DMCI Holdings gets P500-million loan to settle unit's debt

DMCI Holdings Inc., the investment holding firm of the Consunji family, has obtained a P500-million short-term bridge loan facility from Banco De Oro Unibank.

In a disclosure to the Philippine Stock Exchange, DMCI Holdings said the facility will be used to partially settle loan obligations of subsidiary Atlantic Gulf & Pacific Co. (AG&P) of Manila with Cameron Granville 3 Asset Management Inc. and the Philippine National Bank, amounting to a total of P650 million.

DMCI owns 98 percent of AG&P, which filed for creditor protection in 2002.

In the nine months ending September 2008, DMCI reported a 30 percent drop in net earnings as it booked extraordinary and non-operating charges from its water business.

Net profit amounted to P1.21 billion as against P1.73 billion the previous year while revenues reached P14.15 billion or 52.3 percent higher than the year earlier figure of P9.29 billion.

DMCI’s investment in the water sector, operated under Maynilad Water Services Inc. and owned via a consortium with Metro Pacific Investments Corp. reported an impressive growth in operating level income from P1.1 billion to P2 billion on the back of higher billed volume.

DMCI said the adoption of a new concession accounting principle for 2008 accounted for a net charge of P787 million, resulting from forex losses from the recognition of dollar denominated future concession fee payables, the recognition of which is a feature of the new accounting standard.

As for its real estate business, DMCI Project Developers Inc. reported a 28 percent rise in net income to P748 million on the back of a 71 percent jump in revenues to P3.5 billion. Better sales volume from new projects and the higher selling price boosted the company’s financial performance.

Sales came from existing projects: Manors at Celebrity Place, Raya Gardens Condominiums, Mahogany Place Subdivision and Rosewood Pointe Homes which accounted for 40 percent of all real estate revenues.