Ashmore seeks buyer for Alphaland stake

MANILA, Philippines - London-based private equity fund Ashmore Group Plc. is in talks with several parties including a member of Abu Dhabi’s ruling family, for the acquisition of its stake in Ongpin-led upscale property developer Alphaland Corp.

But no definitive agreement has been finalized or executed by the Ashmore Group with any buyer so far, Alphaland said in a disclosure to the Philippine Stock Exchange.

“The group of His Highness Sheik Suroor is among the groups interested in investing in the company that the Ashmore Group is currently in discussions in connection with the Ashmore Group’s divestment in the company,” Alphaland said.

The market is abuzz with speculation that Sheik Surroor Bin Mohammed Al Nahyan, developer of the luxurious Etihad Towers and Abu Dhabi Trade Center, may buy out the Ashmore Group’s 40-percent stake in Alphaland.

Alphaland said Shiek Suroor is a good friend of Alphaland chairman and former Trade Minister Roberto V. Ongpin.

The Ashmore Group will cut ties with Alphaland as it reportedly did not agree with some corporate actions of Alphaland. Ongpin was instrumental in orchestrating the deal that allowed Ashmore Group to buy Saudi Aramco’s 40-percent stake in the country’s largest oil refiner Petron Corp. for $550 million in March 2008. Ashmore Group was also involved in telecommunications (ISM Communications), oil exploration (Philex Petroleum Corp.) and water (Maynilad Water Services).

For its part, Alphaland is focusing on completing its high-end leisure developments catering to the affluent.

Alphaland is the company behind the P2-billion Alphaland Marina Club and the 32-hectare Bay City development along Manila Bay, the P4-billion Balesin Island Club in Quezon province, and the Alphaland City Club in Makati central business district.

The company said its consolidated net income in the first nine months this year surged 46 percent to P2.75 billion from P1.88 billion a year ago. Its consolidated revenues jumped by a third to P530.9 million from P394.4 million given higher rental and other income from Alphaland Southgate Tower.

The income growth was driven by a 57-percent spike in other income to P3.6 billion from P2.29 billion due to higher gain on sale of available for sale investments, higher gain on fair value of investment properties, and higher equity pick-up on net earnings of a jointly controlled entity offset by higher interest expense on loans.