Banco de Oro Unibank Inc. (BDO), the country’s second largest bank, has entered into a P5-billion receivable and end-user’s financial deal with Megaworld Corp., the biggest residential condominium developer and office builder.
“We have actively collaborated with Megaworld to create an innovative way to providing receivable and consumer mortgage financing,” Nestor V. Tan, BDO president said. “Megaworld is one of our leading real estate relationships and we obviously feel comfortable with the company’s management and its development capability.”
He said the two parties worked on an innovative receivable and end-user financing program which effectively unlocks liquidity for Megaworld and allows it to fasttrack its residential developments.
The arrangement will give BDO unique access to Megaworld’s rich pool of residential buyers through mortgage loans at the onset, and other consumer loan and banking services in the long term.
Megaworld, meanwhile, gets additional funding to continue its development and sale of residential housing units.
The property developer received reservation sales estimated to reach record levels of over P24 billion this year. The company has one of the most extensive landbank in Metro Manila and is the largest producer of minimum income housing in the country.
In a press statement, Megaworld chairman Andrew Tan called the deal a strong partnership.
“Our leading position in providing mid-income housing fits well with BDO’s strategy of growing its residential mortgage portfolio. The BDO relationship has grown together with our business,” Tan added.
In the first semester of 2008, BDO said it gross customer loans grew 24 percent year-on-year, driven by the corporate and consumer loan segments.
Net interest income rose three percent to P10.9 billion due to robust growth in loans and low-cost deposits.
Net income grew to P2.4 billion, slightly lower than the P3.2-billion earnings in the same period in 2007.
In 2004, BDO entered into a joint venture arrangement with Sta. Lucia Realty and Development Inc. to transform a 127-hectate property in General Trias, Cavite into a residential subdivision. BDO owns the land while Sta. Lucia will develop the property. — Ted Torres