Metro Pacific to divest of majority stake in Landco Pacific

Metro Pacific Investments Corp. (MPIC), the local unit of Hong Kong-based investment holding firm First Pacific Co. Ltd., has decided to let go of its majority stake in high-end leisure property developer Landco Pacific Corp.

In a disclosure to the Philippine Stock Exchange, MPIC said its board of directors approved a proposal to dispose of the firm’s shareholdings in Landco although the terms and conditions have yet to be finalized.

A special stockholders’ meeting has been set on Feb. 20 to seek shareholders’ approval of the planned divestment.

The sale of its stake in Landco marks MPIC’s exit from the real estate development business, and in line with the rationalization of its investment portfolio which includes infrastructure, utilities and healthcare.

The Xerez-Burgos family, which owns 49 percent of Landco, earlier disclosed its intention to buy out MPIC in the venture.

MPIC earlier lent P500 million to Landco in order to fasttrack the completion of some of its projects and pay down debt.

In the six months ending June 2008, Landco posted a core net income of P17.9 million, 82 percent lower than the previous level’s P110.3 million due to the 21 percent drop in recognized revenue from real estate sales sold.

Although sales surged 91 percent to P2.71 billion, delays in construction for the period impacted negatively on Landco’s ability to recognize those revenues.

Cost of sales and expenses likewise rose six percent to P889.1 million due to higher costs of materials and marketing expenses related to the launching of new projects.

Among Landco’s new projects include Playa Laiya (a masterplanned tourism estate that will rise on a 129-hectare property in San Juan, Batangas), Playa Azalea (a leisure tourism project in Samal, Davao), WoodGrove Park (a four-hectare high-end residential community in San Fernando, Pampanga), Woodridge Garden Village (an upscale residential village to rise on a 44-hectare lot in Zamboanga) and a 200-room hotel in Calatagan, Batangas.

Situated on a seven-kilometer stretch of white sand, Playa Laiya is touted to become the largest beach community and the hub of beach tourism and commercial development in the Southeastern Luzon area.

Playa Azalea, on the other hand, is a joint venture between Landco and the Floirendo family. It will offer mid-sized, mid-priced lots ranging between 200 and 400 square meters.