Taguig, and residential projects One Eastwood City and Two and Three in Central Makati.

Travellers International, a joint venture between AGI and Genting Hong Kong, is expected to make “substantial” contribution to the Philippine holding firm’s revenues this year following the first full-year operations of its integrated tourism estate Resorts World Manila.

Since opening in September last year, the entertainment facility has attracted 2.5 million tourists, mostly coming from Korea, China and Southeast Asia.

Through Travellers International, AGI will invest over $740 million until 2012 to develop Resorts World, which includes the 172 all-suite Maxims Hotel, the 342-room five-star Marriott Hotel and a budget hotel called Remington.

It will also build the four-star Hamilton Hotel, which will bring its total rooms to 1,800.

AGI’s food and beverage arm, Emperador Distillers Inc., will expand its production facilities because of strong demand. Emperador is also set to introduce new products under its flavored alcoholic drink brand ‘The Bar’, which has gained strong popularity among female and young adults.

“Emperador will continue to grow, if not reach a banner year this year,” Sian said.

Golden Arches Development Corp., the master franchise holder of McDonald’s in the Philippines, will open at least 25 stores next year. By yearend, it will have a branch network of 310 stores.

AGI plans to increase its dividend issuance to at least 33 centavos per share from 18centavos announced earlier.

AGI shares fell from P9.54 on Monday to P9.50 each on Tuesday.

For details on Megaworld projects, please contact Reby Ramirez @ +63 916.4044.555 / +63 922.883.9308 / +63 919.699.3572 or e-mail her at reby_ramirez@yahoo.com.

Source: Manila Times, 06 October 2010

For details on the Real Estate Service Act or RESA Law > www.ra9646.com