Next Properties is a real estate development firm reportedly controlled by International Container Terminal Services Inc. (ICTSI) chairman Enrique Razon.
Under the agreement, Philrealty will contribute two adjacent lots covering 4,423 square meters of land to the joint development project while Next Properties will be responsible for the construction of the two towers over a period of five to six years.
As its share of the earnings of the joint venture, Next Properties will pay for the two lots and give Philrealty a share of the profits from the sale of the residential towers.
Based on the latest land sale in Fort Bonifacio, a commercial-residential development near the financial district of Makati, each square meter has been valued at 100,000. At that price, Philrealty’s lots are worth a combined P442.3 million
At the same time plans to build smaller condominium units in the former military complex which the company believes is most marketable.
Meanwhile, proceeds from the proposed project will be used to finish Philrealty’s Andrea North residential complex in New Manila, Quezon City, estimated to cost P1.18 billion.
Philrealty’s rehabilitation receiver considers the completion of the Andrea North skyline Project critical to the firm’s rehabilitation efforts "as this would restore public confidence on the ability of Philrealty to continue and complete its on-going projects and undertake new projects in line with its main purpose of real estate development."
The receiver expects Philrealty to raise about P3.89 billion in cash over a period of 15 years assuming that the company can limit total administrative expenses to a yearly increase of five percent per annum.
Under its rehabilitation plan. Philrealty will settle P1.31 billion in secured debt through dacion-en-pago or payment-in-kind scheme and restructure P890.6 million in debt over a 10-year period.
Since 1998, the company has been offering land properties to the banks as payment for its obligations.
Philrealty filed for rehabilitation with the courts after being saddled with losses since the slump of the real estate industry in 1997. In its petition for suspension of debt payments, Philrealty said its cashflow has been insufficient to fully service its P3.76-billion liabilities, as well as finance its working capital needs.
Once a high-profile real estate company, Philrealty is primarily known for its projects in the Ortigas Center, foremost of which is the Textite Towers – the headquarters of the Philippine Stock Exchange (PSE).
Philrealty’s other projects and landbank include the Alexandra Condominiums in Ortigas and lot properties in Tagaytay, Batangas, Quezon and Rizal.