Phinma Property Holdings Corp., a developer of affordable homes, is reviving a plan to hold an initial public offering (IPO) next year to take advantage of the stock market’s surge.
Willie Uy, Phinma Properties president and chief executive officer, told the BusinessMirror that the company plans to undertake as many as 14 new projects, some of which will be located in previously untapped markets in the Visayas and Mindanao, before proceeding with the IPO.
Uy did not provide financial figures for the planned fund-raising measure, as the developer has yet to select an underwriter. Prior to the global financial crisis in 2008, Phinma Properties was projecting to raise about P1 billion from an initial share sale.
“We are now studying an IPO carefully. But we would like to do it within 2011 and we would like to do it while the market is hot,” Uy said in an interview.
“It seems the market is receptive to new IPOs and Phinma Properties has a good story,” he added.
The benchmark Philippine Stock Exchange Index recently breached the 4,000 level, an all-time high, and some analysts expect the market’s main barometer to top 5,000 by the end of next year.
Phinma Properties, which is 35.3- percent owned by publicly listed Phinma Corp., has been focusing on mid-rise condominium developments within Metro Manila, selling units priced from below P1 million to P1.8 million.
Demand for these units remains strong with the company forecasting to increase full year profits to P195 million, from P132.19 million in 2009.. Uy said this profit would result from projected revenue which is expected to improve from last year’s P1.3 billion, mainly from real-estate sales.
The property developer has also been adding new projects to the pipeline, as it is “fast running out of inventory” on the back of robust domestic sales.
Uy said the company recently launched Asya Enclaves Alabang, a 3.5-hectare development in Muntinlupa City featuring three-gated Asian-themed residential condominium communities, which will be developed over the next two-and-a- half years.
Asya Enclaves will offer a total of about 1,800 units, he said.
Moreover, the company is close to acquiring two new properties, each under three hectares, in Quezon City and near the Parañaque area.
Uy added that the developer is also likely to proceed with pending joint -venture deals in Cebu and Davao City to jumpstart its expansion outside Luzon.
“The market is right for us to come in. The price range of condominiums in Davao is similar to Metro Manila prices so if we introduce our projects there, it will be advantageous,” he said.
Phinma Properties’ main mid-rise community developments include Fountain Breeze in Sucat, Parañaque and Quezon City developments Floro Vista in Commonwealth Avenue and Sofia Bellevue in Capital Hills Drive.
It also has low-cost horizontal communities in Cavite and Laguna and upscale townhouse projects near Forbes Park in Makati City and in Quezon City.
The company reported via its website that said it has built over 7,000 condominium units in Metro Manila.
For details on Phinma properties, please contact Reby Ramirez @ +63 916.4044.555 / +63 922.883.9308 / +63 919.699.3572 or e-mail her at reby_ramirez@yahoo.com.
Source: Business Mirror, 03 October 2010
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Sunday, October 3, 2010
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