Binondo-based property developer Anchor Land Holdings Inc. failed to perk up investor interest as it listed its shares at the stock market yesterday, given dismal market conditions on increasing credit fears in the US market.
Anchor Land stocks closed at P8.10, 10.25 percent lower than the firm’s initial public offering (IPO) price of P8.93 each share.
Analysts said Anchor Land’s listing was ill-timed since investors are still cautiously monitoring developments overseas and unwilling to bet on a small-sized company.
Anchor Land raised a total of P770 million from the offering of 346 million new common shares, representing 25 percent of the three-year old firm’s outstanding capital.
Anchor Land vice-president Steve Li said retail tycoon Henry Sy was the company’s major investor with the purchase of a 10-percent block, or 34.7 million shares, for P312.55 million.
“Mr. Sy’s entry is a big boost for us. It goes to show his confidence in the potential of Anchor Land given its successful and ongoing luxury residential condominium projects in Manila in just a span of three years,” Li told reporters yesterday.
He said proceeds from the offering will be used to beef up its landbank and fund existing and new projects which include the three-storey Mandarin Square, expected for completion by December 2009; the 33-story Mayfair Tower; and a condominium project in Aseana Park near SM Mall Of Asia, estimated to cost P1.8 billion.
Anchor Land chief finance officer Antonio Fernandez earlier said the company may also borrow between P600 million to P800 million to fund capital requirements next year.
Anchor Land expects its net income to more than double this year to P160 million on the back of higher sales of its residential condominium projects. Sales are expected to triple to P900 million by the end of the year.
Its 33-story Mayfair Tower along United Nations Ave. in Manila was sold out in less than 18 months since its launch, while Mandarin Square has generated almost 60 percent of reservations from the public.
Mandarin Square, a 39-story luxury, high-rise condominium along Ongpin St. in Binondo, Manila, is expected to be completed by the end of 2009 while Mayfair will be ready for turnover to buyers by the second quarter of next year.
Anchor Land, owned by a group of seasoned professionals with over 30 years of experience in the the real estate industry, began commercial operations with the launching of its first luxury condominium project under Anchor Properties Corp. at the heart of the Binondo district. The company also has several projects in China.
