MPC eyes joint venture partners for Batangas project

Metro Pacific Corp., the local flagship of the Hongkong-based First Pacific Co. Ltd., is scouting for joint venture partners for the development of a 300-hectare property in San Juan, Batangas.

In a briefing with reporters yesterday, newly-appointed MPC president Jose Ma. Lim said the company is looking for prospective partners to help develop the property into a residential resort project. MPC acquired the property in the 1990s.

The Costa de Madera project will be developed in phases, with the first phase involving the development of a beachfront expected to cost between P60 to P70 million.

Lim said the first phase will commence within the next six months.

Aside from Costa de Madera, MPC has P1-billion worth of real estate properties in Tagaytay, Central Luzon and Visayas, which the holding firm plans to develop in the long-term.

Through its upscale property subsidiary Landco Pacific Corp., MPC is diversifying further into the tourism and hospitality industries as it aims to become a significant player in these sectors.

Recently, Landco, together with Roxaco Land Corp., acquired a significant stake in Fil-Barcelo Hotels and Properties Management Co., the Philippine licensee of international hotel management company Barcelo Hotels and Resorts.

Barcelo Hotels is a major hotel and management company based in Palma de Majorca, Spain, and operates hotel and resort properties in Europe, North and South America as well as the Philippines.

With Costa de Madera, MPC hopes to duplicate the success of Landco’s landmark luxury residential resort project, Peninsula de Punta Fuego, which achieved a complete sell-out of all available lots last year. The 88-hectare project located in the popular Nasugbu resort area proved to be a popular second home investment for upper-income consumers.

Other projects of Landco are the Leisure Farms (the first agro-tourism residential project in the Philippines), a shopping center in Lucena City, and memorial parks.

As for its remaining 10.4-hectare property in Fort Bonifacio, Lim said MPC is in discussions with various companies for the development of the land.

Lim replaced PLDT president and chief executive officer Manuel V. Pangilinan who is now chairman of the MPC board. Pangilinan, though, will continue to serve as chairman, providing senior guidance and overall direction for the Metro Pacific group.

Lim served as MPC group vice president and chief financial officer since May 2001 and previously as senior vice-president and CFO of Fort Bonifacio Development Corp. from December 1995 to April 2003. He has an extensive background in both the real estate and financial services industry having been director of investment banking for First National Bank of Boston in the mid-1990s and as an assistant vice-president for Equitable Banking Corp. in the late 1980s.

Taking Lim’s previous position as MPC CFO is Vivian Liban, who is also concurrent company treasurer.

In a statement Pangilinan said: "These appointments are intended to further strengthen MPC’s revitalized management team which since late 2001, has successfully implemented a substantial debt reduction and business restructuring program."

As the new president of MPC, Lim has committed to steering the company back to profitability this year through the successful completion of its debt and business restructuring program.

"I am looking forward to advancing our debt reduction and business restructuring program as well as expediting MPC’s exit from its debt workout program into a period of stable, sustained profits. We have a strong and united management team, which is wholly focused upon rebuilding value for our investors, creditors and shareholders," Lim said.

MPC is hoping to end the year in the black as its expects negotiations with creditors for the full settlement or repayment of its debt to be completed this year.

With the completion of the Larouge transaction on April 17, which saw the repayment of P4.8 billion of debt, and other agreements that have been successfully concluded by way of dacion or by restructuring, the remaining debts to be addressed by MPCnow stands at only P2.5 billion.

The company expects to fully settle its debt through restructuring or dacion en pago (payment-in-kind scheme).

MPC recently reached an agreement with creditors for the restructuring of P1.4-billion debt out of its remaining P2.5 billion in debts.