Datem eyes expansion into renewable energy

MANILA, Philippines - Local construction firm Datem Inc. is looking to invest in renewable energy as it embarks on further diversification to support long-term growth, a top official said.

In an interview, Datem president Levy Espiritu said the company is studying the feasibility of getting into the power sector as part of its overall plan to expand in other industries other than its core business of construction.

“We’re looking at what is needed for the country, like power. We’re looking at a mix of power sources but it will be renewable, basically to address environmental issues. We’re preparing studies right now to prepare us for that eventually,” Espiritu said.

He said Datem is considering investing in both base-load and and peaking plants.

“Right now, base-load plants already have existing contracts. So peaking plants are better, but after these base-load contracts expire, we can go into base-load,” Espiritu said.

Initial preference are hydropower, solar and biomass plants, he added.

Datem, with its core business in construction, expanded in related industries such as housing and bulk water treatment through subsidiaries Datem Homes and Datem Water starting 2013.

The water subsidiary is gearing up for expansion in Southeast Asia, establishing its first foreign venture in Vietnam and is eyeing other booming countries in the region such as Myanmar and Cambodia.

The company considers expanding in Southeast Asia as strategic given the ongoing integration of the 10-member Association of Southeast Asian Nations (Asean).

To fund these planned expansion projects, Datem is gearing up for a P4.6-billion initial public offering (IPO) in mid-November.

Last month, Datem formally filed with the Securities and Exchange (SEC) an application to list 329,046,263 shares at an offer price of up to P14.15 per share.

The offer consists of up to 286,127,185 firm shares and 42,919,078 optional shares pursuant to an over-allotment option, according to the company’s application.

To date, the company has partnered with top property developers for 24 ongoing projects.

These include Alphaland Makati Place, composed of three residential and office towers; Arthaland’s two-tower Arya Residences; De La Salle University’s new Rufino Campus; Federal Land Inc.’s 47-story Grand Hyatt tower; Megaworld’s One Uptown tower, Two Central residential building and Venice Grand Canal Mall and Global Estate Resort’s Savoy Hotel in Boracay.

Its completed projects include Discovery Primea, a luxury residential tower in Makati; Discovery Shores in Boracay and the Mind Museum, the Philippines’ first world-class science museum and a LEED Gold-certified building for design and construction.

For its water subsidiary Datem Water Inc., it has a 15-year bulk water supply contract with Metro Kalibo Water District and is looking at other provinces to expand.