Philcomsat in joint venture talks with local, Singaporean firms for real estate projects

Philcomsat Holdings Corp. (formerly Liberty Mines Inc.) is in discussions with local and Singaporean companies for a joint venture in line with its foray into real estate development.

Documents submitted to the Securities and Exchange Commission showed that the unidentified local firm is involved in the development of medium-cost housing in Pasig while the Singaporean company is engaged in the development of a housing and industrial zone in Calabarzon.

Philcomsat Holdings plans to establish separate joint venture companies for the two projects and as payment for its equity in the joint venture, to constitute the properties to be used for the projects.

In 1997, Philcomsat Holdings was converted into a holding company from a mere mining firm. It is 81 percent owned by Philippine Communications Satellite Corp.

Apart from this, the company is planning to go into the telecommunications business with its mother company Philcomsat but still has to determine up to what extent it can venture into the business.

Philcomsat Holdings also plans to tap the promising call center business. Based on the studies of CommVerge Solutions Philippines Inc., the proposal of Accallade International would be most disadvantageous for the company. The company will only need a board resolution to implement the project.

The local contact center industry is expected to grow by as much as $864 million by 2004 with the expected influx of foreign clients in the next two years.

The company earlier raised P926.16 million from a private placement. The proceeds were placed with various financial institutions in fixed income instruments until such time the business climate improves and becomes more favorable to the interest of the company.

Philcomsat Holdings Inc. reported a 35.13- percent drop in its first quarter net income this year to P10.97 million from P16.91 billion the same period a year ago.

Revenues decreased to P17.07 million from P22.39 million.