Belle settles P1.2-billion accrued dividends to sister company

MANILA, Philippines - Listed leisure developer and gaming firm Belle Corp. has entered into a settlement agreement with sister firm Sinophil Corp. over its unpaid accrued dividends.

Under the agreement, Belle would transfer P1.2 billion worth of golf club shares and property to Sinophil in exchange for the settlement of accrued dividends and the eventual cancellation of the preferred shares owned by Sinophil.

In particular, Belle is transferring 220 membership shares in Tagaytay Midlands Golf Club Inc. as well as 235,583 square meters of land located in Tanauan, Batangas to Sinophil.

“The settlement agreement will enable Belle to eliminate the overhang resulting from the outstanding preferred shares that it has carried in its books over the years,” Belle told the Philippine Stock Exchange.

On the part of Sinophil, the agreement will result in the conversion of an asset which it has held on for several years into a more readily liquefiable asset.

Belle is currently developing Cotswold, a residential community located in Batangas, at an estimated cost of P250 million. The project is the fifth residential community within Lakeside Fairways in Talisay, Batangas and is targeted for completion by the end of 2010.

Belle has earmarked up to P1.7 billion over the next two years for the continued development of residential communities to meet the strong demand for premium residential units.

Of the total, P800 million will be spent this year for the construction of three projects which include the recently launched Japanese-themed residential subdivision called Katsura within the Lakeside Fairways; Fairfields, an American South contemporary-themed development that will rise on a seven-hectare property adjacent to The Verandas at Saratoga Hills.

For next year, Belle is launching five new projects that will entail an investment of around P800 million to P900 million.

Belle is currently developing up to 30 hectares of property in Tanauan, Batangas to be called The Greenlands Community. This project is adjacent to established developments such as Plantation Hills, The Parks at Saratoga Hills and The Verandas at Saratoga Hills.

Another 32 hectares are being planned for development as farm lots project.

Belle expects to end the year with net earnings of at least P300 million, up 46 percent from P206 million reported in 2008. Revenues are forecast to reach P1.3 billion or almost the same level as last year.        – Zinnia dela Peña