AGI forges partnership with FELI

MANILA, Philippines - Publicly listed companies Alliance Global Inc. (AGI) and Fil-Estate Land Inc. (FELI) signed yesterday a subscription agreement for the infusion of P5 billion by AGI into FELI that is expected to bolster the respective companies’ position in the competitive real estate industry.

The deal is projected to create a synergy that will allow AGI to tap into the vast land bank of FELI which it is eager to develop to complement its vision of making the Philippines the tourism haven of Asia.

Expected to be given priority is the completion and further development of the properties of FELI in Boracay, Nasugbu, Batangas, Tagaytay and the Calabar area, Iloilo and Metro Manila.

AGI, through its chairman Andrew L. Tan, believes that the partnership between the two listed companies will create good shareholders value for both companies. Both companies share the vision that with their respective assets, strength and core competencies, they will be able to play a major role in the leisure and tourism industry.

AGI, which has earlier expressed its desire to focus on tourism projects, stated that with the impressive line-up of properties in th FELI portfolio now being accessible for development, it will now be able to come up with more pioneering development design schemes and focus and devote its resources to the timely completion of the projects since it need not spend money to acquire the land it will develop.

FELI, for its part, opined that the deal will help unlock the values of the real estate assets it has kept for a long time. Further, it claimed that it will now have the needed liquidity to complete its projets affected by the economic downturn and launch new projects from its vast land bank.

“This partnership is definitely a good indication of real estate moving forward in the country,” stressed Fil-Estate chairman Robert John L. Sobrepeña.

Both companies hope to capitalize on the uptrend in the real estate sector that analysts are quoted as saying.