GT Capital consolidates businesses

MANILA, Philippines - Recent moves of GT Capital Holdings Inc. to consolidate numerous businesses under its wings will allow the conglomerate to benefit from growth opportunities across many industries.

The flagship investment firm of banking tycoon George S.K. Ty is pinning its hopes on the power, property, automotive and insurance sectors that are all poised to post continuous growth, an executive said.

GT Capital chief finance officer Francis Suarez said the company’s operating units have dominant presence in their respective industries.

So far, GT Capital owns Federal Land Inc., 51 percent of Global Business Power Corp. (GBPC), 51 percent of Toyota Motor Philippines Corp. and 66.7 percent of Charter Ping An Insurance Corp.

These companies, which have lined up expansion plans, will account for a significant share in earnings of GT Capital, he said.

“Federal Land has been active in the vertical residential space given the backlog in housing,” Suarez said.

The property firm is moving towards mixed-use and community projects from its previous strategy of stand-alone residential towers.

Suarez said major projects of Federal Land include the Veritown Fort in Bonifacio Global City, Bay Gardens in Pasay, and Four Seasons and Peninsula Gardens in Manila.

Federal Land is also looking at potential developments in a 180-hectare lot located in Biñan, Laguna, Suarez said.

“If and when the Cavite-Laguna Expressway happens, then Federal Land might benefit from that development,” he said.

“Right now, it’s still raw land. There are still many discussions,” Suarez said adding that the lot that is located near the Laguna Technopark industrial zone is owned by Federal Land and the Ty family.

Federal Land currently has 35 projects composed of 11,000 units. Given the robust property sector, Suarez said the company is recording over P1 billion in reservation sales per month, almost double compared with the average P600 million in 2011.

Federal Land is spending P12 billion this year to complete existing projects.

The power sector is also a bright spot for GT Capital.

By 2016, there will be a power shortage in the Visayas region as its electricity demand is growing at five percent per year.

“For GBPC, we’re expanding in the Visayas and other regions like Luzon or Mindanao,” Suarez said.

GBPC is one of the largest independent power producers in the Visayas.

It currently owns and operates nine power plants, with a total installed capacity of 627 megawatts (MW).

For its part, the automotive business of GT Capital will benefit from an expected motorization.

The Philippines is just a few years away from experiencing the shift in preference to cars from motorcycles, Suarez said, adding that Toyota Philippines will continue offering a diversified range of models.