Ongpin’s latest: heavy equipment

by Miguel R. Camus, BusinessMirror

Posted at Jan 11 2010 12:18 AM | Updated as of Jan 11 2010 08:18 AM

MANILA, Philippines - Former trade minister Roberto Ongpin’s Alphaland Corp. is not stopping at real-estate development and now plans to branch out to import and distribution of heavy equipment and machinery with a new a P1-billion subsidiary.

The new firm—to be called Alphaland Heavy Equipment Corp.—is seen to generate synergies with Alphaland real estate while opening up new revenue streams from other developers as well as the public-infrastructure sector, said Alphaland president Mario Oreta.

He added the new company will have a distribution agreement with China’s largest construction-equipment maker, Xuzhou Construction Machinery Group (XCMG).

“It is a very opportune time for us to go into this business so we can use our own equipment for our developments,” said Oreta. “We will also be distributing XCMG’s heavy equipment. Our target market will be local developers as well as government?institutions.”

The firm’s incorporation papers show the new company will be set up with Fabricom-XCMG Philippines Inc., a local heavy-equipment importer controlled by businessman Delfin Wenceslao Jr.

Alphaland Heavy Equipment will have an authorized capital of P1 billion at a par value of P1. A quarter of the shares have been subscribed to, of which?Alphaland and Fabricom-XCMG have subscribed to equal 124.99 million shares each.

Incorporators include Roberto Ongpin, Petron president Eric Recto, Oreta and Wenceslao, who also sits as director of listed Ongpin Internet- gaming firm Philweb Corp.

Oreta said the establishment of the new firm is timely since Alphaland is planning to spend up to P5 billion to launch several new projects.

Alphaland will also be the new name of listed Macondray Plastics Inc., following the recent acquisition by Ongpin-led investment firm RVO Capital Ventures Corp. of 66 percent of Macondray.

This paved the way for the backdoor listing of Alphaland, which Oreta earlier said was a “faster way” to list on the stock exchange. Alphaland’s entry will likewise infuse P12.7 billion worth of prime properties and projects.

Alphaland, through wholly owned subsidiary Alphaland Development Inc., has five major projects—Shangri-La at the Fort, Alphaland Southgate Tower and Mall, Alphaland Makati Place, Alphaland Bay City and The Alphaland Makati Tower.

Alphaland has a 20-percent?stake in Shangri-La at the Fort, an ongoing development led by the Shangri-La Group 60-story project with 500 guestrooms and 234 apartments, with completion seen by 2012.

Alphaland Southgate Tower and Mall is fully ?owned by Alphaland and was completed in August of 2009.

Alphaland Makati Place is an 85:15?mixed-use joint venture between subsidiary?Silvertown Property Development Corp. (to be renamed Alphaland Makati Place Inc.) and the Boy Scouts of the Philippines to develop a one-hectare property at the corner of Ayala Avenue and Malugay Street in Makati.

Meanwhile, Alphaland Bay City is a 50:50 joint venture with D.M. Wenceslao group to develop 32 hectares of reclaimed land in Parañaque.

Both Alphaland Makati Place and Alphaland Bay City are?being lined up by the company this year.

To support its expansion, Alphaland will increase its authorized capital stock to P5 billion from P400 million.