Globe Asiatique on going public: 'Watch out, we're moving in!'

MANILA, Philippines - It’s almost midday yet Delfin Lee still looks relaxed and, at the same time, eager to talk about his newest project, despite a full load of press interviews since early morning.

With son Dexter and daughter Divine, the country’s newest real estate tycoon runs Globe Asiatique Realty Holdings Corp., the leading developer of mass housing communities and a prominent player in the high-rise residential condominium market.

Globe Asiatique is the company behind groundbreaking projects such as St. Monique Valais in Binangonan, Rizal; Xevera in Bacolor and Mabalacat towns in Pampanga; Casa Ibiza in Antipolo; The Enclave in Angeles City; Chateau Valenzuela; GA Twin Towers in Mandaluyong; and the 38-storey GA Sky Suites in Quezon Avenue – soon to rise as the tallest building along EDSA.

Finding its niche, the company is set to launch more projects soon, including The Courtyard, the New Sta. Rosa Homes in Laguna, Sameerah in Angeles City, and Xevera Neo-Calapan in Mindoro.

Backed by a solid financial track record, with its net income consistently doubling over the past three years, Globe Asiatique is now primed up for its biggest challenge: the stock market.

After just 15 years since starting operations, the firm is expected to hold its initial public offering (IPO) – a stock market term referring to a company opening up its ownership to the public for the first time – at the Philippine Stock Exchange on January 2010, ushering in a slew of other potential IPO listings for the year.

“We had planned to undertake an IPO four or five years ago but we wanted to establish first a pattern of growth. I think now, we’re ready,” says Lee.

His optimism reflects the very nature – and attraction — of catering to the needs of the low- to middle-income families – there is a huge market for this kind of business.

He even downplays the possible impact of the volatility of global stock markets and bearish investor sentiment on the company ‘s IPO bid, confident that Globe Asiatique can hold fort due to its strong fundamentals and tremendous upside.

“At the price we’re offering for our shares, this translates to a price/earnings (P/E) ratio of between seven to 11 times, lower than the industry average of 8-10 times,” notes Dexter Lee, the company’s executive vice president and a former stock market analyst himself.

In financial parlance, the P/E ratio is used to compare the valuation of companies: a higher ratio means that investors are paying more for each unit of net income so that stock is considered more expensive compared to one with a lower P/E ratio.

From a wholly-owned family corporation, Globe Asiatique will divest between 15 – 26 percent of its stocks, equivalent to as much as 360 million shares, at a price range of P6.50 to P10 each. The IPO will raise up to P4 billion in proceeds for the company, enough to accelerate the development of its housing projects on a wider, nationwide scale.

In 2003, the company took its first big leap into high-rise development with the GA Tower Condominium I on EDSA. Two years later, GA Tower II began construction. Today, the GA Twin Towers offer a haven of amenities such as swimming pool, gym, and spa as well as several fastfood establishments. The residents also enjoy utmost convenience because of its central location and proximity to the Boni MRT Station.

This early success eventually led to the launch of the company’s most ambitious vertical project in 2007, the GA Sky Suites. Now almost completed, GA Sky Suites is an urban vertical project offering a design concept that includes two juxtaposed sculptural forms, which combine to form a dramatic edifice. Other features include al fresco dining, sky gardens, a swimming pool, and a playground. Beside it is the GA Corporate Center, which is similarly on track for its 2012 target completion.

But Globe Asiatique’s ambitious corporate vision is best captured by its two flagship projects in Pampanga — the dream communities of Xevera Bacolor and Xevera Mabalacat, launched back-to-back in 2007 and 2008.

Divine Lee, Globe Asiatique vice president for sales and marketing, says both Xevera Bacolor and Xevera Mabalacat are the results of extensive consultations his father held with residents of the area.

“My dad has always been an idealist. All his buyers know him personally; he goes to the projects, he talks to them and asks what their concerns are,” she adds.

Delfin Lee says they plan to replicate their distinctive projects in Subic, Davao, Cebu, Iloilo and other emerging growth centers because he believes there is strong demand for affordable housing that needs to be filled.

“With a nationwide shortfall of about 3.8 million houses, not even 20 Globe Asiatiques are sufficient to meet this demand. That’s why we’re focusing on affordable housing projects to slowly fill this gap,” he notes.

The key to the company’s success, Lee points out, is that it strives to develop housing communities for low-income earners without the low quality stigma usually associated with that segment.

Moreover, its exposure in the Pinoy Big Brother program aired by ABS-CBN, where the actual house was modeled after its houses in St. Monique Valais, catapulted the company to nationwide recognition. It stretched its media exposure to noontime show Wowowee where it donated houses and lots as game prizes.

“Giving back to society has also been a constant thrust in the company as it is embedded in its business model,” says Lee.

Backed by innovative financing schemes in a tie-up with state-run Pag-IBIG Fund, as well as unique marketing strategies that it has employed to reach out to the lower-income segments, Globe Asiatique has risen to greater heights as its project take-up continues to grow.

And for Delfin Lee, it is an affirmation of his vision to provide the low-income Filipino families with affordable yet quality housing in a comfortable environment.

“The ordinary Filipino deserves a better lifestyle, a higher standard of living than what his income can usually afford. We at Globe Asiatique are going all out in order to make this possible, and I believe we’ve succeeded in doing this.”