Gatchalian-led Wellex shifting to real estate

MANILA, Philippines - Gatchalian-led Wellex Industries Inc. is realigning its business and shifting focus from mining to real estate development to unlock the value of the 60-hectare Plastic City estate in Valenzuela City amid a resurgent property market.

On the sidelines of the company’s annual stockholders meeting yesterday, Wellex president and chief executive officer Weslie T. Gatchalian said the group is putting its mining plans on the backburner to allow it to jumpstart the development of a mixed-use urban complex on the property.

Wellex owns around 16 hectares out of the estimated 60 hectares of land in Plastic City.

“We’re shelving first our mining plans because we are seeing the potential of the real estate market in the Philippines. We wanted to catch this boom or growth in the country’s real estate sector,” Gatchalian said.

He said the group has already started discussions with five major real estate developers and expects to close a deal with one of them within the year.

 “We’re looking for the best possible partner to unlock the full potential of this huge property. Since our property is very big and located in a prime location, we want somebody with a strong experience in development and the real estate industry,” Gatchalian said.

“Our vision is to make it a mixed-use development catering to BPOs/call centers. That’s one of the biggest industries right now in the Philippines. There are no call centers yet in Valenzuela City. Aside from SM, there’s no big commercial area in Valenzuela. The location itself is very raw so we see a big potential in this city,” he pointed out.

Last May, sister firm Philippine Estates Corp. forged an agreement with Avida Land Corp., a unit of property giant Ayala Land Inc., to negotiate and finalize a joint venture with respect to the property, which used to house the warehouse facilities of Plastic City Industrial Corp. and Philfoods Inc.

Gatchalian said the property is seen to contribute significantly to the group’s maximum operation and financial position due to its encouraging prospect.

He said the company would revive its mining plans as soon as it completes the development of the property, which is expected to benefit residents from nearby areas such as Malabon, Navotas and Meycauayan, Marilao and Obando in Bulacan.