Fil-Estate Land relaunches brand
Admitting that the Fil-Estate brand is hurting from its reverses during the 1997 Asian financial crisis, listed realty firm Fil-Estate Land Inc. has unveiled plans to re-launch the company’s image under a new operating unit that will handle new project developments.
The new company, initially capitalized at P1 billion, will be a potential joint-venture with a partner-investor which will infuse additional capital to move the company forward, Fil-Estate Land president Robert John Sobrepeña said.
Fil-Estate Land will serve as a holding company, he said.
Fil-Estate has infused into the new company, described as a special purpose vehicle, the group’s best assets, Sobrepeña said.
These include Harbor Town in Batangas, an 800-hectare Tagaytay property, and various business process outsourcing (BPO)-commercial potential sites in Alabang, Trinoma, and several economic zones.
"After the (1977) crisis, our thrust was to finish the unfinished projects. Now, the thrust is the launch of the next projects that will make up new inventories," said Sobrepeña.
"The management nurses the hope of repairing (the Fil-Estate brand)... It is a desire that we will not retire it but repair it and be a holding company," he added.
Sobrepeña said they hope to have the SPV launched by the first quarter next year, or within a five-month period, when they have closed the deal with any of the potential partners they are presently talking with, both foreign and local.
For now, the company is allocating between P700 million to P800 million in capital expenditures.
Sobrepeña said they expect a substantial portion of their earnings, around 50 percent, to be coming from recurring income.
In particular, the company intends to launch its Trinoma BPO-project by first quarter next year in partnership with Ayala Land Inc. and other partners in the MRT venture. Fil-Estate owns the MRT depot that is located in its North EDSA station.
Sobrepena also said that the company will soon revert to its aggressive marketing effort, similar to pre-crisis days when it was among the most aggressive realty firm of the 80s and 90s.
The 1997 financial crisis stopped Fil Estate’s momentum and drained its liquidity which led the company to be focused on servicing obligations.
The company’s high leverage led it to pare down loans by liquidating assets, and diverting cash flow to these obligations.
"Now we have created new inventory, and we will start investing for marketing and management to start moving again. We will start investing again," said Sobrepeña.
"Between now and the years to come, we will hire new blood for the management," he added.