D.M. Wenceslao flips another parcel in Aseana City for cash
The land reclamation specialists responsible for the creation and curation of its flagship development, Aseana City, which is just to the south of SM’s Mall of Asia in Manila Bay, announced that it has sold another 1,790 sqm parcel of land in Aseana City for an undisclosed amount to an undisclosed recipient.
This is the second lot that D.M. Wenceslao [DMW 6.78 0.15%] has sold of this size and price in the past two months, and together with DMW’s signed 25-year lease with Landers for a 15,064 sqm parcel, represents a significant uptick in DMW’s activity with its landbank of vacant land within its reclamation development.
DMW said that it still has approximately 4,200 sqm of land remaining to sell or otherwise monetize in Aseana City.
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The original lot sale in December was touted by DMW’s executive team as a “fortification” of its balance sheet by adding to its (pre-December sale) cash position of P2.4 billion.
This second sale should dump even more cash on that pile, and the recurring revenue from the Landers lease should provide a considerable stream of recurring revenue for DMW to further bolster that pile of cash.
The only question now is what will DMW do with this money? Are these sales part of a funding strategy for a new initiative?
Whatever it is, I hope it’s not something boring like a share buy-back. It’s worth watching closely to see if we can figure out where DMW is doing with this.
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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
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