Lucio Tan joins property bandwagon

Lucio Tan has set up a new real estate development company to take advantage of the current property boom being fueled by dollar remittances from overseas workers and low interest rates.

The new firm, Eton Properties Philippines Inc., is positioning itself to be among the leading real estate developers in the country.

Sources said Tan, listed as the Philippines’ second wealthiest businessman in the latest Asian edition of Forbes Magazine with a net worth of $2.3 billion, wants to seize opportunities in the residential, retail and office building markets — the fastest-growing segments of the industry.

The tycoon is planning to build a mall called Dragon Center in a property along Alabang-Zapote Road that was foreclosed by his bank, Allied Banking Corp. It also plans to ride the BPO (business process outsourcing) bandwagon to help meet the huge demand for office space among multinationals which have chosen the Philippines as site for their expansion.

Aside from office buildings and residential condominiums, Eton will build residential subdivisions, condotels, and leisure/retirement projects.

Tan, through several companies, owns a very extensive landbank in both the Makati and Ortigas central business districts, Manila, Pasay, Paranaque, Quezon City, Pasig, Mactan, Cabuyao, Calatagan and other strategic locations in the Philippines.

He also has extensive property holdings in Hong Kong, China and other parts of Asia.

Tan through Eton Properties (HK) has developed a commercial building in Xiamen, China. The company also plans to develop residential, office and retail spaces in Beijing which is envisioned as the first Hong Kong-style residential quarter in the area.

Tan has interests in the airline business through Philippine Airlines, the country’s flag carrier; tobacco (Fortune Tobacco Corp.), beer and liquor (Asia Brewery Inc. and Tanduay Holdings Inc.), banking (Philippine National Bank and Allied Banking Corp), and education.

The tycoon also controls publicly listed Balabac Resources & Holdings Inc., a holing company with interests in real estate development and oil exploration; and MacroAsia Corp., an aviation-related services company.

Sources said some of the foreclosed properties of PNB might also be developed into residential or commercial projects by Eton.

According to a report by investment bank, UBS the exciting prospects in the residential market are being boosted by rising demand from OFWs, improving affordability, low interest rates, and rising middle-class demand.