Metrobank property unit to hike capital to P1B

Cathay International Resources Corp., a subsidiary of the Metrobank Group’s property unit, Federal Land Inc., is raising its capital to P1 billion from P10 million to facilitate the entry of Hong Kong-based investors.

Of the capital increase, P500 million has been subscribed and P249.37 million paid in cash by Federal Land (P149.37 million) and Damson Properties Inc. (P100 million).

Cathay International shall be 39.8-percent foreign owned after the increase has been approved.

The company owns the 25-story Cebu Plaza Hotel now renamed Marco Polo Plaza Hotel. The hotel is now undergoing rehabilitation to meet world-class standards.

Upon completion of the renovation, Marco Polo Plaza Hotel will provide 335 guestrooms and suites, including Marco Polo’s signature Continental Club Floor. The hotel, which is the Metrobank Group’s first venture into the hotel services industry, will also feature a deluxe casino. Ty said the Metrobank Group has foreign partners for the hotel project.

Cebu Plaza Hotel ceased operations in 2003 after its then owner, Pathfinder Holdings Philippines, was effectively foreclosed by Metrobank for a P900-million unpaid loan, for which the hotel was used as collateral. Ty said the hotel is Metrobank’s contribution to the development of the country’s tourism infrastructure.