MANILA, Philippines – Philrealty Holdings Corporation said Monday that the court-assisted rehabilitation plan has been terminated by the Quezon City Regional Trial Court after 12 years.
Andrew Alcid, one of Philrealty’s board members, said the termination will now allow the firm to tap the capital markets to raise funds for its projects.
“The significance to the company is that we can now go back to the market and raise money, which also means both in the equity and debt. There are no plans yet but it allows us to now tap the capital markets for both equity and debt fund raising which will allow us to achieve all the plans that we have been laying down,” said Alcid.
The rehabilitation has prevented Philrealty from tapping sources for funding, and forced the firm to fund its projects internally.
“We’ve been spending internally generated funds and that’s not the best way to develop projects,” Alcid said.
Philrealty, the real estate firm behind Tektite Towers and Alexandria, filed for voluntary rehabilitation in 2002 after it faced losses due to the Asian financial crisis in 1997.
“In 1997 when the Asian financial crisis hit, a lot of players in the market, not just real estate players even other businesses, were affected because the currency devalued and the game changed dramatically for the economy. Ourselves, we were not exempted. We’ve been on hiatus for 10 to 12 years and it is only now that we are being given the opportunity to restart,” said Alcid.
Philrealty is introducing new projects in the residential, office, and retail segments to mark its return to the property development scene.
On Monday, Philrealty unveiled Sky Villas Tower, the second phase of its five-tower upscale development in New Manila, Quezon City called Andrea North.
Construction of the 31-storey Sky Villas began in 2012, with units expected to be turned over in the first half of 2016.
The smallest unit is cut at 205 square meters and priced at an average of P145,000 per square-meter.
Philrealty is expecting to earn close to P3 billion in sales from Sky Villas.
The company is investing P10 billion over the next 10 years for Andrea North, which has a total property value of P25 billion.
Philrealty is planning to add a retail component at El Pueblo, Pasig and develop a mixed-use vertical development project at the Bonifacio Global City in partnership with Greenhills Properties Inc.
The firm is also looking at developing masterplan township projects outside Metro Manila.
“We will start pursuing projects outside the CBD in the form of masterplan townships. We are currently in discussion with a couple of potential partners where we will develop masterplan townships, one is in the south and one is in the north,” said Alcid.
Alcid noted that funding for these projects will be finalized now that the rehabilitation has ended.