BA, Fil-Estate form joint venture company

Four foreign groups led by the Bank of America will enter into a partnership with the Fil-Estate Group to form a new company to oversee the real estate conglomerate's high-rise projects and other vertical developments in Metro Manila.

Bank of America and three international turnkey contractors Dragage of France, SNC Lavalin of Canada and Leighton Holdings of Australia will tie up with Fil-Estate Properties Inc., the wholly owned development arm of the publicly listed Fil-Estate Land Inc.,to spin off a new unit, Fil-Estate Urban Corp., to initially focus on the completion of ongoing mixed-use, high-rise projects as well as property developments along the EDSA MRT route.

FEPI chairman Robert John Sobrepena said the investment banking group of BA would raise $35 million to pump in as fresh equity for the new company, accounting for an initial 30 percent stake.

BA and FEPI have signed a memorandum of understanding for their partnership while the rest are finalizing their respective agreements.

Under the MOU, BA will act as FEUC's financial adviser for the next 90 days and direct the company on the ideal capital and asset structure that will enable it to raise additional equity and loan financing to bankroll new projects.

"Bank of America's aim is to provide alternative financing options to Fil-Estate, attract new investors and maximize shareholder value in each project," Sobrepena said.

Under the new group structure, FEUC will be the corporate vehicle for mass transport-related vertical residential and commercial projects catering to the middle-to high-income markets.

One of these projects is the Pioneer Grand Central Complex, integrating residential, leisure, hotel and business establishments, directly linked to the eighth station of the Metro Star Express along EDSA.

Other projects to be integrated into FEUC will include the Renaissance 5000 in Ortigas; the Eighth Sto. Domingo residential, business and commercial complex in Quezon City ; the 33-story Capital Plaza at the back of the Quezon City Hall and Cathedral Heights at the back of St. Luke's Hospital in New Manila. -- Conrado Diaz Jr.