Crown Equities incurs P7.87-M loss in 1st qtr

Listed investment holding firm Crown Equities Inc. (CEI) widened its net loss to P7.87 million in the first quarter this year due to the deconsolidation of its tollways subsidiary and the write-off of pre-operating expenses.

In a financial report filed with the Securities and Exchange Comission, CEI said it had no significant source of income during the period under review.

CEI’s share in the net losses of its subsidiaries amounted to P26.7 million.

In Feb. 2004. the company sold its 60 percent interest in Hopewell Crown Infrastructure Inc. to Northeast Development & Acquisitions Corp.

Hopewell Crown is the builder of the proposed P29-billion South Luzon tollway project that stretches from the Alabang viaduct and passes through Calamba, Laguna; Sto. Tomas, Batangas; Lucena, Quezon; and ends at Pagbilao, Quezon.

It is a strategic company formed by Hong Kong-based Hopewell Holdings Ltd. and Crown Equities in 1997.

Given that Hopewell Crown is still at its pre-operating stage, the disposition of CEI’s investment in the former is expected to result to a partial but easier investment recovery and would allow CEI to sidestep a larger cash requirement to fund the project’s equity.

The sale of investment in Hopewell is a major source of future cashflows to the company.

CEI has another potential fund generating project through its subsidiary, Crown Central Properties Corp, which has tied up with property giant Sta. Lucia Realty and Development Inc. to develop a middle-class residential subdivision in a 28-hectare property in Binan, Laguna.

Sta. Lucia will take charge of the development of the property which is due for completion in 2007. CEI expects to receive at least P15 million within five months from the day the residential subdivision project is offered to the public. The project was formally launched on May 1, 2004.

In the near term, management of CEI expects its revenues to increase further in the near term due to the improved performance of its healthcare subsidiary.