KPPI to sell more properties

Listed real estate developer Kuok Philippine Properties Inc. (KPPI) will continue selling some properties currently held by its affiliates to raise cash to pay debts and fund future investments.

KPPI, through its subsidiaries and affiliates, has acquired landholdings in Cebu, Batangas, Laguna and Cavite.

Last year, the company raised P525 million through the sale of certain assets including its 15-percent stake in Pacific Online Corp.

The company is now holding talks with possible joint venture partners for the development of the Carmona Silang property in Cavite. The Manila Jockey Club, which has acquired 77 hectares of land in the area, is completing the construction of its horse racing facilities and has started sponsoring races in this new location.

KPPI incurred a net loss of P1.87 billion last year, 87 percent higher than the P1-billion loss registered in 2001. This was due to provision for losses on impairment of investments (P964.1 million), equity in net loss of affiliates (P175.6 million) and the write-off of pre-operating expenses (P616.4 million).

To ensure the continued survival of the company, its principal shareholders, the Kuok Group extended its support. Rhinestone Ltd., which is an affiliate of the Kuok Group, remitted another $25 million to the company to pay off Kuok’s outstanding short-term bank loans.

KPPI has been suffering from financial distress since 1998 after the regional economic crisis hit the country. It suspended several projects at the onset of the crisis which resulted in declining net income for the company.