In a disclosure to the PSE, Omico said Sta. Lucia and two other property firms– Asian Pacific Estates Development Corp. and Asian Empire Corp. – will develop its 23.25 hectare property in Urdaneta, Pangasinan into a residential and/or commercial subdivision.
A company official said the move is in line with the mining firm’s objective of rearranging its asset structure and converting its real estate investments into cash while considering opportunities outside of the property sector.
According to the official, Omico will receive a 45 percent share in the profits to be generated from the proposed venture. The remaining 55 percent will go to Sta. Lucia and its co-developers.
Cash generated from the project will be used by Omico to revive its mining ventures to take advantage of the renewed interest in the sector following a ruling issued by the Supreme Court allowing foreigners to own up to 100 percent of local mining firms.
In June 1993, a massive landslide caused by a typhoon resulted in the suspension of Omico’s previous exploration activities. In the following years, the mining industry suffered a slump caused in part by the Asian crisis and by the decrease in the worldwide demand and fall in the market prices of copper and other mineral products.
Since then, the company’s management of the company decided to limit its exploration activities to preparation of mine sites and to wait until the demand and market prices of copper and other mineral products become favorable before it starts mining operations.
The official said Omico could likely sign similar agreements with other real estate developers in the future. The company has real estate properties in Baguio, Tagaytay, Cabanatuan, Nueva Ecija, and Makati.
Sta. Lucia, on the other hand, has been very active in forging joint venture agreements with landowners including prominent companies such as Jaka, Alsons Land Corp., the Philippine Racing Club, Landco Inc. and the Manila Jockey Club. Most of its cash outlays are focused on land development instead of purchases.