Metro Pacific seeks partners for Ft Boni property

Metro Pacific Corp. is negotiating with possible strategic partners or retail developers for the development of its remaining 10.4-hectare property within Fort Bonifacio to further improve its liquidity position.

"We’re in discussions with a number of possible partners and developers and we hope to make an announcement before the end of the year," MPC director Edward Tortorici said at the sidelines of the company’s stockholders meeting last Friday.

Tortorici refused to name the companies MPC is in talks with but assured that the listed holding firm will make the necessary announcements as soon as negotiations are concluded.

"We’ll make the announcement at the appropriate time. We have a final plan on how to utilize the property. But you can be assured that we are working day and night to develop the property," Tortorici said.

Among the companies that have earlier signified keen interest in the Fort Bonifacio property are JG Summit Holdings Inc. of tycoon John Gokongwei Jr. and the SM Group of retail magnate Henry Sy.

MPC recently signed a deal that allowed the transfer of its $90-million loan from Larouge BV to Ayala Land Inc. and Campos-owned Evergreen Holdings, Inc.

The deal concluded the initial agreement forged by the Ayala-Campos group with MPC last November for the buyout of the latter’s 50.4-percent interest in Bonifacio Land Corp. (BLC) for $90 million.

Aside from the 50.4-percent stake in BLC, MPC will also assign to the Ayala-Campos group additional P655 million in Bonifacio Land notes currently owed by Bonifacio Land to Metro Pacific. On the other hand, MPC will continue to owe Larouge some $20 million in interest payments.

As a result of the Larouge transaction and dacion en pago (payment in kind) of additional BLC titles to other creditors, MPC’s interest in BLC has now been reduced to approximately 9.6 percent.

MPC, however, has received 10.4 hectares of titled, prime urban development property within the Bonifacio Global City, a valuable asset appraised at P3.8 billion, as repayment for past Bonifacio Land advances.

Last year, Fort Bonifacio Development Corp., a joint venture between the government-run Bases Conversion Development Authority and BLC, signed agreements with several mid-size developers for the expansion of its retail and entertainment centers.

Seeking to diversify the tenant mix, FBDC signed agreements with MTV Philippines for the construction of a state-of-the-art broadcast center. By end-2003, the Fort Square entertainment district will have over 30 available units for lease, comprising approximately 7,000 square meters of leasable space.

FBDC has also signed an agreement with private developers to construct the 18-story residential tower "Penhurst ParkPlace."

Additional lot sales and leases throughout the year saw other significant Philippine retailers such as MC Home Depot and Bridgestone Tires to construct large-scale retail centers.