Belle Corp branches out into farmland development

Property and gaming firm Belle Corp. is branching out into agricultural farmland development in an effort to improve its cashflow operations.

Documents filed at the Securities and Exchange Commission showed Belle is now in the initial stages of building a farm lot subdivision within a large tract of land near the Tagaytay Midlands complex, generally known as the Tagaytay Greenlands.

The project is envisioned to tap into the niche market of both the professional grower and the lifestyle farmer.

The subdivision, to be named Plantation Hills, will afford lot buyers the opportunity for cut-flower and vegetable cultivation, and other agricultural pursuits.

Belle said the project is expected to be launched as soon as it gets the approval from the relevant government regulatory agencies to sell the project.

Company officials are confident that Plantation Hills will be a major contributor to Belle’s bottom line, as sales of its farm lot project are expected to result in a substantial pickup in revenues during the second half of the year.

Apart from this, the company is planning to develop the 18-hole south course of the Tagaytay Midlands Golf Club.

Belle is also in the planning stage of a country club-type of development with lakeside features and amenities, the shares of which will be sold separately. On the gaming side, Belle said it is in talks with various parties for the use of the horse racing franchise of its 70-percent owned subsidiary Metro Manila Turf Club Inc.

Belle reported a turnaround in its financial performance during the first three months of the year as it posted a net income of P163.39 million, from a net loss of P259 million the same period a year ago.

The company said the marked improvement resulted mainly from a decrease of P113.3 million in financial charges and P251 million in gains from the repurchase of $6.7 million in principal amount of its floating rate notes at substantial discounts.

Net revenues of Belle from sales of real estate and club shares for the first quarter this year, however, decreased to P41.4 million from P68.3 million Gross profit likewise declined by 32.8 percent to P25.5 million.

From other charges of P260.39 million, the company reported an operating profit of P172.52 million.

Sales revenues from real estate activities are generated from new sales of residential properties and club memberships.

Total operating expenses, including depreciation and amortization, went down to P27.8 million as against P35.2 million last year, helped substantially by lower depreciation expenses as a result of the company’s disposal of unnecessary fixed assets during the period.

As of end-March this year, total assets of the company decreased by P70.9 million to P11.54 billion, due mainly to the use of assets to reduce liabilities. Total liabilities stood at P6.6 billion as of the same period or 3.4 percent lower than the previous level.